The launching of the Local Bitcoin Cash service has enabled the trading of Bitcoin Cash on a truly peer-to-peer basis, with any fiat currency, using escrow accounts. Bitcoin Cash works in many ways like LocalBitcoins.com, LocalEthereum.com, and LocalMonero, which allow the peer-to-peer trading of Bitcoin, Ethereum and Monero respectively.
On Local Bitcoin Cash, just like three other most popular P2P trading websites (Local Bitcoin, Local Ethereum and Local Monero), a trader connects with another trader who is willing to take their offer. The seller will send crypto to an escrow account after confirming the relevant exchange rates. The funds in question are then automatically released when the buyer sends his or her payment.
The service does not store crypto like a custody service; instead, their encrypted blind on-chain escrow contract acts as a decentralized go-between for the traders. One of the greatest advantages of using Local Bitcoin Cash is that traders and users will lower their trading fees starting with 0.25% fee for the maker and 0.75% for the taker. Unlike LocalBitcoins.com, LocalBitcoinCash provides users with a self-custodial wallet, and no counterparty risks, and uses the Open Whisper System's Signal Protocol to encrypt messages end to end.
Trading will start on June 4.
Peer-to-peer trading with any local fiat
With LocalBitcoinCash, any person is able to start trading instantly simply by signing up with the service, which is pretty simple, and without KYC.
Anyone from around the world can sign up and post an ad to sell or buy Bitcoin Cash on the website. These ads are accessible to other traders on the website. For sellers, a seller is able to post an ad specifying the currency they want to be paid with if selling the cryptocurrency, the payment method they prefer or accept, and other terms such as payment addresse, setc. The platform allows traders to buy or sell cryptocurrency in any local fiat and payment methods including the most popular one's Bank Transfer, PayPal, Western Union, and many others.
For instance, it allows anyone to trade BCH regardless of their location, payment method and respective local fiat or currency. For instance, it is already known that not all fiat online payment methods are supported in all countries, so someone in Pakistan where PayPal is not accepted could still trade BCH with someone in a different country through a different payment method such as Bank Transfer or Western Union -- for instance the person can buy or sell BCH with PKR and without having to convert to USD etc. This can be done either locally in person with other local traders in Pakistan. If someone in a different country still accepts Western Union or some other payment method that is available in Pakistan, then a trader in Pakistan can still buy or sell BCH with the Local Bitcoin Cash service.
Just like other websites that allow trading of crypto with local fiat, Local Bitcoin Cash allows buyers to sign up and search for listing from sellers and to check their terms including the prices they are offering Bitcoin Cash for. Different users will want to sell and buy cryptocurrencies at different rates, depending on the current market rates and according to their trading interest such as how much profit they intend to earn.
When posting a sell ad, a seller is able to specify other things such as the amount they are selling and whether they can accept buys in smaller amounts, like in percentages of Bitcoin Cash. The seller will then send the Bitcoin Cash to escrow when a buyer is found and sends an interest to buy within specified trading conditions.
The website also allows buyers to narrow down their search according to the country, method of payment and currency they prefer. Once the buyer finds the suitable listing from the many that are displayed, they can then continue to buy by specifying the amount of Bitcoin Cash they need and opening the trade, which is sent to the seller.
The seller will then confirm the applicable exchange rates and then send to lock up the necessary Bitcoin Cash into escrow. The buyer will then send the fiat payment directly to the seller using the details presented on the terms of trading. When the seller receives the payment, they then release the Bitcoin Cash from escrow and it is reflected on the buyer's account.
Apart from trading, the service allows for direct sending of BCH from one trader to another.
Not only does Local.Bitcoin.com enable anyone to trade Bitcoin Cash locally in local fiat and connect to other traders who are listing their trades, it has a user rating tool that will give an overview of a trader's reputation in respect to their previous trades. Thus as a seller or a buyer, it is possible to find the most trusted users on the service easily, with this method.