Buy Bitcoin with Cash or Deposit

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Discover the best way to buy Bitcoin with cash or a cash deposit. This article provides an overview of purchasing Bitcoin and answers the most commonly asked questions about buying cryptocurrency.

Best Peer-to-Peer Exchange
LocalBitcoins
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LocalBitcoins is a peer-to-peer bitcoin exchange platform that allows you to easily buy and sell Bitcoin around the world.

If you’re looking to buy Bitcoins, then you might want to consider using a cash deposit over using a credit card because cash deposits offer better exchange rates. 

Cash deposits are convenient for those who don't want to deal with banks or credit cards.  Everyone worries about how safe their financial are.

Is it better to put some money in the bank? Is it safe to leave cash at home overnight or when you’re not there? Which is why you might be thinking about converting to Bitcoin.

Bitcoins are becoming more popular because they offer greater security and anonymity than traditional payment methods. As long as you keep your private key secure, you can spend your Bitcoins securely in any country without being tracked.

Learn everything you need to know about buying bitcoin with cash or cash deposit by continuing to read this article.

5 Ways for Buying Bitcoin with Cash

So, how can you buy Bitcoin?

LocalBitcoins

LocalBitcoins is one of the most trusted sites where you can sell or buy bitcoins for cash. You can even choose from sellers located near you.

Local Bitcoins is based in San Francisco but operates worldwide. The site has over 135,000 active members and is growing rapidly. The service is free to join and users can earn points by referring new members.

Using a Bitcoin ATM-like CoinFlip

Bitcoin ATMs are machines that provide access to bitcoin from cash. They allow you to deposit cash directly into their machine with no bank account required. To buy bitcoin using a Coinflip ATM, you will need a few things:

  • Debit or credit card
  • Email address
  • Phone number.

If you want to buy bitcoins using an ATM, go to one of the many different locations worldwide where they are available.

Use Athena Bitcoin

Athena Bitcoin allows users to purchase bitcoin with cash or PayPal. All they need to start investing in cryptocurrency is electronic devices like smartphones, laptops, tablets, or desktop computers. 

Buying the crypto is really simple. Just follow the steps provided by the platform, and you will quickly start trading.

Peer-to-Peer Exchanges

A peer-to-peer exchange is where individuals trade with each other directly rather than through an intermediary. While bitcoin was created as a payment medium, its primary function today is as a store of value.

There are three main types of peer-to-peer transactions: direct trading, lending, and borrowing. The best way to buy bitcoin is to get it from someone who already has some.

Direct trading involves two buyers and sellers agreeing to meet up and trade cash for coins. 

Cash App

Cash App is the premier mobile banking app. It lets you send and receive money, pay bills, deposit checks and withdraw cash from ATMs at over 4 million locations nationwide.

Bitcoin has become the new gold standard for payments because it allows customers to instantly transfer value anywhere in the world. If you want to buy bitcoins, then the next step would be to sign up for Cash App.

Risks of Buying Bitcoin With Cash

With cash, you risk losing your money due to scams or theft. If you want to buy bitcoins with cash, use a reputable escrow service to avoid the risks listed below.

Crypto Tax Laws in the U.S.

Scams

People try to scam you out of your bitcoins by not giving you the bitcoins after you have already paid.

Fraud

It's important to meet in open and public places to avoid being lured to a location where you can be robbed. These criminals have no intention of giving or buying your crypto, they just want to steal your possessions. 

Online, it’s easy to lie about your identity and intentions, so be wary and stay safe.

Loss of Anonymity

When you deal with a bitcoin seller in-person, you lose your anonymity, which is a large part of the appeal of bitcoin in the first place.

Cyber Theft 

One of the main risks when dealing with online wallets is the risk of getting your coins stolen from your wallet because of Malware or viruses installed on your computer.

It’s paramount that you do everything in your power to keep your devices and thus your cryptocurrency safe.

Fees from Using ATMs

Many services charge fees. Restaurants, banks, and hotels are prime examples of this. These fees may also serve to reimburse investments made by the provider, cover administrative and processing costs, or a combination of both.

The same happens with a Bitcoin ATM. It normally charges a percentage fee. The average fees incurred when you make crypto deposits at Bitcoin ATMs are anywhere between 3-5% of the withdrawal amount.

Fees can vary wildly depending on that day’s network traffic, your location, and more. It’s essential to do your research before using an ATM.

Using an ATM

A Bitcoin ATM works differently than an automated teller machine because it doesn't offer customers any banking services. Instead, a Bitcoin ATM allows people to exchange bitcoins for fiat currency.

Bitcoin ATMs also make cash deposits from users and then convert them into bitcoins. It's an amazing device that's convenient and fast to use. One of the best ways to get in contact with some Cryptocurrencies.

Should You Use Cash to Buy Crypto?

One advantage of buying bitcoins with cash is that you get a better rate than if you were to use a credit card. Credit cards charge around 2% per transaction plus an additional 3-4% when making international purchases.

Bitcoin exchanges usually have lower fees. For example, Coinbase charges 0.25% on all transactions. This means that you will pay less in fees by using cash instead of a credit card.

Another reason why people prefer to buy Bitcoin with cash is that there isn't much of a middle man involved. When you use a credit card, the company gets a cut of every transaction.

In addition, credit card companies charge their fees.  Anonymity also plays a big factor in what many people like buying Bitcoin this way. It's fast and secure, and you get the coins instantly in your wallet. 

These factors combined make it a perfect choice to buy crypto with cash.

Bitcoin ATM FAQ's

Do you still have questions? They might be answered below.

How do I buy Bitcoin with cash at an ATM?

There are many ways you can purchase cryptocurrency using cash, but some may be safer than others.  You can use a bank transfer or virtual currency debit card, get cash from a traditional merchant such as an exchange or a crypto broker (they will take fiat money), or pay with a credit or prepaid debit card via services like LocalBitcoins.

How does a Bitcoin ATM work?

A customer inserts cash into an ATM device generating a digital bitcoin wallet. Then they enter their PIN on the keypad. Once entered, they scan the QR code on the screen, then wait for the transaction to complete.

What are the fees when you use a Bitcoin ATM?

Withdrawals from Bitcoin ATMs range between $5-$10 per transaction, depending on where you are located. Fees are higher for withdrawals made at an Internet café or public library.

Can you buy Bitcoin anonymously with cash?

Yes, there are several ways to purchase bitcoin anonymously.  One way would be through LocalBitcoins.com, an online marketplace dedicated to trading between users. 

Another way would be using Paxful or Athena Bitcoin, where users can send money directly to each other via peer-to-peer.  Both options offer complete anonymity.

LocalBitcoins

LocalBitcoins is a peer-to-peer bitcoin exchange platform that allows you to easily buy and sell Bitcoin around the world.