How to buy Bitcoin online with cash

Using cash might be the easiest or hardest way to buy Bitcoins. It involves setting up with the Bitcoin vendor and finalise the trade in person. There are several methods you can use, and each has its benefits and potential downfalls.

This page looks at the different methods you can use your cash to buy bitcoins, the risks, and some tips.

Best platforms to buy Bitcoin with Cash – 2021

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Buy Bitcoin with cash

There are better methods out there for purchasing Bitcoin. However, cash remains “king” for those who want their transactions to retain some privacy. Credit cards, Apple Pay, Bank transfers, and Paypal are some of the mainstream methods.

Cash purchases make more sense in regions where the government bans the cryptocurrencies trades, for instance, China. Users should note that cash purchases may be subject to scams. We will outline the crucial guidelines you should follow to avoid scammers

Some of the reasons why buying Bitcoin in cash is preferred include:

  • Privacy – Exchanges and P2P marketplaces require the submission of personal details, which they have to verify before you can buy cryptocurrency. Using cash ensures you avoid all these processes, which usually take some time.
  • Speed of transaction – Most exchanges take days to verify your details, and bank transfers may take time before clearance. When prices soar, it is easier to purchase Bitcoins in cash to avoid any delays.

Some of the ways you can acquire bitcoins with cash purchases include:

  • Peer to peer(P2P) platforms (Cash in person and Cash deposits at the bank)
  • Bitcoin ATMs

Buy Bitcoin with Cash now at our preferred partner

1
Minimum Deposit
$50
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Pros and Cons of Buying Bitcoin with Cash

Pros

  • Privacy – In personal Bitcoin, purchases may not require any verification.
  • Immediate purchases – Cash deposits can ensure your purchase is quick.

Cons

  • Limits – This is especially true for large purchases or a higher number of Bitcoins in person
  • Scams – In-person Bitcoin purchases are susceptible to scams. Ensure to follow the rules and guidelines.

How does Bitcoin work?

Bitcoin is a decentralised cryptocurrency free from a central controlling authority. Instead, transactions are recorded on a shared public ledger called a blockchain. Data on the blockchain is immutable, meaning it cannot be reversed, and transactions are recorded permanently. 

Bitcoins are transferable and can be spent. Currently, many merchants and businesses accept Bitcoin as a form of payment. Since its inception, Bitcoin has continued to gain value, achieving its highest market cap in April 2021. 

How to buy Bitcoin with cash online

Here is a on how to use various methods to purchase Bitcoin with cash.

Peer to peer(P2P) Marketplaces – Cash in Person

These platforms primarily perform the function of setting up potential traders and as escrow.

Step 1: Sign up and verify your account on a P2P platform. Details about your physical location need to be correct, including the Country and the city. This is because you will need to meet the seller physically.

Step 2: Select buy Bitcoin 

Step 3: Search for the best offers that accept cash in person in your locality. With the chat feature, set up a meeting.

Step 4: Initiate the trade and agree on where to meet up with the vendor.This includes confirming the amount of money you will spend.

Step 5: Meet at the agreed place and on time. Have the cash ready, pay the vendor, and mark it as “paid” on the P2P platform.

Step 6: The vendor confirms whether the payment is in order and then releases your cryptocurrency from the escrow to the wallet associated with your account. 

Some tips to ensure seamless cash in-person purchases:

  • From the platform, check how reputable the vendor is. This also includes checking whether they have been online recently. How fast they respond to your messages should give an indication of their availability and promptness.
  • Go over the details of the offers keenly. This includes the price, trade terms, and response time.
  • Ensure to always meet in a public space where you are sure of your safety.
  • Worried about whether the Bitcoins will be reversed? Once the Bitcoins are in escrow, they essentially are held in trust by the platform. 

Some of the popular P2P crypto marketplaces include Paxful, LocalBitcoins, and Mycelium local trader

Peer to peer(P2P) Marketplaces – Cash Deposit

The process is similar to cash in person. The main difference is that you will have to deposit money in the vendor’s bank account. This process requires a reliable escrow service.

Step 1: Sign up and get verified on the platform

Step 2: Select Buy Bitcoin

Step 3: Search for the best offers that accept cash in person in your locality. With the chat feature, agree on the other details.

Step 4: Initiate the trade and agree on where to meet up with the vendor.

Step 5: Confirm the meetup – place and time. Go ahead and deposit the agreed amount to the seller’s account. Mark the transaction as  “paid” on the P2P platform.

Step 6:  Vendor confirms payment and then releases the Bitcoin to your wallet. 

Some of the P2P exchanges you can use for cash deposits include LocalBitcoins, Paxful, Wall of Coin (P2P marketplace), and Liberty X, which require a smartphone.

Bitcoin ATMs (BTM)

These ATMs accept cash in exchange for Bitcoins.

Prerequisite: Download a wallet to store your Bitcoin.

Follow these steps to buy Bitcoins from a Bitcoin ATM.

Step 1: Locate a Bitcoin ATM ready with cash. Use the CoinATMRadar to check if there is an ATM near you.

Step 2: Check the requirements for purchase, including the limits, verification, and fees.

Step 3: On the BTM, select “Buy Range,” which gives you a chance to choose the relative(range) amount you wish to spend.

Step 4: A QR code is presented, which you can scan using your mobile phone. The Bitcoins will be sent to your downloaded wallet.

Step 5: Feed cash into the BTM.

The screen will display the amount of cash you have input. The number of Bitcoins you will receive and the address of your Bitcoin’s wallet will also be shown.

Step 6: Finalize the purchase.

Confirm the transaction. You will receive a receipt to confirm the purchase. Check your Bitcoin wallet to verify that the Bitcoins have been deposited.

Congratulations, you’ve just bought your first Bitcoin with Cash!

Top platforms to buy Bitcoin with Cash

1
Minimum Deposit
$50
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
2
Minimum Deposit
$250
Exclusive Promotion
User Score
8.1
Trade the global markets. Trade with real-time execution and professional tools
Follow and copy Naga's top traders who have mastered their trading strategies
Free personal account manager
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3
Minimum Deposit
$50
Exclusive Promotion
User Score
7.5
Over 4 million customers worldwide
Buy, sell and trade nearly 200 digital assets
Verified within 15 minutes