One of the things that seem to be getting harder over time is the ability to buy bitcoin with cash. Especially if you are relatively new to the cryptocurrency market you may find this harder than expected as it’s not always obvious how to buy bitcoin without going to a centralized exchange, which can also be slow and complicated.
Buying bitcoin with cash gives you more anonymity, privacy and, for some, may be the only way that you can dip your toe into the world of cryptocurrency trading in order to see what all the fuss is about. As we move further into 2019, we thought we would take a quick look at 3 ways that you can still easily buy bitcoin with cash.
Why would you want to buy bitcoin with cash anyway?
- Cash is a more private transaction than other payment methods
- Cash transfers are faster transactions
- Other payment methods may be unavailable to you
- Because you have the freedom to trade how you want
- You believe crypto shouldn’t be controlled by centralized exchanges
1. Buy Bitcoin with Cash from Friends
If you are lucky enough to have friends that have a shared interest in bitcoin, often one of them will be happy to sell you a little. Sometimes just the excitement of potentially having another friend involved in the Bitcoin community can be more than enough motivation for a friend to go out of their way to help you buy bitcoin. The Bitcoin community is a very welcoming group, even more so if the person in question happens to be a friend IRL already.
Sadly, not everyone knows someone else socially that is involved in buying or selling bitcoin or maybe aren’t simply willing to sell any of theirs when you want to buy.
If you do have this option available to you it can be a great excuse to catch up with a friend.
Pros: Convenience, speed, comfortable encounter, safe
Cons: Need to have a friend willing to buy or sell bitcoin
2. Buy Bitcoin with Cash from Bitcoin ATMs
The familiar sight of an ATM can sometimes be a convenient way to solve your cash to bitcoin problem.
A Bitcoin ATM is much like a traditional ATM that dispenses fiat currencies where you use your debit card to withdraw USD, AUD or EUR etc.; however, Bitcoin ATMs allow you to withdraw bitcoins. Mind blown!
You can usually find a Bitcoin ATM map online that will direct you to the closest ATM.
The main problem with Bitcoin ATMs is availability. Major cities will often have one, but if you’re in a rural area, you may find it difficult to access as there are fewer in circulation than traditional ATMs.
Bitcoin ATMs can also make buying bitcoin with cash much more expensive as there is often a 7 – 10% price increase added on top of the market price of btcoin (otherwise known as the ‘spread’). This is often because the owner of the ATM is usually trying to pay for the machine (perhaps also rental on where it’s located) and still make a profit.
Secondly, many regions are starting to implement KYC requirements for bitcoin ATMs and therefore you may lose some amount of privacy which is usually a significant benefit of buying bitcoin with cash.
Pros: Convenience, Speed is one is nearby
Cons: Potential loss of privacy, can be extremely expensive, may require KYC
3. Buy Bitcoin with Cash from a P2P Exchange
A P2P exchange connects buyers and sellers of cryptocurrency, such as bitcoin. This is a very good option if you want to buy bitcoin with cash as you can use the P2P exchange’s search feature to find other people around the world who want to sell their bitcoin for cash and buy their bitcoin directly from them.
Similar to eBay or Craigslist, a P2P exchange lets people post advertisements stating whether they want to buy or sell bitcoin for cash. All you need to do is look for someone who wants to sell their bitcoin in your local area and initiate a trade. If there’s no-one in your local area with an active trade advertisement accepting cash for bitcoin then you can simply create your own free trade advertisement on the platform stating exactly how much bitcoin you want to buy with cash and pull those bitcoin sellers to you.
Remember that if you are meeting a stranger in person to buy bitcoin with cash then it’s advisable to use a public place you are familiar with and always try to deal with traders that have a good reputation on the P2P exchange.
LocalCoinSwap is a great example of a P2P exchange that allows you to buy bitcoin with cash. Not only is there no KYC to get started on LocalCoinSwap but they also have over 250+ different payment methods that you can use to buy your bitcoin. LocalCoinSwap is also available in over 190+ countries around the world giving you a wider network to buy bitcoin. Interestingly, LocalCoinSwap is also the only P2P platform in the world that gives 100% of its profit back to the crypto community because they believe people come before profits. You can start buying and selling bitcoin on LocalCoinSwap.
Pros: Faster, Many cryptocurrencies to buy and sell, 250 payment methods, No KYC to join, Private, Buy and sell cryptocurrencies on your terms
Cons: Requires internet access, Some P2P exchanges require KYC, Not all Accept Cash
This article first appeared on CFNewswire and you can read the original article here.
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