[ATNET Crypto Trading Glossary] LBC

jargon     · [crypto-jargon]
What do crypto traders call LBC, why is it now dangerous and what to use instead.

LBC is the acronym for LocalBitcoins, the once-trusty peer-to-peer platform for anonymous purchase of cryptocurrency.

Localbitcoins started as a forum-style marketplace where you could find vendors near your location, chat with them to set up a meeting and then finalize the trade in person. Over time online payment methods were added and you could buy and sell crypto with verified or unverified digital wallets like Skrill, or you could do bank transfers.

The platform had an escrow where the crypto vendor had to mark the transaction as successful for the bitcoins to be released to the buyer. The escrow was the feature that kept people trading through LBC despite the fees and the clunky interface, although people with a trusted regular vendor often moved on and transacted privately without escrow (and therefore without LBC fees).

ID verification (KYC/AML) was originally not required by LocalBitcoins; it was sometimes required by vendors though.

LocalBitcoins started requiring KYC in 2018

LBC was the most popular p2p platform for many years, even for some time after criminals trying to cash out five figures of bitcoins through one LBC meeting started getting in jail.

The main weakness is that while LocalBitcoins are a p2p (peer-to-peer) marketplace, they are custodial - you need to send your bitcoin into the LBC wallet to make it available for the escrow.

This was the point upon which LocalBitcoins were eventually forced to require KYC platform-wide in 2018.

By then it was already rumored they tightly collaborate with law enforcement and since there were other options with less hassle and better privacy in 2018, people simply left LBC abandoned.

Where to buy bitcoin and altcoins anonymously in 2020

Platform called LocalCryptos is where P2P trading is at in 2020. LocalCryptos are not related to LocalBitcoins. You can get rates from 1% above market and fees are .25%/.75% maker taker.

They started as LocalEthereum, Bitcoin and Litecoin were only added later. The LocalCryptos platform is a dApp running on Ethereum smart contracts and on Bitcoin scripts.

You get your private key on sign up, which you must back up because the marketplace is fully zero-knowledge and fully non-custodial.

This means you lose your account and all coins it has if you lose your private key, but it also means the law enforcement cannot force any platform-wide action since the platform owns no data.

The founder of LocalCryptos has strong political opinions and is not shy to share them.


 

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