Buying, selling, and trading cryptocurrencies can be done in many different ways. A lot of users rely on centralized exchanges, although there is a growing interest in P2P trading as well. LocalCoinSwap is trying to make a name for itself in this industry, but there are some questions as to how it differs from LocalBitcoins.
#2 LocalCoinSwap
Many people tend to believe platforms such as LocalCoinSwap are quite similar to decentralized exchanges. While that correlation is only normal, the concept of this new platform is quite different from what one would expect. LocalCoinSwap is not designed to facilitate decentralized trading, although the platform is paying attention to this concept.
More specifically, LocalCoinSwap is taking a very different approach compared to LocalBitcoins. First of all, the platform decentralizes profits, ownership, and decision-making. Although the platform will still be a custodian of funds in a way, they are intent on keeping 95% of all assets in cold storage at all times. There is no reason to sacrifice on security when promoting peer-to-peer trading in this day and age.
Moving one’s funds off the platform can be done without any major setbacks or friction. Additionally, it sees the LocalCoinSwap’s interests are aligned with those of investors in this platform through the LCS token. In the end, LocalCoinSwap aims to focus on a different type of peer-to-peer trading compared to what one is used to, which is always interesting to keep an eye on.
#1 LocalBitcoins
Anyone who has ever used LocalBitcoins will know how the platform works. It is evident they want to promote peer-to-peer trading as well, all the while offering custody services of coins in escrow format until the trade is fully completed. It is a platform which only focuses on Bitcoin at this time, whereas LocalCoinSwap tends to offer support for other currencies as well.
LocalBitcoins facilitates two different types of peer-to-peer trading. Users can support online trades which does not require meeting up with the other party in person. Local traders, on the other hand, are the true P2P version of buying and selling Bitcoin. However, they are not protected by escrow by default, thus it all comes down to user preference first and foremost.
Similar to LocalCoinSwap, the platform offers a native wallet solution. Moving funds off the platform should not prove to be overly difficult whatsoever. For most traders, there is no reason to use one platform over the other, albeit both of them have their own positives and negatives. Having more options to buy, sell, and trade cryptocurrency is always a positive thing.
Image(s): Shutterstock.com
2 Comments