Previously, crypto investors had to use credit cards or bank accounts to purchase Bitcoin and other cryptocurrencies. Attaching banking information to cryptocurrency transactions creates privacy concerns for many individuals while leaving the unbanked unable to invest.
With new ways to buy Bitcoin with cash, investors no longer need bank accounts to purchase cryptocurrency. Let’s go over the options for buying Bitcoin with cash and start investing today.
Buy Bitcoin With Cash Via Peer-to-Peer Exchanges
Peer-to-peer Bitcoin exchanges are similar to Amazon, eBay, and other e-commerce sites that provide listings from third parties. In this case, individuals purchase Bitcoin from sellers who are not affiliated with the exchange. Only some peer-to-peer exchanges and sellers accept cash transactions, which are usually completed in person via bank deposits or mail.
Without an intermediary facilitating transactions, buyers and sellers must solely rely on the reputation of the exchange and individual users. This creates a significant risk of fraudulent activity, with the former CEO of the peer-to-peer cryptocurrency exchange Paxful warning investors to steer clear of the platform due to the influx of scammers.
Use Bitcoin ATMs to Buy Bitcoin With Cash
Due to the high prevalence of scams on peer-to-peer exchanges, many investors use ATMs to buy Bitcoin with cash. There are approximately 69,000 Bitcoin ATMs in the United States, with most located inside retail establishments. Over 90% of Bitcoin ATMs in the United States are unidirectional, meaning investors can only buy cryptocurrency when using the machines. The remaining ATMs are bi-directional or two-way ATMs. Consumers can use these machines to buy Bitcoin with cash or sell Bitcoin from their existing wallets. If selling Bitcoin, the cryptocurrency is removed from the wallet, and the investor receives cash from the ATM.
How to Use a Bitcoin ATM
Many of these ATMs offer Bitcoin and other types of cryptocurrencies. Begin the transaction by selecting the type of cryptocurrency you want to invest in and then read and accept the terms and conditions of the transaction.
The ATM will then request information to verify your identity. You can bypass stringent identity verification by purchasing a small amount of Bitcoin, usually under $3,000. Bitcoin ATM operators typically only require the user’s name and phone number for small transactions. Investors can increase the transaction amount by providing additional personal information, such as social security numbers and scans of their identification.
Once your identity is verified, scan the cryptocurrency wallet’s QR code to link your wallet to the transaction. Choose how much Bitcoin to purchase, insert the cash, and complete the purchase. The machine will display the transaction details, including the fees associated with the purchase, and deposit the Bitcoin into your wallet. Cryptocurrency appears in digital wallets in as little as 90 seconds when using a Bitcoin ATM.
Tips for Buying Bitcoin With Cash
It is easy to buy Bitcoin with cash when using an ATM. However, it is essential to follow some tips to ensure the transaction is seamless. Keep these tips in mind before visiting an ATM and investing in Bitcoin.
Research Bitcoin ATMs in Your Area
Traditional ATMs do not dispense Bitcoin; this requires a Bitcoin ATM. The easiest way to locate a Bitcoin ATM is to visit the operator’s website and look for locations near you. Websites often display local maps with ATM locations, allowing you to easily select one that is nearby.
Check the Bitcoin ATM Hours
Some Bitcoin ATMs offer a 24-hour inventory, meaning you can invest any time, day or night. However, others are in locations with specific hours of operation. Since Bitcoin ATMs are typically inside retail establishments, make sure the ATM is accessible before going.
Evaluate the Location
Since you will bring cash to the Bitcoin ATM, it is critical to ensure the location you select is safe. Bitcoin ATM operators typically place the machines inside high-traffic and safe areas, but due diligence in advance is always wise.
Determine What You Need to Bring
You can check the Bitcoin ATM operator’s website to find out what you need to bring to complete the transaction. Some operators have different transaction limits based on the amount of personal information you share. Once you decide how much to invest, you can easily determine what to bring to the ATM to complete the transaction.
Use CoinMover ATMs to Buy Bitcoin With Cash Today
CoinMover operates Bitcoin ATMs in conveniently located retail establishments on the East and West Coasts. You only need a digital wallet and smartphone to purchase up to $2,995 in Bitcoin, or you can provide additional personal information to increase the transaction limit. Find a CoinMover Bitcoin ATM near you to begin the process. You can also visit CoinMover’s website to learn about the Bitcoin purchase tiers and buying limits.