LocalCoinSwap provides a unique feature that enables both an easy on-boarding process, as well as the ability to trade on multiple P2P platforms without the need for additional capital.
This is the ability to create trade offers without the need to pre-fund your LocalCoinSwap wallet. These trade offers will be visible to all users, and you will only need to deposit crypto onto the platform in order to fund the escrow once a trade has been initiated.
Other major P2P platforms that many people may be familiar with, take the opposite approach to this. That is, they force you to store the crypto you want to make available for sale on their platforms in order to have the offers live and visible to other users. As crypto purists, we can clearly see some of the issues with this. However, there are also some less obvious ones too:
Issue 1: Platform Risk
When you have more crypto in wallets that you do not control the private keys to, you are more exposed to the risk of exchange hacks. As well as having your funds exposed to an increased risk of seizure by the platform or other authorities. The saying goes - “not your keys, not your crypto”. Always be wary of platforms that want to hold your crypto unnecessarily. You should be allowed to store your crypto where you feel it is safest!
Issue 2: FX Risk
Sellers are exposed to more foreign exchange risk. Many sellers on LocalCoinSwap are making a profit through arbitrage. That is they are making money off the difference between what they can buy crypto at, and the price that they sell it. This price differential is due to the fact that they are offering a service to those who may prefer specific or regional payment methods, who may value their privacy, or who may not have access to traditional centralized exchanges. This is in addition to the personalized service offered by many sellers that you will not experience on centralized platforms.
If these sellers have to hold their funds on the platform merely to post an offer to sell, there is more time for the price of the underlying cryptos to change and reduce the opportunity for profit (or make a trade completely unprofitable). This leads to sellers having to sell at higher prices to account for the additional risk.
Issue 3: Capital requirements
Some vendors may be selling crypto on multiple P2P platforms. If they were forced to store the amount they want to sell on each platform just to be able to post a trade offer, they would have to have multiple times the amount of crypto or reduce the number of platforms they can provide liquidity on. These forms of restrictions also accentuate the above issues even further and place unnecessary constraints on traders.
Issue 4: Lower trade limits
Some vendors and OTC providers on P2P platforms can access and sell higher volumes crypto than they generally hold. These sellers will obtain these larger amounts upon the request of a potential buyer. This type of selling would not be possible if sellers were required to store all their crypto on the platform and therefore, would lead to lower trade limits and lower liquidity on the platform.
As you can see, there is a raft of issues surrounding the stringent requirements from other P2P platforms.
LocalCoinSwap enables users to trade with:
- Less platform risk
- Lower FX risk
- Fewer capital requirements
- Higher trade limits
LocalCoinSwap is taking additional measures to ensure a better and more secure experience for users. All Ethereum and ETH-based token wallets on LocalCoinSwap are completely non-custodial, and this means that only you control the private keys and you have full access to your funds. Even if you are unable to access the LocalCoinSwap site for any reason, you can import your private key into other wallet apps like Trust Wallet, MetaMask, MyEtherWallet, and many more to have immediate access to your crypto at any time.
Trades for these Ethereum-based cryptocurrencies are completed through the use of smart contracts. Meaning the platform never takes control or has access to the crypto being sold at any point in the trade process. You may even trade directly out of your MetaMask wallet negating the need to use platform wallets at any time and reducing the transaction fees required. Non-custodial Bitcoin wallets and trading will be launched soon, ensuring that users have maximum control over all their crypto, all the time!