How To Purchase Cryptocurrency With Cash: Methods To Buy Bitcoins Using Cash
Cryptocurrency, specifically Bitcoin, was first launched in January 2009. After more than 11 years, this currency has become popular so much that some financial analysts say that it may replace fiat currencies in the future. There have been many who are currently investing and some who are becoming interested in investing in cryptocurrency. Let's say you have already done your research about cryptocurrencies, and you decided to buy coins using cash. So, your question now is: how to purchase cryptocurrency with cash? Keep on reading to know and pick your choice.
Methods On How To Purchase Cryptocurrency With Cash
If you prefer to buy Bitcoins using cash, then you have four options. It could be from another individual, a Bitcoin ATM, a cash deposit at a particular bank, or through the mail.
Purchasing Bitcoins In-Person
Buying Bitcoins from another person is quite common. If you know someone whom you trust and are willing to sell their Bitcoins, then you'll have a deal. Participating in Bitcoin conferences or meetings is the key to make such people. You can use Meetup or Facebook to find these kinds of events. When doing this kind of deal, there are two options that you can choose from: Paxful and Mycelium. Also, keep in mind that you need to have your Bitcoin wallet installed on a smartphone or laptop to verify your coins' receipt.
Paxful Buyer/Seller Matching - this platform has been since 2015 and is currently available in many countries and regions. They are known for having a good reputation and have become a popular go-to site for OTC trading. Here are the steps to buy BTC on Paxful:
- Go to their website and sign up.
- Tap the "Buy Bitcoin" link located on the top menu.
- Key in your location and the requested amount. Then, select "Cash."
- Once you select "Cash," the list of sellers and the feedback score for each with their exchange rate will be displayed. However, you will have to wait if there is none or use another method.
Mycelium Local Trader - this feature, which serves as a cash-only matching and escrow service for Bitcoin traders, is available in Mycelium mobile wallet. If you use this platform, the seller will release the coins directly from their wallet to yours after the payment.
It is vital to ensure safety first when doing this kind of transaction. Trade only by enabling escrows or a trusted service that holds the seller's coin and in secure locations.
- Paxful Buyer/Seller Matching - this platform has been since 2015 and is currently available in many countries and regions. They are known for having a good reputation and have become a popular go-to site for OTC trading. Here are the steps to buy BTC on Paxful:
A Bitcoin ATM (BTM)
One of the advantages of using a Bitcoin ATM (BTM) is its convenience since you can trade 24/7. The machine accepts your cash as payment; then, it will send you the Bitcoins to your Bitcoin address. The BTMs have gained popularity since it was introduced; however, there are still plenty of regions without one. To find where to buy Bitcoin in the USA with cash, it is best to check and locate BTMs using the CoinATMRadar or CoinFlip. You can get 10% off from transaction fees if you use their promo code "99BTC". Do not forget to take your Bitcoin wallet or address when you go to a BTM.
- Through Cash Deposits at the Bank
Another option on how to purchase cryptocurrency with cash is through banks. In this method, the sellers have the opportunity to choose a specific bank. The seller has to give their bank details then, and the buyer will go to the relevant bank and fill out a deposit form. The buyer makes the cash deposit to the seller's account through a bank teller. Using this method is a lot safer and more reliable compared to meeting someone to buy Bitcoins. The disadvantage, though, is the time limit as such services are available only within banking hours. It is also slower than the other methods, especially if there's a long queue at the bank.
Several platforms accept cash deposits as a payment option. In the US, BitQUick, and Liberty X are popular services that specialize in arranging and securing bank deposit purchases. Wall of Coins has the same service available in the US and the UK. They also offer their services in Argentina, Australia, Brazil, Canada, Germany, Latvia, Mexico, Poland, the Philippines, and Romania.
Through Cash by Mail
Darknet Markets is what you need to help you locate sellers who accept cash via mail. This is one of the methods on how to purchase cryptocurrency with cash. However, this is not the best option and is not recommendable as there are many risks such as slowness, and your money may get lost, or worse, stolen. Some sellers will compensate you in case your mail does not arrive or arrived empty. You just have to comply with some requirements such as filming or photographing yourself, putting the money in the envelope, sealing, and mailing it. If this option is your only choice, then it is advisable to use registered mail, then ask the seller to sign after receiving the envelope for greater safety.
Advantages In Buying Bitcoins With Cash
You may be wondering why there are people who use cash when buying Bitcoins. Well, there are advantages as long as you follow the necessary precautions.
- Privacy - By using cash, buyers do not need to unnecessarily reveal information from the tons of documents to verify their identity. Some buyers prefer this method to avoid a crackdown by the tax authorities.
- Speed - A lot of people despise long processes and long queues. By buying Bitcoins with cash, you can avoid waiting time for bank transfers or verification by an exchange, which usually takes one to three days and one to three weeks, respectively.
There are a lot of risks involved if you enter the crypto world, from buying and selling coins, keeping, transferring, and so on. Knowing and learning how to purchase cryptocurrency with cash, specifically Bitcoin, is a great way to expand your options. Although, yes, there are still risks, you can mitigate them as long as you prioritize safety and strictly follow safer measures. Find out more on how to purchase cryptocurrencies here!
UPDATED April 1, 2021
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