The Ultimate Guide To Buying Bitcoins With Cash
Bitcoin has been making waves for a while now. Plus, it has disrupted several industries all over the world. Now, a lot of people are gradually jumping on the train and getting themselves some bitcoin.
So many people have been left wondering how hard it is to purchase Bitcoin with the traditional fiat currency. Well, it is a straightforward process if you follow the steps and instructions you find online judiciously.
If you have been searching for how to buy Bitcoin with cash alone, then you have come to the right source. However, before we go into the specifics, there are some basic things you should be aware of.
Firstly, Bitcoin as you know, it does not exist like every other physical asset the way cash exists. As it stands, there are some bridges between the computerized world of virtual currencies and our physical world of cash or fiat currencies.
Even more, the cryptocurrency and Bitcoin market is undergoing some rapid transformations, and there are extra alternatives that will be made available soon.
Furthermore, there are vital distinctions that must be made before we can describe the diverse ways in which you can buy Bitcoin with your cash. This distinction is between the bank deposits and your physical money.
We are sure that you must already know that physical cash is nothing else but the usual paper cash that you hold in your hands. However, bank deposits are frequently taken to be cash because they are easily withdrawn or accessed digitally.
Why Do People Buy Bitcoin With Cash?
There are many reasons why people would prefer to buy bitcoin with cash; the primary reason being the desire to stay anonymous.
One of bitcoin’s principal purpose of existence is to enable transactions that can never be traced. Hence, most, if not all, of its users greatly value this feature and will surely want to start over on an anonymous or blank slate.
While this is one of the reasons why you may want to purchase Bitcoin with cash, some people are deeply concerned about making use of any sort of computerized transfer on the internet.
The reason is that they fear that they might be exposing their account data to cyber hackers.
To the business of the day, there are roughly four alternatives available to purchase Bitcoin with your physical cash. They include:
- From an individual via Paxful
- Via a Bitcoin ATM
- Through a cash deposit at the bank, and;
- With cash via mail
Why Should You Buy Bitcoin With Cash?
On a general note, there are different pros to purchasing Bitcoin cryptocurrency with your hard-earned cash only if you follow the necessary steps and guidelines. However, some of the reasons why you or any other person should buy Bitcoin with cash include:
- Privacy reasons
Different from making use of a typical Bitcoin exchange; purchases made with cash do not demand any unnecessary revelation of your personal data. You will not be asked to submit documents just for the validation of your identity.
What we are trying to say is, purchasing Bitcoin with cash is much safer, especially at a time when the issue of identity theft is on a high rise. Another reason is the prevention of any crackdown by the tax entities.
Why this reason exists is because you do not have to wait for the emergence of bank transfers or any form of validation via any cryptocurrency exchange.
The deposits take roughly one to three working days, and the verification takes about one to three weeks. However, cash trades save you so much time. As Bitcoin skyrockets, a few days is equivalent to so much money.
However, the professionals of Bitcoin person to person trading have made suggestions that most of Bitcoin’s trading volume takes place off-exchange. You do not need to worry if this is a good thing or not because it is.
This is because should virtual currencies only be tradable with the approval of the state; it will be decreased to just something more than a new type of standard money. Thus, every serious Bitcoin user will gain some experience with this cash trading.
Ways To Purchase Bitcoin Using Cash
Earlier on, we mentioned some ways in which you can purchase bitcoins with your physical cash, and now we will be analyzing those steps. It goes thus:
- From an individual via Paxful
When you want to buy Bitcoin with cash, you can make it happen with trustworthy friends who own bitcoins and are more than willing to sell them to you.
In case your excuse is that you do not have trusted friends, well, we can help you with that. All that is needed is to try attending these Bitcoin meetings and conferences happening around you.
You can locate such events via a search on Meetup or even Facebook for those local Bitcoin groups. That aside, when you all plan to meet, you should go with the cash you have both agreed upon.
Also, do not forget to arrive at the venue with your laptop or a phone that has a Bitcoin wallet installed in it. This is because, with an address alone, you will not be able to verify the receipt of the coins.
Long ago, LocalBitcoins was used for in-person trading, and now, Paxful is the best service available. The Paxful buyer and seller matching have been ongoing since the year 2015. Currently, they are in most regions and countries.
To buy Bitcoin on Paxful, you will need to visit the site and of course, sign up. Next is to click on the “buy Bitcoin” link that is positioned on the top menu. Fill in your location, the needed amount, and click on “cash” as your payment method.
What follows next is a long list of sellers; however, if none is displayed, you will need to wait for them to appear on your screen. Nonetheless, should the list appear, it will display a feedback score for all the sellers plus their exchange rates.
It is advisable to choose the seller that has the most considerable reputation that is positive. Next thing you are to do is to fill in your purchase amount, and it must be within the limits of the seller.
When you decide to make use of Paxful, it shows that you trust them and so, there is no reason to wait for network confirmations once a seller has released our coins.
- From a Bitcoin ATM
What you need to know is that the Bitcoin ATMs you have heard about actually accept physical cash. In return, it also sends the Bitcoin to your specific Bitcoin address. It is a very comfortable way to trade Bitcoin daily.
While you may think Bitcoin ATMs are very popular, especially with their emergence for several years now, it will surprise you to know that there are regions in the world that do not have them.
If you want to find and use a Bitcoin ATM, you should make use of CoinATMRadar. Once you click on BTM on the site, you will find a display that shows exact locations, limits, fees, and even identity requirements.
Furthermore, the site will offer the contact details for a particular operator. All of these details must be noted if you want to make use of BTM; Bitcoin ATM. Anytime you make use of BTM, have it in mind to take your Bitcoin address or wallet with you.
Similar to how you make use of the normal ATM, you should also be mindful of people that are acting suspiciously around you when using a BTM.
- Buying through a cash deposit at the bank
You can make use of this option with both Paxful and LocalBitcoins as they provide cash deposits as a payment method. Moreover, in the United States, there are two main services that deal in securing and arranging these bank deposit purchases.
- United Kingdom
- United States
- Argentina, and;
When you make use of this method, the seller will provide you with their bank details. All you have to do is pay a visit to the specific bank, fill in the deposit form as you will typically do with standard fiat currency.
Next is to make the cash deposit to the account of the seller through the bank teller. Meanwhile, this method is practically much more reliable and secure physically than when you have to meet up with strangers.
Also, the seller is not aware of the bank you are making use of. However, its disadvantage is that the service can only be carried out during bank hours.
It is slower than the peer to peer transaction, most notably when the bank has a long queue or service is slow to validate the transaction.
Meanwhile, similar to face to face cash trading, you can only carry out bank deposit trades through a trustworthy escrow service. This will practically protect you from any form of fraud.
Also, you can be able to prove to this escrow service that you have made your payment through scanning or photographing the receipt of your bank deposit. Should a dispute occur, the seller’s coins will be released to the buyer’s address after proper proof.
Make sure you keep your receipt. Compared to a bank transfer, it is difficult to prove that you made payments without it.
- With cash via mail
While you can purchase Bitcoin using cash through your mailbox, the truth is that it is not recommended. You can make use of Paxful for this; it provides the sort of service that you can use in discovering sellers who take cash via mail.
Also, you will find some suitable sellers on Darknet markets. Similar to in-person purchases, you can try to trade all with users that are already established and have trustworthy reputations.
Selecting a dependable seller is the best protection you can get against fraudulent activities, and also, escrow should be used. As expected, there are disadvantages to this method.
Some of it includes the fact that the method is slow and there are risks that your envelope may likely get stolen or lost as the mail is being moved. Should your envelope not arrive or probably arrive empty, some sellers may choose to compensate you.
But, before they compensate you, you must choose to film or better still, photograph yourself as you place the money inside the envelope, as you seal it, and also as you mail it.
Moreover, for better safety, you should make use of a registered mail and have the seller sign it after they receive the money.
When you use this method, it creates a proof that you have paid through escrow. However, the cash in the envelope can still be disputed.
Where To Get Cash For Purchasing Bitcoin
Are you looking for a place to trade Bitcoin for cash? Yes? Then some methods can work. These include:
To Wrap It Up
For most people, they prefer to make use of Bitcoin ATMs for the mere fact that it provides a highly reliable solution for these cash purchases. Also, almost all of these Bitcoin ATMs are located in areas that are not just central, but very secure too.
Some people claim that; though purchasing Bitcoin with cash is much more anonymous and rapid, it is, however, riskier than a majority of the online methods we have available today.
Nonetheless, there are quite a lot of options you can personally select from whenever you are ready to buy bitcoin with physical cash. And, if you are not interested in using cash, you can use any online technique, so far you make your purchase via a reputable cryptocurrency exchange.