Many people want to cash in on the new trend of having digital assets that have the potential to spike in value over time. Mining or buying Bitcoin is all the rage today for this reason. But not everyone is tech-savvy, and installing Bitcoin software can be tricky.
So how can you buy Bitcoin with cash? As it turns out, there are several ways you can do so. We will explain exactly how to buy Bitcoin for cash in this article in detail.
What is Bitcoin?
Bitcoin is a digital token powered by blockchain technology on a decentralized network of computers. In other words, Bitcoin transactions are recorded in an online ledger stored in multiple computers, without every computer needing a complete backup.
Anyone with a computer and a Bitcoin address can join the network using Bitcoin software, and there is no need for a third party (like a bank or payment processor) to complete a transaction. Transactions use cryptographic algorithms to protect the identity of the transacting parties and the tokens used. Hence, Bitcoin (and similar digital currencies) is coined as a ‘cryptocurrency’.
Because Bitcoin can be transferred to others without any oversight from financial institutions, it offers greater financial freedom to people who cannot trade with people across borders. The decentralized infrastructure of the network makes it difficult to disrupt transactions under normal circ*mstances, as some computers will always be operating.
The open nature of the network also provides a high level of transparency for anyone who wants to independently verify a transaction. For these reasons, Bitcoin has gained trust among millions of users around the world.
How Can You Get Bitcoins?
You can get Bitcoin in 2 ways, which are discussed next.
1. Bitcoin Mining
The transaction validation process of Bitcoin requires solving cryptographic puzzles to find unique SHA-256 hash values. This process is called mining. Bitcoin tokens are generated by users on the network that provide computing resources to identify the SHA-256 value enough times to open a new block in the Bitcoin ledger.
Bitcoin mining is the simplest way to acquire cryptocurrency, provided you have the right hardware and the budget to pay the electricity bills. However, as more users join the Bitcoin network, you will have to compete with them for mining tokens, making it difficult to earn Bitcoins.
Mining is also affected by Bitcoin’s halving rule, which means the mining rewards are halved roughly every four years.
2. Buying Bitcoin
You can buy Bitcoin with cash. There are many ways to do so in 2023, which we will explain below, but you will need a bank account with physical banknotes. If you want to buy a single Bitcoin, you might have to pay several thousand dollars, but you can easily buy a few satoshis (100 million satoshis make 1 Bitcoin) with nominal amounts of cash.
Buying Bitcoin with cash also means you will have to register an account with a bank or cryptocurrency exchange, and depending on your country, specific laws may apply. However, in many cases, buying Bitcoin directly with cash can help to keep your transactions private, especially if you are dealing with a buyer.
Paying with cash is also faster since you can coordinate meetups, and bank transfers can be made within a day. Bitcoin transfers can take days, and the value of the cryptocurrency can change drastically over this period.
5 Ways to Buy Bitcoin for Cash in 2023
Here are some of the ways you can buy Bitcoin with cash payments.
1. Buying Bitcoin with Cash in Person
This is the simplest way to buy Bitcoins. If you have some reliable friends willing to trade Bitcoins with you for some cash, feel free to ask them and pay them the required amount in person.
If you are buying Bitcoin for the first time, be sure to create your Bitcoin address. You can ask your friend to help you here. You should also bring your phone or laptop to verify the Bitcoin transfer on the spot.
We recommend you get a Bitcoin wallet which will keep your funds stored in a safe location. You can choose to have an online wallet (offered by many Bitcoin exchanges and software clients), or a hardware wallet (a physical option for the highest level of security and control).
If you don’t have friends who want to trade Bitcoin, you can try OTC matching services like Paxful and Mycelium instead, which show listings of Bitcoin sellers and cash buyers. OTC matching works like Google Maps for Bitcoin trading.
Log in to their OTC matching services, enter your location, and search for your requirement. The service will show you a list of buyers and sellers, their reputation score, and their contact details.
When buying Bitcoin with cash, we recommend making safety your first priority. Make sure you meet others in safe locations. These include bank lobbies, hotel lobbies, police stations, and courthouses. Keep your conversations private, and try to use escrow accounts for transactions to keep your funds safe from fraud.
2. Bitcoin Peer-to-Peer Trading
Bitcoin is a peer-to-peer (P2P) exchange network, where computers exchange information directly. Today, many exchanges are designed with a chat messaging feature that allows users to exchange trading information. This feature essentially functions as an online P2P exchange forum.
You can find a seller for Bitcoins and arrange online payment in cash by mutual agreement. Checking out a user’s reputation is crucial for choosing a reliable trader. Popular P2P exchanges include Paxful, Binance, LocalBitcoins, OKX, KuCoin, and Huobi, among many others.
3. Buying Bitcoin from a Bitcoin ATM
You can use Bitcoin ATMs (BTMs) to buy cryptocurrency like standard cash ATMs. BTMs are rare and will be marked by the service provider on a map. However, they are only available in a handful of countries. Sites like CoinATMRadar and CoinFlip can locate BTMs in the US.
BTMs display specific transaction charges, limits, and ID requirements. Check all the requirements beforehand and come prepared with your Bitcoin wallet address. Like traditional ATMs, BTMs can be a magnet for thieves, so survey the site for any suspicious persons before using one. Google Maps reviews and local forums can help find them.
Almost every BTM will also display the operator’s contact details. Note these down in case you face any issues when making payments.
4. Buy Bitcoin through Bank Cash Deposits
You can pay Bitcoin sellers directly by depositing cash into their bank accounts. You can do so with bank transfer options from P2P exchanges like Paxful and LocalBitcoins. Other services like Athena Bitcoin, Liberty X (in the US), CEX, and Wall of Coins (multiple countries) also allow bank cash transfers. All you have to do is go to a bank and fill in a deposit slip at the teller.
This is a very safe way to buy Bitcoins. The seller will not know your location if banks have multiple online branches. The downsides include limited working hours for banks and the occasional long queues at branches. You will also have to keep a record of your physical receipts if you are required to show proof of your deposit.
5. Buy Bitcoins at a Retailer or Pharmacy
Retailers like 7-Eleven, CVS, and Rite-Aid provide customers with Bitcoin purchasing services through the liberty X Mobile App. This option is specific to the USA where these outlets operate, and 20,000 locations provide the service.
The process is simple. First, download the app, create your account and select your preferred retailer for buying Bitcoins. The app will give you a barcode, which the retailer will scan at checkout.
The app allows you to pay in convenient amounts between $20 and $500. A successful transaction will credit the Bitcoin amount to your account. You can convert the amount transferred into Bitcoins at the tap of an in-app button.
Final thoughts
While we’ve covered the main ways to buy Bitcoin in cash, there are a few more means to procure it. We think those methods aren’t worth it, since they involve too much risk and are basically obsolete. And If you already know those methods, then you’re probably not asking how to buy Bitcoin with cash in the first place!
The bottom line is that Bitcoin is steadily gaining acceptance globally, and it’s easier to buy crypto with cash than ever before. As always, do your research before you buy any crypto, and consider other options for investing your funds in the long term.
Happy Bitcoin shopping!
