How To Buy Bitcoin With Cash
There are many ways to buy Bitcoin, and most people choose the most conventional way, such as buying it from a Bitcoin exchange.
But that isn’t for everybody. Some people value their privacy, and prefer not to have to complete a KYC form.
Remember Bitcoin is an open ledger, and if anyone can put your name to the transactions, it could put you at risk.
And it’s these reasons that people prefer anonymity, but trying to buy Bitcoin with cash can be awkward.
There’s a belief with a certain sections of society that anyone wanting to buy something with cash is questionable, especially in the western world.
And sure, buying something with cash is the best way to buy something anonymously, but that doesn’t mean it’s just for criminals.
It’s all too easy to spend more money with a credit or debit card so many people prefer to track their funds by using cash.
So with much of society preferring the accessibility of using cash digitally, how does one buy Bitcoin with cash?
How To Buy Bitcoin With Cash
Buying Bitcoin with cash is possible, but because Bitcoin isn’t something you can go and buy from a store, there are risks involved.
If you buy Bitcoin from somebody in person, you have to know exactly what you are doing. Also, if it’s somebody you don’t know, make sure you buy from them in a public place.
If you intend to buy Bitcoin from a peer-to-peer marketplace, such as Paxful, make sure you follow the strict guidelines, because the marketplace only acts as a platform for the buyer and seller.
Buying Bitcoin with cash isn’t best for everyone. It can be difficult to buy large amounts of Bitcoin with cash. As stated earlier, it can also be risky, especially if you’re buying in person.
And if buying from a Bitcoin ATM or marketplace (with cash anonymously) the fees are likely to be a bit higher.
Without trying to put one off from buying Bitcoin with cash, there are advantages to it, too.
Buying Bitcoin with cash is quick if you don’t have to travel, and you can also buy small amounts if you want to. And because no personal information is required, buying Bitcoin with cash is the most private way of buying Bitcoin.
How To Buy Bitcoin With Cash
You’ve decided you don’t want to give up on your privacy, and you want to avoid Big Brother and all the form filling etcetera,
So how do you go about buying Bitcoin with your hard earned cash?
Buy Bitcoin With Cash at Paxful
Probably the easiest way to buy Bitcoin with cash is with Paxful. Paxful is a peer-to-peer Bitcoin marketplace, which lends itself as a meeting ground for buyers and sellers of Bitcoin all around the world.
Paxful operates globally in almost every country, and you can find sellers willing to accept pretty much any national currency, gift cards, and of course cash.
Paxful has a KYC policy, but it isn’t compulsory. However, most sellers prefer to sell Bitcoin to people who have completed the KYC process.
That said, there are sellers willing to sell Bitcoin for cash without the buyer having to do the KYC.
As a buyer, you’re probably going to pay a premium this way, but it is possible.
To do so, simply create an account, with your name and email, and once you verify your email, your account is created.
To buy Bitcoin with cash click on the ‘Buy Bitcoin’ tab, and using the payment method dropdown, click on your preferred payment method.
There is a ‘cash in person’ option, or you can deposit the cash into someone’s bank or send it to them by mail, which isn’t recommended.
If you choose the ‘cash in person’ option, you will have to find somebody who’s willing to sell in a location you’re happy with. Usually, the bigger the city the more sellers there will be.
Once you find somebody, click on their name and check out their profile to ensure they are legitimate and have built up a good reputation through many sales.
Then if you feel comfortable with the seller, click the ‘Buy’ tab at the end of their strip and complete the ‘Buy Bitcoin’ form.
As soon as you agree to buy Bitcoin from someone, a live chat will open up and you should both agree to meet somewhere public. Don’t give your name or address and only meet in a light and public place.
Once you’ve both agreed the seller’s Bitcoin will be placed in Paxful’s escrow, which will be released when you have handed the cash over to the seller.
It must be stated, that you will likely pay a premium for buying Bitcoin this way. And there are risks, because you have to place a level of trust in the seller, but many people are buying Bitcoin this way as it offers privacy and anonymity.
Buy Bitcoin With Cash at a Bitcoin ATM
You can buy Bitcoin with cash using a Bitcoin ATM.
Since the first Bitcoin ATM launched in 2013, there are now over 10,000 Bitcoin ATMs globally, with at least one in every decent sized city.
Bitcoin ATMs offer privacy, anonymity and are probably a safer way to buy Bitcoin than in person. But again, Bitcoin ATMs are more expensive than Bitcoin exchanges.
According to Coin ATM Radar, there are now 10,355 Bitcoin ATMs in 71 countries around the world.
There are 8029 Bitcoin ATMs in the U.S., 891 in Canada, 275 in the U.K., and over 1000 across Europe.
So, if you want to remain anonymous and find a Bitcoin ATM, you should find one, quite easily.
If you don’t know where a Bitcoin ATM is in your city, go to coinatmradar.com and this has every location of a Bitcoin ATM globally.
The best thing about Bitcoin ATMs is that they’re safe, private and anonymous. But like buying Bitcoin in person, you will pay a premium if you want to buy Bitcoin at an ATM.
There are several different Bitcoin ATM manufacturers, so the user experience is slightly different, but the process is similar with all Bitcoin ATMs.
Simply type in the amount of Bitcoin you want to buy, type in your private address if you have once. If you don’t have a private address, it will generate one for you.
Once this is done, deposit the amount of cash you intend to buy with, click ‘Buy Bitcoin Now’ and it will generate your transaction.
Once it’s complete, you will receive a receipt with the details, including your all important private address.
Your private address is extremely important, and should be kept private. If you would like more information on private addresses, click here…
Buying Bitcoin With Cash Is As Easy and Safe As You Make It
Anyone wanting to buy Bitcoin with cash usually values their privacy. Remember, you’re buying something valuable, so the less people know the better.
Cash wrongly has this ‘criminal’ connotation to it, because it is a legitimate way of spending your money, but of course people who do things in a different way to most are viewed as suspicious.
But this is humanity, or at least western societies, and as long as cash is spendable, there should be no negative connotations for using it.
If you want to buy Bitcoin with cash, you can do. It’s a bit more awkward, especially the first time you attempt it, but it’s a great way of keeping your business private.
Paxful brings buyers and sellers together in pretty much every country, and Bitcoin ATMs are becoming ever more popular in all the main cities around the world.
As long as you’re diligent, and don’t take needless risks, buying Bitcoin with cash is a great way to get into Bitcoin.
Author: Tommy Limpitlaw
How can I get free Bitcoins?
Nothing is really free, because even when you earn free Bitcoins you’re giving up your time, which is precious. But you can earn free Bitcoins. If you are a gamer, there are games like Bitcoin Bounty Hunt which allows you to shoot your way to Bitcoin riches. Or you can save your Bitcoin in an interest bearing account and earn some BTC interest. Be careful with these, and only go with legitimate companies, though.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
How can I buy Bitcoin in Britain?
There are many reputable Bitcoin exchanges operating in Great Britain. However, the most recommended exchanges are Kraken or BlockFi. Or you can buy Bitcoin from Bitcoin marketplaces, such as LocalBitcoins or Paxful.
All of these exchanges and marketplaces are global with high liquidity and excellent customer service. Feel free to read the reviews of each one.
How much does it cost to mine 1 Bitcoin?
There is no exact science for the cost of mining a bitcoin, because the price will change every two weeks maximum. This is because there’s a Difficulty Adjustment that ensures it takes about 10 minutes to mine a block. And with other costs, such as your mining equipment, electricity, and other costs, it’s estimated that the average price to mine a bitcoin is around $12,500.
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.