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3 of the best LocalBitcoins alternatives to use in 2020

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The post 3 of the best LocalBitcoins alternatives to use in 2020 appeared first on Go Cryptowise.

Are you a big fan of LocalBitcoins? The peer-to-peer marketplace where you can buy and sell Bitcoin directly to other Bitcoin fans all over the world.

But did you know that there are few similar but perhaps even better sites out there? So I am aiming to share these great LocalBitcoins alternatives with you.

Did you know that LocalBitcoins is one of the most popular Bitcoin trading sites amongst thousands of traders?

This is because of a couple of key things. Namely at LocalBitcoins you can trade BTC with others and buy/sell using a wide range of payment methods. From PayPal, to cash, bank transfer, cheque, coupons, Skrill, Neteller, etc.

Pretty much any payment method you can think of. And this is really unique if you compare to the commonly used cryptocurrency exchanges where bank transfer and card is often only available.

Another key thing is that you (could) buy Bitcoin anonymously at LocalBitcoins. But this has changed and with the new rules this is no longer possible.

How p2p marketplaces like LocalBitcoins work

And to give you a brief explanation of how peer-to-peer (p2p) marketplaces like LocalBitcoins work.

You sign up to the platform, and then as a buyer you look for sellers. Either via the existing offers that are listed on the site. Or you can put up an offer yourself.

Here you list your wanted purchase price. For example $6850 per 1 BTC. And how you want to pay for (which payment method). And then you agree on a price and payment method with the seller. And then you pay in the money via LocalBitcoins.

And LocalBitcoins then holds your funds in escrow and release them to the seller when they have sent the BTCs. So that you won’t get tricked by the seller.

Why P2P marketplaces (like LocalBitcoins) are so popular

As mentioned above there are a few reasons for why p2p marketplaces are so popular. Even though it can be sometimes be a bit more laborsome than using a traditional online exchange.

The main reasons are:

1 ) You can use so many more payment methods. From cash, to bank transfer, to PayPal, Skrill, Neteller, Moneygram, Swish, to god knows how many.

2 ) Another key aspect was that you could stay anonymous. This is no longer true for LocalBitcoins, but true for some of the alternatives on this list.

3 ) You can find local sellers. Meaning you can meet up with other Bitcoin fans and pay them with cash in person. Or set up some other way of transacting between you. This is of course extremely popular in countries where online transactions are less common, or easy.

The 3 best LocalBitcoins alternatives

Ok so it’s time for me to share my three favourite alternatives to LocalBitcoins. You might have heard about these ones before, or perhaps they are all completely new to you.

Either way I will share some information about them and how you can get started using either of these LocalBitcoins alternatives to start trading Bitcoin.

1 ) LocalCryptos

LocalCryptos logo

Ok, so this P2P marketplace was originally called LocalEthereum. And this was because they started out as an alternative to LocalBitcoins, but of course serving Ethereum and Ether.

So similar to how LocalBitcoins was only trading Bitcoin this site was originally only trading Ethereum. But as the name change suggest this is no longer the case.

Because today you can trade both Ethereum and Bitcoin on LocalCryptos.

Otherwise the two are pretty much the same. But I honestly like the look of LocalCryptos better. It has a more modern look to it and is slightly more user-friendly.

Otherwise LocalCryptos has escrow, the same number of payment methods (more or less) available and features like LocalBitcoins.

But with two clear advantages and why I think this is as good, or better p2p marketplace site to use.

  1. Is because it has both Ethereum and Bitcoin, whereas LocalBitcoins only has Bitcoin
  2. Because you can still use LocalCryptos to buy both ETH and BTC anonymously

How to get started using LocalCryptos

List of sellers for ETH at LocalCryptos

Ok, so to get started using LocalCryptos to buy either BTC or ETH you first head over to its site – www.localcryptos.com.

So with LocalCryptos you can buy both BTC and ETH without doing a KYC. And you can connect to the site using your everyday wallets like a Ledger hardware wallet, or the Metamask application.

And then while on LocalCryptos you should start looking for a buyer/seller in order to start trading.

If you can’t find one directly simply put up an offer on the site and wait for someone to contact you.

2 ) Paxful

Paxful another p2p marketplace for trading Bitcoin

Second out on this list is Paxful. And it resembles the two previous options. It is a p2p marketplace where you can buy and sell Bitcoin with other people across the world.

Either with locals from where you are based. Or globally with someone based in a whole different country or continent than you.

What makes Paxful different than the others is that you can also buy Bitcoin instantly using the site.

So not only can you buy from other people via the p2p marketplace, but you can also buy Bitcoin using a credit card or debit card via Paxful using any of the connected sellers.

How to get started using Paxful

Buy Bitcoin instantly using Paxful

Ok, so if you would prefer to use Paxful to start buying and selling Bitcoin then go to www.paxful.com.

And then it is just about finding a seller/buyer and agreeing on terms after you have selected the payment method and price.

You can use Paxful and avoid the KYC but only to limits of:

  • $1500 USD in trade volume = must provide ID for verification
  • $10,000 USD in trade volume = provide ID and address verification

3 ) LocalCoinSwap

LocalCoinSwap p2p marketplace for 5+ cryptos

Third option and alternative to LocalBitcoins is LocalCoinSwap.

This p2p marketplace site works like the others on this list, but it has a lot more cryptocurrencies available for trading on its site.

From Bitcoin to Ethereum, Dash, USDT, DAI, LCS, Nexo, PAX, USDC. So plenty of stablecoins available making it an obvious choice for anyone looking to both enter and exit the cryptocurrency market.

LocalCoinSwap cryptocurrencies available for trading on its site

How to get started using LocalCoinSwap

Ok, so LocalCoinSwap works in the same way like previous options. You can also use LocalCoinSwap without any KYC. So you can use LocalCoinSwap to buy and sell cryptos without giving away your identity.

To start using LocalCoinSwap simply head over to www.LocalCoinSwap.com and then you register an account with them.

After that you look for willing sellers, or buyers if you are planning to sell cryptos on the site.

Agree on terms for the price, payment methods and then complete your purchase. LocalCoinSwap has an escrow service in a place like the others to help protect you and your cryptos.

Conclusion

That is the end of this guide to best alternatives to use instead of LocalBitcoins. There aren’t as many to choose from as if you were looking for a good Binance alternative or Coinbase alternative.

But these ones on this are all reputable and trusted by millions of traders around the world.

I think any of those, or LocalBitcoins including would make a good choice.

Remember that they all have escrow in place to help you keep your cryptos safe while transacting on the sites.

How do you choose which LocalBitcoins alternative to use?

For me that goes down to a few key things:

  1. What payment method do you want to use? If it doesn’t matter then you can use any of them. Otherwise, start comparing them based on that
  2. Is KYC important? Would you prefer to buy without an ID? Then you should use LocalCryptos, Paxful or LocalCoinSwap
  3. What’s the price? Of course, this will always be one of the most important parts so compare the prices between the offers

Find other guides

  1. Best way to invest in crypto
  2. Bitcoin investing guide
  3. Best Litecoin wallets
  4. Buy IOTA guide
  5. Best Cardano wallets
Me, Per Englund

Hello and welcome to Go Cryptowise.

My name is Per Englund and I’m a long-term fan and investor of Bitcoin and other cryptocurrencies. I’ve been around the space for a good few years, learning how it all works and to be a part of this engaging community.

Now it’s time for me to share my experience with others. I am also a business and product developer so I know first-hand what it takes to create a successful product, brand and customer experience.

And I am bringing this vision to my writing and how Go CryptoWise work.
Connect with me on LinkedIn. Ask me anything on here.

Get in touch with me to find out more about Go CryptoWise and what we care about.

The post 3 of the best LocalBitcoins alternatives to use in 2020 appeared first on Go Cryptowise.

Source: https://gocryptowise.com/blog/best-localbitcoins-alternatives/

Blockchain

Bullish? On-Exchange Bitcoin Declines While Whales Accumulate (Report)

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A recent report suggests that the amount of Bitcoin stored on exchanges is declining while BTC whales increase their holdings and that’s bullish for Bitcoin’s price.

The paper also highlighted that investors have a much larger time horizon for their holdings now compared to previous years.

Bitcoin Stored On Exchanges Drop

In its latest report shared with CryptoPotato on Bitcoin investors’ behavior, the popular research company Digital Delphi explored the number of bitcoins stored on cryptocurrency exchanges. The document indicated that if the BTC stock on platforms increases, it could put sell pressure.

However, this isn’t necessarily the case during bull runs, as retail investors often “leave BTC on exchanges and traders use BTC as margin collateral.” Alternatively, in case the asset price rises while the stock on exchange decreases, this typically implies an accumulation trend.

The report indicated that Bitcoin stored on exchanges marked an all-time high of 2.96 million in mid-February. Since then, the trend has reversed, and the number has dropped to below 2.6 million.

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Bitcoin Price/Bitcoin Stock On Exchanges. Source: DigitalDelphi
Bitcoin Price/Bitcoin Stock On Exchanges. Source: DigitalDelphi

Digital Delphi argued that the reason behind this decrease of BTC on exchanges is because investors are most likely preparing for a longer-term holding period. More importantly, though, the paper highlighted a substantial decline in speculative trading interest in Bitcoin, while the HODLing mentality has increased.

“Unlike the 2019 price uptrend, which coincided with BTC stock increasing, this current trend has seen a divergence between BTC stock and price. This suggests a more sustainable move upwards for BTC, in comparison to that of 2019, as data indicates a holder base with longer time horizons.”

Bitcoin Whales Haven’t Slowed Down Accumulating

Digital Delphi’s data reaffirmed previous reports that Bitcoin whales, meaning addresses containing between 1,000 and 10,000 BTC, continue to accumulate large portions. The company outlined that whales have been on a shopping spree since the start of 2020, as their holdings have increased by 9% YTD.

Moreover, the US Federal Reserve’s actions to print extensive amounts of dollars since the start of the COVID-19 pandemic have accelerated whales’ accumulations.

“Since the USD M2 supply expansion in March, there has been a 7% increase in whale holdings.”

According to the document, this only emphasizes the narrative that Bitcoin serves as a hedge against dollar inflation, and “the smart money is clearly betting on this.” It’s worth noting that prominent US investor Paul Tudor Jones III purchased BTC earlier this year to protect himself against precisely the rising inflation.

Bitcoin Whales HODLing. Source: DigitalDelphi
Bitcoin Whales HODLing. Source: DigitalDelphi
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Source: https://cryptopotato.com/bullish-on-exchange-bitcoin-declines-while-whales-accumulate-report/

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US Crypto Tax Avoiders Beware: The IRS Updates 1040 Tax Form

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The Internal Revenue Service (IRS) seems to have found a way to block crypto tax evasion, following an update of its tax form.

IRS: No Excuses for Crypto Traders

According to the Wall Street Journal on Friday (September 25, 2020), the IRS is planning to alter its 1040 tax form. The revised tax form will see cryptocurrency holders give a straight answer about their crypto activities.

The IRS has been relentlessly pursuing crypto investors to disclose transactions, as it suspects that many taxpayers were guilty of tax evasion. However, the tax administrator looks like it has found a way to make all Bitcoin holders accountable.

Presently, the tax form will mandate crypto traders to answer a” yes or no” to the following question:

“At any time during 2020, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”

What makes the update interesting is the placement of the above question. Prior to the revised tax form, the question appeared in a section where taxpayers were not mandated to fill the answer. However, the question’s position in the altered tax form just below the taxpayer’s name and address leaves no room for excuses or oversight on the part of the crypto trader.

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Reacting to the altered form of 1040 was Ed Zollars:

“This placement is unprecedented and will make it easier for the IRS to win cases against taxpayers who check ‘No’ when they should check ‘Yes”

There have been complaints in the past about the lack of a robust regulatory framework for crypto tax filings. In October 2019, the IRS published new tax guidelines that would supposedly make it easier for crypto investors to file taxes. The U.S. tax agency also sent reminder letters to crypto holders. Earlier in September, the IRS announced a payment of $625,000 to anyone who could crack Monero and Bitcoin’s lightning network.

us_irs_tax
US 1040 tax form.

Governments Keen on Crypto Taxation

While the IRS seems to have devised a means to trap crypto holders, more countries are introducing crypto tax laws and clamping down on offenders.

As reported by CryptoPotato in April, Spain’s tax administrator sent out notices to 66,000 crypto investors, as against the 14,000 notices sent in 2019. South Korea, on the other hand, has been unsteady about taxing cryptocurrency.

Earlier in 2020, South Korea’s Ministry of Finance and Strategy revealed that there were no intentions to tax crypto profits. However, reports emerged that the Ministry was considering imposing a 20% tax on profits from crypto trading. In June, the country’s Finance Minister called for the imposition of tax on cryptocurrency trading gains.

Australia’s tax agency, the Australian Taxation Office (ATO), sent out reminders to 350,000 crypto traders in March about their tax obligations. According to the ATO, crypto investors were to keep a comprehensive record of their trading activities for ease of tax payment.

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Source: https://cryptopotato.com/us-crypto-tax-avoiders-beware-the-irs-updates-1040-tax-form/

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Chinese State Media Report: Cryptocurrencies Are The Best-Performing Assets Of 2020

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Although China still categorizes Bitcoin and other cryptocurrencies as illegal, several state-owned media outlets purportedly ran reports describing them as the best-performing assets since the start of the year.

Bitcoin And Crypto Run On Chinese Media

A popular state-owned media under the name Xinhua News Agency set the tone yesterday by citing a Bloomberg report titled “crypto is beating gold as 2020’s top asset so far.” Apart from summarizing Bloomberg’s narrative, Xinhua added that cryptocurrencies are “decentralized financial instruments” and concluded that they have become “the best performing asset class this year.”

Another digital asset coverage followed today on China Central Television (CCTV) – among the most popular broadcasting services in the nation. In a three-minute-long video clip, CCTV spoke about cryptocurrencies and emphasized on their year-to-date performance. More specifically, the clip focused on their 70% price increase this year.

According to a popular cryptocurrency commentator Dovey Wan, this “interesting propaganda” spread out among other outlets, being featured on all “avenues, newspapers, online media, and TV.” The advertised narrative was the same – that digital assets have been outperforming all other investment instruments.

Binance CEO Changpeng Zhao commented that people might not understand the significance behind this coverage, but “it is big.”

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cz_binance-min
CZ, CEO of Binance

However, Wan raised a compelling question – what’s the real intention behind this move? After all, cryptocurrencies remain banned for official usage within the world’s most populated nation. She speculated that this coverage might have something to do with the Chinese central bank digital currency that’s reportedly being tested.

China Behind The Price Pump?

As CryptoPotato reported earlier today, green dominated the cryptocurrency field with the total market cap increasing by about $20 billion since yesterday.

Historically, news and announcements from China have undoubtedly impacted prices. As such, it wouldn’t be a surprise that the two-day media coverage promoting cryptocurrencies as the best-performing assets in 2020 has affected the market to some extent.

In late 2019, President Xi Jinping urged the country to accelerate its blockchain adoption. In the next few hours, the cryptocurrency field experienced some of its most impressive price pumps in history. Bitcoin alone skyrocketed by 42% in hours.

Less than a month later, country officials clarified that being pro-blockchain didn’t mean a positive attitude on cryptocurrencies. After reaffirming that digital assets are still illegal, their value plummeted in response.

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Source: https://cryptopotato.com/chinese-state-media-report-cryptocurrencies-are-the-best-performing-assets-of-2020/

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