• Market Cap: $105b

  • Dec 16, 2018

Chapter 2.3

How to Buy Bitcoin with Cash?

One of the most popularly asked questions is - Is it possible to buy Bitcoins via Cash? And if possible, How?

How to Buy Bitcoin with Cash?

However, not all people know exactly how to. There are a number of ways by which one could buy Bitcoins. We have an entire chapter dedicated to how to buy Bitcoins which addresses the various means by which you can buy Bitcoins. One of the most popularly asked questions is - Is it possible to buy Bitcoins via Cash? And if possible, How?

Let us answer both the questions here:

Is It Possible to Buy Bitcoins via Cash?

Yes, it is possible to buy Bitcoins using cash. There are a number of ways by which you can buy Bitcoins using cash. However, there will always be questions on the legality of it all.

Buying Bitcoins via cash is looked down upon by many traders and governing bodies because sometimes it leads to unaccounted income, also popularly known as Black Money - leading to money laundering. Since Bitcoin transactions are anonymous, you can transfer Bitcoins to a person’s account and get cash for him. In this whole process - the government of your country will not know where the fiat currency is moving. This is unaccounted income which is bad for the economy as well as for the tax system.

Now that we have technicalities out of the way, let us take a look at how to buy Bitcoins using cash:

How to Buy Bitcoins Using Cash?

There are a number of Bitcoin Exchanges that accept Cash as a means of payment. 

There are many Bitcoin Exchanges which accept cash as a form of payment. Let us take a look at some of these exchanges and how you can make use of cash to buy Bitcoins:

LocalBitcoins

LocalBitcoins is one of the most popular names and a go-to website for those looking forward to buy Bitcoins in cash. Here’s how to buy Bitcoins in cash via LocalBitcoins:

  • Register on LocalBitcoins

  • In the search parameters, enter your location and your preferred mode of payment

  • Next, you’ll find a number of sellers who are willing to accept your preferred mode of payment

  • You can decide on a seller by looking at their seller rating and other relevant statistics

  • Each seller has their own mode of payment and their own terms and conditions. Check them out thoroughly before choosing the seller

  • Once you have decided on everything, the chose seller would then give you a bank account number where you can deposit your cash, following which the seller would transfer you Bitcoins. 

LocalBitcoins charges a flat fee of 1% on every transaction. 

BitQuick

Another popular exchange using which you can easily transfer cash to a seller in exchange for Bitcoins, BitQuick is a trusted name in the markets. However, unlike LocalBitcoins which has a global network, BitQuick is US only at the moment. Buying Bitcoins using Cash is a simple process. Here’s how it is done on BitQuick -

  • Register your account on this platform

  • Put in your search parameters and find a seller

  • You can then negotiate and agree upon the price you want to buy Bitcoins with the seller

  • The seller then gives you his account number

  • You depsoit cash into the seller’s bank account

  • Upload the receipt

  • The seller will then send you Bitcoins worth the amount as discussed before

Buyers on this platform will face a flat 2% fee which some might find high for a cash transfer. The process is quite fast as Bitcoin purchases made over cash are usually fulfilled in one to two hours. 

Wall of Coins

A popular Bitcoin exchange when it comes to cash deposits and transfers, Wall of Coins is a P2P exchange which functions in a number of countries. The website supports the US, Canada, the United Kingdom, Germany, Poland, Argentina, Latvia, Poland, and the Philippines. While it supports a number of payment methods the most popular of these methods is cash deposits. 

Buying Bitcoins using cash on Wall of Coins is quite similar to buying Bitcoins using cash on other exchanges. It involves the same procedure of Sign Up > Find a Seller > Deposit Money To Account > Upload Receipt > Get Bitcoins. 

This is one of the most popular ways to buy Bitcoins using cash because there are over 100,000 cash deposit locations available across the US. One major problem here is that you might not find sellers who are willing to transact in high volumes.

Bitcoin ATMs

Another popular means of buying Bitcoins via cash in some countries is via Bitcoin ATMs. These are like regular ATM Machines, but you deposit cash in them and withdraw Bitcoins. Basically, you pay the machine the cash in exchange of which you get Bitcoins. The machine identifies you wallet by scanning your wallet’s QR Code. However, the average fee that most Bitcoin ATMs charge is that of 5 to 10% which is quite high for some users. 

LibertyX

LibertyX gives you the liberty to buy Bitcoins from retail stores across the US. They have tied up with a number of retail stores where users can go and physically deposit their cash in exchange for Bitcoins deposited directly into their wallet. The fees that is charged here is flat 1% and transactions worth $1000 are supported by this exchange. Interestingly, the 1% doesn’t apply for the first time if sign up using Facebook.

You can also Mine Bitcoins. Read: How to Mine Bitcoins?

Advantages and Disadvantages of Buying Bitcoins using Cash

Advantages

  • Buying Bitcoins via Cash makes it quite convenient for many users to make payment as cash is a common and preferred form fo payment. 

  • It is a fast process with instant transfers.

  • If a face to face transfer is made the chances of fraud are less.

Disadvantages

  • Buying Bitcoins using cash can often come with a high transaction fee. 

  • Sometimes personal information is to be given out, thereby reducing privacy

  • It isn’t suitable for those who want to buy Bitcoins in bulk. 

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