This is the first in a new series of 'New Feature' blog posts where we highlight important new features added to the LocalCoinSwap peer-to-peer (P2P) marketplace. In this post, we look at a new feature that we have just launched which allows P2P sellers to create sell advertisements without first depositing crypto into the LocalCoinSwap P2P platform wallet and we explain how this provides a competitive advantage for our users.
Anyone who has sold cryptocurrency on a P2P marketplace in the past knows that in order to create a sell advertisement you first needed to deposit your crypto into the platform wallet of the site you were selling on. The amount of crypto you put into the platform wallet then determined how much crypto you could actually sell.
For example, if you wanted to sell 1 BTC, you would need to deposit at least 1 BTC into the P2P platform and wait for a seller to come along in order to initiate a trade and buy your bitcoin.
This created numerous challenges for P2P sellers.
Not only did they have to tie their crypto up in whatever platform they were using as they waited for a seller to find their advertisement but it also meant that there was a real chance that the value of their crypto could be negatively affected during volatile periods in the market.
In addition, it also meant that P2P sellers were faced with a lot of risk if they wanted to trial new P2P marketplaces that had lower fees or better features simply because they would need to transfer all of their cryptocurrency from the old platform into the new platform in order to create new sell advertisements which was time-consuming, came with costly transfer fees, and unknown risk.
With our new feature, LocalCoinSwap have removed this risk and introduced a new opportunity for P2P sellers to make even more money.
On LocalCoinSwap you can now create your own trade advertisements to sell bitcoin (or any of our 20+ cryptocurrencies such as ethereum, dash or monero, etc) and you only need to deposit your bitcoin into the LocalCoinSwap platform wallet when someone initiates a sell trade with you and you are ready to begin your trade.
Benefits of this new feature include:
- Ability to post larger sell advertisements with fewer worries
- No need to prebuy/hodl what you want to sell for a profit
- Less risk as you don’t need to prebuy and hodl in escrow
- You are not restricted to trading only what is in your platform wallet.
- High volume traders, who may be skeptical of holding large amounts of funds in their on-site wallet, can now post sell ads without worrying about their funds
- Traders from other platforms can easily trial our LocalCoinSwap experience without having to withdraw funds first from other platforms
It is important to note that the buyer is, at all times, still protected by secure escrow protection and it is clear to the buyer when the escrow has been funded by the seller thanks to the easy-to-read trade progress bar on the right side of the user interface. See screenshot below.
Why is this feature important?
This new feature creates an awesome opportunity for P2P sellers who buy and sell cryptocurrency as a business opportunity.
You can now use arbitrage to make even more money selling bitcoin, or your preferred cryptocurrency, in your local community or to OTC traders worldwide as you are now able to create as many sell advertisements as you want and you only need to buy what you need to fund your sell trades when you get a P2P buyer initiating a trade.
P2P sellers can now also trial LocalCoinSwap, taking advantage of our simple to use platform UI and will be faced with less risk than they have on competitor platforms where they need to keep their crypto funds locked in the platform at all times.
It is important to note that buyers and sellers can still use the LocalCoinSwap site exactly as before, and so if you already have funds in your wallet then the buying/selling process will continue to work the same way. We just give you more options to make decisions with your funds that matter to you.