Do you want to buy XMR through a local payment method without going through strict verification process? While there are endless cryptocurrency exchange platforms that allow you to invest in crypto assets, they usually come with various KYC requirements just for the signup process. Not to mention how high buying/selling fees, limited payment options, and trading complexity further add to the challenges of purchasing altcoins like XMR through online exchanges.
This is where I find platforms like LocalMonero to be highly useful. Not only does this exchange allow you to exchange your currency with XMR assets through various payment options, but it also makes XMR purchases fast and convenient.
Yes, you don't have to understand the entire trading mechanism to purchase XMR tokens from this exchange platform. Its simple user interface makes it easy to invest in cryptocurrency, even for beginners. Want to learn more about LocalMonero and how it differs from other crypto exchange platforms?
In this guide, I will uncover all that I have explored about this exchange through my own experience, ranging from its standout features to what could be improved.
What is LocalMonero?
LocalMonero is a cryptocurrency exchange established in 2017 in the British Virgin Islands. This peer-to-peer exchange platform allows people worldwide to trade their local cash for Monero (XMR). Now, you might wonder how this platform works, especially if you haven't encountered similar platforms like LocalBitcoin.
From what I explored, LocalMonero enables users to create ads specifying the exchange rate and payment methods for Monero transactions. When a buyer or seller finds an ad that matches their preferred rate and payment choice, the seller holds the XMR needed in an escrow account upon mutual agreement.
Eventually, when both parties complete their transactions, and the seller confirms the payment to LocalMonero, LocalMonero will release the XMR from escrow to the buyer. What I like about this approach to buying and selling Monero is how LocalMonero's technology focuses on safely escrowing any user's cryptos without gaining ownership. Not to mention its time-saving approach to buy and sell XMR.
In some ways, l also found LocalMonero quite similar to an online store or eBay for cryptocurrencies. Precisely, just like these shopping sites, Local Monero allows investors on the marketplace to post various ads that list a price quote for a particular coin. This advertisement can be for both purchasing and selling. And so, you can accept any offer that you find reasonable as another buyer or seller.
My Overall Thoughts on LocalMonero
As a straightforward person-to-person exchange platform for trading Monero, LocalMonero has gained great popularity and attention among users. Even though I found only nine customer reviews of LocalMonero on TrustPilot, I was amazed to find that each was a 5-star review. Not to mention its overall 4.3-star rating on TrustPilot.
This alone speaks a lot about the reliability and accessibility of the platform. Now, considering my own experience, there was a lot that I liked about LocalMonero. This specifically includes:
- Ease of Use: Firstly, LocalMonero is very user-friendly. As mentioned above, it's very similar to online shopping sites like eBay (which most people are familiar with). Hence, whether you're new to trading cryptocurrency or just tired of the lengthy sign up process, verification, and trading approach on more complex trading platforms, LocalMonero is ideal for you!
- Swift Transactions: Trading on LocalMonero is a straightforward process. It takes between 10-60 minutes, whether you send Monero to or out of your LocalMonero wallet.
- Payment Acceptance: Lastly, if you've ever felt stuck after finding limited local payment options on a crypto exchange, LocalMonero is here to save the day by accepting all local payment methods. How does it do that? I'll explain that further in this article.
Key Features & Advantages of LocalMonero
Here are some key features that I liked when trading on LocalMonero:
Negatives & Disadvantages of LocalMonero
Besides the advantages, trading on LocalMonero also has some disadvantages. These include:
What Services does LocalMonero offer?
During my experience with LocalMonero, I encountered various positive features that made it way better than most other crypto exchanges. Even though this exchange only focuses on trading XMR tokens, like LocalBitcoin only allows trading with Bitcoin, LocalMonero still has much to offer its users. What does this include? Let's take a look:
LocalMonero is regarded as one of the most user-friendly Monero investment platforms. Within minutes, you can effortlessly register and trade in digital currency. This makes the exchange ideal for beginner and expert traders.
In an already turbulent market, high liquidity protects investors from price slippages. Speaking of which, LocalMonero is now one of the most liquid exchanges. And why not? It has almost all the qualities of a reliable and trusted crypto exchange: accessibility, ease of use, local payment support, security, and more. With all this, you can easily find buyers or sellers of XRM in the same territory as you and instantly make the trade.
At LocalMonero, I discovered a valuable collection of educational materials that helped me gain a deeper understanding of digital currency trading and various cryptocurrencies. But that's not all – LocalMonero goes the extra mile by incentivizing user education. I personally found it rewarding to earn crypto rewards for every lesson I completed.
For instance, when I learned about Monero's privacy features, I received XMR as a token of appreciation, which made the learning experience even more engaging.
Custody of Cryptocurrency
One aspect of this exchange that resonated with me is the degree of control it gives traders over their assets. With LocalMonero, it's a departure from the norm of trading brokers – here, I could manage my crypto assets entirely on my terms. What's even more appealing is the flexibility it offers; while the exchange provides its own LocalMonero wallet, I had the freedom to use my personal crypto wallet if that suited my trading preferences better. It's all about tailoring the experience to meet your individual trading requirements.
Wide Payment Acceptance
As I mentioned, LocalMonero supports all local payment methods. This means that you can choose any payment option based on your location. To give you some ideas, here are some local payment methods that I was able to access when using the exchange supported in the United States:
and many other payment methods.
With the endless payment options, you can easily make a trade on LocalMonero through any of your preferred methods.
As a peer-to-peer exchange, LocalMonero has a strong community component compared to traditional centralized exchanges and their decentralized counterparts. Interestingly, you can also be a part of and benefit from this community through LocalMonero's forums.
At the time of writing, their forum section features multiple categories, each already having various community discussions. Notably, their forum features separate sections for:
You can join an active discussion or start a new one in a relevant category based on your preference.
Arbitration Bonds Providing Trade Security
LocalMonero's commitment to secure trading impressed me, especially with its use of arbitration bonds. When you initiate an online trade, an equivalent amount of Monero is automatically set aside from the seller's LocalMonero bond wallet. This mechanism ensures that in case the seller doesn't fulfill their end of the deal, LocalMonero support can step in and direct the Monero from the arbitration bond to you, safeguarding your investment.
For sellers, my personal advice is to refrain from finalizing the transaction until you've confirmed receipt of payment from the Monero buyer. It's essential to note that arbitration bond protection isn't active by default for local transactions. If you prefer this added layer of security, I recommend verifying that it's active before proceeding with the trade. Your peace of mind and financial security are paramount.
Various Trade Options
LocalMonero allows both local and online trades. Now, you might be wondering how they are different. Well, online trades are entirely online through the exchange. And so, you don't need to meet or connect your trading partner. Moreover, arbitration bond protection is enabled and funded automatically for online trades.
In contrast, local trades are conducted face-to-face, and arbitration bond protection is not enabled by default. As per my experience, I suggest online trades for a more secure trading experience.
So, you don't prefer trading on a desktop? No worries! LocalMonero also features Android and iOS apps. With these apps, you can easily get notifications on your smartphone and proceed with trades wherever you are.
Last but not least, LocalMonero also has a rating system, which displays a score on your public profile. This percentage score indicates how much favorable feedback you have received from your trading partner. With this approach, you can easily choose a reliable trading partner based on how much positive, neutral, and negative feedback a user has received from their past trades.
What I don't like about LocalMonero
Now let's explore the negatives I explore when trading on LocalMonero:
High Trading Fee
Although there are no makers and taker fees in the trading mechanism of LocalMonero, I found the only fee they charged (trading fee) to be quite high. Notably, LocalMonero charges a 1% trading fee in XRM on every trade you make. In comparison, most other crypto exchanges charge an average of 0.25% for both maker and taker fees. Hence, if you're looking for a trading platform with lower trading fees, LocalMonero might not be it.
Limited Customer Support Option
Another downside of the exchange is that their customer assistance is not readily available. Now, they do offer customer support through various means like opening a ticket, emailing, or messaging their team on platforms like Telegram and Matrix.
But when I tried contacting them, none of these options allowed me to access a quick response from their team. This can be a disadvantage for many users, especially those who prefer quick customer support assistance.
As I mentioned, LocalMonero doesn't charge any additional fees, whether it be a registration fee or buying/selling cost. They only charge a 1% trading fee on every completed deal. Besides this, if you send money from one LocalMonero wallet to another, you will also have to pay the Monero network transaction fee.
This charge is deducted automatically from your LocalMonero wallet anytime you send a transaction. Keep in mind that this fee can change at any time. Hence, you should check it beforehand through the wallet page. The updated fee is always visible under the headline "Outgoing Monero Fees."
Pros and Cons of LocalMonero
- Transactions are conducted anonymously
- It supports various local payment options based on your location
- All disputes are handled timely by LocalMonero admins
- Supports escrow transactions for added payment security
- There are no buy/sell costs.
- The founders and team behind LocalMonero are entirely anonymous
- High trading fees compared to some exchanges
- Only supports XRM trading
LocalMonero is a popular and safe peer-to-peer site for buying and selling Monero, offering a variety of payment methods and local currencies. While the platform's and its founders' anonymity, high trading fees, and limited customer support may be a disadvantage for some, it still has much to offer. This includes its simple UI, different trade options, and escrow payment support.
All in all, I suggest you consider both the positives and negatives to determine whether LocalMonero is the ideal trading platform for you or not. I hope this detailed guide will help you make the right decision.
Comparison Table of the Best Crypto Exchanges in the USA
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