by: steven hay | last updated: 8/26/22
Want to buy bitcoins with cash? In this short guide, I’ll give you some of the best options available today.
Reading: Buy bitcoin for cash
5 options to buy bitcoin with cash
- buy from an individual via paxful
- buy bitcoins at a bitcoin ATM
- buy bitcoins via a cash deposit at a bank
- buy bitcoins with cash at a convenience store or pharmacy
- buy bitcoins with cash through the mail
this is how to buy bitcoins with cash in a nutshell. If you want to learn more about each method, read on; this is what i will cover:
- why buy bitcoin with cash?
- trade bitcoin peer to peer
- buy bitcoin with cash in person
- buy bitcoin via a bitcoin ATM
- buy bitcoin with a cash deposit at a bank
- buy bitcoin with cash at cvs or 7-eleven using libertyx
- buy bitcoin with cash in the mail
- where can I get cash for bitcoin?
- conclusion
1. why buy bitcoin with cash?
There are many advantages to buying bitcoins with cash, if you take the necessary precautions (more on this later).
privacy
Unlike using a regular bitcoin exchange, cash purchases typically don’t require you to unnecessarily disclose information by submitting a ton of documents to verify your identity.
This tactic is much safer, given the ever-increasing risk of identity theft. another reason to buy bitcoins in cash is to avoid repression from tax authorities.
speed
This reason exists primarily because you don’t have to wait for bank transfers to arrive or verification by an exchange. deposits typically take 1-3 business days, while verification can take 1-3 weeks.
Cash transactions save a lot of time. when the price of bitcoin skyrockets, even a few days can add up to a lot of money!
2. bitcoin peer to peer trading
Experts have suggested that most of bitcoin’s trading volume occurs off-exchange.
this is really a good thing; if cryptocurrency only becomes tradable with state approval, it will be reduced to little more than a new form of fiat currency.
so all serious bitcoiners should get some experience with cash trading. if your local government ever cracks down on bitcoin, it’s good to have a plan b in place…
Perhaps the best practical example of the importance of peer-to-peer trading came in late 2017, when China banned bitcoin exchanges.
However, over-the-counter bitcoin trading continued. These charts show known Chinese volume for two popular services that facilitate peer-to-peer trading:
As a result of the ban, LocalBitcoins’ volume in China spiked by at least 7x.
paxful’s volume in china also increased noticeably. for a few months, it increased at least 6 times.
3. buy bitcoin with cash in person
if you have trusted friends who own bitcoin they are willing to sell, you’re good to go.
To make such trusted friends, consider attending bitcoin conferences or meetups in your area. To locate these events, search for local bitcoin groups on meetup or facebook.
Another thing to remember, unless you plan to meet near an ATM, be sure to bring the agreed amount of cash.
Also be sure to bring your phone or laptop that can access your bitcoin wallet. if you only bring your wallet address, you will not be able to verify the receipt of your coins.
two great options for in-person deposit transactions
In the past we used to recommend localbitcoins for trading in person, however in 2019 the company decided to remove local cash listings. therefore, paxful is the next best service.
paxful buyer/seller match
paxful has been around since 2015 and has since grown to serve most countries and regions. During that time, the company has established a reputation for reliability and has become a go-to website for OTC trading.
See also: Here&x27s What Investors Should Know About Toast Stock | The Motley Fool
to buy btc on paxful:
- visit the site and register.
- click the “buy bitcoin” link in the top menu.
- enter your location, the requested amount and select ” cash” as your desired payment method.
A list of vendors will be displayed. It’s worth noting that there may not be a vendor for in-person cash purchases in your area. if there are no sellers in your area, you’ll have to wait for one to appear or consider using a different method. the seller list will display a feedback score for each seller, including their exchange rate.
- choose a seller with a considerable positive reputation.
- enter the desired purchase amount, which must be within your limits.
- arrange the additional details of your trade through courier.
For a full demo, take a look at this short video:
Since you can trust paxful to send you the coins, there is no reason to wait for multiple confirmations after the seller releases the coins. you can read my paxful review here.
local mycelium trader
The popular mycelium mobile wallet for both ios and android includes a feature known as a local merchant. this tool serves as a cash-only deposit and comparison service for bitcoin traders.
Depending on your area, you may find more or (probably) fewer sellers on this site than on paxful.
Virtually everything you need to know about the local trading process is available as a guide on the mycelium site.
after payment, the seller releases the coins from his mycelium wallet to yours.
In other words, mycelium provides an escrow service and guarantees that the seller has the amount of bitcoins they advertised for sale.
however, they do not take actual ownership of the seller’s coins, like paxful does. instead, the coins are released directly from the seller’s wallet to yours.
mycelium has an algorithm that monitors the blockchain and gives you an estimate of the probability that your transaction will confirm successfully. however, for larger amounts, I would recommend waiting for actual confirmations.
safety first!
I recommend that you only operate by enabling escrow. in this case, escrow means that a trusted service has the seller’s bitcoin.
I also recommend that you only trade in person in a safe place. good choices are bank lobbies, police station lobbies, and courthouses.
When dealing with a first-time seller or dealing in large amounts, it’s wise to choose a location with access controls, metal detectors, security cameras, and guards.
In general, exercise common sense; Although rare, incidents of theft and fraud have been reported.
4. buy bitcoin with cash from a bitcoin ATM (btm)
Bitcoin ATMs (BTMs) accept cash and in return send you bitcoins to your bitcoin address. they are a convenient way to trade 24/7.
although btms have become increasingly popular since their introduction a few years ago, there are still many regions without one. the best way to locate a btm near you is to use coinatmradar or coinflip if you are in the united states. use promo code “99btc” to get 10% off your transaction fees at coinfip ATMs.
when you click on a btm on this site, you will see a screen with its precise location, rates, limits and identification requirements (if applicable). the site will also provide the operator’s contact details. You should make a note of the operator’s contact details, in case there is a problem with your transaction.
When you go to the btm, remember to bring your bitcoin wallet or address too! When using a btm, you should treat it like using a normal ATM, so be on the lookout for suspicious characters lurking around.
5. buy bitcoin with cash deposits at the bank
both localbitcoins and paxful offer cash deposits as a payment option.
in usa In the US, there are two more services that specialize in arranging and guaranteeing purchases via bank deposits: athena bitcoin and liberty x (which requires a smartphone).
Finally, Wall of Coins offers a similar service in the United States, United Kingdom, Argentina, Australia, Brazil, Canada, Germany, Latvia, Mexico, Poland, the Philippines and Romania.
See also: Cryptocurrency Investing | Cryptocurrency Investment Types | Charles Schwab
Using this method, the seller will provide their bank details and then visit the appropriate bank and complete a deposit form. sellers can specify a particular bank. then make a cash deposit into the seller’s account through the bank teller.
This method is more reliable and physically safe than meeting a stranger. specifically, the seller has no way of knowing which bank or branch to use.
The downside is that such services are only available during banking hours and are slower than face-to-face transactions, especially if there is a long line at the bank or the service is slow to verify your transaction.
As with face-to-face cash trading, you should only conduct bank deposit transactions through a reputable escrow service; doing so will protect you from fraud.
You can prove to the escrow service that you have made the payment by photographing or scanning your bank deposit receipt. In the event of a dispute, with proper proof, they will still release the seller’s coins to your bitcoin address.
always be sure to save your deposit receipt. Unlike a bank transfer, it is very difficult to prove that you made a payment without it!
6. buy bitcoin with cash at cvs or 7-eleven using libertyx
Although libertyx is best known as a crypto ATM company, in 2020 it partnered with some large US retailers. uu. to allow people to buy bitcoin with cash in stores at 20,000 US retail locations. uu.
retailers that offer the service are 7-eleven, cvs pharmacies and rite aid pharmacies. Participating stores can be located on the LibertyX website or through the LibertyX app, which is available on Android and iOS.
For these in-store cash purchases, there is a maximum limit of $500 per day and a retail service fee of $4.95 per transaction.
the process is like this:
- download the libertyx app and create an account
- enter the bitcoin address you want the bitcoins to be sent to and press start purchase
- select the retailer you will be shopping with and tap “add cash now”
- the cashier will scan your barcode at the store
- pay between $20 and $500, and your account will receive the bitcoins in 10 minutes
- press the “convert to bitcoin” button in the libertyx app
and that’s it! you will receive the corresponding amount of bitcoin in your wallet.
7. buy bitcoin with cash by mail (not recommended)
paxful also offers services to find sellers who accept cash by mail. you can also find suitable sellers on darknet markets.
As with in-person purchases, try to trade only with established users who have a good reputation. Choosing a reputable seller is your best protection against fraud, and escrow should always be used.
This method has some obvious drawbacks, such as slowness and the risk of your envelope being lost or stolen along the way. I recommend wrapping the bills in a couple of layers of paper so they can’t be easily spotted without opening the envelope.
In case your envelope never arrives or arrives empty, some sellers can compensate you. To qualify, you may need to film or photograph yourself putting the money into the envelope, sealing it, and mailing it.
For added security, I advise using certified mail and then having the seller sign for it after receiving the envelope. this method creates a degree of proof that you paid through escrow, although the amount of cash inside the envelope can still be disputed.
Given the drawbacks of this method, I only recommend it for cash buyers who are too remote for other purchase methods.
8. where can i get cash for bitcoin?
if you are looking to sell bitcoins for cash, the following methods will work:
- paxful
- local mycelium trader
- wall of coins
- athena bitcoin
- certain btms dispense cash for bitcoin as well
9. conclusion
If I had to pick one method out of the four I’ve covered, it would definitely be the bitcoin ATM. btms offer a reliable solution for cash purchases and are generally located in central areas which are safer.
While buying bitcoin with cash is faster and more anonymous than conventional methods, it is still riskier than most current online methods (credit cards, wire transfers).
if you don’t have to use cash, it would probably be safer to use an online method, assuming you buy through a known and reputable exchange.
If you know of other methods or have questions or comments, feel free to leave them in the comments section below.
See also: Did The US Government Just Declare War on Crypto? – Decrypt
