Cryptocurrency has become a popular investment option in recent years, with more and more individuals turning to digital currencies to diversify their portfolios.
Most buy cryptocurrency with a credit card or bank transfer. However, not everyone can access these options. Luckily, you can buy cryptocurrency with cash.
You’re lucky if you’re interested in purchasing cryptocurrency with cash but don’t know how exactly. In this article, we’ll explore how to buy cryptocurrency with cash and provide safety tips, so let’s dive right in.
How To Buy Cryptocurrency With Cash: 5 Safe Methods
Purchasing cryptocurrency with cash can be overwhelming and tricky for beginners, but don’t worry. Below, we’ll list different ways you can buy cryptocurrency with cash.
However, before we start, we would like to mention that buying cryptocurrency with cash can be risky, especially when dealing with strangers. So, you must stay vigilant and take the necessary precautions. Otherwise, you might get scammed or robbed by criminals.
Method 1: Peer-to-Peer (P2P) Exchanges
Peer-to-peer exchanges are basically online marketplaces that connect buyers and sellers of cryptocurrencies.
P2P exchanges like LocalBitcoins, Paxful, and Bisq enable buyers to establish direct contact with sellers and buy cryptocurrency with cash.
However, you will need an account to make the exchange. First, pick a P2P exchange, create your account, and finally, find a seller who accepts cash.
Once you’ve found one, you can arrange a meeting for the exchange. We would suggest meeting sellers who accept cash in a public setting. Also, just in case, bring a friend or two for extra protection and safety.
Method 2: Bitcoin ATMs
You can also buy cryptocurrency with cash using Bitcoin ATMs. These ATMs allow you to buy Bitcoin and other cryptocurrencies with cash.
The best part? They’re widespread, so you can easily find one near you, regardless of location. If you can’t find one immediately, don’t worry. You can use a website like CoinATMRadar to track one down.
Once you find one, follow the on-screen instructions. However, note that you will need a cryptocurrency wallet to get the coins you buy.
Note: Bitcoin ATMs charge high fees, so check them before buying anything.
Method 3: Gift Card Exchanges
Some online marketplaces like Paxful and Bitrefill allow you to purchase gift cards with cash and then use them to purchase cryptocurrency.
The process is simple. Just buy a gift card with cash and use it to pay for your cryptocurrency on the platform.
Note: The process can take longer than other options, so consider other methods if you lack time.
The benefit of purchasing cryptocurrency using gift cards is that you don’t have to meet a stranger in person or pay the higher ATM fees.
Method 4: OTC (Over-the-Counter) Exchanges
Another simple way you can buy cryptocurrency with cash is through OTC exchanges. Over-the-counter exchanges allow people to buy cryptocurrency directly from the seller without using a marketplace.
Popular options include ItBit, Genesis Block, and Circle. So, pick one, make an account, find a seller who accepts cash, and arrange a meeting for the exchange.
Note: These exchanges can have high minimum purchase requirements and fees. So, check the terms before using any.
Method 5: Trading With Friends or Family
The final option is buying cryptocurrency with cash from friends or family members who own it. In our opinion, it’s the safest method, as you already know the person.
So, ask your friends or family members if they have cryptocurrencies they would like to sell, then negotiate a fair price and use a cryptocurrency wallet to transfer.
In a nutshell, purchasing cryptocurrency with cash is possible. However, you must take into account the risks.
Pros and Cons of Buying Cryptocurrency With Cash
Buying cryptocurrency with cash can be convenient, but it has some downsides. Here’s a summary of the main pros and cons:
Pros
- Anonymity: You can anonymously buy cryptocurrency with cash. You don’t need to share personal information, which can be a plus if you’re concerned about privacy.
- Security: If you’re worried about online hacks or breaches, buying cryptocurrency with cash can be a secure option. You don’t have to worry about your personal information being compromised.
- You don’t need a bank account: Buying cryptocurrency with cash can be a good option if you don’t have a bank account. You can use cash to buy cryptocurrency without going through a traditional banking system.
Cons
- Risk: Buying cryptocurrency with cash can be risky. You must find a trustworthy seller and ensure you’re not being scammed or robbed. There’s also a risk of losing your cash if the seller doesn’t transfer the cryptocurrency to you.
- Limited options: You can buy cryptocurrency with cash in various ways, but you still have limited options compared to buying with a bank account or credit card. Moreover, you might not be able to find a seller in your area, or the fees might be higher than other methods.
- Fees: Bitcoin ATMs can charge up to 10% for buying or selling cryptocurrency.
In summary, buying cryptocurrency with cash can be a good option for those who value anonymity and security, but it’s also risky and expensive.
7 Safety Tips
To ensure you don’t get scammed or robbed, here’s a list of extra safety tips for buying cryptocurrency with cash:
1. Who’s the Seller?
Before the meeting, research the person to see if they have a good reputation. Always read online reviews, ask for references, and see if they have any social media accounts that you can check.
2. Pick a Public Place for the Exchange
Never agree to meet someone in a dark alley or somewhere private. Always choose a public place like a mall or coffee shop. If the seller refuses to meet somewhere public, find another one who will.
3. Never Go Alone
Bring a friend or family member to meet with the seller for extra safety and protection. If you bring someone along, scammers or robbers might think twice before messing with you.
4. Ensure the Cash Isn’t Counterfeit
When receiving cash, inspect it carefully to ensure it’s real. Look for security features, such as watermarks and threads, and use a counterfeit detection pen to confirm you’re getting legitimate bills.
5. Use a Cryptocurrency Wallet
Always have a cryptocurrency wallet ready to receive the coins you buy. This will help ensure that you receive the coins, and it will also keep them safe.
6. Verify the Transaction
Before handing over the cash, ensure the seller has sent the cryptocurrency to your wallet. Verify the transaction on the blockchain to ensure it’s complete.
7. Stay Cautious
Look for red flags, such as people asking for personal data or upfront payments.
Scammers usually pressure buyers into making a fast transaction or offer unbelievable deals, so keep that in mind.
Related Questions
How Do I Buy Crypto With a Cash Card?
Buying crypto with a cash card isn’t hard. Just follow these steps, and you will execute a successful transaction:
- Research cryptocurrency exchanges that accept cash cards.
- We would suggest using Coinbase or Bitit because they’re two of the most popular exchanges that accept cash cards.
- Create an account and verify your identity.
- Go to the “Buy Crypto” section and select your desired cryptocurrency.
- Choose the “Cash Card” payment method and enter the amount you want to spend.
- Enter the details of your cash card, such as your card number, etc. You know the drill.
- Confirm the transaction.
- Stay patient until the cryptocurrency is transferred to your account.
How To Buy Bitcoins With Cash at Walmart?
You can easily buy Bitcoins with cash at Walmart using a Bitcoin ATM. However, note that these ATMs have high fees, so compare prices before using one.
- Find a Bitcoin ATM that accepts cash and supports Bitcoin purchases.
- Go to the Bitcoin ATM at your local Walmart.
- Follow the on-screen instructions to select “Buy Bitcoin.”
- Insert the cash into the ATM.
- Enter the address of your Bitcoin wallet.
- Confirm the transaction.
- Wait for the Bitcoin to be sent to your wallet.
How To Buy Bitcoin With Cash App?
You can quickly and easily purchase Bitcoin with Cash App. Just follow these steps:
- Download the Cash App and create an account.
- Link your debit card or bank account to your Cash App account.
- Go to the “Investing” tab and select “Bitcoin.”
- Enter the amount of Bitcoin you want to purchase.
- Confirm the transaction.
- Wait for the Bitcoin to be sent to your Cash App wallet.
Note: Cash App charges a fee for Bitcoin transactions, which can vary depending on market conditions.
Happy Trading!
In a nutshell, buying cryptocurrency with cash can be a convenient and secure option for those who prefer physical currency.
Following the simple steps above and taking the necessary precautions, you can safely buy different cryptocurrencies and diversify your investment portfolio.
