LocalBitcoins Removes In-person Cash Trades, Check these Alternatives

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Sead Fadilpašić

Journalist

Sead Fadilpašić

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Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...

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June 26, 2023 06:53 EDT

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One of the most popular peer-to-peer (P2P) exchanges, LocalBitcoins caught the cryptoworld by surprise when they apparently stopped offering in-person cash trades on its list of options, leaving its users in 248 countries to search for alternatives.

The news broke out when some of the exchange’s users said on the Reddit platform that their in-person fiat trades have been canceled. What this means is that people can’t utilize this platform as a way to meet in person and sell Bitcoin (BTC) and other cryptocurrencies for cash or cash for crypto. LocalBitcoins hasn’t made any official announcements as to why they removed this option, though some Reddit users have been commenting that the move might be related to the recent legal updates. The Finland-based company declined to comment when contacted by Cryptonews.com.

Whether this is temporary or permanent, the question remains what are the alternatives to LocalBitcoins? There are a number of P2P exchanges that traders have been turning to buy or sell their cryptos with cash.

Reddit user HeycheFKay, for example, suggests Payfair as a viable alternative, claiming to be an investor and a satisfied user of the platform. Quite a few commenters to their post have agreed, stating that Payfair is a “good, though underpromoted,” escrow alternative to LocalBitcoins. PayFair.io is a decentralized escrow platform offering a range of cryptocurrencies to over 35 fiat pairs, which, most importantly for this story, allows cash trades.

Other common suggestions online include Bisq and Paxful. Bisq is an open-source, peer-to-peer application that allows in-person cash trades, and enables a number of cryptocurrencies to be bought without registration. Though users complain of a low volume, it has also been mentioned online that this LocalBitcoin situation might bring more people to Bisq. Meanwhile, according to their website, Paxful offers over 300 payment methods to choose from, including cash deposits, gift cards, bank transfers, etc.

CEO of Paxful tweeted:

Hodl Hodl, a peer-to-peer Bitcoin exchange, is another often suggested alternative, where available payment methods depend on users’ location. However, it is not available in the USA.

Meanwhile, in direct response to LocalBitcoins, LocalEthereum, a peer to peer marketplace where people can buy or sell Ethereum (ETH), has dropped the trading fee on cash-in-person exchanges to 0%. This option will be available until July 1st, during which period people can meet in person to buy or sell ETH with cash without additional fees.