(Dec. 21, 2020) — Bitcoin is the most popular and widely used cryptocurrency, and its coming to the scene can be traced to around 2009. It does not exist as a physical asset like cash, but it is a virtual currency. When we discuss buying this cryptocurrency by cash, one question comes up: why would someone want to buy bitcoin by cash? Some of the key reasons for using cash to purchase bitcoins include:
· Speed – Buying by cash is fast since there is no delay in waiting for the arrival of transfers or the exchange’s confirmation. Deposits can take between 1 and 3 days and confirmation by the exchanges takes anywhere between 1 and 3 weeks.
· Privacy – When paying by cash, buyers do not have to submit documents for identity verification, thus keeping their privacy. The payment method prevents the risk of identity theft and even revealing information to tax authorities.
· Easy – It is also one of the easiest methods of obtaining bitcoins.
How to Buy Bitcoins by Cash
There are several ways you can use cash to buy bitcoins:
Using Peer to Peer (P2P) Exchanges
If you are thinking about how to buy bitcoins by cash safely, conveniently and securely, choose peer to peer exchanges. The exchanges act as an escrow. To use the P2P exchanges, you only need to sign up on one of the platforms and find a local seller willing to deal in cash. You then agree on the fine details of your transaction like the venue and time of the meeting and of course the exchange rate. Some popular P2P exchanges include Wall of Coins, Paxful, LocalCryptos, and Bisq. Besides the P2P exchanges, cash buyers can use service providers like NakitCoins that facilitate instant cash buying and selling of bitcoins. They also have a physical office where buyers and sellers can transact, and an online wallet, among other services.
Buying in person
You can buy bitcoins in person from trusted people like friends or a family member if you find one who is willing to sell and you agree on the transaction. You can make a point of attending bitcoin conferences and meetings in your locality to meet such trusted people. You can use online resources like Facebook to learn about meetings in your area so you can attend or even find Bitcoin groups to join.
When meeting for a cash bitcoin transaction, you have to bring with you the amount of cash you agreed on or meet near an ATM where you can get some money. You should also have a phone or laptop with an installed bitcoin wallet to allow you to confirm the receipt of the bitcoins. Otherwise, if you only give the seller an address, you cannot verify the receipt at the point of handing in your cash, and it is risky. With buying by cash in person, you must do everything to maintain your safety, including not revealing your full name to people you do not know well, meeting in safe places, and so on.
Buy using Bitcoin ATMs
Bitcoins ATMs are not the conventional bank ATMs but are instead computers with input hardware that receives currency and transfer bitcoin to an existing or newly created wallet. However, this option can have high transaction charges.
Other than the above options, there is the option of depositing cash into the seller’s bank account. Then the bitcoins held in an escrow are released upon verification of the cash receipt and proof of identity. Buying bitcoins by cash is fast and preserves anonymity, but you have to be cautious to avoid being scammed and other possible risks.