Launch a P2P exchange like LocalBitcoins and trade virtual currencies sans intermediaries

Undoubtedly, interest in virtual currencies is growing across the world. Currently, the daily trading volume of crypto assets is more than $56.80 billion. There is one platform that assists investors in buying and selling digital assets without any middlemen. It is none other than LocalBitcoins. The Finland-based platform facilitates over-the-counter (OTC) trading of Bitcoin. Are you an ambitious entrepreneur? It is time to create a cryptocurrency exchange like LocalBitcoins.

How does a p2p exchange like LocalBitcoins function? 

• Users need to register on the p2p exchange like LocalBitcoins.  They should disclose information like their email address and name, enter a password, and verify their identity. 

• Buyers and sellers can publish advertisements on the peer-to-peer (P2P) trading platform. 

• Subsequently, an investor receives details about a quote from a fellow seller. They can see details like the exchange rate, payment method, minimum and maximum trading limits, and the time taken to complete the deal. 

• Later, they can press the buy option, process the transaction, and execute the trading deal successfully. 

• Are there any other options? Yes. Importantly, a trading platform similar to LocalBitcoins contains a quick buying and selling option. Thus, users can choose the best offers based on the amount, fiat currency, location, and payment methods (Immediate Payment Service (IMPS), net banking, Unified Payments Interface (UPI), digital wallets, cryptocurrency, altcoins, and stablecoins. 

Analyzing the business model of a platform like LocalBitcoins

Trade execution charges - Users who create advertisements have to pay a certain fee after executing the buy and sell order. 

Sending Fee - Traders have to incur a specific charge for transferring their virtual currencies from one wallet to another.  Generally, this varies based on the congestion of the blockchain network and the number of buy and sell orders placed by investors. Moreover, a crypto exchange similar to LocalBitcoins will also adjust the trading charges when there is peak demand. Importantly, this ensures instant processing of payments. 

Other charges - You can also pocket extra revenue by solving specific problems faced by investors. Generally, the charges are imposed per hour. Users need to possess a certain amount of fiat currency like US Dollars and Euros. Subsequently, they should pay the fees in Bitcoin (BTC) at the current market rate.

Interestingly, LocalBitcoins has made itself highly different from other crypto trading platforms in the industry. This is because it does not impose any charges for registration, buying and selling of Bitcoin, and incoming transactions. Moreover, a minimum deposit limit is applicable. Thus, transactions below the specific cap are not processed. 

The various security measures available on a p2p exchange like LocalBitcoins

Biometric authentication - Users can securely log in to their account on a LocalBitcoins like exchange. They can safeguard their personal and financial credentials with biometric authentication. 

Two-Factor Authentication (2FA) - Investors can protect their funds from phishers, scammers, and hackers. Enabling two-factor authentication offers an additional layer of security. Thus, traders have to enter the private key and a secret code before processing a payment. 

Login Guard - Unauthorized logins from browsers are prohibited on a crypto trading platform similar to LocalBitcoins. An email is sent to users when such incidents occur. This prevents the loss of valuable cryptocurrencies. What if users lose their smartphones? They can prevent misuse of their accounts by revoking access. 

Escrow - Users can shield themselves from crypto scammers. This is because of escrow protection.  Thus, when a buyer initiates a trade, the seller has to commit to execution. A specific amount of cryptocurrencies are placed in escrow. Likewise, sellers can prevent losses. They should release the Bitcoin from the escrow only after receiving payment from the buyer. 

What are the different advantages of launching a Cryptocurrency Exchange like LocalBitcoins?

• Round-the-clock trading of assets - Investors can buy and sell cryptocurrencies easily on a LocalBitcoins like trading platform. They can execute trades on a peer-to-peer (P2P) basis by locating potential offers from different buyers and sellers. 

For instance, LocalBitcoins has more than 200,000 downloads across 190 countries and is accessible in more than 19 different languages. Hence, it has become the one-stop destination for buying, selling, and storage of cryptocurrencies. 

• No third parties - Users can manage their crypto portfolios easily and also earn high returns in the long run. This is because there are no middlemen involved for monitoring buy and sell orders. 

• Consistent growth - Since its launch in 2012, LocalBitcoins has been a formidable force in the crypto trading sector. Moreover, it also has an affiliate programme where users who refer their family members and friends earn cryptocurrencies daily. Generally, their commission amount depends on the number of people (buyers and sellers) they refer, the trading fees earned by the cryptocurrency platform, and the number of finalized sales. 

Wrapping Up

Unquestionably, Bitcoin offers financial freedom to investors spread in every nook and corner of the globe. Do you want to rule the booming crypto trading sector? Connect with a reputed white-label solution provider for Buy and Sell LocalBitcoins development.