Buy Bitcoin With Cash | Beginner’s Guide | Bankless times

by James · December 13, 2022

Last updated 13 December 2022

Bitcoin is one of the most popular cryptocurrencies in the world, and for that reason many people are interested in buying Bitcoin. However, there are many different ways to buy Bitcoin, as well as payment methods such as cash.

In this article, we discuss all the ways you can buy Bitcoin with cash. We will cover where and how to exchange your fiat currency for Bitcoin along with our top tips. Keep reading to learn everything you need to know about buying BTC with cash.

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What is a Cash Bitcoin Broker?

A Bitcoin cash broker is actually a digital platform that allows you to buy BTC with cash. You have to make a cash deposit and you will get Bitcoin in exchange – it’s that simple.

The actual step-by-step process you need to complete varies from platform to platform, but it’s usually quick and straightforward.

These platforms rarely differ from your typical Bitcoin brokers and exchanges, as they are often the same platforms that happen to offer cash as a payment method. For example, Binance – one of the most popular crypto exchanges globally – has more than 350 payment methods – one of which is cash.

Where can I buy Bitcoins with cash?

Before we get into how to buy Bitcoins with cash, we need to understand where you can buy Bitcoins with cash. There are two types of platforms where you can potentially buy Bitcoin with cash:

The two are effectively the same, with one small difference – dedicated P2P exchanges act as escrow services, allowing you to exchange money for Bitcoin with other people. In contrast, Bitcoin exchanges simply allow you to buy crypto with real money.

You can also buy BTC with cash using one of the two options below.

At a regular Bitcoin ATM (BATM), as long as you have one near you. If you have a Bitcoin ATM near you, you can use it to buy Bitcoin with a cash deposit.
Directly from a person willing to send you Bitcoin in exchange for cash

How to buy Bitcoins with cash

As we have already mentioned, buying Bitcoin with cash is usually easy and similar on most platforms.

Here is the general process, but it will vary from platform to platform:

Step 1: Register an account

Step 2: Verify your account

Step 3: Select the P2P/Quick Buy/Buy option

Step 5: Select Cash payment

Step 6: Enter the amount you want to buy

Step 7: Select seller

If something goes wrong with the trade, you can always open a dispute, as most platforms have mechanisms to resolve them.

In many cases, you will also have the chance to contact the seller so that you can talk about the trade before starting the process. That way, you will get to know the person better and build trust.

How to buy Bitcoin in person?

To buy Bitcoin in person, you simply need to find a seller and meet them to exchange cash for Bitcoin.

To find the seller, you can browse online communities like Reddit to find these sellers or use a P2P service to contact a seller and ask if they would be willing to meet you in person to buy Bitcoin for cash.

But remember that you don’t know these people, so buying Bitcoin might not be the safest option.

Once you meet the person, follow these steps to exchange cash for Bitcoin:

Step 1: Give the wallet key

Step 3: Verification process

How to make deposits and withdrawals with cash

Buying Bitcoins with cash is a little different from other payment methods, so it shouldn’t come as a surprise that the deposit/withdrawal process is also different.

Deposit

On crypto exchanges and brokerages, you usually have to deposit fiat currency via a specific payment method and then use it to buy Bitcoin. But with cash it is different. In this case, you will usually get the seller’s bank account and you will have to send them the money to receive BTC in return.

Take out

When you receive BTC, the money will usually be held in your wallet at the exchange/brokerage. You can keep it there, but it’s much safer to transfer it to your own crypto wallet.

What should I look for when buying BTC with cash?

When you decide to buy Bitcoin this way, there are a few things you need to look out for to ensure that your transactions go smoothly:

Build trust: If you are buying directly from a person, make sure you can trust them. You should also complete the transaction publicly.

Choose P2P platforms: It is always safest to buy BTC in a P2P exchange that handles cash payments. With the platform’s escrow services and other security options, you don’t have to worry about scammers.

Compare prices and fees: When choosing a broker, look for platforms that offer lower exchange rates and fees.

Analyze feedback points from the seller: If the P2P exchange supports it, always check a specific seller’s feedback score. Those with the best scores are usually experienced traders and can always be trusted.

Check the user experience: When choosing a trading platform, make sure to choose the one that offers a good user experience, especially if you are a beginner. That way you will have an easier time buying BTC.

Should I buy Bitcoin with cash?

Buying BTC with cash from a broker is generally the safest option, especially with their escrow service and protection.

However, there are still several pros and cons that you should be aware of as they will help you decide if this method is right for you.

Advantages disadvantages

Benefits

It is incredibly easy to buy smaller amounts of Bitcoin.

You don’t have to worry about privacy, especially if you buy a Bitcoin Teller Machine (BTM).

The whole process is usually quick, almost instantaneous in some cases.

Cash payments cannot be taken back, so the seller can be confident that you have paid them and can then release your BTC.

Cons

It is more difficult to buy larger amounts, especially when using a cash deposit on an exchange or brokerage platform.

Prices are sometimes higher compared to other payment options.

Is using cash the best method to buy Bitcoin?

It depends on what you care about most when it comes to buying Bitcoin. If privacy is your main concern, buying BTC with cash is undoubtedly a good option.

While this is true in many other cases, in general, buying Bitcoin with cash is usually less convenient for beginners than other payment methods.

However, there are other methods you can use if for some reason cash is not a good option for you.

What are the alternative payment methods to buy Bitcoin with?

Here are some great alternatives to using cash when buying Bitcoin:

Bank transfer: This option is simple and easy, and the whole process should remain pretty much the same, regardless of what you buy. Check out our guide on how to buy Bitcoin with a debit card if you want to know more.

Credit card: You use credit cards almost every day, so using them to buy Bitcoin shouldn’t be too difficult either. Most brokers accept all major credit cards, including Visa, Mastercard, American Express and Discover. Check out our guide on how to buy Bitcoin with a credit card if you want to know more.

E-wallets: E-wallets are often the most convenient option for buying BTC. You will usually get to choose from many popular e-wallets in the world, including PayPal.