It’s quite easy to buy Bitcoin, even with cash. There are plenty of ways to go about it, but this article will outline how to get your hands on Bitcoins in the fastest, easiest way possible. If you are new to cryptocurrency or have just heard about the new craze surrounding digital assets like Bitcoin, Ethereum, and Litecoin but aren't sure where to start – don't worry; we are here to help!
Why Buy Bitcoin With Cash?
Bitcoin transactions are recorded in a public ledger called blockchain, but your personal information is not tied to your transaction unless you give it up yourself. The same can't be said for credit cards and other forms of payment, which require information like an account number and street address.
Since Bitcoin is a global currency, there’s no need to wait days for funds to transfer from one bank account to another — or even across international borders, as often happens with traditional wire transfers.
When buying Bitcoin with cash, funds are available instantly after purchase; in most cases, at a lower cost than through credit card or PayPal purchases. That is why you should always buy Bitcoin with cash.
Bitcoin Peer-To-Peer Trading
The easiest way to buy and sell Bitcoins is to find a person (or people) in your area willing to exchange some of their Bitcoins for some of yours. There are, as always, numerous ways you can do that. If there’s not an individual you already know who’s willing—maybe it’s time for a bit of Bitcoin evangelism. After all, if everyone adopted Bitcoin Cash just because they liked the technology, we would all be better off.
You might also look into peer-to-peer platforms like LocalBitcoins and CoinCorner that specialize in facilitating local trades between fiat currency and cryptocurrencies. Both offer online marketplaces where users can place ads describing what they want to trade and at what price. They also allow users to arrange secure face-to-face transactions or meetup locations for same-day trading. Peer-to-peer transactions typically have lower fees than centralized exchanges, although depending on how much you trade, those fees could still add up quickly. Still, using a peer-to-peer platform is probably more private than using an exchange. That's because no one except you knows exactly which coins is being sent from your wallet to another address.
Buying Bitcoin With Cash In Person
You are in the clear as long as you have reliable pals who also hold some Bitcoin and are prepared to sell it to you. Attending Bitcoin conferences or gatherings in your region is a great way to meet people who can be relied upon as friends.
Look for local Bitcoin groups on Meetup or Facebook to find out where these events are being held. You should also make sure that you carry the agreed-upon amount of cash with you unless you intend to meet near an ATM. This is an important item to keep in mind. Be sure to bring your mobile device or laptop computer with a Bitcoin wallet already loaded on it.
If you only bring an address, you won't be able to verify receipt of your coins. Make sure to record any identifying information about your buyer, including their username and avatar, if possible. These details will come in handy if there is ever a dispute over whether or not you delivered what was promised.
Two Great Options for Escrowed In-Person Trading
LocalBitcoins was formerly our go-to recommendation for doing in-person trades; unfortunately, the firm has now made the decision to remove all listings for local cash transactions. As a result, Paxful is the service that is now in second place.
· Paxful Buyer/Seller Matching: This is one of our favorite methods for buying and selling Bitcoins. For buyers, Paxful offers a large selection of sellers who are willing to meet up in person and accept cash payment (although some will also accept PayPal). For sellers, it provides a quick and easy way to sell their Bitcoins without having to register on an exchange or go through other means of transaction. The interface is clean and intuitive, but note that it is not as advanced as LocalBitcoins'. You can find more information about how Paxful works on their website.
· Mycelium Local Trader: For those who are more familiar with using mobile wallets, we also recommend trying out Mycelium's Local Trader feature. This is a relatively new service, but it has already proven itself to be very useful for finding local buyers and sellers of Bitcoin in your area. The interface is extremely easy to use and makes it easy for users to find other people nearby who are looking to trade Bitcoins for cash or vice versa.
Buying Bitcoin with Cash From a Bitcoin ATM (BTM)
You’ve likely heard of buying Bitcoin on exchanges or platforms like Coinbase, Gemini, and others. But how do you purchase your first Bitcoin from a Bitcoin ATM machine? The process is as simple as choosing a vending machine for sodas or snacks. So here are some tips for getting started.
Find A Bitcoin ATM In Your Area
There are more than 2,500 BTM machines around the world. Most of them can be found in big cities, but it's possible to find them in smaller towns too. There is also an online map that will help you locate one near you. Keep in mind that ATMs that support cryptocurrency transactions have certain operating hours (usually 24/7). Also, remember that some machines only allow transactions limited to $2,000 per day. For example, if someone wants to sell $5 million worth of Bitcoins at once, they may not be able to do so at an ATM because they don't want their account drained all at once, or they might run into problems due to limits imposed by their bank.
Find Out If There Is A Fee
Most Bitcoin ATMs have a small fee, known as a transaction fee, which is also called an exchange rate or spread. The ATM will display how much you’ll pay per Bitcoin and how much they're selling it for on their interface. This can be anywhere from 3% - 8% or higher, depending on where you are in terms of geography. Keep in mind that fees are often lower when buying with another cryptocurrency instead of US dollars (fees start at 7%). However, remember that other exchanges do not accept cash or bank transfers because they need proof of identity, which is traditionally difficult to obtain without a bank account. If you want to purchase Bitcoins anonymously, then using cash at a BTM may be your best option.
Make Sure Your Wallet Supports QR Codes
If you want to use a mobile wallet app like Airbitz or Breadwallet, make sure your phone has access to your camera so that you can scan QR codes. Some wallets like Mycelium support BIP39 recovery seeds and private keys too. That means users don't need access to their phone's camera for transactions—they just need enough information about their wallet's seed phrase and private key(s).
Have Some Cash Ready
You'll need to bring some cash money with you in order to complete transactions at Bitcoin ATMs. Depending on how many Bitcoins you want to buy, you may need $100+ USD worth of bills. As mentioned earlier, most machines only allow up to $2,000 worth of BTC per day.
Choose Buy And Enter Your Phone Number
Once you've found a machine that fits all these criteria, choose Buy from its interface. Then enter your phone number and hit send/enter (this helps prevent fraud). Now, wait for a text message with a verification code; enter it into the machine's interface when prompted.
Scan Your QR Code Or Type In Your Address
Next, choose whether you'd like to scan a QR code generated by your wallet app or type in an address manually. For example, if you're using Airbitz or Breadwallet on iOS, then you'll need to scan a QR code instead of typing in an address. If you're using Mycelium for Android, then there is no option for scanning a QR code—you'll have to enter your Bitcoin address manually (or use another wallet that supports BIP39 recovery seeds).
Confirm Transaction Details And Insert Cash
Finally, review all transaction details one last time before inserting cash into the machine. Once it’s confirmed that everything is correct, hit send/enter again and wait for confirmation from both parties (the ATM and your mobile device).
Buy Bitcoin With A Cash Deposits At The Bank
Both LocalBitcoins and Paxful allow users to make deposits using cash as a form of payment. BitQuick and Liberty X are two other services that are available in the United States that specialize in organizing and securing the acquisition of bank deposits (which require smartphones). The United States, the United Kingdom, Argentina, Australia, Brazil, Canada, Germany, Latvia, Mexico, Poland, the Philippines, and Romania are all countries that Wall of Coins serves with this particular product or service.
When using this approach, the buyer is given the seller's bank information. After that, you go to the appropriate bank and fill out a deposit form there. There is the option for sellers to choose a certain bank. After that, you go to the bank teller to place a cash deposit into the seller's account. This strategy is more trustworthy and provides more physical security than arranging to meet with an unknown person. To be more specific, the vendor does not have any means of determining which bank you will be utilizing.
One disadvantage is that these services are only accessible during normal business hours for banks. In addition, they take much more time than transactions conducted in person, which is especially the case when there is a lengthy line at the bank or when the service that verifies your trade moves at a snail's pace. As is the case when exchanging currency in person, you should never trade using a bank deposit unless it is done via a trustworthy escrow provider. Taking this precaution will protect you from fraud. You may show the escrow service that you paid for anything by taking a picture of or scanning the receipt that your bank sent you for the deposit.
In the case that a disagreement arises, provided that the necessary documentation is shown, they will release the funds from the seller to your Bitcoin address. Make sure that you save the receipt that you were given. If you don't have it, proving that you made a payment might be quite difficult (unlike when you use a bank transfer).
Buy Bitcoin With Cash By Mail (Not Recommended)
Paxful also provides services that enable users to locate merchants that are willing to take cash over the mail. There is also the possibility that you may locate acceptable merchants on darknet marketplaces. As is the case when making purchases in person, you should make every effort to deal exclusively with well-established people who have a solid reputation. Escrow should always be used, and selecting a trustworthy vendor is your greatest line of defense against fraud in business transactions. This approach has a number of apparent drawbacks, such as the fact that it is slow and the possibility that your envelope may be misplaced or stolen while it is in transit.
It is highly recommended that the banknotes be encased in a few layers of paper before being inserted into the envelope. This will ensure that the bills are not detected readily. You may be eligible for compensation from certain vendors in the event that your envelope does not arrive at all or comes empty. For the purpose of determining your eligibility, it is possible that you may be required to video or photograph yourself, insert the money into the envelope, affix the seal, and send it.
It is highly recommended that you send the package by registered mail and have the seller sign for it once they have received it. Although the amount of cash contained inside the envelope may still be contested, using this approach generates some evidence that you paid via an escrow service. Because of the difficulties of this approach, the only people I would suggest it to be cash purchasers who are located in areas that are inaccessible by any other mode of purchase.
If I could only use one of the four methods that I described, it would have to be the Bitcoin automated teller machine. BTMs provide a dependable option for making cash transactions and are often situated in public locations that are safer than surrounding neighborhoods. Although using cash to acquire Bitcoin is a quicker and more anonymous approach than using traditional means, it is still riskier than using most of the internet alternatives that are available today (credit cards, wire transfers).
If you don't have to pay with cash, using an online way to make the Buy, provided you select an exchange that is well recognized and reliable, is likely to be the safest option for you. If you are aware of any further approaches, or if you have any questions or comments, please feel free to submit them in the box provided below.