While the world of cryptocurrency has exploded in recent years, and is continuing to grow rapidly. However, one major problem remains, most customers still don’t understand what crypto is or how to purchase it. This guide will run you through the basics of how to buy Bitcoin with cash.
Once you hold Bitcoin, you can then easily switch between different cryptocurrencies. It is widely accepted that Bitcoin is the most versatile cryptocurrency and the most commonly traded.
But first, let's take a look at why you would want to buy Bitcoin in the first place and why the Bitcoin ATM (BTM) is the best way to buy Bitcoin with cash.
Why Buy Bitcoin?
There are a variety of reasons to purchase Bitcoin and other cryptocurrencies. The main reasons include:
- Gain access to the other 4,000+ cryptocurrencies
- Ultra-low transaction fees
- Ultra-fast transaction speed
- Ability to send transactions anonymously
- Gain experience with distributed ledger technology
- Potential to profit from one of the best assets of all time (from historical performance)
However, you’ll lose out on most of these major benefits if you do not make purchases in an efficient manner. Even worse, you’ll lose everything if you send your funds to a scam artist, this is a very real concern. Currently, the most reliable way to buy Bitcoin with cash is through Bitcoin ATMs.
Why Use A Bitcoin Atm?
You’ll only gain the benefit of cryptocurrencies when you become familiar with the purchasing process and avoid the many pitfalls of crypto investments. Bitcoin ATMs (BTMs) are ideal, since they prevent the most problematic element: criminality.
The world of cryptocurrency is polluted by hacks and scams, BTMs provide a much safer approach to buying Bitcoin with cash. This approach leverages legitimate money service businesses that have a very powerful interest in ensuring compliance standards are met. The following are some of the reasons you should use a BTM when buying Bitcoin with cash:
- Compliance procedures are met
- Easy to buy and sell cryptocurrencies
- Avoid losing your money to a fraud exchange or platform
- Available in most major cities
- Element of familiarity due to the kiosk/ATM features
- Fees are typically upfront and transparent
- Can pay physical cash in return for cryptocurrency
For all of these reasons, it’s a lot smarter to use a BTM in comparison to other methods. You can meet somebody in person, but you then run the risk of losing all of your funds. You can also invest through online exchanges, but you will likely pay higher transaction fees. KYC can also take a long duration of time with exchanges, which isn’t ideal in the fast-paced crypto world.
The BTM: Buy Bitcoin with Cash
The easiest way to buy bitcoin with cash is to use a Bitcoin ATM (BTM). These BTMs are proliferating across the globe as cryptocurrency adoption continues to increase. BTMs are very easy to use, allowing users to buy Bitcoin with cash in less than 10 minutes. The process for BTMs is quite similar, and will go something like the following:
- Locate the nearest BTM using CoinATMradar.com or a similar platform.
- Insert purchase details (cryptocurrency type, total amount, fiat currency type, etc).
- Verify the One Time SMS passcode sent to your phone.
- Scan your identity document (passport, state ID, or driving license).
- Scan your cryptocurrency wallet QR code.
- Insert fiat cash into the Bitcoin ATM.
- Wait and receive your cryptocurrency.
These are the basic steps involved when buying Bitcoin with cash from a BTM. These steps can vary between BTMs, however not by a large margin. They also vary depending on the total amount of money being exchanged. If you are looking to buy Bitcoin with cash for an amount under $900, you typically won’t have to verify a passcode or upload an identity document.
From start to finish, the process should take less than 15 minutes to complete. The lengthiest step in this process is waiting for your cryptocurrency funds to arrive. The amount of time this takes will again vary depending on the type of ATM and the level of congestion on the network.
Other Ways to Buy Bitcoin With Cash
Using a BTM is one of the more popular and reliable ways to buy Bitcoin with cash. However, it is certainly not the only way. The world of cryptocurrency is flexible and offers a number of ways to transact. Some alternative methods to buy Bitcoin with cash are listed below.
#1 - Meeting in Person
In the early days of cryptocurrency transactions, people would simply meet up in person. The buyer would give the seller money and the seller would then transfer the cryptocurrency. When the cryptocurrency arrived in the wallet, then the transaction was deemed complete. Obviously, though the process worked, it was not exactly what could be called secure. It’s also not very efficient unless a buyer and seller were located nearby and were willing to meet up in person.
#2 - Online Escrow
Aside from meeting up in person, some sites provide escrow services. The buyer would look at a potential trader and see if the terms were favorable. The buyer would oftentimes check the seller rating as well. The seller would release the coins in escrow when the funds hit his/her bank account or when the transfer is verified. There are a variety of escrow services, which all provide different features. However, there can be a lot of scam artists on these sites who entice unwary customers to release either their coins or cash prematurely.
#3 - The Bank Deposit
Another way to purchase Bitcoin using cash is through a bank deposit. Using this method, the seller would give you his/her bank details and your deposit to their account. Of course, you can only do this through the usual banking hours and may have to queue. This form of cash deposit is best completed using a reliable escrow service. And remember to scan your deposit receipt, since it's very difficult to prove you made the deposit without it. If you show this to the escrow service, they can release the coins back to your wallet address in the event of a dispute.
#4 - Cash Through Mail
Finally, one of the most dangerous ways to purchase Bitcoin with cash would be through the mail. This is a very slow method, and you run the risk of losing the envelope/package that is being shipped. The best defense to this problem is to use an established seller with a reliable track record. Bigger crypto sellers rely heavily on being the best rated, and they would be very reluctant to receive negative reviews.
However, this is something you should always do when transacting in cryptocurrency. If you’re not using a Bitcoin ATM, then you need to verify that the trader is extremely trustworthy. Registered mail is more secure than standard mail when using this method of exchange.
Using A Cryptocurrency Wallet
If you want to buy Bitcoin with cash, one of the first things you are going to need is a crypto wallet. This is extremely simple to do, but the concept can be confusing to a lot of newcomers. Your cryptocurrency wallet is merely the place where you store your cryptocurrency securely.
Each wallet will have a unique ‘address’, much like a bank account has an IBAN or routing number. Without this identifier, there would be no way to send funds into your unique account.
This wallet address will be displayed in the form of a QR code, so all you have to do is show your QR code to the BTM and it will know where to send the crypto funds.
Setting up a cryptocurrency wallet is easy, you can create an online wallet with the click of a button. Just remember to store your keys securely, and always be aware of who you share your wallet information with. When you create your wallet, the private keys or wallet seed code will be revealed. Remember to store this, as it's the only way to regain access to your funds if you forget your password.
Without setting up a wallet, you won’t be able to buy Bitcoin with cash. If someone attempts to buy Bitcoin without having a wallet, they will have nowhere to send their funds.
Buy Bitcoin Through Crypto Dispensers
Unfortunately, not all BTM operators are made equal, many Bitcoin ATM machines can charge customers up to 25% of the transaction fee. This is because the fee is not clearly advertised and consists of many hidden charges. You might also run the risk of losing your funds when you use low-quality BTM providers.
Crypto Dispensers specializes in making it easy for US residents to gain access to crypto. The cash-to-crypto exchange offers a variety of ways to make a transaction. There are over 12,000 locations to deposit cash across the USA, including CVS and RiteAid stores. When cash is deposited, you can then convert it into crypto from the comfort of your own home.
Crypto Dispensers have facilitated over $100 Million in transaction volume since 2017. There are over 50 Crypto Dispensers Bitcoin ATMs available nationwide. Additionally, Crypto Dispensers use software designed to be fast, easy-to-use, secure, and KYC compliant. Moreover, the fee is a clear 10% above the spot price with a small network fee (~$1.50 - $5). You will always know what you pay in advance.
The Best Way to Buy Bitcoin With Cash
The Bitcoin ATM is probably the best way to buy bitcoin with cash, for a number of reasons. It’s the safest choice since the machines are designed to be easy to use and KYC compliant. Because these machines are expensive, the owners have a vested interest in keeping them up to date, private, secure, and efficient.
There are other ways to buy Bitcoin with cash, but you run the risk of losing all your funds to scam artists. You could also end up paying much larger fees than you would prefer. Using a Bitcoin ATM is one of the most direct and effective methods for those looking to gain exposure to the world of cryptocurrency.