So, with LocalBitcoins due to bring in AML/KYC requirements and disabling the ability to buy bitcoin with cash, where do privacy-minded individuals turn?
Let’s compare some of the options.
HodlHodl was the first, non-custodial peer to peer (P2P) bitcoin trading platform when it launched back in February 2018. Instead it relies on a multi-sig escrow system to combat the risk of scammers.
Since then it has added a KYC/AML-free OTC desk, making it the only such platform without limits on the amount traded.
The only downside (for some), is that the service is not available to U.S. citizens due to regulatory restrictions.
Paxful is a P2P bitcoin marketplace which seems to attract champions and critics with equal fervour. Many proclaim it to be the very best LocalBitcoins alternative with great 24/7 customer service. Others bemoan its user interface and question its marketing tactics.
Anyone knows if it's a good alternative to LocalBitcoins? https://t.co/pMeZ6TSGiK
— Ben Verret⚡ (@verretor) June 2, 2019
It offers perhaps the greatest variety of payment methods of any P2P trading platform. Be warned however, that some of these do require ID verification, so you may not be any better off than at LocalBitcoins.
Currently beefing up its support for cash payment options, in an attempt to mop up refugees from LocalBitcoins. Plus Paxful invests heavily in charitable education projects in Africa, which could ease your guilty conscience as you become an anonymous bitcoin millionaire.
LocalCoinSwap seems to be heavily inspired by LocalBitcoins (right down to the name and colour-scheme). It promises anonymous P2P trading of bitcoin and 20 other cryptocurrencies for a variety of payment methods around the world.
It claims to be the world’s first community owned P2P bitcoin and altcoin exchange, and that 100% of profit goes back to the crypto-community. There are no withdrawal or deposit limits, and KYC is optional… so, I can’t see many people choosing to do it.
Bisq is a decentralised non-custodial P2P exchange with no identity verification. It differs from the previous options as it is a downloadable app for Windows, Mac and Unix. There are also iOS and Android apps for mobile notifications on trades.
In terms of privacy, all data is stored locally, and personally identifying data is only shared between trading partners.
So there you have some viable LocalBitcoins options for trading bitcoin. Or if you just want to get hold of bitcoin with no KYC, why not check out this article.
…You Can Still Buy Bitcoin on LocalBitcoins
But you said… Well yes, but it isn’t fully enforcing the rules yet.
Registration does require email and mobile phone verification, but that’s all. Users are supposedly now only allowed to hold a single account. But, I just registered a second account for myself with a fake name, and a burner phone and email address.
Many traders (for security or based on geographical rules) will insist on you providing a verified ID, or at the very least a verified real name. However there are also many who don’t, so if you aren’t trading large amounts, then LocalBitcoins may still be your best option.
Know of any other Localbitcoin alternatives? Share them in the comments below!
Images via Shutterstock