LocalCoinSwap Review 2024

rating empty
rating full
1.3

LocalCoinSwap is #84 in our rankings of crypto brokers.

LocalCoinSwap Facts & Figures

LocalCoinSwap is a DeFi cryptocurrency exchange offering P2P trading on a range of popular tokens. The firm offers both custodial and non-custodial services and has become popular among global crypto traders looking for flexibility. With that said, there are some safety concerns around DeFi exchanges like LocalCoinSwap.

Pros
  • Impressive range of 300 payment methods including crypto transfers, bank transfers, credit cards and PayPal
  • Custodial or non-custodial transactions available giving traders full control
  • Decent educational resources and guides suitable for beginners
  • 24/7 customer support via online request form
  • Two-factor authentication for added security
  • You can trade anonymously
  • Escrow protection
Cons
  • Not the most competitive fees compared to similar firms
  • Mobile app only available on Android devices
  • No regulation and limited fund protection
  • No demo account for prospective users
  • Security relies on the chosen trader
Instruments Cryptos
Demo Account No
Min. Deposit $0
Mobile Apps No
Payments
Min. Trade $0
MetaTrader 4 No
MetaTrader 5 No
cTrader No
DMA Account No
ECN Account No
Social Trading No
Copy Trading No
Islamic Account No
Cryptocurrency LocalCoinSwap offers a small range of crypto tokens such as Paxos and Cello, although the selection is not as wide as competitors. On a lighter note, traders can choose from a strong selection of 300+ payment methods and the platform is easy to learn and use.
Coins
  • BTC
  • ETH
  • USDT
  • KSM
  • DOT
  • DASH
  • USDC
  • DAI
  • PAX
  • LCS
Spreads N/A
Crypto Lending No
Crypto Mining No
Crypto Staking No
Auto Market Maker No
Risk Warning – Your Capital is at risk

LocalCoinSwap is a P2P cryptocurrency platform which allows users to engage in direct transactions, bypassing traditional intermediaries and third parties. In this review, we will delve into the features, benefits, and potential considerations associated with LocalCoinSwap, shedding light on how this platform works and whether it is worth exploring for UK traders.

Our Take

  • LocalCoinSwap will appeal to investors looking to buy, sell and swap popular tokens with a good choice of payment methods
  • The exchange’s escrow protection, dispute resolution and custodial/non-custodial trading is reassuring to some degree
  • However, we always recommend reputable crypto brokers given the safety concerns associated with crypto exchanges
  • Fees are also not the most competitive at 1%, even though the exchange does offer discounts
  • The lack of demo account and limited customer support options are further drawbacks compared to alternatives

Crypto Tokens

LocalCoinSwap offers a limited selection of 13 cryptos, which is not as wide as some of the bigger brands like Coinbase and Kraken, both offering 60+ tokens.

Nonetheless, the exchange offers the most popular coins alongside some other interesting options which you can buy or sell: Bitcoin (BTC), Ethereum (ETH), Dash (Dash), Polkadot (DOT), Kusama (KSM), Tether (USDT), Dai Stablecoin (Dai), USD Coin (USDC), Paxos Standard (PAX), Nexo (NEXO), CELO (CELO), Celo Dollar (cUSD), and their own LocalCoinSwap Cryptoshares (LCS).

Crypto Wallet dashboard at LocalCoinSwap

Crypto Wallet

LocalCoinSwap Fees

The fees for LocalCoinSwap differ from those you would expect to find with a traditional exchange.

We were pleased to see that registering for an account, depositing crypto, and buying or selling crypto are all free. However, there is a 1% fee for posting an offer, which is not competitive when compared to the 0.6% fee charged by HODL HODL.

Traders should also be aware that whilst the Bitcoin wallet is free to use, there is a fee for broadcasting the transaction on the Bitcoin network. This is the industry standard.

I was pleased to see some additional perks for trading certain tokens. For example, there are no withdrawal limits or transaction fees for ETH trading. In addition, trading with TRX or TRC20 tokens reduces the blockchain fee by 50%.

How To Buy & Sell Crypto

I found the process to buy and sell crypto at LocalCoinSwap quick and straightforward:

  1. Create an account with instant sign-up and you will be directed to your free Bitcoin wallet. Log in, then select ‘Create Offer’
  2. Choose your trade type including whether you want to buy or sell crypto
  3. Choose your cryptocurrency and the location you’d like to trade within
  4. Choose a base currency, which is the fiat currency you’d like to pay or receive funds in
  5. Choose your payment method for the trade
  6. Control your trade limits such as the minimum and maximum trade sizes
  7. Set your trading terms including all of the conditions you require for trading
  8. Submit your photo ID for verification

 

How to buy Bitcoin on LocaCoinSwap

How To Buy BTC

Funding Methods

We were impressed that LocalCoinSwap allows you to buy crypto using more than 300 payment methods including cash in hand, bank transfer, debit card, credit card and PayPal.

The decentralised nature of the exchange also means you can use gift cards from Amazon, Google Play or iTunes. This helps the brand stand out from competitors.

With that said, traders do have an increased responsibility to keep their funds safe at peer-to-peer exchanges like LocalCoinSwap. As such, there are a few things we recommend keeping in mind:

  • Chargeback: If you are buying crypto, you should use a payment method that can facilitate chargebacks, such as PayPal. This means you have access to fund recovery, should something go wrong.
  • Proof of payment: Due to the peer-to-peer aspect of crypto trading, we recommend only using payment methods that come with proof of payment. This means if a seller claims no payment has not been provided, you can supply proof when making a claim.
  • Region: Crypto can be traded across the world, but not all of LocalCoinSwap’s payment methods will be available in the UK. For British traders, we recommend using secure and reputable online payment methods like PayPal.

We liked that there are no withdrawal or deposit limits for using LocalCoinSwap which gives users much more freedom than some other exchanges.

Trading Platform

LocalCoinSwap operates an easy-to-use and secure dashboard, designed to facilitate peer-to-peer cryptocurrency trading. The platform integrates various features and functionalities to enable anonymous users to seamlessly buy and sell cryptocurrencies directly with each other. There are also no lengthy verification or KYC requirements, which will be a plus for users looking to get started quickly.

The platform is designed to handle the trading process with no delays, including order matching, transaction execution, and fund management while incorporating features such as smart contracts and escrow services to ensure the integrity of transactions.

I found the exchange dashboard easy to navigate, with simple filtering tools when buying or selling cryptos, such as location and payment method. I also liked that you can sort the listed vendors by popularity or price.

Mobile App

I was pleased to see that LocalCoinSwap offers a mobile app, though sadly it is only available to download onto Android phones via the Google Play Store. This is a major drawback for users with an Apple device like an iPhone or iPad.

Nonetheless, it’s good to see that all the features available in the web dashboard are available via the app, including buy/sell functionality as well as the wallet. The interface is also pretty clean and easy to navigate.

LocalCoinSwap Android mobile app

Demo Account

We were disappointed that LocalCoinSwap does not offer a demo account. This means no opportunity to fully test and explore the brand before depositing funds. This is a serious drawback compared to more established crypto brokers.

On a lighter note, you can sign up easily using just your email address and browse the dashboard without depositing any money first.

LocalCoinSwap Security

LocalCoinSwap gives you a public overview of every trader so you can see a history of their transactions before you choose to purchase crypto from them. Importantly, make sure to only trade with users that have a high customer feedback score as scams are common in the crypto trading market.

The brand also offers escrow protection to traders, meaning a third party distributes the currency, not the broker. In addition, our team were reassured to find that LocalCoinSwap holds 95% of cryptocurrency in cold storage, which helps protect client funds.

Yet despite the reassuring measures, we cannot give LocalCoinSwap a good safety score due to the high risk of bad actors in the crypto exchange industry. They do not have the track record and reputation or more established brokers.

Regulation

As expected from a decentralised exchange, LocalCoinSwap is unregulated. UK traders should note this means limited recourse avenues should the firm behave inappropriately.

Your funds are not protected.

Bonuses

While testing the platform, we found that LocalCoinSwap offers a referral bonus. This means if you refer another client to them, you will be rewarded with up to 20% commission on the trade fees when your referred friend trades.

Overall, this is not likely to be a lucrative bonus but it could be worth doing if you know someone who wants to join.

Extra Tools & Features

I was pleased to see some free and fairly detailed educational resources at LocalCoinSwap, including video tutorials and trading guides.

There is also an Academy covering various topics from blockchain to crypto wallets, which you can also subscribe to via the LocalCoinSwap mailing list.

Overall, we liked the education on offer though it would be nice to see a wider variety of resources, webinars or blogs to compete with other brands like PrimeXBT.

LocalCoinSwap also has a calculator that allows traders to check what Bitcoin is worth in GBP, USD, AUD or EUR. This gives you an accurate BTC conversion rate which we found very useful, especially in GBP as UK investors.

LocalCoinSwap Academy - Blockchain education

LocalCoinSwap Academy

Customer Service

We were pleased to find that LocalCoinSwap offers 24/7 customer support via an online request form, accessible from your account.

However, the lack of an email address, telephone number or live chat option is disappointing. There is a decent FAQ section, covering topics including what to do if you forgot your password and enabling login security, though the section is not as thorough as some others we have seen.

Overall, we think LocalCoinSwap needs improvement in this area.

Company Details & History

LocalCoinSwap is a decentralised peer-to-peer cryptocurrency exchange platform where users can buy and sell digital assets directly with each other, without the need for intermediaries or centralised authorities.

LocalCoinSwap supports a modest range of cryptocurrencies, including market leaders Bitcoin and Ethereum and lesser-known altcoins like Polkadot and Nexo.

The platform’s goal is to facilitate trading securely and transparently by utilising smart contracts and escrow services. These features provide a degree of trust and security to users, helping to protect funds during transactions.

Additionally, LocalCoinSwap supports a global user base by allowing clients from different countries to trade with each other.

Should You Trade Crypto With LocalCoinSwap?

We found that LocalCoinSwap was an interesting solution for UK traders seeking an average range of cryptocurrencies and GBP-supported payment methods. The exchange offers attractive discounts and educational material for beginners, though fees are not the lowest in the market. In addition, we would like to see improved customer support and better oversight to match up to competitors.

FAQ

Is LocalCoinSwap Legit?

LocalCoinSwap is a legitimate P2P exchange with a reasonable reputation. The brand is well-reviewed by customers and has a global client base. With that said, traders should exercise caution when dealing with other users directly on the platform and always look out for traders with good ratings.

Is LocalCoinSwap A Good Exchange?

LocalCoinSwap supports 13 cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH), as well as various altcoins. This is an okay offering if you compare LocalCoinSwap vs LocalBitcoins and Paxful, but limited when compared to bigger exchanges like OKX and Gemini.

On a positive note, the exchange competes well in terms of its accessibility and user-friendly service.

How Does LocalCoinSwap Secure Transactions?

LocalCoinSwap incorporates smart contracts and escrow services to enhance security. Smart contracts automate the execution of transactions, ensuring that funds are only released once both parties fulfil their obligations. However, scams are common in the crypto market so traders should be wary of the risks when trading through unregulated firms.

Is LocalCoinSwap Good For UK Traders?

We were pleased that LocalCoinSwap offers a variety of payment methods available for UK clients. These include bank transfers, cash payments, and digital payment systems like PayPal. Within your dashboard, you can filter buyers and sellers by location, such as the UK. The exchange also offers a helpful BTC-to-GBP calculator, as well as a leaderboard of top British-based traders.

Can Beginners Use LocalCoinSwap?

LocalCoinSwap will appeal to beginners looking to buy and sell Bitcoin and popular altcoins on a user-friendly platform. The exchange is transparent with its fees and there are no charges for deposits or withdrawals. Newer investors can also benefit from useful guides.

On the negative front, it doesn’t rival alternatives when it comes to its track record and security. The educational materials are also fairly basic when compared to popular crypto brokers.

Article Sources

LocalCoinSwap Website

Compare LocalCoinSwap with Other Brokers

These brokers are the most similar to LocalCoinSwap:

  1. Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
  2. FP Markets - FP Markets is an ASIC- and CySEC-regulated broker that offers forex and CFD trading on a broad range of assets through the MT4, MT5 and IRESS platforms. With trading available through standard and raw spread accounts on thousands of international stocks, forex, indices, commodities, cryptocurrencies, bonds and ETFs, this broker has some of the most comprehensive market coverage available. FP Markets also offers a full range of additional features, including educational resources and access to powerful software such as Autochartist.
  3. IG Index - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

LocalCoinSwap Feature Comparison

LocalCoinSwap Compared With Similar Brokers
LocalCoinSwap Interactive Brokers FP Markets IG Index
Rating 1.3 4.3 4 4.4
Markets Crypto Forex, Stocks, Commodities, Crypto Forex, Stocks, Commodities, Crypto Forex, Stocks, Commodities
Minimum Deposit $0 $0 $100 $0
Minimum Trade $0 $100 0.01 Lots 0.01 Lots
Demo Account No Yes Yes Yes
Regulators - FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB ASIC, CySEC, ESMA FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
Bonus - - - -
Education No Yes Yes Yes
Platforms - - MT4, MT5, cTrader MT4
Leverage - 1:50 1:30 (UK), 1:500 (Global) 1:30 (Retail), 1:222 (Pro)
Visit
Review LocalCoinSwap
Review
Interactive Brokers
Review
FP Markets
Review
IG Index
Review

Trading Instruments Comparison

Comparison of LocalCoinSwap Trading Instruments
LocalCoinSwap Interactive Brokers FP Markets IG Index
CFD No Yes Yes Yes
Forex No Yes Yes Yes
Stocks No Yes Yes Yes
Crypto Yes Yes Yes No
Commodities No Yes Yes Yes
Oil No No Yes Yes
Gold No Yes Yes Yes
Copper No No Yes Yes
Silver No No Yes Yes
Corn No No Yes No
Futures No Yes Yes Yes
Options No Yes No Yes
ETFs No Yes Yes Yes
Bonds No Yes Yes Yes
Warrants No Yes No Yes
Spreadbetting No No No Yes
Volatility Index No No Yes Yes

LocalCoinSwap vs Other Brokers

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LocalCoinSwap is a DeFi cryptocurrency exchange offering P2P trading on a range of popular tokens. The firm offers both custodial and non-custodial services and has become popular among global crypto traders looking for flexibility. With that said, there are some safety concerns around DeFi exchanges like LocalCoinSwap.