This post contains affiliate links and I may receive compensation when you click certain links.

LocalBitcoins Alternatives (2022)

Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.

LocalBitcoins is a leading peer-to-peer (P2P) crypto marketplace where you can trade Bitcoin (BTC) directly with other investors.

But LocalBitcoin’s lack of support for cash transactions, as well as its strict identity verification requirements, have many crypto enthusiasts looking elsewhere for their trades.

Thankfully, there are a lot of awesome LocalBitcoins alternatives on the market for you to choose from.

Here’s a quick look at some of the top P2P crypto marketplaces that you can use instead of LocalBitcoins.

Alternatives to LocalBitcoins

Paxful: Best for In-Person Cash Trades & Low Buyer Fees

Paxful Logo Header

Countries Most countries (including UK, EU, US, and Canada)
Cryptocurrencies BTC, ETH, USDT
Trading Fees Buyers: Free
Sellers: 0.5% to 5%
Major Payment Methods
UK bank transfer, PayPal, gift cards, credit & debit cards, MoneyGram, Western Union, in-person cash, crypto transfer
Minimum Identify Requirements (UK)
Name, phone number, email address, photo ID

Paxful is a US-based peer-to-peer (P2P) crypto trading platform that was founded in 2014.

Most of the platform’s trading volume comes from the US, but it’s also available in the UK and most countries around the world. It currently has more than 4.8 million registered users.

There are a few things that set Paxful apart from LocalBitcoins. The first is that it supports Ethereum (ETH) and Tether (USDT) in addition to Bitcoin (BTC). The second major benefit is that Paxful lets you use in-person cash as a payment method, which LocalBitcoins doesn’t. You also don’t have to pay any trading fees if you’re a buyer on Paxful.

But like LocalBitcoins, Paxful also requires you to submit a copy of your photo ID if you want to trade more than $1,000 in crypto.

Paxful also has less trading volume than LocalBitcoins in the UK, so you might not get as great of an exchange rate for your transactions.

But if you’re looking for a convenient and low-cost way to buy crypto using cash, Paxful is one of the best LocalBitcoins alternatives available.

Advantages

  • Supports BTC, ETH, and USDT.
  • Lets you buy crypto using in-person cash.
  • No trading fees for buyers.
  • Supports users in most countries, including the UK and EU.

Disadvantages

  • Less trading volume than LocalBitcoins in the UK.
  • Exchange rates on BTC aren’t that competitive.
  • Photo ID required if you want to trade more than $1,000 worth of crypto.
Paxful WebsitePaxful Review

Bisq: Best for Decentralised P2P Trades

Bisq order book spread in the BTCUSD market

Countries All countries
Cryptocurrencies All cryptocurrencies (primarily BTC, ETH, LTC)
Trading Fees Maker: 0.17%
Taker: 1.23%
Major Payment Methods
UK bank transfer, Western Union, crypto transfer, in-person cash, cash deposit
Minimum Identify Requirements (UK)
None

Bisq is a decentralised P2P crypto trading app that’s run by its namesake decentralised autonomous organisation, Bisq DAO. Like LocalBitcoins, Bisq lets you trade crypto directly with other people, but unlike LocalBitcoins, Bisq prioritises privacy above all else.

With Bisq, there are no identity verification requirements, so you can trade crypto without ever revealing your identity to the platform. Bisq also supports in-person cash trades as well as crypto transfers (among other payment methods), so you can stay anonymous throughout the whole trading process. The platform is also available in all countries.

Bisq’s trading fees max out at 1.23% for takers (people who respond to trading advertisements). The platform also supports pretty much every altcoin, but each trade requires you to use Bitcoin in some capacity. For example, you can buy BTC using cash or, if you want to trade ETH, you would have to swap BTC in Bisq’s escrow system.

One drawback to Bisq is that it has a steeper learning curve than LocalBitcoins – and there’s not much customer support if things go wrong. However, if you want a truly decentralised P2P trading platform with no identity verification requirements, Bisq might be what you need.

Advantages

  • No identity verification requirements.
  • Supports all countries and cryptocurrencies.
  • Lets you pay using in-person cash.
  • Relatively low transaction fees.

Disadvantages

  • You must either buy or sell BTC in each trade (no altcoin-only transactions).
  • Steep learning curve for Bisq interface.
  • Limited support/customer service if something goes wrong.
Bisq Website

LocalCoinSwap: Best for Altcoins

Countries Most countries (including UK, EU, US, and Canada)
Cryptocurrencies BTC, ETH, USDT, USDC, DOT + 6 more
Trading Fees Maker: 1%
Taker: Free
Major Payment Methods
UK bank transfer, credit and debit card, SWIFT transfer, PayPal, cash deposit, in-person cash, crypto transfer
Minimum Identify Requirements (UK)
None

Founded in 2015, LocalCoinSwap is a Hong Kong-based P2P marketplace that lets you trade Bitcoin (BTC) and nearly a dozen altcoins with crypto enthusiasts around the world.

LocalCoinSwap’s biggest advantage over LocalBitcoins is its support for non-Bitcoin cryptocurrencies, which is hard to find at a P2P marketplace. It also lets you pay using over 250 different methods, including UK bank transfers, credit and debit cards, and in-person cash. Plus, LocalCoinSwap has no identity verification requirements so you can keep your trades private.

Other key benefits include LocalCoinSwap’s fee-free trading if you’re the one that responds to a trading listing (you pay 1% if you create an advertisement). But LocalCoinSwap has a custodial escrow system for BTC and DASH, and it charges withdrawal fees on those coins. The exchange rates on the platform also tend to be fairly high.

Despite these shortcomings, LocalCoinSwap remains one of your best bets if you’re looking for a P2P marketplace that supports a variety of altcoins and that doesn’t require identity verification.

Advantages

  • Supports Bitcoin (BTC) and 10+ altcoins.
  • No identity verification requirements.
  • Fee-free trading if you respond to a listing.
  • Allows in-person cash trades.

Disadvantages

  • Exchange rates are a bit high compared to other marketplaces.
  • Custodial escrow system in place for BTC and DASH.
  • Charges some withdrawal fees.
LocalCoinSwap WebsiteLocalCoinSwap Review

LocalCryptos: Best for Non-Custodial Escrow

Countries Most countries (including UK, EU, US, and Canada)
Cryptocurrencies BTC, ETH, BCH, LTC, DASH
Trading Fees Maker: 0.25%
Taker: 0.75%
Major Payment Methods
UK bank transfer, PayPal, Skrill, Western Union, cash deposit, in-person cash
Minimum Identify Requirements (UK)
None

LocalCryptos is an Australia-based P2P marketplace that’s been in business since 2017. Its main claim to fame is its trust-less escrow system, which uses smart contracts to facilitate trades without the need for the company to act as an intermediary custodian.

This non-custodial escrow system is one of the most important benefits of LocalCryptos because it reduces the risk that a bad actor could manipulate the system to steal your funds. Other awesome features of LocalCryptos include its support for 5 cryptocurrencies (including Bitcoin) plus in-person cash deposits.

I also like that LocalCryptos has no ID verification requirements. But it does have a confusing set of account limits that dictate how many listings you can post at once and it doesn’t support crypto-crypto trades.

Another disadvantage to using LocalCryptos is that it charges fees to all traders, including a 0.25% fee if you create a listing and a 0.75% fee if you respond to a listing.

But if you can work within LocalCryptos’ account limits and you’re okay with paying a little more in fees, it’s a great LocalBitcoins alternative for traders that aren’t jazzed on the idea of custodial escrow systems.

Advantages

  • Uses a smart contract-based non-custodial escrow system.
  • No identity verification requirements.
  • Supports trades of major coins like Bitcoin (BTC) and Ethereum (ETH).
  • Allows in-person cash trades.

Disadvantages

  • No support for crypto-crypto trades.
  • Charges fees to all traders (0.25% to 0.75% fee)
  • Confusing set of account limits.
LocalCryptos WebsiteLocalCryptos Review

Hodl Hodl: Best for Fast Non-Custodial Trading

Countries Most countries (including UK and EU)
Cryptocurrencies BTC
Trading Fees Buyers & Sellers: 0.5 to 0.6%
Major Payment Methods
UK bank transfers, PayPal, Western Union, crypto transfer, credit card, in-person cash, cash deposit, gift cards
Minimum Identify Requirements (UK)
None

Established in 2016, Hodl Hodl is a London-based crypto marketplace that puts a unique spin on P2P crypto transactions. The most innovative feature of Hodl Hodl is its very fast non-custodial multi-sig escrow system.

Thanks to this system, Hodl Hodl never has control over your funds because the system generates a unique escrow address on the Bitcoin network for each transaction. This makes it very difficult for someone to walk away with your BTC without properly completing a trade, and it speeds up the whole escrow process so your trades are confirmed as quickly as possible.

Additionally, since Hodl Hodl is non-custodial, it doesn’t have any ID verification requirements (though you can verify your identity to unlock extra benefits and features). The trading fees on Hodl Hodl are also very low (0.5 to 0.6%) and the platform supports a variety of payment methods, including in-person cash, that you can’t get with LocalBitcoins.

It’s worth noting that Hodl Hodl’s exchange rates usually aren’t great and that the platform only supports BTC trades. However, if you want an easy to use P2P marketplace that has a fast non-custodial escrow system and no ID verification requirements, Hodl Hodl is worth checking out.

Advantages

  • Multi-sig escrow system is fast and user-friendly.
  • No identity verification requirements.
  • Relatively low trading fees.
  • Supports dozens of payment methods, including in-person cash.

Disadvantages

  • Bitcoin (BTC) exchange rates aren’t great.
  • Only support BTC.
Hodl Hodl Website

My Favourite LocalBitcoins Alternative

LocalBitcoins is a tried and true option for crypto traders that want a well-established P2P marketplace for Bitcoin (BTC). But if you want to trade altcoins or if you want to avoid tedious identity verification requirements? You’ll need to look elsewhere for your trading needs.

My favourite LocalBitcoins alternative is Paxful.

Paxful stands out to me because it offers support for BTC, ETH, and USDT. It also has no trading fees for buyers and it supports cash purchases.

Unfortunately, Paxful also has ID verification requirements, so it’s not your go-to for private transactions. But its wider variety of supported cryptocurrencies and payment methods is still a huge bonus over LocalBitcoins.

But what do you think? Which of these LocalBitcoins will you use for your next P2P crypto trade?

Let me know in the comments below!

Related Posts

Leave a comment