The way you can buy Bitcoin has diversified since its start, offering privacy and anonymity to investors who want nothing more than to step away from traditional banking systems. Luckily, buying Bitcoin with cash is pretty straightforward, and there are different ways of doing it to suit your personal needs of convenience, privacy, and security.
In this post, we will share 5 different ways of buying Bitcoin with cash. We will go over the process, how it can be done, and how to store your BTC securely after purchasing.
We will also include one approach, which although is a popular choice, it’s a riskier move, and you should stay away from it.
Why Use Cash?
When buying Bitcoin, it can be easy to fall into more traditional ways of making purchases online, like using your credit card or e-wallet, like Google or Apple Pay, or even a bank transfer. These options are convenient because once you set it up, you can buy as you please. But, one key factor with these methods is the lack of privacy, leading to an issue of security.
Buying Bitcoin with cash has the following advantages:
Privacy: Unlike credit cards or transfers that leave a digital footprint on your transactions, cash is naturally more private.
Speed: Bank transfers can take time to process, some might even take up to a few days to be approved. Normally, there needs to be a verification process and clearing, however, buying with cash is usually instant.
Fees: Some cash transactions, like using Bitcoin ATMS might have higher fees compared to other payment methods initially, but if you take into consideration all the fees associated with transferring funds from one account to another, and then completing the transaction to buy your BTC, it might end up being even more expensive.
5 Different Ways to Buy Bitcoin with Cash
Although there are a few more ways of buying crypto using cash, these 4 methods are the most popular and commonly used.
Bitcoin ATMs
A straightforward option for buying Bitcoin with cash. These ATMs are kiosks that work similarly to a traditional ATM but are meant for BTC. You insert cash into the machine, and then you choose to deposit the value in Bitcoin to your digital wallet or print it as a paper wallet.
🛑Caution: Bitcoin cold wallets are always going to be the safest way of storing your Crypto. Even if you want pure privacy and to avoid any digital components, there are cold wallets, like Material Bitcoin, that act like paper wallets (giving you total custody) but in an indestructible format and material.
You can find these types of ATMs in malls, airports, and convenience stores all around the US and globally.
Bitcoin Dispensaries
For US residents, you can buy Bitcoin with fiat currency using crypto dispensaries, like LibertyX or CDReload at local retailers, such as Walgreens, CVS, and others. These dispensaries are similar to Bitcoin ATMs but with a slight difference: typically, BTMs (Bitcoin ATMs), have high exchange fees, anywhere from 5-15% more than the spot price and an additional transaction fee. Not to mention, you might need to go through KYC verification by presenting your ID to the ATM.
But with a dispensary, you create a profile ahead of time and then can use the services just like an ATM but quicker, and cheaper. You can also sell crypto using Bitcoin dispensaries, which you can’t do on normal BTMs.
P2P Exchanges
P2P exchanges are platforms that connect buyers and sellers directly. It is the most decentralized way of trading Bitcoin available since amounts and values are bought and sold between individuals. Some popular platforms like Paxful, and KuCoin, allow you to post trade offers and also specify the payment methods and prices.
Some tips we recommend when using Peer-to-peer services are:
- Setting up a secure account with two-factor authentication and having a cold wallet address ready for receiving the transfer of BTC.
- Always research the seller. Read reviews of their previous transaction history.
- Using escrow services provided by the platform to hold the Bitcoin until payment confirmation.
In-Person Trading
Using a forum through trusted crypto-decentralized apps, you can connect with local buyers and sellers for Bitcoin trading. This method allows you to exchange cash in hand directly and with the help of these apps, there is a vetting process for the traders to help ensure that they are legit and not scamming fiat currency for false crypto.
Be Aware: Always agree to meet in public spaces, during the daytime and even consider bringing a friend along. Although in-person trading apps have security measures to verify buyers and sellers, you can never be too safe when meeting strangers, especially if you are carrying cash.
Cash Deposits
Making a cash deposit into a seller’s bank account is another way to buy Bitcoin safely with cash. This requires that you deposit cash directly at a bank branch supporting this kind of service (not all US and Canadian banks will permit this).
Exchanges like BitQuick support cash deposit options, where you can then make the trade.
After making the deposit, cold wallets like Material Bitcoin, help to verify the receipt of the deposit and release of Bitcoin to the buyer’s wallet.
The Definitive Way to Purchase Bitcoin with Cash: Material Bitcoin
As you can see there are plenty of options to use cash to buy cryptocurrency. Some are better, quicker, and safer than others. Material Bitcoin, although a standout cold wallet first and foremost, also facilitates buying Bitcoin anonymously using cash.
Use Cash to Buy Your Material Bitcoin Wallet: The “Pay Upon Delivery” Option is unique to Material wallets. During checkout, just click on the “pay upon delivery” option. Other hardware wallet providers do not typically offer this feature and it gives you full control of being anonymous.
Enhanced Security Measures: Material wallets have state-of-the-art security, ensuring that your digital assets are protected against both physical and cyber-attacks when buying and storing crypto.
Partnerships: Material uses technology through partnerships with anonymous exchanges and web3 blockchain developers, integrating their services to allow you to securely buy crypto through Material wallets.
How Material Simplifies the Process
Buying Bitcoin directly through the Material wallet is easy.
Here’s a simple step-by-step guide on how to buy Bitcoin using Material Bitcoin, focusing on the use of a prepaid credit card:
First, buy your Material Bitcoin wallet, then load your funds onto a prepaid credit card with the amount of cash you want to convert into Bitcoin. Then, access the Material Wallet app and select the Buy Bitcoin option. Follow the steps to complete the transaction. Finally, confirm the purchase and have your BTC securely deposited directly into your Material cold wallet.
Risks and Precautions
Buying anything with cash has its benefits, but it also runs its risks. The more obvious of them is your safety of making purchases in person while carrying large amounts of cash with you. As we mentioned before with the in-person trade option, you do have a sense of security as vendors are vetted by the platforms, but still, you need to be cautious when meeting strangers.
One option of buying cryptocurrency with cash that we absolutely think you should avoid is:
Buying Bitcoin with cash through the mail.
This just screams for the potential of loss, theft, and fraud. Although you can track your delivery with registered mail, putting cash into an envelope and sending it off is a sure way to raise the risk factors associated with not receiving your BTC post receipt, especially if mailing to a PO Box.
Just don’t do it ⛔
3 Tips and Strategies for Successfully Securing Your Crypto
1. Secure Storage Options
Choosing the right wallet depends on your specific needs. For maximum security, hardware cold wallets are the most recommended, especially for storing large amounts of cryptocurrency.
2. Backup and Security
Make sure to complete regular backups of your wallet, including your private keys and recovery seed phrases. These backups should be stored in secure locations. Material seed phrase wallet is the perfect solution for all of your seed phrase security. It is a stainless steel plate designed to safely store all of your seed phrases and protects against physical damage like fire or water.
3. Stay Informed and Be Aware
There is so much info out there about crypto trading, and how to make quick and easy money, unfortunately along with many lending schemes and privacy hacks. To stay safe from Bitcoin scams and frauds, stay up-to-date with crypto trends that might cause disruptions to the market and prompt more theft.
Buy Your Bitcoin With Material
Purchasing Bitcoin with cash has many benefits that cater to different needs, like maintaining privacy and giving access to crypto to those without a bank account.
Trusting Material Bitcoin for not only storing but also buying your BTC with cash is one of the best ways to safeguard your digital currency. It allows your crypto to stay in your hands, with your complete control.
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