Cryptocurrency News

LocalBitcoins Lose The Leadership Of Popular Bitcoin Marketplaces

By August 6, 2020 No Comments

LocalBitcoins is steadily losing its leadership in the peer-to-peer crypto platforms market. However, the p2p market itself remains controversial in terms of regulatory constraints. The popular p2p platform for trading cryptocurrency Bitcoin for the first time lost its leadership to the Paxful platform, its main competitor. According to analytical web portals, the Bitcoin trading volume on the LocalBitcoins site has continued to fall since October 2017, while the trading volume on Paxful has been actively gaining momentum since 2016.

True, it should be noted that the LocalBitcoins platform was able to significantly break away from its competitor in 2017, when the monthly trading volume exceeded $ 120 million. But the introduction of user verification procedures is increasingly discouraging customers from the exchange. LocalBitcoins now have a monthly trading volume of just under 40 million, while Paxful has already crossed that mark.

Marketplaces like LocalBitcoins and Paxful are especially popular in countries where cryptocurrency regulation remains “in limbo” and such countries become leaders in terms of Bitcoin trading volume on LocalBitcoins, even though there is no industry regulation. Due to the ambiguity of the position of government regulators and the fear of blocking bank accounts, small traders or even ordinary hodlers often have to apply for the services of p2p sites.

Exchanges shut off oxygen to users

Despite the fact that such services are often at the center of scandals related to money laundering and charges of financing terrorism, these marketplaces have long established themselves as an alternative to conventional exchanges and exchangers due to their greater simplicity, democracy, competitive commission rates, and most importantly due to anonymity, which provides greater security for transactions.

So, the main reason why LocalBitcoins is steadily losing market leadership is regulation by Finnish overseers, the country where LocalBitcoins is based. Tighter control over the site has forced the introduction of stricter requirements for the KYC procedure. In June 2019, for example, LocalBitcoins turned off, perhaps, one of the main services – the sale of cryptocurrency from hand to hand.

The main LocalBitcoins competitor Paxful claims on its official website that the platform strives to give everyone the opportunity to quickly, honestly and safely transfer their earnings to other assets. Often, our biggest concerns are with money, especially making and sending it. When the marketplace provides people with new opportunities, creating the international financial platform of the future, then it is undoubtedly gaining momentum and ahead of the competition.

At the same time, the site is subject to regulatory restrictions, however, the same as LocalBitcoins. Confirmation of the country of residence and additional ID verification will become mandatory for everyone who is there is a bit of money for more than 20,000 euros per year. The new system provides four levels of accounts, differing in volume we are trading. In the same year, LocalBitcoins removed the opportunity for their users to make transactions with personal money when the site without a trace disappeared the option that allows you to buy or sell cryptocurrency by meeting. These new introductions on LocalBitcoins are in line with the Finnish law on the provision of virtual services, related to virtual currencies, which entered into force in November 2019.

Most crypto experts believe that only the highest grade of KYC – Account Tier 3, the need for which occurs when the total turnover of the account exceeds € 200,000. With such a turnover of transactions with cryptocurrency, for verification, add additional documents to confirm the origin of Bitcoins, as well as certificates of taxes payment. According to the company representatives, this measure is necessary and aimed at protecting against fraudsters, but in fact, it can become, on the contrary, an auxiliary tool for cybercriminals.

There is a way out of risky position – mix your cryptocurrency

To protect yourself and your crypto assets from the risks associated with providing crypto exchanges with complete information about yourself and your income, you need to prevent the possibility of further tracking the movement of your digital funds after they are withdrawn from the exchanging platforms.

This can be done using a cryptocurrency mixer. Service mixes the same type of coins belonging to different users, pre-dividing whole transactions into a great deal of smaller ones. Good service has a large pool of mixed coins that allows you to mix coins instantly.

Bitcoin mixer like BitMix.Biz offers its users the largest pool of prepared Bitcoins, Litecoins and Dash, so even when mixing large amounts there will be no difficulty. In addition, it is worth clearing a large number of your digital coins on BitMix.Biz, since the security of your money is ensured by a guarantee deposit of 15,000 US dollars on various crypto forums.

The authenticity of the Bitcoin addresses of the BitMix.Biz cryptocurrency mixer is confirmed by a key that you will receive and can check in a letter of guarantee when sending your coins to clean up traces of ownership. You can also find many reviews and testimonials from many crypto enthusiasts who have repeatedly and successfully used the service over several years
of its operation.

The BitMix.Biz interface can be used in any of the 10 presented languages so that you have a very clear understanding of each option. Delayed withdrawal options, the choice of the collection rate from 0.4%, increased randomization, as well as the ability to instantly delete information about the performed mixing transaction, guarantee the effectiveness of clearing
crypto money from data that could lead cyber intruders and spies to your digital assets.

To increase your security, recommend using the Tor network or browser without JavaScript. You can use the API key on your e-commerce site to provide your users with financial security, and you can also earn additional income through an affiliate reward program.