Why buy Bitcoin with cash? There are different reasons for people to decide to buy Bitcoin with cash. First, it is quite easy to do. You give cash and you receive Bitcoin. That’s it. Second, it is fast. You don’t have to wait for bank transfers or anything like that. Third, it is a reliable way for people that do not like to use other payment methods.
But which are the ways to buy Bitcoin with cash? It is possible to use Bitcoin ATMs, cryptocurrency exchanges, peer-to-peer (P2P) platforms and you can also buy Bitcoin with cash from family and friends. In the next few sections, we will tell you the top 4 ways to buy Bitcoin with cash and how you can get access to Bitcoin using banknotes. Keep reading if you want to know more.
Top 4 Ways to Buy Bitcoin with Cash
These are some of the easiest ways to buy Bitcoin with cash. Take into consideration that there will be different fees applied to your purchase and some of these options might not be available in your region. Therefore, you should make sure you analyze which is the best way to buy Bitcoin with cash in your jurisdiction.
Before you start, you should make sure you have a Bitcoin wallet. This is extremely important as it would be necessary for you to store your digital currencies and receive your BTC at the time of the purchase. Let’s get into the details of the top 4 ways to buy Bitcoin with cash.
Bitcoin ATMs are one of the best options for those investors that want to buy Bitcoin with cash. But what exactly are Bitcoin ATMs? These are teller machines installed in key neuralgic points in different cities that let users buy (and sometimes sell) bitcoin with cash.
There has been an expansion of the number of Bitcoin ATMs around the world over the last few years. One of the reasons that could explain this expansion might be related to Bitcoin becoming an increasingly useful tool to escape inflationary policies and government control.
According to data shared by CoinATMRadar, one of the best sites to get accurate information about Bitcoin ATMs, 2021 has been a very positive year for Bitcoin ATM expansion. Indeed, we can see that there has been a clear growth in terms of new installations around the world as Bitcoin hit $69,000 in November 2021.
You can use different currencies to buy Bitcoin at a Bitcoin ATM. Indeed, depending on the country you are in, you will have different options. Another thing that you should take into consideration is the fact that you would also be able to buy other digital currencies besides Bitcoin, which is a very positive thing.
In order to buy Bitcoin at a local ATM, you have to find the possible locations of the ATMs and decide which one of them offers the best rate or which is closer to your location. Once you get there, you will be able to select the amount of BTC you want to buy. Remember to take your smartphone with you and your Bitcoin wallet, as the funds will be sent to it.
Positive Aspects of Bitcoin ATMs
Bitcoin ATMs are located in most cities around the world. There should be at least one Bitcoin ATM located in your region, making it easier for you to buy and sell BTC. They are very intuitive and easy to use, which is great for people that do not trust cryptocurrency exchanges or online solutions.
Negative Aspects of Bitcoin ATMs
Bitcoin ATMs are one of the best ways to buy Bitcoin with cash. However, they also have some negative aspects. For example, the spread between the buying and selling price tends to be very large. Additionally, the fees are quite high compared to traditional cryptocurrency exchanges. Therefore, you should analyze which is the best option for you to buy Bitcoin with cash.
Cryptocurrency exchanges are another popular way to buy Bitcoin with cash. Despite the fact that most people tend to use cryptocurrency exchange and deposit funds using debit and credit cards, they can offer you the possibility to use cash payments through different third-party payment processors.
This might not be the preferred solution offered by the cryptocurrency exchange, but there are also some positive aspects for users. You would be able to use your cash to deposit funds in a cryptocurrency trading platform and buy Bitcoin directly there.
Cryptocurrency exchanges are a great option when it comes to spread and fees, as they are currently offering some of the most competitive trading rates, prices and spreads. Therefore, if you find a way to deposit cash in a cryptocurrency exchange, then you will be able to buy Bitcoin at very competitive rates.
For example, one of the ways to do so is by depositing funds to your bank account and processing a transfer to the online crypto trading platform. If you want to buy Bitcoin with cash this could be one of the best options. For users that don’t want to wait for this transfer to be processed (most of the time is almost instant), you can rely on different third party payment providers, but their reliability is not as good as traditional payment methods.
Positive Aspects of Cryptocurrency Exchanges
Cryptocurrency exchanges are easy to use and they have very competitive trading fees and market prices. Additionally, you can also rely on crypto exchanges if you want to buy or sell large amounts of Bitcoin without having to be worried about liquidity. Exchanges are known for their large liquidity and trading volumes.
Negative Aspects of Cryptocurrency Exchanges
Some of the negative aspects of using cryptocurrency exchanges to buy Bitcoin include the lack of direct solutions offered by these platforms for you to buy Bitcoin with cash. You would not be able to go to a desk and request Bitcoin. You still have to use traditional payment methods (debit cards or bank accounts) to get the cash into the cryptocurrency exchange. Additionally, they apply large fees for you to withdraw your Bitcoin to your wallet.
Peer-to-Peer platforms are among the most popular ways to buy Bitcoin with cash. It’s also among the easiest ways to get access to Bitcoin without the need to rely on bank transfers or credit cards. These are platforms that work as an escrow between two parties that want to buy and sell Bitcoin.
You will see a list of offers that you can click and purchase using cash. LocalBitcoins is now one of the most popular services providers when it comes to peer-to-peer Bitcoin exchange. However, you can find local versions of this platform that would let you get access to the market in minutes and also with cash.
Some of these platforms would also let you use other payment methods to make it easier for both, the seller and the buyer. It would highly depend on your needs and which platform you use. Finally, you should also know that these peer-to-peer platforms are also offering very good prices.
Positive Aspects of Peer-to-Peer Platforms
Peer-to-Peer platforms are very good when it comes to buying and selling Bitcoin for cash. They let you get access to your local community, use local payment methods (including cash) and make it simple and fast. Furthermore, the spread is acceptable and the fees are quite low.
Negative Aspects of Peer-to-Peer Platforms
But there are also some negative aspects of using these types of platforms. Indeed, they can sometimes not be the best option for users that want to buy Bitcoin with cash. Why? Because there are some restrictions imposed by local authorities that make it more difficult for users to use cash to buy Bitcoin. Hence, you might not find this option on some of these platforms anymore.
Family and Friends
You can also buy Bitcoin with cash from family and friends. This is something that few people know or think about that could be a very great option besides all the possibilities that we mentioned in this post.
You might be in touch with people that use Bitcoin and who regularly buy and sell this virtual currency. It is up to you to request this information from them and see whether they are ready to sell you some Bitcoin.
It is very easy to ask and understand whether they would be accepting your cash for Bitcoin. You reduce risks from meeting with other people you might not know and you can also avoid paying large fees for the whole process. Hence, you should always ask your friends and family that might use Bitcoin if they are ready to sell you their BTC.
Positive Aspects of Buying Bitcoin with Cash from Family and Friends
Buying Bitcoin from friends and family is secure and it does not require you to pay intermediary fees as it can happen with a Bitcoin ATM, a cryptocurrency exchange or a Peer-to-Peer platform. Moreover, you would also be able to meet with them in more common places such as your home or their house, making it even more comfortable to exchange Bitcoin.
Negative Aspects of Buying Bitcoin with Cash from Family and Friends
Despite it being a great idea to buy Bitcoin from friends and family, you should also know that there are some negative aspects to doing so. For example, they might not have the right amount of BTC you are trying to buy. Additionally, they can also request you to use other payment methods.
Pros and Cons of Buying Bitcoin with Cash
These are some of the pros and cons of buying Bitcoin with cash.
Pros of Buying Bitcoin with Cash
- You can get access to Bitcoin without relying on centralized financial organizations
- The transfer cannot be rejected once the payment is processed
- It is a great way to leave the fiat standard and get into Bitcoin
- Newcomers might find it easier to understand than relying on other payment methods
- You can use different currencies depending on your jurisdiction
- It is a better alternative than traditional exchanges or Bitcoin platforms
- In some cases, fees can be lower than on exchanges
Cons of Buying Bitcoin with Cash
- The seller might not have enough liquidity to cover your needs
- The price you pay might not be the market price for Bitcoin
- Bitcoin ATMs and other platforms have very large fees and spreads
- Some countries and jurisdictions might not have enough liquidity (leading to higher spreads)
- Some platforms might not offer the option of buying Bitcoin with cash
- It could be risky if you meet strangers
How to Store Bitcoin?
It is now time to talk about how to store Bitcoin. This is one of the most important things if you have already purchased Bitcoin. Why is it important? Because you want to make sure that you are the owner of your funds rather than a third party or a cryptocurrency exchange.
The first thing you need to do is create a Bitcoin wallet. This should indeed be done before you actually buy Bitcoin with cash. In this way, you will not only be able to receive your Bitcoin but also properly store them.
Select the Right Wallet
Make sure that the wallet you have created follows some standards. For example, you need to have a wallet for which you control your private keys. This is extremely important if you want to control your Bitcoin and store them securely.
When you buy Bitcoin with cash in a cryptocurrency exchange, they will be storing the private keys for you. That means that the exchange is controlling your funds on your behalf, not you. Some wallets might also control the private keys for you, hence, you should search for a wallet that lets you keep the private keys.
The private key should never be revealed and it should be always hidden from others. If someone gets access to it, you might lose your funds forever.
Withdraw Your Funds
If you have your funds in a cryptocurrency exchange or platform, the best thing you can do is to withdraw them from your wallet. This is something that you should always do unless you are trading or using your BTC and you need them on that platform.
Otherwise, it is always recommended to withdraw your funds. There are different types of wallets such as hot and cold storage wallets. If you are buying Bitcoin and you are not planning to move them for a long period of time, then you should definitely analyze the possibility of buying a hardware wallet (cold storage).
Cold storage wallets let you keep your Bitcoin safe and without access to the internet. That means that no attacker or hacker would be able to take your BTC from that wallet. The risk exists if you hold your funds in a software wallet (for example, on a smartphone or a computer). It is up to you to decide which wallet you use to store your recently purchased Bitcoin.
If you want to buy Bitcoin with cash, you know that there are many different options to do so and you should then get your funds to a wallet you control (you hold the private key).