How to buy Bitcoin with Cash

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How to buy Bitcoin with Cash

In this guide we go through the best way how to buy Bitcoin with cash! We go through different types of methods and list best places where to buy Bitcoin with cash.


In an increasingly digital world, it may sound strange to learn that you can buy Bitcoin and other cryptocurrencies with cash. Although buying crypto is easier with PayPal, cards, and bank transfer, these payment methods may be out of reach to some, so cash remains their only solution. Many people do not understand what it means to buy bitcoin with cash because all they probably have heard about Bitcoin and other cryptocurrencies, is that it is transferred online through the blockchain and that it has come to replace cash transactions. The buying of bitcoin would be strange to these people. Indeed, Bitcoin is not a physical asset but that does not mean that when an investor pays in cash, he won’t get ultimately get what he paid for.

It is also important to state that the buying of bitcoin with cash can be through bank deposit or physical cash. The bank deposit is regarded as cash because it can be easily assessed electronically and can be withdrawn at any time.

How to Buy Bitcoin with cash

There are various ways how bitcoins can be bought with cash. As stated earlier buying Bitcoin with cash is not only for those with physical cash. The money in a person’s bank account is also considered cash. The different methods on how to buy bitcoin with cash are:

  1. Peer-to-peer transaction
  2. Transacting in person
  3. Carrying out transactions through bitcoin ATM

Peer-to-peer transaction

The main reason Satoshi Nakamoto created bitcoin was for it to serve as a peer-to-peer electronic cash system, but these days people are over-reliant on a platform like Coinbase which is a centralized exchange and acts as a third party.

Peer-to-peer bitcoin exchange is a way in which people can buy or sell bitcoin without revealing their identity. In this situation, the person buying the bitcoins does not have to use a debit card, Paypal, Skrill, or other forms of payment on a platform. He simply pays another person and after confirmation, the seller sends the bitcoin.

In recent years peer-to-peer transactions have grown in the marketplace. This can be attributed to different reasons; one of them being that in countries like Nigeria, where the government has banned the use of cryptocurrency, traders are forced to use the peer-to-peer platform to buy or sell their cryptocurrency because of their limited options.

Transacting in person

Transacting in person is what most people understand as the only way to buy Bitcoin with cash. Many people prefer to meet one-on-one before buying Bitcoin. Some peer-to-peer platforms will require one to verify his account before he will be able to transact. Since that will reveal the person’s identity, they will prefer to deal directly with the seller off the platform. To find people that are willing to sell their bitcoin offline, the buyer will have to look for like-minded people on social media platforms like Facebook or attend bitcoin conferences that are organized around its environs.

It is important to know the exact amount of money you need for the transaction before you meet up with the seller and also carry a phone or laptop that has an installed wallet so that you can be able to verify the transaction.

Bitcoin ATM transaction

Just like the normal cash ATM, Bitcoin has its own ATM. A person who wants to buy Bitcoin will have to check if his locality has a Bitcoin ATM and if it does, he simply goes there to purchase the amount of Bitcoin that he needs. The disadvantage of a Bitcoin ATM transaction is that they are not many Bitcoin ATMs around and the buyer might end up stressing himself when looking for the right one to use. Also, the transaction fee of Bitcoin ATM is more than that of exchange platforms.

Advantages of buying bitcoin with Cash


The idea of cryptocurrency is that it is decentralized and so no government authority can control it. Also, no one will be able to trace transactions that are carried on the blockchain. For an investor or a person to be able to buy bitcoins through exchange platforms like Binance, Coinbase, and many others, he will have to upload documents for the sake of verification. This will end up revealing the identity of that person. But by using cash to buy bitcoin from a person, the person will not undergo such a procedure and will remain anonymous.

Transaction speed

This is not about the speed of a coin. Ethereum is faster than Bitcoin while Litecoin is faster than Ethereum in terms of speed of transaction. But here, we are not talking about the speed of the cryptocurrency transactions but how fast one will get the Bitcoin that he has paid for. Buying Bitcoin with cash is faster than those of exchange platforms. This is because most platforms will first need to check the documents submitted by the user which might take days to verify. It doesn’t stop there. Even after that, you can be delayed when waiting for a bank transfer to go through. By buying Bitcoin with cash, you can simply cut off the verification process and the delay that may come from bank transfers.

Avoidance of Identity theft

There are a lot of scammers who try to steal people’s identity so that they will pose as the person and commit dubious acts. The avoidance of identity theft is one of the reasons a person should know how to buy bitcoin with cash. No one can steal your identity when you are not registered in any of the exchange platforms and so with your cash, you can easily buy the quantity of the bitcoin you want and transfer it to your cold wallet.

A person can buy any quantity of coin

There is no limitation to the amount of bitcoin one can buy with cash. As far as he has the money, he can buy whatsoever quantity he wants, whether big or small. If he wants to buy a small quantity, there is no minimum amount fixed by a platform. All he needs to do is to find someone willing to sell the amount for him. Also, by buying bitcoin with cash, one can be able to transact as much bitcoin as he can afford without any hassle. Some platforms will require you to verify your account to the highest before you can withdraw a certain amount of money and even the United States government plans on monitoring large cryptocurrency transactions. By using cash to buy bitcoin, all these won’t bother you.

Disadvantages of buying bitcoin with Cash

There are always two sides to a coin. Anything that has an advantage also has a disadvantage and so it is with buying bitcoin with cash. Some of the cons of buying bitcoin with cash are:


If for example, a person wants to buy 10 Bitcoin, with the present rate that will be around $35,000 times ten which will give a total of $350,000. Imagine going to meet the potential sender of the bitcoin you are about to buy with $350,000 in your pocket. There is the possibility that the person will steal the money from you without sending the bitcoin to your wallet. It is also possible that government authorities like the police can see you with such a large amount of money and will start an investigation to know the source of the money and what you want to use it for.


Bitcoin can be bought from your comfort zone through exchange platforms. But some methods of buying bitcoin with cash can be stressful because you need to leave your home or office to go meet the person. For those that would want to use a bitcoin ATM to transact, it might be difficult to find one around your locality meaning that you have to travel far before you will be able to use it.

Also, you might end up going to the Bitcoin ATM only to realize that there is no network in the machine. This can be disheartening and it is one of the cons of buying bitcoin through cash.


The fee that is charged when buying bitcoin with cash is huge compared to what an exchange platform charges. For instance, Bitcoin charge is as high as 5% to 10% while most exchange platforms do not even charge up to 1% of the transaction. This can be taken as the fee one needs to pay to be able to stay anonymous. Even at that, the fee is still too much. Take, for instance, a person who wants to buy a small quantity of bitcoin, and still has to pay 10% of the transaction fee without adding the deduction that Bitcoin blockchain will remove as their transaction fee. It is better for this person to deal directly with the seller of the bitcoins. The people that are mostly affected by the huge fee are those who want to purchase a large amount of Bitcoin. Take for instance someone buys $100,000 worth of Bitcoin and is charged 10%. It means he is going to lose $10,000 of the total money and will be left with $90,000.

Amount of Supply

There are over 4,000 cryptocurrencies, with some having more value and popularity than others. Everybody in the cryptocurrency world knows about Bitcoin because it is the first cryptocurrency and it also controls all other coins. This is part of the main reason why it is easily transacted. This can’t be said for other coins that are not well known and so it will be difficult to buy any cryptocurrency of your choice with cash. Take for instance someone who has an ATM (Atletico Madrid’s coin) in America and would love to sell it physically, it will be difficult for him to find a buyer because the Atletico Madrid football club is in Spain and that’s the location most people will have the coin. And so, it will be difficult to buy all kinds of coins with cash. It is difficult to buy Bitcoin with cash through a Bitcoin ATM due to the limited amount of the machine; now think of how difficult it will be for lesser coins.

Best Cash Bitcoin Exchanges

There are so many exchange platforms where one is able to buy Bitcoin with cash but below are some of the best in the business:


LocalBitcoins is a peer-to-peer cryptocurrency exchange platform that facilitates trades whilst not limiting payment methods. Individuals and brokers buy and sell Bitcoin to each other in a marketplace which is very similar to Amazon or eBay.

All you need to do to buy Bitcoin with cash on the platform is:

  1. Register an account with LocalBitcoins
  2. Search for crypto sellers located in your general area who accept cash payments
  3. Select the number of coins you wish to purchase and confirm the order
  4. The coins will probably go into escrow, meet up with the seller at a convenient location and pay the amount in cash
  5. At that moment, the seller can release the funds from escrow using a mobile phone or computer, and the funds will be transferred to your LocalBitcoins wallet

When using LocalBitcoins to buy Bitcoin with cash you must ensure that the transaction and your money are safe. Fortunately, the platform offers numerous options to help you, including:

  • Every buyer and seller has a successful transaction history count and a rating, so check these out before committing to any trades.
  • Following registration, you will be asked to complete your profile. Although not compulsory, completing your profile will make other users trust you more. A growing number of traders will not trade with users whose profile is not complete, and in order to stay safe, you should adopt this same policy.
  • Ensure that the seller is using LocalBitcoin’s free escrow service and that the funds are released and into your account whilst you are still with the seller. In case of any issues contact the platform’s conflict resolution team immediately.
  • Do not make massive purchases of Bitcoin at a go, as this will mean that you’d meet the seller whilst holding a considerable sum of cash, putting both you and the seller at risk of being robbed.
  • Although your LocalBitcoins wallet offers some security, it is still a hot wallet. Consider transferring your newly purchased Bitcoin to a safer, cold storage wallet.
  • Be aware that scam artists operate within LocalBitcoins and all other exchange platforms. Use the safety features provided by the platform, and look out and report any suspicious behaviour. If a deal feels too good to be true, it just might be.

Paxful and Binance Exchange Platforms

Another exchange platform is the Paxful and Binance Platforms. The Paxful platform has been in existence since 2015 and has built a good reputation over time. The platform helps to connect buyers and sellers to meet each other. To use Paxful, you must first and foremost register on their website, after which you click on “buy bitcoin“. The person then needs to make his location known, request the amount of Bitcoin he wants, and select “Cash” as his desired payment method. After that, a list of sellers will be displayed but if there is no seller the buyer will need to wait for some time. It is advisable that the buyer checks the review of the seller before doing business with him and must ensure the amount he is willing to buy is within the limit of the platform. If all these things have been taken care of, he can go ahead to plan a physical meeting with the seller.

Furthermore, the Binance Platform is different from that of Paxful but it serves the purpose of buying bitcoin with cash. Just that this time around it is done strictly on the Binance Platform as a peer-to-peer transaction. The buyer’s account must be verified and once that is done he can go ahead to click the P2P trading tab to find sellers. He then selects the seller and must pay the seller first before the fund can be released to him. The buyer can carry out these transactions at his convenience with no hassle.

Bitcoin ATM

Another popular option to buy crypto with cash is to locate an ATM that can accept such payments in exchange for coins. These ATMs are growing in popularity, and whilst the majority only provide Bitcoin, some do offer select Altcoins as well. The downside to using most ATMs is the fee. It is not uncommon to be charged up to 10% as a convenience fee, whereas P2P exchanges such as LocalBitcoins only charge 1%.

The process of buying bitcoin through ATM is as follows:

  1. First, you need to have a Bitcoin wallet before going to the ATM.
  2. Follow the instructions on the screen of the machine. Some of the ATMs will ask that you verify your phone number or ID.
  3. Scan the QR code of your public key with the ATM camera after which you put your cash into the machine to pay for the order.
  4. Once the transaction is completed, you will receive the bitcoin into your wallet. 

Different people have always had different reasons for either buying Bitcoin with cash or on an exchange platform. They both have their pros and cons; what matters most is the reason why they choose a particular method. As long as they are comfortable with the method chosen, and have thoroughly weighed the pros against the cons, then they should not run into any problems when buying Bitcoin.

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