Bitcoin is currently the most popular and most valued cryptocurrency in the market. It was the original cryptocurrency ever and it has retained that status.
Recently, Ethereum has been coming up, and people say you should invest in Ethereum instead. However, Bitcoin is the most stable cryptocurrency for beginners to use.
There are a number of different ways to buy Bitcoins. You can buy Bitcoins with credit cards, debit cards, bank transfer, or even PayPal (though it’s risky.) However, a lot of people prefer to buy bitcoins with cash, but they don’t know how.
People prefer buying bitcoins with cash as it’s a lot quicker and more private. It doesn’t leave any electronic trails either.
There are a lot of cryptocurrency exchange platforms that allow you to buy bitcoins with cash. In this article, I’ll give you a step-by-step guide on how to buy bitcoins with cash.
However, before you buy Bitcoins, you should acquire a bitcoin cash wallet to store them securely in. My personal recommendation would be to use hardware wallets such as Ledger Nano S and Trezor as they’re a lot more secure, being offline wallets.
Comparative Table of 3 Best Ways to buy Bitcoins with Cash
PART 1: Paxful
Paxful is one of the most popular peer to peer cryptocurrency exchange platforms in the market. It’s a platform where Bitcoin buyers and sellers can meet and strike up deals. When you enter Paxful, you’ll find a lot of different sellers and their advertisements. You can filter the ads based on your requirements.
You can filter it based on city so that you can meet your seller in person and buy the bitcoins with cash. However, this method is dangerous and you shouldn’t do it. You can instead choose the Cash Deposit method. As such, the cash will be stored in an Escrow account, thus protecting both the buyer and the seller.
How to Buy Bitcoins with Cash using Paxful:
- Register with Paxful.
- Enter the amount of bitcoins you want to buy, choose Cash Deposit as the payment method, and enter your city.
- You’ll receive a list of sellers in your area who meet your requirements. Vet them thoroughly based on their profile.
- Once you find a seller, send them a trade request.
- Once they accept the trade request, their bitcoins will be locked in an escrow account.
- Go to your local bank and deposit the cash and take a picture of the receipt.
- Upload the picture in Paxful.
- Once the seller receives the money, they’ll release the bitcoins to you.
Geographical Availability: Paxful is available across the globe.
Fees: You don’t have to pay any transaction fee if you’re a buyer. Only sellers are charged 1% fees.
Read: Paxful Review
PART 2: LocalBitcoins
LocalBitcoins is a peer to peer platform that was launched in 2012. It helps brings bitcoin buyers and sellers together, and has made quite a reputation for itself. There are over 110,000 active traders in the platform and they exchange 1400-3000 bitcoins on a daily basis.
If you want to buy bitcoins with cash, you can set up in-person meetings with sellers in your area. However, if you don’t want to meet in person, you can also choose the Cash Deposit payment method.
This is a great method as it eliminates the need to meet in person, and protects you because you have to deposit the cash in an escrow account for safety. Furthermore, you can make the deposit from any bank branch close to you.
How to Buy Bitcoins with Cash using LocalBitcoins:
- Go to LocalBitcoins and register.
- Go to the Instant Bitcoins page and start looking for purchases. Enter your city, country, amount of bitcoins you want to buy, and choose Cash Deposit as the payment method. Once that’s done, click on ‘Find Offers’ and you’ll get a complete list of sellers in your area who meet your requirements.
- Once you find a seller that meets your requirements, you should vet them by going through their profile and feedback. Click on ‘Send Trade Request’ to initiate contact.
- Once the trade request is accepted, you’ll reach an order page where you’ll find instructions for the cash deposit. Furthermore, the seller’s bitcoins will be taken to an escrow account for safe keeping. You have to bring your cash and the seller’s bank account details to your local bank and deposit the cash. Keep the receipt you receive from the bank.
- Send the receipt to the seller via LocalBitcoins.
- Once the proof has been deposited, the seller will release the bitcoins from the escrow and to your account. However, some sellers choose to wait and only release the bitcoins once they get a notification from their own bank.
The following video will show you how to buy bitcoins with cash using LocalBitcoins:
Geographical Availability: LocalBitcoins is available across the globe.
Fees: LocalBitcoins doesn’t charge any transaction fee from the buyers.
Read: LocalBitcoins Review
PART 3: BitCoin ATM
You can also withdraw money from Bitcoin ATMs directly. With this method, you can buy with cash only.
If you buy bitcoins from an ATM, you’ll be charged a high transaction fee of 5-10%. However, it’s easy and doesn’t require any verification. You can look for the nearest ATM in the following map:
The following video will show you how to use a Bitcoin ATM:
Geographical Availability: Depends on where the ATMs are available. Check the Map.
Fees: Pretty high transaction fee of 5-10%.
Buying bitcoins with cash is one of the most private and easy means of buying Bitcoins. My personal recommendation would be to use LocalBitcoins. However, if you don’t mind the high transaction fee, you can also use your closest Bitcoin ATM.
Do comment down below and let us know about your final decision and how it worked out for you!