Re: Localbitcoins explanation

Can someone explain to me the main purpose of platforms like Localbitcoins, Bisq, Paxful, HodlHodl, Localethereum, Altcoin, Vicex? I try to look into Localbitcoins and see that people set demanding rules just to buy their bitcoin. Also, the price is usually more than what the current rate of bitcoin is. I'm really clueless about why anyone would use such platforms. What's the benefit?

you can buy bitcoin quickly---without waiting days or weeks to get verified at an exchange and then wiring money there.

p2p exchanges are also virtually the only way you can trade without KYC verification, and it's the only way to trade for cash. even localbitcoins now has volume thresholds that trigger KYC requirements. i believe the smaller p2p exchanges don't have KYC yet, but some individual high volume traders will demand ID because they're worried about getting arrested for unlawful money transmission.

I guess I don't really get why any "regular" person would be worried about KYC verifications. I mean, if they're already getting paid in check or direct deposit by their employer, then that means their bank knows exactly how much money they deposit and withdraw.

the concern about KYC verification isn't about banks. it's about bitcoin/altcoin exchanges and the third party services they use to verify identity. with most exchanges, it's very unclear whether they'll adequately secure your private documents. there's been too many database hacks in this space to count. in this day and age, identity theft is a real concern. i take great caution when giving out my passport/SSN and other sensitive info.

it's an even greater concern with ICOs. lots of them are run incredibly unprofessionally and you should assume your documents will be stolen. some of them are straight up scams and intend to sell your KYC documents on the darknet anyway.