Bitcoins are the current rage in the market. Bitcoins can be bought by using a debit card, bank transfer or using PayPal and other online payments systems or even using cash.
The main reason people buy Bitcoins in cash is to maintain secrecy. If you buy Bitcoins from a popular website, you have to complete their mandatory KYC before completing a transaction. Independent sellers prefer to buy in cash and keep their transactions 99% anonymous.
There are different types of sites which connect the buyer and the seller directly without any intermediary. This P2P platform keeps your transaction private and these transactions are often dealt in cash.
On the downside, you have to take the complete responsibility to ensure that the transaction is safe, secure and free from all frauds.
Method to purchase Bitcoins with cash
The user has to make an account on P2P websites like Paxful, LoclaBitcoins or BitSquare with their email id and phone number. Once done, you can select your location and the method of payment you want, for example cash.
When you search for the same, many results will come. You can identify the best sellers based on the number of transaction, reputation, Limits and price/BTC. After identifying the best seller, you just have to click on “buy”.
After you click buy, the seller also accepts your request and then their Bitcoins are locked in the escrow. Now, you meet the seller in person and confirm the transaction based upon your terms and conditions and exchange the cash.
It is important to wait for confirmation before handing over the cash to the seller. Most people wait for 10-12 confirmations which take about 10-15 minutes. Most of the websites charge 1% commission fees for the transactions.
Here are some important tips you should keep in mind while buying Bitcoins from independent sellers.
- Meet the seller in broad daylight at a public place.
- Don’t share unnecessary personal details with the seller.
- The seller should have a high reputation.
- Confirm the transaction at least twice before handing out the money.
Thus, keep these things in mind while buying Bitcoins in cash otherwise, you can be scammed.