Buying bitcoins with cash is appealing for being quick and private. Although it is the easiest way to get bitcoins, the process can be confusing for some. Before we get down to navigating the steps to purchase bitcoins in a smart way, let’s understand the advantages and risks involved in the task.
Advantages of buying bitcoins with cash:
As stated earlier, the process is quick. Converting cash to bitcoin is done in a couple of hours. The privacy of the transaction is preserved considering that most of the exchanges where bitcoins can be purchased do not require users to verify their identity or share sensitive personal details. Buying small amounts of bitcoin is much easier with cash.
Disadvantages of buying bitcoins with cash:
Cash, especially cash deposits, makes buying large amounts of bitcoins difficult. Bitcoin ATMs have limits and may require verification if the purchase crosses a certain amount. Make sure you have a Bitcoin wallet before you buy since some of the exchanges below require one.
Buying Bitcoins on Peer-to-Peer Exchanges:
One of the best ways to get bitcoins with cash is through Peer-to-peer (P2P) Bitcoin exchanges. A P2P trade generally involves the following steps –
- Participants of a trade (buyer and seller) use an exchange platform to agree on a price.
- The site holds the seller’s bitcoins and releases it to the buyer once the payment is confirmed.
- The seller’s bank account receives the deposit from the buyer.
- The seller confirms the payment.
- The buyer receives the bitcoins from the site.
Why Choose Peer-to-Peer Exchanges?
There are two primary benefits of buying bitcoins on a P2P exchange:
- A user gets to maintain their privacy when trading on a P2P exchange as verification of their identity is not based on information such as their name, address, or social security number.
- The seller can be guaranteed of receiving the payment once the deposit reaches his bank account. This is because cash payments are irreversible and there is no way to turn the transaction around.
Top 3 Bitcoin Exchange Platforms:
- Coinbase: The biggest Bitcoin platform in the United States offers both an exchange and wallet. Once a user registers and links a bank account, transferring funds in and out of the account becomes easy and converting them to Bitcoin and back to dollars is possible at will.
- PayBito: Run by HashCash Consultants, PayBito is a quick and hassle free platform for buying and selling cryptocurrencies at reasonable rates. Paybito uses the security standards implemented prominent banks and financial institutions to secure digital assets. The security features such as a 3-point architecture, a multi-signature cold wallet and an encrypted hot wallet are included among others. The exchange also comes in handy Android and iOS mobile apps.
- Binance: Apart from Bitcoin, Ethereum and its own Binance Coin (BNB), Binance supports a wide range of digital currencies. Its USP lies in the low fees it charges and the fact that one can go beyond the narrow range of the most popular cryptocurrency and choose from others as well such EOS, Skycoin, TRON, ICON, Ethereum Classic, Litecoin, Ripple, Stellar Lumens, Bitcoin Cash.
There are many who have the potential in crypto trading and are looking to operate crypto exchanges of their own and offer their users benefits unique to their platform. For them, the best and quickest way to their destination is by availing white label products from brands already established in the industry. HashCash, for instance, has been providing it’s popular line of cryptocurrency exchanges built on the same blueprint of PayBito. The software comes complete with multicurrency, SegWit enabled, multi-signature, high frequency trading platform for digital assets. With start ups making hay while the sun shines, we can be sure to see a boom in the options of trading platforms for bitcoin come up.