And why not? We know that centralized exchanges are prone to attacks and have been hacked time and again.
And while P2P markets currently lack a lot of liquidity, they will certainly become a much stronger presence in the crypto world in the near future.
These P2P markets open up a new possibility of buying/selling your favorite crypto directly in fiat, plus there are no headaches or frustrations around document verifications/cancellations/etc.
So that’s why this new Ethereum P2P market sprang up.
It’s called LocalEthereum. (Visit Website)
But it’s not just a LocalBitcoins clone; it’s actually implemented in a much better way.
In this introduction of LocalEthereum, I will address the following points:
- What is LocalEthereum?
- Fee structure of LocalEthereum
- LocalEthereum’s wallet
- LocalEthereum’s privacy protection
- How to use it
- How to approach existing offers
- How to back up your LocalEthereum wallet
So let’s get started.
What Is LocalEthereum?
LocalEthereum is a peer-to-peer ether portal that allows its users to swap ether (ETH) and fiat (USD, GBP, EUR, etc.) directly with other people, using end-to-end encryption and decentralized Ethereum-powered escrows.
Through this platform, trading parties can trade in different ways via online bank transfers or online cash trades.
While it is certainly not as old as LocalBitcoins, it is more secure because they are using Ethereum-powered smart contracts.
The platform is currently available in English and Chinese.
When Did It Launch?
LocalEthereum just launched on 23rd October 2017 with more than 800 P2P offers of ether in 80 fiat currencies (however it had been in development since 2016).
They have been able to achieve more than 100 over-the-counter trades in just two days of launch.
Read here for more.
LocalEthereum charges a fee for its service on a maker/taker model.
- The Maker (the person who placed the offer) is charged 0.25%.
- The Taker (the person responding to the offer) is charged 0.75%.
They offer discounts to the maker because they want to encourage people to put ads onto their platform.
Another good thing is their wallet.
Unlike LocalBitcoins, where you have a hosted crypto wallet, LocalEthereum provides a superior wallet where you control the private keys of your ether.
Everything happens cryptographically on your machine’s browser, and your private keys never leave your device.
This gives LocalEthereum an upper hand in security, because even if it goes down, you can recover your funds if you have backed up your LocalEthereum wallet. (I will tell you how to do back up your wallet further in this article.)
LocalEthereum’s Privacy Protection
Their privacy protection is not only solid in securing your funds, but in all the things that you do on an escrow platform. Some of its privacy features are:
- End-to-end message encryption
- Messaging forward secrecy
- Financial forward secrecy
- Signature system
How To Use It
Using it is pretty easy as you can create new offers to buy/sell ether anytime in any country by using LocalEthereum’s smart contract-enabled escrows. Here is how to create your first new offer:
#1 Go to ‘My offers’.
#2 Fill in the new order form depending on your requirements.
#3 See your offer listing/create new offers or edit existing offers.
Note: You cannot have more than 20 unexecuted offers at any given point in time.
How To Approach Existing Offers
Choose the best buy/sell offer from the homepage.
Here is it how to do that:
#2 Go and open the trade on the next page. There you can also see the trader details and trade terms.
#3 On the next page, you will be able to see trade status and chat with the trader.
#4 Now that the funds are in escrow, you can transfer fiat funds to the trader or cancel the trade.
How To Back Up Your LocalEthereum Wallet
There are two ways to back up your ETH wallet in the LocalEthereum platform.
- By accessing your private keys.
- By backing up the whole HD wallet. (Recommended)
Accessing and saving your private keys:
#1 Go to My wallet and click Export private key.
#2 Click Display Private Key.
#3 Write down and back up this private key.
Backup the whole HD wallet:
#1 Click on Backup your wallet.
#2 Download the wallet backup file from there and keep it safe as it contains your keys and addresses.
LocalEthereum is definitely a good and easy option for trading ETH from anywhere in the world in exchange for fiat currencies.
They are not as old as LocalBitcoins, but they are definitely better in terms of security and tech where no one can cheat you because almost all things are powered by Ethereum’s smart contracts. They also have a solid dispute resolving function in place.
It will be interesting to see how LocalEthereum contributes to the overall Ethereum community and ecosystem, and seeing the kind of traction they have already gained in these early days, the potential looks promising.
If you have used this platform for buying/selling Ethereum, then please share your experience below in the comments.
And if you haven’t used it yet, try it out, come back, and let us know how it went!
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