Although bank transfers and credit/debit cards are the most common ways of buying bitcoin, you can also do so with cash. This option allows you to enhance your privacy and security. Read on to discover four ways to buy bitcoin with cash.
4 Ways to Buy Bitcoin With Cash
Here are four ways you can safely and conveniently buy bitcoin with cash.
Bitcoin ATMs
As of June 2023, there are over 35,000 bitcoin ATMs globally located in 74 countries. These machines work similarly to traditional ATMs but are not connected to a bank account. Instead, they allow you to buy bitcoin with cash.
With over 500 Bitcoin ATM providers, purchasing BTC with cash at an ATM may vary depending on the manufacturer. Generally, you will need to provide your wallet address for the deposit and insert money into the Bitcoin ATM before confirming the transfer of BTC to your wallet.
Tools such as Coin ATM Radar are useful when you need to find a Bitcoin ATM near you. Bitcoin ATMs are typically located in high-traffic areas such as malls, restaurants, airports, and retail stores.
P2P Exchanges
Peer-to-peer (P2P) exchanges offer you another solution to make cash purchases. These marketplaces have built-in escrow services that require both parties to confirm the transaction terms have been fulfilled before the bitcoin is released.
On P2P exchanges, you can set cash as your preferred payment method to find a list of available sellers. Before settling on a seller, ensure you look through several profiles, their ratings, and reviews. Once satisfied, enter the amount of bitcoin you wish to buy to start the transaction.
You will then need to communicate directly with the seller and plan how to transfer the cash. It need not be an in-person transfer; you can deposit cash into their bank account and let them know when you are done. After you have transferred the cash, confirm on the exchange that you have paid and wait for the seller to give the go-ahead for the release of the bitcoin from escrow.
Alternatively, you can choose to make an in-person cash trade after agreeing to the terms of the trade on the platform. Just make sure to meet in a safe place when you conduct the transaction.
Bitcoin Vouchers
Bitcoin vouchers are similar to prepaid gift cards, so all you have to do once you acquire one is redeem it for bitcoin.
Both digital and physical bitcoin vouchers are available. But, you can only buy physical vouchers with cash, as digital vouchers typically require some personal details during the purchase process. For example, in countries like Austria, Switzerland, and the UK, you can buy a physical bitcoin voucher at selected retailers.
Once you acquire the voucher for your preferred amount, visit the vendor’s website, type in the voucher code and your wallet address, and you’ll receive your bitcoin momentarily. Some vouchers have a QR code that you can scan instead of manually entering the details.
Bitcoin Meetups
Bitcoin enthusiasts have formed many networking and social groups that organize events to share ideas and interact with other like-minded people. Joining such groups can grant you access to meetup events where various activities, including cash-based bitcoin trading, occur.
The added advantage here is that you can build relationships with others who share your interests, and you get to hear their varied opinions on the industry.
Safety Tips for Bitcoin Purchases With Cash
Always remember to prioritize your safety when making cash purchases. Here are some tips you should keep in mind:
- Avoid giving out your real name and address. If you must share any information, only stick to the essential details needed for the transaction.
- Choose high-traffic public places such as malls, banks, or coffee shops for in-person meetings.
- Don’t trade large amounts with cash. Walking around with a large amount of cash is very risky, so in-person cash trades should generally be done for smaller amounts.
- Verify the transaction details and double-check the amount of cash and bitcoin being exchanged.
- Transfer your BTC to a hardware wallet for an added layer of security against potential online hacks.
Buying bitcoin with cash offers the privacy you are unlikely to enjoy when using other payment methods. The best choice will depend on your needs and preferences. Always consider the safety implications of each option and take steps to minimize the associated risks.