LocalMonero is a P2P platform based in the British Virgin Islands. Launched in August 2017, its unique medium of exchange is monero (XMR), a cryptocurrency focused on privacy and censorship resistance.  

Like other peer-to-peer trading services, including Bisq or RoboSats, Monero has an .onion version in TOR. Something notable about LocalMonero is that it also has a web version on I2P, another private layer browser over the Internet. 

Like the aforementioned P2P exchanges, LocalMonero follows the line of financial freedom and free association including respect for privacy and anonymous participation of actors. There is, therefore, no jurisdiction where this platform does not offer its services, although Iran and North Korea do not appear on its list of countries. In an increasingly centralized industry, it becomes necessary to review and analyze proposals like LocalMonero, see its strong and not so strong points and know its true usefulness for users. These are the reasons that motivate the following review. 

Registering with LocalMonero is direct and without preamble: it consists of inventing a username and password. The language when using the platform is not a problem since it offers many languages. Regarding the design of the page, it is simple and pleasant: the gray and not the typical white background softens the light on the screen, while the blue generally indicates important functions of the user interface.

Is LocalMonero safe?

When it comes to identity protection, LocalMonero is safe, no doubt about it. First, it is an anonymous trading platform: it is not necessary to go through a tedious KYC  process before completing purchases and sales in cryptocurrency and local money. When registering, email is optional. Not placing it prevents the 'recover password' function, entrusting all the security of the account to the user. 

Trading exclusively in XMR provides strong identity protection benefits and doubles the security of the platform. This is because XMR is a privacy-focused cryptocurrency. When using it, you do not know who is in charge, who receives or how much money is traded. The only way to know this data is to be part of the transaction. 

Finally, as it operates on private Internet communications networks Tor (.onion, link that only works in the onion browser) and I2P, it has more robust security. Unlike Bisq or RoboSats, LocalMonero is usable through traditional browsers, resulting in more flexible usability than those.

As if that were not enough, LocalMonero has a function that allows you to disable JavaScript, which can be exploited by viruses and hackers. All this enhances the security of LocalMonero and achieves a platform with multiple layers of security. Of course: P2P exchange can be risky, especially if you are not used to the experience.

LocalMonero is a low-profile platform that, although unknown and anonymous, exhibits good service practices. It has been operating since 2017 in the P2P exchange market, and is still valid and usable today almost anywhere in the world. Due to the nature of its business, which prioritizes anonymous, decentralized and censorship-resistant finance, there is little information about the company behind this XMR portal or its founders. This should not be a problem since this anonymity also applies to users, and this site constitutes a safe or very valid oasis to evade said censorship. Services like LocalMonero are, of course, not without risks. The focus on privacy in the exchange's technological and usage infrastructure may attract the attention of malicious actors or censorship. In another exercise in transparency, the LocalMonero team considers its platform as the quick entry and exit to the exchange of cryptocurrencies with national money or vice versa. LocalMonero is not a digital wallet to store funds.

How does LocalMonero Work?

The XMR exchange platform ensures the viability and honesty of peer-to-peer business through a feature called 'arbitrage bonuses'. This functionality causes the retention of an amount of XMR equal to the amount in the seller's bond wallet. If the latter leaves with the money, the buyer would receive its equivalent from the latter's arbitration protection wallet.

Additionally, LocalMonero supports local face-to-face transactions in addition to traditional online electronic payment methods. To do this, it has a special vignette on the buying and selling site that allows the user to add the current coordinates of their location, which is useful when searching for an ad of this type. When trading on the platform , simply enter your private XMR wallet address to receive the XMR cryptocurrencies you purchased there. Therefore, the purchased coins go directly to your personal Monero wallet without first receiving them in an internal one of the platform.

This is a big plus considering the recent history of some centralized exchanges like FTX, where such custody resulted in millions in losses for retail and institutional traders alike. When it comes to selling the process is different. The amount of Monero you can sell will depend on how much you deposit in your arbitrage bonus wallet within the platform. These funds are on the platform and serve as a guarantee to the buyer of the sale of the assets temporarily held by LocalMonero .

This payment guarantee mechanism is excellent for promoting honest trade. Knowing that the arbitration fund could be given to the buyer due to bad practices, the seller will be much more concerned about bringing the negotiation to a successful conclusion. It can be sent in proportion to the XMR funds on deposit within the arbitrage wallet.  The amount that I sent is proportional to the XMR funds on deposit within the arbitrage wallet. Another form of honest trading guarantee is the accumulated reputation of LocalMonero. This reputation system is of the traditional public profile type: each trader has a username, a number of completed transactions, trust points and a table of feedback given by other traders.

Economic Commissions With Decent Liquidity

There are no significant or prohibitive fees for using the P2P service. The buying and selling of XMR is completely free for takers. Makers or advertisers are charged a 1% 'arbitrage protection fee' of the total amount for each completed transaction. Therefore, LocalMonero charges only a fee per transaction.

Sending to and receiving from other users of the platform also costs zero commissions. However, sending cryptocurrencies to wallets external to LocalMonero involves a network fee for using the Monero blockchain. For a more decentralized solution than people are used to, LocalMonero has decent liquidity. This is not because there are many users; Rather, it is because the payment methods are very broad, and there are many global ways of sending and receiving money among them , one of which is cryptocurrencies.

In any case, reviewing the purchase and sale offers by country with more local payment methods, such as bank transfers, shows that the platform has decent liquidity. It should be noted that selling XMR is easier than buying it, and that DEXs or exchange houses are more accessible to acquire said cryptocurrency.

Several Customer Support Channels

The platform has an active sub-reddit where community participants can exchange opinions and create discussion threads about the platform.

Whoever is allegedly the co-founder of LocalMonero actively participates in said forum and in interviews , answering questions and clarifying doubts in a very serious and parsimonious way . This, of course, enhances the transparency and attentiveness of the platform. LocalMonero has its own discussion forum, although much less active than said subreddit. Likewise, LocalMonero has various support channels. It is possible to either open a ticket expressing a problem, for which an email must be verified, or send a separate email to the address [email protected]. It is also possible to contact support through the Telegram or the decentralized communication platform Matrix. Customer service from LocalMonero is, as can be seen, quite good.