LocalCoinSwap Review

LocalCoinSwap Review

Robert McDougall 

January 9, 2024

Cryptocurrency

Are you looking for a P2P trading platform that supports custodial and non-custodial trading options? Look no further! LocalCoinSwap offers just that and more. 

From escrow protection to usage-ease, 2-FA protection, and an active customer support team, this P2P trading platform stands out for more reasons than one. But does that make it worth your money and time? Well, there's only one way to figure that out; by exploring the exchange in more detail. 

In this review, I will uncover all the features, benefits, downsides, and other details about LocalCoinSwap, considering my own experience and thorough research.

What is LocalCoinSwap?

Starting with the basics, LocalCoinSwap is is a peer-to-peer cryptocurrency exchange based in Saint Kitts and Nevis. Launched in 2017, what makes this exchange stand out from the rest is its easy accessibility and wide usage across the globe. 

Unlike most other crypto exchanges that offer limited trading services in some countries, LocalCoinSwap allows people worldwide to post buying/selling ads for any cryptocurrency supported by the platform. How does this work? It's quite simple! Personally speaking, I found trading on this exchange similar to buying/selling products on online shopping platforms like eBay.

Buyers and sellers create ads on the platform, specifying a price quote for a particular cryptocurrency they plan to buy or sell. Interested parties wanting to deal with these buyers or sellers will accept the offer. For a clearer idea, let's explore how trading on LocalCoinSwap works:

  • First, you must respond to the ads posted on the exchange based on your cryptocurrency buying/selling preferences.
  • When you agree to proceed with the transaction with the buyer/seller you responded to, the seller will put the specified cryptocurrency in an escrow account.
  • Afterward, both parties have to complete the transaction, and the seller has to confirm that they have received the payment.
  • Once that happens, LocalCoinSwap will release the cryptocurrency from the escrow account to the buyer.

My Overall Thoughts on LocalCoinSwap

Despite being a relatively newer crypto exchange compared to other well-established platforms, LocalCoinSwap has certainly earned the trust of many traders globally. For me, some of the key factors that made LocalCoinSwap stand out from other platforms were its:

  • Attentive Customer Service: One of the key aspects that makes an exchange ideal is its customer support service. How quickly do they respond? How long does it take to solve your issues? Considering my and other users' experience (as per many TrustPilot reviews), LocalCoinSwap's team is available 24/7 to solve all customer queries. Now, that’s a praiseworthy service that most P2P exchanges fail to provide. 

  • Broad Availability: LocalCoinSwap is accessible in over 190 countries. But that's not even the best part yet. The exchange supports 300+ fiat currencies, making it easy to trade through your preferred currency. So, there aren't any trading limitations on LocalCoinSwap. 

  • No KYC Verification: Yes, you don't have to share your identity to begin trading on LocalCoinSwap. Although the exchange does give you the option for KYC verification, it's not compulsory. As someone who prefers complete anonymity and privacy when trading online, I found this quite convenient — especially compared to other platforms that make KYC compulsory to some extent.

Key Features & Advantages of LocalCoinSwap

After thoroughly exploring all that LocalCoinSwap has to offer, here's why I found this P2P trading platform ideal:

Negatives & Disadvantages of LocalCoinSwap

Nevertheless there are some downsides to the platform. For me, LocalCoinSwap falls short in the following 2 cases:

What Services does LocalCoinSwap offer?

I found this exchange to ideally stand up to its solid reputation and 4.6-star Trustpilot rating through various features. For a clearer idea, let's look at some key features of LocalCoinSwap:

Multiple Deposit Methods

Since LocalCoinSwap is an entry-level exchange, I found it ideal, especially for beginner-level traders who want to invest in cryptocurrency. But it's not just the beginner-friendly and straightforward user interface that makes LocalCoinSwap ideal for beginners. It’s also the extensive range of deposit methods available. Being an entry-level exchange, LocalCoinSwap caters well to beginners by supporting over 300 different payment methods. What I found noteworthy is that the exchange exclusively accepts payments in fiat currency, not cryptocurrency. 

This approach provides a level of flexibility that empowers sellers to freely choose the payment method and fiat currency they prefer for trading.

Personally speaking though, I encountered a variety of common payment methods while trading on the platform. The diversity not only made the platform more inclusive but also streamlined the trading process. The ability to choose from various payment methods and fiat currencies added a layer of convenience to my trading activities, ultimately contributing to a positive experience on the platform.

Some of the most common payment methods I came across when trading on LocalCoinSwap were:

  • Cash in person
  • PayPal
  • PayID
  • Local bank transfer
  • Skrill
  • Transferwise
  • Cash deposit, etc.

Escrow Payment Security

As I started using LocalCoinSwap for my crypto trades, I got a bit worried about potential scams because the platform is open to everyone. However, LocalCoinSwap quickly eased my concerns by ensuring strong security measures, making my trading experience feel safer.

One feature that stood out was how they handle cryptocurrency transactions using escrow protection. It's a simple yet effective process: Cryptos stay in a secure account until the seller confirms they got the payment. This careful approach means no trades are finalized unless both parties are confirmed and happy with the deal.

Even for someone who knows their way around crypto, I found LocalCoinSwap's instructions on escrow payments easy to follow. This not only reassured me, a more experienced trader, but also makes it simpler for newcomers. The clear and secure escrow protection system makes LocalCoinSwap a reliable platform for crypto transactions, boosting my confidence in every trade.

Account History

Besides payment security through escrow payments, another feature I liked about LocalCoinSwap was their emphasis on promoting transparent trading even when they don't prioritize user verification. This simply refers to the account history and other useful information portrayed on every trader's profile.

So, even if you don't know who they are, you can look into their trading history on the platform. This way, you can make a more informed decision when choosing reliable traders to deal with. 

2-Factor Authentication

As I explored more into LocalCoinSwap for my crypto activities, the addition of 2-Factor Authentication (2-FA) caught my attention. This feature, allowing account verification through email or a convenient OTP application like Google Authenticator, provided an extra layer of security. Choosing the 2-FA not only reassured me of personalized account protection but also highlighted LocalCoinSwap's commitment to user safety — which boosted my confidence in the platform's security measures.

Non Custodial Trading

As a secure trading platform, LocalCoinSwap allows non-custodial trading for all its users. This gives you more control over your crypto assets. Precisely, unlike custodial trading, LocalCoinSwap's non-custodial feature ensures that you don't have to send funds to the platform when trading. Instead, you can trade directly from your wallet, considering LocalCoinSwap as a broker and escrow platform facilitating the transactions. 

Reliable Customer Support Team

Considering the 110 (out of 125) 5-star reviews about LocalCoinSwap on Trustpilot, one thing that I found common in most of these reviews was that the users appreciated the team's support. Not only was the team always available to quickly resolve basic user issues, but they also took limited time to solve trading disputes. 

This simply proves how reliable LocalCoinSwap's team is when solving user concerns. Now, one thing I didn't like here was the request/ticket system for contacting the team when there could be more quick and convenient options like live chat, etc. But, to cover this gap, the exchange's team can be easily accessible through various social media channels like Telegram, Twitter, Reddit, Facebook, and more.

Supported Currencies

For a peer-to-peer crypto exchange like LocalCoinSwap, it's common for anyone to think about how many cryptocurrencies it supports. But don't worry; that's not a concern when trading at LocalCoinSwap. The exchange allows you to trade beyond the basic cryptocurrencies like Bitcoin and Ether. While it does support these cryptos, you can also trade various other crypto assets, including: 

  • Tether (Stablecoin)
  • DAI (Stablecoin)
  • Nexo
  • Dash
  • USDC (Stablecoin)
  • LCS (LocalCoinSwap's loyalty token)
  • Kusama (KSM)

Compared to most other similar P2P trading platforms like Paxful or LocalCryptos, LocalCoinSwap certainly has more to offer than the rest. Yet, this doesn't hide the fact that LocalCoinSwap has quite a weird asset selection. For instance, Kusama and Nexo are some low-utility and demand tokens the exchange supports. 

Straightforward Trading View

As a beginner in trading, I found most exchange platforms' trading views quite complex. Wait, what does trading view refer to? It's simply a section of the exchange's website that shows a cryptocurrency's price chart and current price. On most exchanges, you will find that the trading view has buy-and-sell boxes where you can place orders for your preferred cryptocurrency. This page also shows your order history. 

But, with LocalCoinSwap being more of an eBay-like platform for cryptocurrency purchases, its trading view is quite similar to the homepage of eBay. Precisely, instead of placing orders on buying/selling boxes, you can browse through sale/purchase ads posted on the platform.

For a more catered search, you can set your preferred payment method, coin, price, etc., before searching for buyers/sellers. This will allow you to pick dealers from a more specified list. Once you've found the ideal buyer/seller to proceed with, you can complete the trade immediately. 

Acceptance of US Investors

If we look into the acceptance of crypto trading platforms in the United States, we all know that the strict investment regulations make most exchanges inaccessible to US investors. This means that even the most popular exchange platforms globally aren’t legally accessible in the US

Now, that leaves us thinking, ‘What type of exchanges are legally accessible for US investors and traders?’ The answer is simple: US regulations only allow exchanges registered as Money Service Businesses (MSBs) with money transfer licenses. Moreover, US regulations also make it essential for exchanges to necessitate KYC verification for US-based investors. 

The main reason behind this regulation is to limit trading frauds and scams by unknown users online. Due to this reason, exchanges that don’t comply with these regulations limit their services for US traders to avoid facing any legal complications. 

I understand these crypto trading requirements are way stricter than any other jurisdiction in the world. But that’s not something you need to worry about when trading with LocalCoinSwap. Why is that? Because this exchange does allow US investors to access its trading features. 

As a simplified trading platform, LocalCoinSwap ensures that anyone worldwide (even in the US) can trade on it. However, LocalCoinSwap always suggests US investors conduct their analysis and research to avoid legal concerns for trading in their specific location. 

Anonymity

In my exploration of LocalCoinSwap, the ability to anonymously purchase Bitcoin, Ethereum, or other cryptocurrencies caught my attention. What's intriguing is that you can do this without the hassle of mandatory KYC verification or sharing personal details. In this setup, the person you trade with only gets a glimpse of your online profile, wallet address, and a chosen pseudonym.

Now, you might wonder if this lack of KYC compromises reliability or security. Well, based on my experience, LocalCoinSwap has a strong focus on other security measures like escrow payments and 2-Factor Authentication (2-FA). These safeguards work together to maintain a secure trading environment globally. 

So, even with the absence of KYC requirements, I found LocalCoinSwap to be a trustworthy platform, offering a level of anonymity without sacrificing security.

What I don't like about LocalCoinSwap

Coming to the downsides of LocalCoinSwap, here are the two main aspects of trading on this exchange that I didn't like: 

High Fees

One huge concern I had when trading on LocalCoinSwap was their high trading fee of 1.00%. Compared to the average trading fee on most other platforms, this is very high. Because of that, I suggest traders compare their trading options based on the fee structure before proceeding with LocalCoinSwap. 

Fraud Concerns

I didn't personally face any issues with fraud on the exchange, but I did come across some user reviews on Trustpilot that mentioned fraudulent users. 

For instance, let's consider one review that says, "A user claimed that coins were placed in escrow when they were not. The user requested that I make my payment. I declined. I notified the support service about the user. Within an hour, the case was reviewed, and the user was removed from the platform." 

While this review proves how reliable LocalCoinSwap's team is, it also means that there are fraudulent users on the platform. Hence, I suggest you carefully consider a user's profile and trade history before proceeding with any trade.

LocalCoinSwap Fees

Besides the high 1.00% trading fee charged by LocalCoinSwap, the exchange also charges a withdrawal fee. This is the final fee to consider when trading on LocalCoinSwap. The good thing here is that LocalCoinSwap's withdrawal fee of 0.00025 BTC per BTC withdrawal is lower than the industry average of 0.00053 BTC per BTC withdrawal. So, besides their high trading fee, you don't have to worry about extreme costs and charges.

Pros and Cons of LocalCoinSwap

Pros
  • No KYC verification is required
  • Easy-to-use platform
  • Highly responsible and fast-reacting support team
  • Straightforward buying and selling process
  • Accessible to all users globally
Cons
  • Less liquidity compared to other exchanges
  • Trade security depends on who you choose to trade with

Conclusion

Considering all that LocalCoinSwap has to offer, I believe it is one of the best P2P trading platforms for anyone around the globe. From limited restrictions to its user-friendly interface, smooth trading, security measures, and quick customer support service, there's a lot that makes LocalCoinSwap worth considering for new traders. 

But, while you focus on the positives, don't forget to also consider the downsides, i.e., the high fee and fraud concerns. Speaking from experience, I believe evaluating the advantages, features, and downsides is crucial to making a more informed trading decision. As we conclude this detailed review, my hope is that it gives you the clarity you need to decide if LocalCoinSwap fits your trading style. If you don't think LocalCoinSwap is right for you, take a look at some of the best crypto exchanges in this article, or see the comparison table below.

Comparison Table of the Best Crypto Exchanges in the USA

MEXC
eToro
Uphold
Coinmama
Crypto.com
Crypto Exchange
Crypto Exchange
MEXC
eToro
Uphold
Coinmama
Crypto.com
Fiat Currencies
Fiat Currencies
USD, TWD, AED, PHP, AUD, JPY, CAD, EUR & more
USD
USD, GBP, EUR, CHF, AUD, JPY & 21 more
USD, EUR, AUD, CAD, GBP, JPY
USD, AUD, CAD, CHF, EUR, GBP, NZD, SGD, JPY & 10+ more
Cryptocurrencies
Cryptocurrencies
MEXC, BTC, ETH, EOS, BCH, LTC & 1,520+ more
BTC, ETH, BCH, DASH, LTC, ETC & 75 more
BTC, ETH, ADA, DOGE, COMP, DOT & 125+ more
BTC, ETH, ETC, UNI, LINK, LTC, BCH, DOGE, MATIC, EOS, AAVE, COMP, OMG, YFI, WBTC
BTC, ETH, LTC, XRP, CRO, ADA, DOT, SOL, DOGE & 250+ more
Deposit Methods
Deposit Methods
Visa/Mastercard, Bank Cards, Bank Transfer, Apple Pay, Google Pay, Cryptocurrency
PayPal, Debit card, Wire transfer
Bank Transfer (ACH), Bank Transfer (SEPA), Debit/Credit Card, Wire Transfer, Faster Payments Service, SWIFT, Cryptocurrency
Credit card, Debit card, Fedwire, Apple Pay, Google Pay
Bank Transfer (ACH), BPAY, SEPA, Credit/Debit card, PayPal, TransferWise, Fedwire, SWIFT, Cryptocurrency
Trading Fees
Trading Fees
0% for spot, 0.0%/0.01% for futures
1%
Fees included in the spread
2.93% - 3.90% (depending on loyalty level)
Included in spread

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