When you buy Bitcoin by cash, there are some points you should keep in mind. According to “Destination Iran”, the “We Love Doodles” website has published some helpful information about the important advantages and disadvantages of doing so.
Although many people were previously hesitant to use or invest in Bitcoin or other cryptocurrencies, more and more have embraced digital coins. They have realized doing so has immense benefits. However, if you are new to the crypto world, you may be wondering how to buy Bitcoin by cash or if it is really a good idea. This article delves into the topic to help you to get the most if not all of the answers that you may be seeking.
What Are the Advantages of Buying Bitcoin by Cash?
There are several benefits of buying Bitcoin with cash, including:
It is a speedy process
While some methods like using bank transfers can take several days as the funds get cleared, and other parts of the verification process are completed, buying Bitcoin with cash is pretty fast. If you use Bitcoin ATMs, brokers, or even crypto exchanges that operate physical premises for buying and selling coins, you can pay cash and get bitcoins in your wallet in a few minutes.
It allows anonymity
Do you want to keep your transactions private and remain anonymous as you buy your BTC? Then you should consider knowing how to buy Bitcoin by cash because this allows people transacting to remain anonymous. You don’t need to submit your details and verify your identity when using it, especially when you buy from people directly.
It has lower costs
Buying Bitcoin always has some fees, especially if you have to transfer funds through bank accounts or payment wallets. However, you can reduce the costs by buying with cash from people you trust, or incur lower costs if you buy with cash from exchanges that offer face-to-face transactions.
It is a secure method
Compared to online transactions, cash transactions are believed by many to be more secure—so buying Bitcoin with cash is a less risky option. This is because you don’t run the risk of hackers infiltrating online systems, hacking your wallet, or even stealing your identity.
It offers great convenience
Another reason to master how to buy Bitcoin by cash is that it is convenient, for example, buying at a Bitcoin ATM, from local stores that sell BTC vouchers, or using Bitcoin meetups. These options and other cash options allow you to avoid bank processes and online transactions that may be tiresome and complex at times.
What Are the Downsides of Buying Bitcoin by Cash?
Despite the several advantages that buying Bitcoin by cash offers, here are some of the risks associated with using cash to settle your Bitcoin purchase:
- The risk of being robbed: If you carry a large sum of money with you to buy bitcoins, you stand the risk of being robbed of your hard-earned cash. Therefore, you need to be cautious as you plan to buy Bitcoin by cash, meet in safe public spaces, or avoid carrying large sums of fiat currencies.
- Limited availability: Bitcoin ATMs that you can use to buy BTC with cash are not available everywhere. Also, not everyone can use P2P platforms to connect with people to buy bitcoins with cash.
- Lack of regulation: There is little regulation of cryptocurrencies and trading of digital coins, you may not be sure that the seller you are transacting with is legit, and you risk being scammed. You will have little chance of redress in cases of fraud because no authority regulates cryptocurrencies.
What Are the Methods You Can Use to Buy Bitcoin by Cash?
If you’re seeking to know how to buy Bitcoin by cash, here are some of the options that you could use:
Using Bitcoin ATMs
Like everyday cash dispensing machines, Bitcoin ATMs are automated machines that dispense Bitcoin, but of course, to your wallet, as these are digital or virtual coins after you pay in cash. The ATMs are strategically located in malls, airports, and other convenient places where there is good security. They allow users to buy BTC at any time of the day or night.
To use a Bitcoin ATM, you need first to locate the nearest one to you—you can use online tools to do this, and then you visit it. Once at the ATM, you have to scan your crypto wallet’s QR code, load cash into the machine, and confirm the purchase transaction—you then receive your BTC in your wallet. These machines charge relatively high transaction fees so you should find out the charges before using them. Although they are convenient, the ATM transaction fees are higher than those of other methods, so consider if it makes sense for you to use them.
Using crypto exchanges
There are crypto exchanges that allow users to deposit cash and buy Bitcoin with the funds from their accounts. However, you have to go through a rigorous process of opening accounts by providing your details and getting your identity verified before you can transact on these platforms.
In addition, some exchanges operate physical offices where people can walk in and buy Bitcoin by cash within a few minutes. For example, if you are in Turkey, you can visit NakitCoin’s offices and buy Bitcoin by cash safely, securely, and without limits.
Using peer-to-peer platforms
You can also buy Bitcoin by cash using peer-to-peer (P2P) platforms such as Paxful and LocalBitcoins that connect people to trade Bitcoins and other digital currencies. The beauty of this option is that it links buyers and sellers, they negotiate the terms of the deal, meet and trade. To use the P2P platforms, you create an account, find sellers who accept payment by cash, and arrange a meetup to close the deal. Some P2P platforms also offer escrow services that protect both buyers and sellers by ensuring each party performs their part of their transaction before they receive the funds.
Conclusion
If you didn’t know the ins and outs of how to buy Bitcoin by cash, this article must have shed light on some key things you might have wanted to know about the topic. As you buy Bitcoin by cash, you need to consider the best method for you, in terms of user-friendliness, fees, security, and transaction time, among other crucial things.
