Bitcoin (BTC) is a peer-to-peer cryptocurrency that can be extremely useful for making various kinds of payments. Now, unless you subscribe to the many myths about blockchain and cryptocurrencies, you would know that Bitcoin is far from being completely anonymous. However, as a user, you might very well want to keep your transactions anonymous and private. Buying Bitcoin with cash is a great way to ensure that. Now, using cash to get your hands on some BTC holdings can also be motivated by immediate need or the unavailability of traditional options like credit card or bank account.
While normally, the practice is to buy Bitcoin using your bank account or using a credit card, the following methods can be used if you are looking to buy Bitcoin using liquid cash:
1. Using A Peer-to-peer Trading Platform for Buying Bitcoin With Cash:
Getting on to a trading platform such as LocalBitcoins can help you make purchases of Bitcoin with cash. This platform is a widely known and extremely reputed one so although you do need to conduct your due diligence well, it can be somewhat trusted. It charges a straight 1% of the transaction amount as fee or charge. However, one thing that must be noted with regard to using LocalBitcoins is that the prices can hugely vary from the market price depending on who is the seller you’re dealing with or buying from. So what are the various steps involved in buying Bitcoin using cash from LocalBitcoins?
Firstly, you must be able to zero in on a seller who not only is from your own geographical area but is also willing to accept cash payments. After this, you simply must place an order to the seller for the requisite number of BTC coins you want to buy. The seller will then provide you with payment details: what account the money should be sent to, or where it should be delivered etc. You’ll then have to make the payment, of the agreed upon amount to the seller. Once you are able to show your receipt for having made the payment, you can receive the relevant number of Bitcoins in a wallet that is built into the LocalBitcoins platform. BitQuick and Wall-of-Coins are similar services that are lesser known but can come in handy in buying Bitcoin with cash as well.
2. Taking Bitcoin Out of A Bitcoin ATM:
Bitcoin ATMs can be extremely useful in withdrawing and purchasing BTC while maintaining the privacy of the process. In addition, it is also extremely convenient to simply be able to walk into an ATM, deposit the required amount of fiat in cash and withdraw an equivalent amount of Bitcoin as per current market rates. The only important drawback of this process is that Bitcoin ATMs are not available commonly in every country. For example, in India, where the very first ATM itself was declared as being illegal, it would be very hard for you to be able to find a kiosk at a street corner where you can withdraw BTCs from, in return for cash.
These two are the basic ways of buying Bitcoin with cash. However, if you are a PayPal user and you have recharged your account with cash already, you might want to check out how to buy Bitcoin with PayPal as well, because that too is a great way to preserve privacy while being convenient.