BTC stands for Bitcoin, which is one of the most popular cryptocurrencies in the world. If you have been planning to make a cryptocurrency investment, you probably have thought of BTC. Many first-time BTC investors and seasoned crypto traders prefer to buy BTC with cash because it has some benefits. Here are some.
- It is safer to buy BTC with cash than using a credit card or bank account because your payment or bank details might end up in the wrong hands with these alternatives to cash.
- It is fast because there is no bank that needs to verify your financial status.
- It is convenient because you will just buy without having to fill in a lot of payment method information.
You definitely want to enjoy these and more benefits of buying Bitcoin with cash. Therefore, you should know how to go about this without putting your investment at any risk. That said, we can dive into the processes.
How to Buy BTC with Cash on Physical Exchanges
There is an emergence of in-person exchanges such as physical exchange offices, Bitcoin kiosks, and Bitcoin ATMs. They are all easy and convenient to use by anyone who buys BTC with cash. Well, these are not recommended for active traders but for people who want to buy BTC with cash once in a while.
- Physical offices and Bitcoin kiosks – These are becoming popular recently. For you to buy BTC with cash in a physical shop like those operated by NakitCoins, you need to understand how they work. They are the easiest to use because there is an agent to help you and even advise you. Basically, you need to have the money to buy the crypto and a Bitcoin wallet to receive the coins. Once you have given all the details and are content with the rates and commission, the agent will complete the transaction. All you need is to confirm the receipt of the coins in your wallet.
- Bitcoin ATMs – Many BTC ATMs are located strategically in shopping malls or near busy streets to allow anyone to buy BTC with cash. When you start using one, you will transact through an automated interface, so you need to follow the given instructions and prompts to buy Bitcoin. The good thing is that you can use cash with BTC ATMs or pay with a bank card among many other accepted payment options.
How to Buy BTC with Cash on Online Exchanges
Most people buy BTC with cash through online exchanges such as Coinbase, Paxful, Binance, and Cash App. All these platforms accept bank transfers, credit card payments, online payment options, and mobile app payments. P2P exchanges may connect buyers and sellers who can transact using hard cash. Typically, there are two types of online exchanges: CEX and DEX platforms. We will go through each of them.
- CEX platforms – It is easy to buy BTC with cash on a CEX platform. The first step is creating an account with the platform and then depositing cash from the bank or other accepted payment method. The money will be kept in your account to await the purchase. The purchase is instant because CEX platforms have high liquidity of both crypto and fiat money assets. Once you have purchased, you will need to transfer the BTC from the account to a secure Bitcoin wallet.
- DEX platforms – If you want to buy BTC with cash from a peer-to-peer platform, the process is also easy. These platforms connect buyers and sellers and even provide them with a secure platform on which to trade. Some DEX platforms do not require people to create an account. All you need is to fill in a few details of what you want to buy, and you will be matched with buyers. However, these platforms have an escrow account where your cash from the bank, credit card, mobile money, or any other accepted source is held until the transaction goes through. Once you have given an address for your BTC wallet, the coins will be sent there immediately.
These processes will help you know how to buy BTC with cash conveniently and securely. Now that you understand them, it is easy to choose the one that will work best for you. Always check them well and understand every step. The options are helpful to both occasional Bitcoin buyers and regular traders.