Why buy Bitcoin in cash when so many more convenient methods exist? It’s simple: Anonymity. Buying bitcoin this way offers more privacy – and it’s fast. Here’s how.
Finding the Right Exchange and Seller
Not every exchange accepts cash payments for bitcoin, in part because this payment form doesn’t necessarily require a KYC process. However, since these P2P platforms offer more privacy, the security could be very shaky.
In reality, you’ll never be looking for just the right exchange. You’ll also want to focus on the right buyer. So when you are in the process of buying or selling your bitcoin through one of the following exchanges, make sure to:
- Only buy or sell to those with a high reputation or good reviews
- Confirm the transaction details before sending the full amount
- Meet the seller during the day, preferably in a place with other people
- Do not exchange personal details with the seller or buyer
That said, let’s go ahead and look at the P2P exchanges.
LocalBitcoins is probably one of the most well-known options, and it’s a fairly simple platform to use. Create an account, find a suitable seller, place your order, and deposit cash in the seller’s account. Then viola! You’ve just bought crypto with cash.
LocalBitcoin’s fees are pretty low too, with a one percent flat fee on each order.
That said, you’ll be finding a seller through advertisements, so make sure you are cautious when evaluating sellers. In addition, you may not be able to buy in bulk as you would on an exchange.
Wall of Coins
Like LocalBitcoins, Wall of Coins is another P2P platform. Although, its pool of potential sellers is limited to 22 countries. It offers cash payment, but that isn’t the only option. Once you’ve found your seller and paid the cash deposit, the Bitcoin will be sent to your wallet.
Wall of Coins is also more private. While LocalBitcoins requires your phone number and email, this platform only requires your phone.
Keep in mind, however, that more anonymity means less security.
Bitit is a bit different, because you can’t pay with cash directly. Instead, you buy cash vouchers that you can then use to buy Bitcoin. However, this platform is available in over 50 countries, and you can buy in bigger quantities. You can also pay in-person with the seller, but many users have complained that it’s not a clear process.
The drawbacks? You’ll need to set up a KYC process for orders over €25.
LibertyX is a USA-based platform that allows you to buy Bitcoin in certain retail stores across the USA. Unlike the other options, you do need to verify your identity to start out.
As mainstream as it would be to buy bitcoin with cash in stores, there are some additional things to consider with LibertyX’s platform. First, some of the retail stores might add an extra fee on top of LibertyX’s one percent transaction fee. Second, if you use Facebook to log in, you may be compromising your security.
Buy Bitcoin with Cash
The real way to buy Bitcoin with those greenbacks? Find a Bitcoin ATM. They are available in 75 countries. There are over 3000 ATMs in the US alone, and you can buy Ethereum, Dash, Bitcoin Cash, Litecoin, and more.
The downside? This cash-only method will charge you five to ten percent in fees. However, unlike the other options, there’s no KYC process, and it’s completely anonymous. So if you want to maintain your privacy, this is probably the way to go.
Should you buy Bitcoin in cash? If privacy is your main concern, then it’s perfect. Buying in cold hard cash is a fast way to invest, but keep in mind that the lack of security means you should take caution.
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