Localcryptos Lets You Cash Out BTC P2P – Minus the KYC

As with bitcoin P2P platform Bisq, and bitcoin cash marketplace local.Bitcoin.com, users retain their private keys, immunizing them from the fallout …
Localcryptos Lets You Cash Out BTC P2P – Minus the KYC

If you’ve ever had a sudden need for fiat while all in crypto, you’ll understand the difficulty of cashing out without KYC-ing away your identity and that of your unborn children. Localbitcoins is now an AML hellhole, Bisq is great if you’re happy to wait two days for a trade, which leaves what exactly? Localcryptos.com. That’s what.

Also read: A Bitcoin War Is Brewing Over KYC

What’s the Deal With Localcryptos?

Before its rebrand, Localcryptos (LC) went by the name of Localethereum. Launched in Australia in 2017, the platform’s addition of BTC support in late 2019 made a name change inevitable. Just as Localbitcoins.com (LBC) was raising its shutters, ejecting traders who’d been with it for six years through draconian KYC, Localcryptos swung open its doors and welcomed in the misfits whose only ‘crime’ was to desire to swap magical internet money for filthy fiat in privacy. LC haven’t minced their words in describing their main competitor, LBC, as “centralized, custodial and a far cry from private.”

Localcryptos Lets You Cash Out BTC P2P – Minus the KYC
Stats displayed on localcryptos.com on January 27, 2020.

The Finland-based LBC, to be fair, didn’t want to KYC all their customers away to Localcryptos; blame EU regulators and the jackboot stomp of AML legislation that crushes all who stand in its path. Still, when you can’t even make it past the login screen of Localbitcoins to export your trading reputation into Localcryptos due to KYC notices that literally stop you in your tracks, there’s something very wrong. KYC is a cancer on society and the world would be a better place without it.

But the purpose of this article isn’t to bitch about KYC – there are plenty of other news.Bitcoin.com articles that do that. Rather, it’s to review Localcryptos.com from the perspective of a cryptocurrency user wanting to swap BTC for fiat. I used the site a couple of times this month to cash out, and found LC to be better than LBC in virtually every way, from the clean user dashboard to the escrow and reputation system. As a 2013 OG of LBC, switching my affiliation didn’t come easy. But after a couple of effortless trades on Localcryptos, I was sold. Bisq is great for selling XMR, and local.Bitcoin.com for BCH. But for BTC and ETH, Localcryptos has got it locked down.

Localcryptos Lets You Cash Out BTC P2P – Minus the KYC

A Bitcoin Beginner Makes Their First Trade

If you found your way around Localbitcoins okay, you’ll moonwalk through LC. To make sure, though, I enlisted the help of a friend who we’ll call Patrick. Patrick is new to crypto, and until this review was commissioned, had never sent a bitcoin transaction in his life. I instructed him to send some BTC from his Wirex account to Localcryptos and record his experience of losing his bitcoin virginity, adding “If there’s anything you’re unsure of while doing it, ask, but try and figure out as much of it as possible yourself.” Here’s what he had to say:

“Pretty simple process, really. After creating an account, confirming my email and sending some BTC from Wirex to my Localcryptos wallet, I was good to go. I hit the “Sell Bitcoin” button on the homepage, chose my preferred payment method (bank transfer), location (UK) and currency (GBP), then got a list of sellers along with the number of trades they had performed and the rate they were buying at. I chose a user with 3,000+ trades and 100% positive feedback and initiated the trade. Now, I had to fund the escrow account and send the trader my bank details, using an encrypted chat.”

Localcryptos Lets You Cash Out BTC P2P – Minus the KYC

“It took about 25 minutes for the funds to reach the escrow, then the seller advised that he was transferring the agreed amount to my bank. After quickly logging into my banking app and verifying that the GBP was there, I hit ‘Release Escrow’ and that was it.”

Localcryptos Lets You Cash Out BTC P2P – Minus the KYC

Cash Out Your Coins, Keep Your Privacy

Patrick’s experience of using LC sounds effortless. But in the interests of full disclosure, I should note that he did reach out to me during the process for some guidance. In fact, he sent me a dozen questions over Telegram, adding “sorry for the bombardment of questions, it’s just not obvious and I wanna do it right.”

In the event, Patrick did everything right, and successfully completed his first crypto-fiat swap with minimal intervention on my part. Most of the areas where he was uncertain pertained to Bitcoin’s architecture, rather than UX failings on behalf of LC. That said, Localcryptos could still do more to help beginners out here. The first time you send bitcoin, in this case to a Localcryptos wallet, it’s not clear that the transaction requires additional blockchain confirmations before the funds can be moved into an escrow account and sold.

That was Patrick’s main sticking point; a 25-minute wait for BTC to confirm, with no information as to why his funds were unmoveable. My main complaint with Localcryptos is that there’s no ability to select your entire wallet balance at the push of a button. As a result, it’s common to set up a trade, realize you’re a few satoshis or vitaliks short of the total amount, and be forced to cancel the deal or send additional funds from an external wallet. This minor gripe aside, Localcryptos gets a thumbs up from me – and a nod from Patrick who’s now leveled up his crypto knowledge and found a convenient way to cash out when he’s strapped for fiat.

Localcryptos Lets You Cash Out BTC P2P – Minus the KYC
Patrick toasts his first bitcoin transaction.

Localcryptos is light on regulations, letting you cash out without enduring laborious and invasive KYC – at least for now. What’s more, the platform utilizes noncustodial escrow, favoring smart contracts for ETH transactions and P2WSH for bitcoin. At no point are your funds custodied sitting on a centralized server. As with bitcoin P2P platformBisq, and bitcoin cash marketplacelocal.Bitcoin.com, users retain their private keys, immunizing them from the fallout resulting from a hack or security breach. P2P exchanges that let you keep your privacy while selling your coins are a luxury in today’s surveillance society. Use them while you still can.

What’s your favorite non-privacy-invasive way to convert coins to fiat? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

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Kai Sedgwick

Kai’s been manipulating words for a living since 2009 and bought his first bitcoin at $12. It’s long gone. He’s previously written whitepapers for blockchain startups and is especially interested in P2P exchanges and DNMs.

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Hash War Looms as Bitcoin Cash Tax Drama Explodes

An anonymous group of miners announced plans to hardfork a new bitcoin cash blockchain if tax on miners isn’t removed. Group claims to control …
  • An anonymous group of miners announced plans to hardfork a new bitcoin cash blockchain if tax on miners isn’t removed.
  • Group claims to control 42% of the BCH hashrate, with plans to expand it to 2.5 exahash per second by the May 15 fork date.
  • A repeat of 2018 costly hash war could be on the very near horizon.

Bitcoin cash (BCH) could be on the verge of another hash war after the ongoing tax drama took a major turn.

An anonymous group of miners has threatened to launch a new breakaway bitcoin cash blockchain in protest of the tax. The group claims to represent 42% of the current BCH hashrate – and says that number will rise before the May 15 deadline.

The 12.5% mining tax was proposed as a way to fund developers, but its reception divided bitcoin cash’s users.

Bitcoin Cash: Hash War Beckons?

On Monday, a dissenting post was made to Read.Cash titled, “A Response from an Opposing Mining Group”. Within six hours the post had accrued $2,217 in contributions from like-minded BCH users.

The post states the miners’ intention to create their own BCH blockchain if the proposed tax plan is not withdrawn.

Assuming the proposal is not withdrawn, or modified to be acceptable, we will continue to mine up to the hard fork, which will create our own chain after the fork due to the consensus rule change introduced by the signatories.

The current tax proposal would see miners who refuse to stump up the 12.5% effectively booted from the blockchain. In practice, blocks filled by those miners would be “orphaned” – quietly removed from the chain.

If the mandatory tax imposition is not made voluntary, the dissenting miners plan to launch an all-out hash war.

We definitely plan to obtain more hashrate than the signatories can muster. The market will need to decide in the days following the fork. We hope the signatories will see the light and remove their “non-debate” clause.

Revisionist History of the Tax Plan

So far the four signatories of the plan have shown no signs of wavering. Roger Ver, Jihan Wu, Haipo Yang and Jiang Zhuoer represent 47% of bitcoin cash’s hashrate via their mining pools.

Some backstepping did occur, however, as shown by the editing of the tax proposal to remove references to communism.

The “non-debate theory” used to justify the imposition of the tax plan was the brain-child of former Chinese communist party leader Deng Xiaoping. The theory suggested that debate was pointless, and it was better to simply push ahead and experiment.

References to Chinese communist organizational philosphy were removed from the original tax proposal. | Source: Jiang Zhuoer, Medium

In the heavily invested world of cryptocurrency, the notion of experiment with bitcoin cash didn’t sit well with its users. The miners’ post states:

The citation of Chinese Communists Party Deng Xiao Ping philosophy as a guiding precept for Bitcoin Cash is definitely not well received in our rank.

In the days since the post went live, all mentions of “non-debate theory” were removed from the tax proposal. Strangely, the archive of the original on Wayback Machine has also been removed.

Repeat of 2018 Hash War Doesn’t Need to Happen

The last hash war to hit bitcoin cash shook up the market in more ways than one. Both sides burned through tens of millions of dollars in a war of attrition.

The cryptocurrency market sunk 50% in a month, and dropped to its lowest combined value in over two-and-a-half years. In the end, a chain split occurred and Bitcoin SV (BSV) became the third “true bitcoin” in the top ten.

The dissenting miners’ say a repeat of that situation doesn’t need to happen. They hope the tax proposal will be altered before the May 15 update.

Our goal is NOT to put the plan we highlighted at the end of this article into action. The plan is for the signatories to reconsider their non-debate stance, and take the community comments into consideration.

Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.

This article was edited by Sam Bourgi.

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Don’t Be Fooled: Crypto Markets Still Likely to See Intense Pullback

Bitcoin’s climb towards $9,000 has allowed virtually all major cryptos to rally concurrently, with Bitcoin Cash and Bitcoin SV leading the markets, …

The crypto markets incurred a notable uptrend today that was catalyzed by Bitcoin’s rise to highs of nearly $9,000 before it incurred a slight influx of selling pressure that caused BTC to dip slightly lower.

Most major altcoins are now pushing up against key resistance levels as they take sight of revisiting their 2020 highs, although it is highly likely that their next move will closely track that of Bitcoin.

Because of this, it does seem as though this latest rally may simply be another lower high that is followed by further downside, as multiple technical formations are currently spelling trouble for BTC’s near-term price action.

Crypto Markets Rally Towards Key Resistance with Bitcoin Leading the Way

At the time of writing, Bitcoin is trading up just under 4% at its current price of $8,915, which marks a notable climb from its daily lows of $8,400 that were set early yesterday.

In the near-term, the key levels that analysts are closely watching exist at $9,000 and $9,200 respectively, as these are where bears have begun stacking significant sell orders in an attempt to halt the ongoing market-wide rally.

Bitcoin’s climb towards $9,000 has allowed virtually all major cryptos to rally concurrently, with Bitcoin Cash and Bitcoin SV leading the markets, trading up 7% and 11% respectively.

HornHairs, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes BTC may see a brief short-term pullback towards $8,800 before it makes a successful attempt to break $9,000.

“$BTC This smaller 5 min TF range will be telling, imo. When BTC gets going it’ll form these, sweep the highs and then the lows into demand and keep chugging upwards. If it fails that, good chance we cool off for a bit,” he explained while pointing to the below chart.

$BTC

This smaller 5 min TF range will be telling, imo.

When BTC gets going it’ll form these, sweep the highs and then the lows into demand and keep chugging upwards.

If it fails that, good chance we cool off for a bit. pic.twitter.com/OXbs5BU4na

— HornHairs 🌊 (@CryptoHornHairs) January 27, 2020

Massive Technical Resistance Could Halt the Market’s Growth

Because the future of the aggregated crypto market hinges on where Bitcoin goes next, it is imperative to note that the crypto is currently pushing up against a key technical resistance level that could halt the ongoing uptrend.

Dyme – a popular Bitcoin advocate on Twitter – recently noted that BTC is pushing up against its 200-day moving average, which could mean that it will face a massive rejection at this level.

“Well hi there mr 200 MA… are we staying here long or is this just a test?” He explained while referencing the below chart.

Well hi there mr 200 MA

are we staying here long or is this just a test? pic.twitter.com/ZJfQWqPY3F

— Dyme (@CryptoParadyme) January 27, 2020

How Bitcoin responds to this level in the coming few days will likely set the tone for its mid-term trend, subsequently giving guidance to the aggregated crypto market.

Featured image from Shutterstock.

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Bitcoin Cash miners threaten to fork unless funding proposal is withdrawn

Bitcoin Cash miners have been left with a bitter taste in their mouths after BTC.TOP’s CEO Jiang Zhuoer published his proposal to direct 12.5% of …

Bitcoin Cash miners have been left with a bitter taste in their mouths after BTC.TOP’s CEO Jiang Zhuoer published his proposal to direct 12.5% of mining rewards to support the BCH infrastructure over the next six months. In response, anonymous North American and European miners have announced the formation of an, “opposing mining group.”

“We are a group of North American and European miners representing, at this point in time, 1.6 exahash/s,” said the anonymous group. “We will represent 2.5 exahash/s come May 2020 due to expansion amongst our companies.”

The group stated that they would be launching a competing BCH pool to, “offer a voice to miners that disagree with the proposal,” and, “donate a 1% of our income to development teams.”

The group identified as, “staunch Bitcoin Cash proponents since the first days,” and claimed to have been, “Big Block supporters for a very long time.” The group also spoke about their lack of engagement with the community on BCH social media groups, and how they must remain anonymous, “due to fear of retaliation from the four signatories of the proposal.”

“We want to preface this by saying that we are empathic with protocol developers lack of funding, we are not opposing paying developers for their work appropriately, and that it is imperative that this issue gets fixed long term.”

While the group did not respond to the Zhuoer’s notes toward, “Cat philosophy,” and “River philosophy,” they did have a problem with his, “non-debate theory,” which essentially asked other mining groups to sit still and look pretty.

“We are quite surprised at this claim since as far as we know this is the first time this has been proposed,” they said. “Who was Mr. Zhuoer busy debating exactly? Definitely not us, or anyone that we pooled.”

They also mentioned how it was unfair and unethical that mining pools impose a tax on miners after charging a significant fee for their services, and that the network is in a very precarious position because, “almost all pools in existence and about 20 mining farm will have more hashrate than the Bitcoin Cash network,” after the halving event.

“We worry that our opponent will use this to destroy our currency.”

While proponents of the funding proposal claim the siphoning of 12.5% of the reward is not a tax, this anonymous group disagrees vehemently. “It is absolutely a tax,” they said. “It is a compulsory charge, levied by a group in position of power (the signatories along with Bitcoin ABC) in order to fund various public expenditures.”

They agreed that it wouldn’t be a tax if, “the consensus layer would not be changed and miners actually agreed upon themselves to do this.” However, he also pointed out how the consensus layer would be changed in a hard fork on May 15 this year, and that even if miners disagreed with the proposal, the disagreeing miners’ blocks would be orphaned.

“Assuming the proposal is not withdrawn or modified to be acceptable, we will continue to mine up to the hard fork, which will create our own chain after the fork due to the consensus rule change introduced by the signatories,” they said.

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Do CoinJoin Mixes Really Require Equal Transaction Amounts for Privacy? Part Two: Knapsack

Part one of this miniseries covered a new mixing protocol in development for Bitcoin Cash called CashFusion, which challenges the assumption that …

Indeed, in the examples above, certain inputs and outputs were matched in both potential configurations. In variant one, the 1.3 output was matched with the 3 and 2 inputs either way. So while blockchain analysis wouldn’t reveal what the original transactions were, it’d still reveal a link between the 3 and 2 inputs and the 1.3 outputs. Variants two and three, while delinking inputs from each other, allow for even more matches between inputs and outputs.

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