Buy Bitcoin with Cash or Deposit (Convert Cash to BTC)

Buying Bitcoin with cash can be difficult. However, cash enables you to maintain your privacy as you do not need to provide personal information or KYC verification. Investing in digital currency like Bitcoin is a good investment prospect. There are cryptocurrency exchanges and wallets that support buying Crypto with cash.

Here are few options you can follow to buy Bitcoin with cash.

4 Options for buying Bitcoin with Cash

  1. Peer-to-Peer Exchange(recommended)
  2. Bitcoin Exchanges to Buy Cryptocurrencies with Cash
  3. Buy Bitcoin with cash in person
  4. Buy Bitcoins with Cash from Bitcoin ATMs

Peer-to-Peer Exchange

P2P Bitcoin cash exchange acts as an escrow service, and therefore it is a secure and comfortable way to buy Bitcoin with cash. Here, all you need to do is sign up for a good P2P exchange and find reputable local Bitcoin buyers or sellers.

Buy Bitcoin in cash with Binance P2P (recommended)

Binance is a popular P2P marketplace to buy and sell BTC with more than 350 payment methods. This Bitcoin wallet is easy to use for beginners and experienced traders.

It has the following good features:

  • You can withdraw funds directly from your bank account.
  • Send funds to your bank account and PayPal account.
  • Escrow feature provides safety of your money.
  • Trade-in hundreds of digital currencies.
  • Sell and spend Bitcoin with bank transfers.

Perform the following steps to buy Bitcoin on Binance:

Step 1) Visit the Binance website. Enter your Email address and password.

Step 2) Complete the Email and Phone verification to activate your account

Step 3) Go to Trade > P2P

Step 4) Buying Bitcoin.

  1. Select the Crypto that your want to buy. In this case, BTC
  2. Select the Fiat currency with which you want to buy

Step 5) The payment method will be updated based on the currency you choose.

Select Western Union or any other cash supported payments.

Step 6) You will see advertisements from users who want to sell BTC

  1. Click on the Buy Button
  2. You will have an option to message the seller before you buy

Step 7) Once you click the buy button

  1. The Bitcoins of the seller are held in escrow by Binance and only released to the buyer based on payment confirmation.
  2. The buyer deposits cash into the bank account of the seller.
  3. The seller confirms the payment using the receipt given by the buyer. This will prove that the desired amount is deposited into the seller’s bank account.
  4. The P2P cryptocurrency site releases BTCs to the buyer.
  5. The seller will get cash, and in exchange, the buyer will receive Bitcoins. Thus, the trade is complete.

Binance provides a robust dispute mechanism. It is recommended to deal with people with high order completion rates.

Paxful Buyer/Seller Matching

Follow the following steps to buy Bitcoin on Paxful :

Step 1) Visit the Paxful website. Click on “Create an Account.”

Step 2) Enter your Email address and password.

Step 3) Buying Bitcoin.

  1. Click the “Buy” dropdown menu.
  2. Click on “Buy Bitcoin.”

Step 4) Select your payment method.

Step 5) Select your payment method.

  1. Cash Payment
  2. Western Union

Step 6) Perform the following details:

  1. Enter amount.
  2. Select offer location.
  3. Click on the “Apply” button.

You will be able to view a list of sellers. If you do not find them, you need to wait for a few seconds for one to appear. The list here will display the feedback score for each person, including the exchange rate per Bitcoin.

Mycelium Local Trader

Mycelium Local Trader is a tool that offers escrow service to Bitcoin traders. On this site, the seller possesses the amount of BTC that they advertised for sale. This crypto trading platform releases Bitcoins directly from the wallet of sellers to yours.

Mycelium has an algorithm to monitor the blockchain and gives you an estimate of properly confirmed transactions. However, it is advisable to wait for the actual confirmation.

Bitcoin Exchanges to Buy Cryptocurrencies with Cash

Exchange Fees ID Required Countries Link
LocalBitcoins 1% Sometimes Global Learn More
LibertyX 1.5-8% Yes USA Learn More
BitQuick 2% No USA Learn More
LocalCryptos 0.25% No 200+ Countries Learn More

1) LocalBitcoins

LocalBitcoins is a non-custodial P2P marketplace that allows users to buy unlimited amounts of Bitcoin and Ethereum. This Bitcoin exchange supports various payment methods.

Pros:

  • Offers escrow protection to make sure the Bitcoins and both traders are safe.
  • No minimum or maximum transfers.
  • Available in more than 200 countries.
  • Many methods for fiat currency delivery.

Cons:

  • You have to depend on the seller to confirm the payment


2) LibertyX

LibertyX is a platform that enables you to buy Bitcoin with cash. It can be accessed from iOS and Android devices. This application enables you to purchase Bitcoin instantly at your nearest location.

Pros:

  • Fair exchange rate.
  • Completes transactions fast.
  • You can store Bitcoin in your choice of wallet.
  • There is no need to sync a bank account to utilize this application.

Cons:

  • You need to enter a personal location to create LibertyX account.

Link: https://libertyx.com/


3) BitQuick

BitQuick is a crypto exchange that allows users to buy Bitcoin without ID. It enables you to sell Bitcoins conveniently and securely at your price.

Pros:

  • Provides premium service to buy Bitcoin in just 3 hours.
  • Secure and fast transactions.
  • Once the payment is verified, you will get your Bitcoin within a 3-hour timeframe.

Cons:

  • The fee is higher compared to the rest of Bitcoin exchanges.

Link: https://bitquick.co/


4) LocalCryptos

LocalCryptos is a cryptocurrency exchange that allows you to buy Bitcoin with cash on cryptocurrency platforms. It has buyers and sellers in nearly 15,000 cities across the world.

Pros:

  • Provides end-to-end encryption.
  • It is one of the best escrow services.
  • Offers numerous payment methods.

Cons:

  • It does not provide a mobile app.

Buy bitcoin with cash in person

You can find a person to deal in cash with Bitcoin. It is a good option if you do not like to rely on third-party services. You can also place ads on local websites, social media, advertisement forums, boards, or simply check with your friends.

You can also attend Bitcoin meetups and search for like-minded people interested in buying or selling Bitcoin with cash.

However, it is advisable that you do not reveal your actual name or location in those ads for safety reasons. You have to maintain a low profile and always agree to meet with the other person in a safe place like a mall, coffee shop, local street, etc., with many people around.

Buy Bitcoins using Bitcoin ATM

Another method to buy Bitcoin is to reach your nearby Bitcoin ATM and purchase Bitcoins from the ATM by cash currency (Dollar, Euro, Pound, etc.). Here is a BitCoin ATM Map

When you are asked to enter your Bitcoin address at the ATM, you just specify that you do not have one. In many cases, this will automatically generate a new paper wallet for you. After that, you can import the private key from that paper wallet and send those Bitcoins wherever you like.

Here is the process you need to follow to convert cash to Bitcoin using Bitcoin ATM:

Step 1) Go to Bitcoin ATM and scan the QR code of your Bitcoin wallet address. You will get BTC at this address itself. In some cases, the machine will generate a paper wallet.

Step 2) Most likely, you will be asked to Scan your fingerprint or any other verification depending on the configuration of the ATMs and manufacturers.

Step 3) You need to enter the number of Bitcoins you want to purchase (you can also enter the amount of fiat currency you want to spend).

Step 4) At last, you have to insert the cash and wait for a second until your BTC is delivered to the address of your Bitcoin wallet.

Buying Guide

❓ Why Buy Bitcoin with Cash?

Here are the reasons to buy Bitcoin with cash:

  • Buying Bitcoin with a small amount of cash is very easy.
  • It is private because no personal information or verification is needed.
  • Purchasing Bitcoin with cash is simple and easy because of the growth of cryptocurrency exchanges and wallets.

✅ Which are the Best Crypto Exchanges to Buy Bitcoin with Cash?

Here are some of the Best Crypto Exchanges to Buy Cryptocurrencies with Cash:

  • LocalBitcoins
  • LibertyX
  • BitQuick
  • LocalCryptos

⚡ Why Are P2P Exchanges Good?

Here are the important reasons for using P2P Exchanges:

  • No verification is needed: P2P Exchanges are good because you do not need to submit any personal details. They are also preferable because there is no verification process.
  • Cannot reverse cash transactions: If cash is in someone’s bank account, the buyer has no way to reverse it. Therefore, the seller feels confident in receiving payment of Bitcoins and quickly releases it to the buyer.

🏅 How to use Bitcoin Anonymously?

Here are some useful methods to make Bitcoin transactions anonymously:

  • Bitcoin Mixing: Bitcoin mixing is a process that helps you to break the linkability or traceability of Bitcoins. This process breaks the link between Bitcoin addresses by creating temporary addresses. You can swap coins with other addresses of the same value.
  • Tor- Onion Router to stay anonymous: You can use the Tor browser to connect with the Bitcoin network. Tor browser encrypts the Internet traffic and helps you route from random computer nodes before reaching the final destination.
  • Use Logless VPN: A No-Log VPN is a network that does not store your activities and history on its servers. This helps you encrypt all your Internet traffic and routes. It uses multiple servers of different locations before reaching the final location.
  • Always use New Address for Transactions: Many popular Bitcoin wallets are HD (Hierarchical Deterministic) wallets that allow you to generate a range of receiving addresses. Whenever you get Bitcoins, a new address is used for this purpose.
  • Buy/Sell Bitcoins in Cash: Another method of anonymous transactions is by doing face-to-face cash transactions to buy or sell Bitcoins. Exchanges like LocalCryptos provide this service.

🚀 How to improve privacy while handling Cryptocurrencies?

Here are some tips which helps you to improve privacy while handling Cryptocurrencies:

  • The first and most important way to protect your digital currency is to choose a secure wallet.
  • You also need to secure your devices.
  • Regularly back up your crypto data.
  • You should dedicate one device to one cryptocurrency only.
  • Never keep your fund in one wallet.
  • Public Wi-Fi is not secure and safe.
  • Enable strong authentications.

👉 What risks are involved in buying Bitcoins with Cash?

There are only a few risks that are involved in buying Bitcoins with Cash. The major threat is scamming or theft; therefore, it is preferable to meet in a public place to buy or sell Bitcoins with cash.

💲 How long do Bitcoin ATM transactions take?

Bitcoin ATM transactions generally take up to 5 minutes for the new customers. However, it may take less than 1 minute for existing clients.

❗ Why do Local Bitcoins and Bitcoin ATMs have a higher price than other exchanges?

Generally, you need to verify your identity to buy Bitcoin and other cryptocurrencies Globally. However, if you are looking for anonymous transactions, then you need to pay a higher price (5-10% extra) than other exchanges.

🔒 Is it risky giving up my ID to buy Bitcoin?

Yes. Here are the risks to give your ID in order to buy Bitcoin:

  • Bitcoin is valuable; therefore, someone might make a person target who owns a lot of Bitcoins. Unlike any other asset, a limitless amount of Bitcoin can be stolen all at once.
  • There is no limit on how much Bitcoins can be stolen all at once, and no authority can halt a suspicious transfer.
  • Sometimes remaining anonymous might be the safe and smart choice.
  • Some individuals may prefer keeping their finances private for other reasons as well.
  • A person involved in espionage activities would be interested in remaining anonymous. Still, there are many legitimate reasons to cover your tracks.
  • Some time is needed for the exchanges to verify your identity.
  • Customers do not have enough trust in the exchange platform.
  • Not able to buy with Identify proof due to an individual’s location.

❓ Should you leave your Bitcoins on the exchange after you buy?

No. It is not good to leave Bitcoins on the exchange after you buy. It is recommended that you store Bitcoins safely in the wallet. Bitcoin exchanges may be hacked; therefore, customers may lose their funds. If you do not want to become a victim of these hacks, then you should always keep all your digital coins in your digital wallet.

⚡ How much does buying and selling Bitcoin cost?

To buy or sell Bitcoins on crypto exchanges, you may need to pay additional trading fees to the crypto exchange along with the actual price of Bitcoin. The trading finance can be either a fixed rate on each transaction or some percentage of the trading volume. The trading fee varies for each cryptocurrency exchange.

🏅 How much Bitcoin can you buy at ATM?

There is no maximum or minimum legal amount of Bitcoin you can buy at Bitcoin ATMs. However, the amount of BTC you can buy in a day depends on the country you live in and the company providing the Bitcoin ATM service. So, it is preferable that you check both aspects before purchasing Bitcoin at ATM.

👉 Can you transfer Bitcoin to your bank account?

You cannot transfer or send Bitcoin to a bank account. However, you can sell your Bitcoins in exchange to get money from the buyer of BTC sent to your bank account.