Trading Bitcoins on a peer-to-peer platform could be a lucrative business, but can also be tricky if not properly controlled. Unlike platforms like Prestmit where trading happens between the company and the user, peer-to-peer involves a third party. This unknown party could be anyone and trusting just anyone could be detrimental. Cryptocurrency platforms on the other hand allow for a high level of privacy. The asset stays in your wallet unnoticed and mostly untraceable. This peculiar nature has made a few Governments wary about accepting Bitcoins in their countries. This is why LocalBitcoins, a Finland based peer-to-peer Bitcoin trading platform made it mandatory to verify all its users.
In this article, we will learn how to get verified on LocalBitcoins. This is in order for you to be able to buy and sell Bitcoins on the platform. Before we go on, here are reasons why verification is necessary.
Reasons why You should be Verified on LocalBitcoins
- It is Mandatory to an extent, so it’s a must if you want to trade on the platform.
- It helps keep all parties safe. When users are verified they give out a few personal information that can help trace them in case a transaction goes south.
- It prevents people from performing money laundering on the platform. Money launders might want to hide away stolen money as Bitcoins. Verification makes them traceable.
- Verification ensures users aren’t going to use the platform to fund terrorist groups. If people aren’t verified, terrorism sponsors can easily transfer funds to terrorist groups and go unnoticed.
- Verification is useful when a user loses access to the platform.
These are the reasons why verification is important for both LocalBitcoins and its users. Next up is how to get verified on the peer-to-peer platform.
A Quick Guide to Getting Verified
Verification has different levels on the platform. The verification levels are Tiers. These tiers determine what kind of access a user gets. The tiers are T0, T1, T2 and T3.
T0 is for those who have been onboarded on the platform. Users on this verification level are allowed to buy and sell Bitcoins advertised by other users. For a user to be able to create advertisements and a deposit wallet they have to be on T1. Access to all other features on the platform can only be achieved on T2 and T3 levels.
To know what level of verification you are on, go to the verification tab in your settings. You will see your trade information and transactions. That and some verification items is what determines your tier level. After filling in the necessary details click on “Proceed to next level” to submit.