How to Buy Bitcoin with Cash?
Bitcoin is the flagship cryptocurrency that was introduced in 2009 by a pseudonymous developer named Satoshi Nakamoto. Bitcoin blockchain uses a Proof-of-Work (PoW) consensus mechanism whereby miners verify transactions on the network. Miners are incentivized by earning minted BTC as a reward. Miners can sell their reserves to exchanges and trading platforms.
However, cryptocurrency investors can purchase Bitcoin from various methods using cash. Bitcoin is a decentralized and international network.
In this manner, anyone who completes the standardized requirements can join the network as a node operator, miner, transaction maker, or investor. There are various ways to purchase BTC, the main token issued by Bitcoin blockchain using fiat currencies or cash.
Methods of Purchasing Bitcoin
Here are the following platforms where investors can purchase Bitcoin using local fiat currency:
Bitcoin ATMs
Bitcoin ATMs are machines where investors can purchase BTC. Bitcoin ATMs are offered by private business operators. The ATMs allow investors to make a new account to purchase Bitcoin and use QR code or mobile verification to confirm transactions.
At the same time, Bitcoin investors can also link already exiting wallets to purchase BTC from an ATM. To locate a Bitcoin ATM, investors can download an app to direct them to the nearest Bitcoin ATM.
Cardless Cash
Bitcoin investors can also make Bitcoin purchases using cardless cash. There are various mobile payment accounts that issue debit and credit cards. These cards allow investors to make online purchases. In this manner, Bitcoin investors are able to purchase BTC from compatible trading platforms using cardless cash.
Bank Deposits
Cryptocurrency investors can also use bank wires or deposits to make BTC purchases. Various trading platforms and retailers allow investors to buy Bitcoin using bank transfer options.
Peer-to-Peer Trades
Peer-to-peer or P2P trading wallets allow investors to sell and purchase Bitcoins and other digital assets. Investors can use digital, verbal, or written contract to purchase or sell BTC at an agreed upon amount. In this manner, investors are able to purchase and sell Bitcoin in exchange for local fiat currencies and without third-party intervention.
Trading Platforms
Centralized and decentralized trading platforms allow investors to purchase and sell Bitcoin and other digital currencies. Depending on the national jurisdiction and trading platform terms of service, investors are able to purchase, sell, or trade Bitcoin using listed fiat currency options.
Advantages of Purchasing Bitcoin with Cash
- The buyer and seller do not have to account for transaction fees of banks and other online payment methods. In this manner, the cost of the purchase goes down, and profit increases.
- The sellers do not need to pay withdrawal fees out of the revenue that they have generated.
- There is no maximum or minimum transaction limit placed on Bitcoin transactions using fiat currencies.
- The buyers and sellers can make transactions based on a suitable time and make secure and private transactions in accordance with their schedule.
- Buyers and sellers can avoid online scams and use cash payment methods rather than trusting online or internet payment channels.
- Cash transactions do not leave digital footprints and warrant privacy.
Disadvantages of Purchasing Bitcoin with Cash
- Carrying cash to purchase Bitcoin harbors security issues. It is applicable for huge sums and inconvenient method to make big transactions.
- It is only suitable for investors who live within close proximity. In case, the investors are at massive distances it can lead to additional costs, especially for repeated purchases.
- Buyers and Sellers have to account for additional risks and expenses such as traveling costs and account of travel time in order to complete the transaction.
- There is an element of counterparty and security risk involved. The seller or buyer cannot be sure about the reliability of the buyer or seller on the other side.
Conclusion
It is possible to purchase Bitcoin using cash online and offline. Both methods have pros and cons. It depends on the requirements and circumstances of the investors to choose a secure and authentic mode of purchase.
