5 Best Security Practices When Trading on LocalBitcoins
See also: Las 5 mejores medidas de seguridad al operar en LocalBitcoins
LocalBitcoins is a peer-to-peer marketplace that offers a platform to buy bitcoin, trade bitcoin, and make money with cryptocurrencies.
While trading on LocalBitcoins may be a great way to earn money remotely, there are things that you should take into consideration. Like in any other online trade, there are dangers awaiting you if you don’t take certain precautions. However, with a few security practices, you can trade safely on LocalBitcoins.
In this article, we’ll look at the 5 best security practices you should adopt when trading on LocalBitcoins. Let’s get started.
1. NEVER trade outside of escrow
The first thing you should keep in mind when trading on LocalBitcoins is that you should always keep your trades within the LocalBitcoins platform. If your trading partner suggests moving into private channels, such as WhatsApp or Telegram to finalize the trade, NEVER accept their requests, and go find another trading partner. Your Bitcoin trade is protected ONLY when it is done within the LocalBitcoins platform, protected by its escrow.
Escrow works as a third party, holding the funds of a transaction temporarily. The funds are only released when the participating parties,the buyer and the seller, meet the terms of the agreement or transaction. Basically, an escrow ensures that both the buyer and seller stick to their end of the bargain.
2. Use two-factor authentication
Two-factor authentication (2FA) is a security system that demands a user to provide two distinct forms of identification to verify themselves. The two forms of identification could be for example a PIN and a code, or a password and a code.
This means that anyone trying to log in to your LocalBitcoins account will first need to provide the correct username and password combination and after that, a unique code sent by text message to your mobile phone or generated by an authentication app.
If you have your two-factor authentication enabled, the impersonator can’t log into your account even if they know your username and password.
3. Be aware of phishing scams
Be aware of suspicious emails and messages pretending to be someone you trust. LocalBitcoins never asks for your personal information through email, and we only use our ticketing system if we need to know your information.
Some malicious actors might create websites or domain names that look like LocalBitcoins’ website trying to steal your funds. Therefore, it’s always best to bookmark the website localbitcoins.com and access it through the bookmark, so you will never accidentally end up on a wrong and dangerous website.
4. Don’t use the same passwords on different websites
It might be tempting to use the same password on every online account you use. Who wants to remember tens or even hundreds of different passwords after all! Even if using the same password over and over again might be convenient for you, it might make you vulnerable to theft of your personal information.
Even if you want to go the easy way and spare your memory from having to memorize different random passwords, at least use a passphrase instead of a password. Passphrases are more like a string of different characters, so they are much more difficult for a malicious actor to guess than the name of your dear pet that you used to have as a password on every account. A good passphrase consists of small and capital letters, and special characters.
If all this is too much for you, a convenient and safe strategy is to use a password manager, such as Keepass, to log into different websites.
5. Use a personal and secure device
Always use a personal and secured device when trading on LocalBitcoins. If you use public devices in cyber cafes or libraries, someone else can access your information, especially if you forget to delete your browsing history. They can then use this information to take over your account and use it to their benefit.
However, this doesn’t mean all personal devices are safe. Some may be compromised with spyware, keyloggers, or other malware. So, to be on the safe side, it’s good to use VPNs (Virtual Private Network) and 2FA for added safety.
Wrapping it up
Maybe you’re of the idea that there’s no such thing as perfect security, and anything can happen even if all 5 precautions are put in place. Well, this may be true in some cases, but following the 5 steps discussed above when trading on LocalBitcoins makes it relatively safe to buy bitcoin, trade bitcoin, and make money with cryptocurrencies.
Happy trading on LocalBitcoins!
