LocalCoinSwap is an upcoming peer-to-peer (P2P) exchange that lets users find partners to trade coins with through a system of classified ads.

This isn’t new in and of itself: LocalBitcoins and Paxful currently dominate this market. However, they only allow users to sell Bitcoin—and LocalCoinSwap plans to change that by supporting virtually any crypto.

The platform is scheduled to go live before the end of August, and it looks like the launch will happen sooner rather than later. Today the team tweeted:

We're nearly there….are you as excited as we are? https://t.co/f7XD8liVdu#LCS #CryptoExchange #Cryptocurrency #Decentralised #Launch pic.twitter.com/CUfuQaxS6j

— Localcoinswap (@Localcoinswap_) August 13, 2018

P2P exchanges have a few advantages over other exchanges. The majority of traditional exchanges have KYC procedures and collect identification from their users. But since P2P exchanges connect two individual traders, users can trade on any terms they want, and those terms rarely involve identity verification.

The increasing popularity of P2P exchanges is also driven by a recent wave of reports that banks are blocking transactions involving legitimate crypto exchanges. On P2P exchanges, most trades happen via various direct payment methods that banks keep no record of (PayPal, gift card trades, and anonymous bank deposits are common).

Although direct payment methods are somewhat risky on their own, P2P exchanges have various customer protection mechanisms. LocalCoinSwap will hold coins in escrow until the transaction goes through or until a dispute is resolved. User feedback is also displayed so that buyers and sellers know whether they can trust each other.

Suggested Reading: Learn more about some of our favorite traditional cryptocurrency exchanges here.

Most exchanges don’t list every single altcoin, and they only include major cryptocurrencies that can afford a gigantic listing fee. Some traditional exchanges offer more choices than others, but even sites like Shapeshift have limits on what can be traded, and various coins may be out of service at any given time.

LocalCoinSwap will eventually let anyone trade any coin they have, and will initially support ten major cryptocurrencies. Although it will be charging ICOs that want to be listed and weeding out scam coins, it will be adding established cryptocurrencies less discriminately.

There are a few caveats. Ideally, if LocalCoinSwap becomes widely adopted, it will make altcoin purchases easier than ever. But if it becomes too widely adopted, it may become just like a regular exchange. Notably, the platform’s closest competitor, LocalBitcoins, recently began to comply with KYC regulations and require identification.

P2P exchanges also have a difficult adoption problem: they don’t rely on a pool of liquidity to the extent that regular exchanges do. Instead, P2P exchanges need to attract two distinct types of users (buyers and sellers) before they are truly useful.

The post LocalCoinSwap P2P Cryptocurrency Exchange Hints at an Imminent Launch appeared first on UNHASHED.

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