How to Buy Crypto with Cash

Guide

If you want to buy cryptocurrency with cash, there are a few different methods you can use. In this guide, we’ll go over some of the most popular options and the steps involved in each method.

Peer-to-Peer (P2P) Exchanges: A P2P exchange is a marketplace where you can buy and sell cryptocurrencies directly with other users. P2P exchanges typically allow you to pay in cash, either in person or through a bank deposit. To use a P2P exchange for cash transactions, follow these steps:

Research and compare different P2P exchanges that allow cash transactions. Some popular options include LocalBitcoins, Paxful, and Bisq.
Create an account on the exchange and complete the verification process, if required.
Search for a seller on the exchange who is willing to accept cash payments. Check the seller’s reputation and feedback from other users to ensure they have a good track record.
Initiate the trade by sending a message to the seller and agreeing on the terms of the transaction, including the amount of crypto you want to buy, the exchange rate, and the location and time for the cash exchange.
Meet the seller in person and exchange cash for the agreed-upon amount of cryptocurrency. Make sure to count the cash and verify the transaction before releasing the crypto to the seller.

Bitcoin ATMs: Bitcoin ATMs are machines that allow you to buy and sell cryptocurrencies using cash. They are typically located in public places, such as shopping malls, convenience stores, and airports. To buy crypto with cash at a Bitcoin ATM, follow these steps:

Use a website like CoinATMRadar to find a Bitcoin ATM near you.
Go to the Bitcoin ATM and follow the instructions on the screen to initiate the purchase. You will typically need to provide your phone number and a valid ID for verification purposes.
Insert cash into the machine and choose the cryptocurrency you want to buy.
Enter the wallet address where you want the crypto to be sent. If you don’t have a wallet, you can create one on the spot using the machine.
Confirm the transaction and wait for the crypto to be sent to your wallet.

Local Bitcoin Meetups: Another option for buying crypto with cash is to attend a local Bitcoin meetup. These are events where cryptocurrency enthusiasts meet in person to discuss and trade crypto. To find a local Bitcoin meetup, search online for events in your area or check social media platforms like Facebook and Meetup. Once you find a meetup, attend the event and look for other attendees who are willing to sell crypto for cash.

Regardless of the method you choose, it’s important to exercise caution and do your research before buying crypto with cash. Always verify the reputation and credibility of the seller or exchange, and make sure to take appropriate safety measures when meeting in person for cash transactions.

4 Options for buying Bitcoin with Cash

Buy from an individual through Paxful or LocalCryptos or LocalBitcoins
Buy Bitcoins from a Bitcoin ATM
Buy Bitcoins through a cash deposit at a bank
Buy Bitcoins with cash at a convenience store or pharmacy

Market Trends:

Bitcoin ATMs are the most common and dominant method of buying BTC with cash. There are about 38,677 ATMs, with the United States having the largest share of Bitcoin ATMs at 34,386 ATMs. There are over 20,000 extra kiosks and independent retailers to buy BTC with cash directly from in-person retailers and kiosks.
There are multiple ways of buying Bitcoin with cash – Bitcoin ATMs, cardless cash, deposit to the seller’s bank, and independent in-person. Other methods of buying Bitcoin with cash include convenience stores, mobile phone retailers, grocery stores, electronic stores, check cashers, and other independent retailers.
LocalBitcoins, LocalCryptos.com, and Paxful are the most dominant cryptocurrency exchanges (peer-to-peer) for buying Bitcoins with cash.

Bitcoin ATMs in the United States:

Benefits of Buying Crypto with Cash

The buyer and seller will not incur fiat currency (USD, etc.) transaction fees as charged by banks, online payment methods, and credit cards. This maximizes their profits from trading crypto when the purchases are repeated and frequent.
The seller will not incur withdrawal fees to get the money paid for the crypto.
There is no limit as to how much the seller and buyer can transact. The minimum and maximum amount to transact is limited by their factors – for instance, transportation, etc.
The buyer and seller can organize their most convenient time at which to transact and the most secure/private place from where to transact. They can adjust the time as per their schedule and availability.
You can avoid being scammed online and can choose this method if you do not trust online or Internet methods.
It is a private method as you do not leave any digital footprints.

Why Buy Bitcoin with Cash?

There are many advantages to buying Bitcoin with cash, if you take the necessary precautions (more on that later).

Privacy

Unlike using a regular Bitcoin exchange, cash purchases usually don’t require you to unnecessarily reveal information by submitting a ton of documents to verify your identity.

This tactic is a lot safer, given the ever growing risk of identity theft. Another reason for buying Bitcoin in cash is to avoid crackdowns by tax authorities.

Speed

This reason exists mostly because there’s no waiting for the arrival of bank transfers, or for verification by an exchange. Deposits usually take 1 to 3 business days, while verification can take up to 3 weeks.

Cash trades save a lot of time. When Bitcoin’s price is skyrocketing, even a few days can equate to a lot of money!

Buying Bitcoin With Cash in Person on Peer-to-Peer and Other Exchanges

Peer-to-peer cryptocurrency exchanges allow buyers and sellers to initiate a transaction on their online platform or interface and after choosing to transact with cash, they can then arrange to meet and transact.

Below are some of the peer-to-peer exchanges that allow buying Bitcoin with cash in the United States:

#1) LocalCryptos

LocalCryptos.com, another peer-to-peer exchange, also allows users to purchase Bitcoin and four other cryptocurrencies using cash in person and with cardless cash methods. The method of buying is comparable to that on LocalBitcoins.com.

A trader willing to buy can either place a buy order and wait for people to initiate a trade with him/her or browse through sell ads posted by Bitcoin sellers. The sell ads can be sorted based on several criteria.

Step #1: Visit the website or download and open the app, sign up or connect to a wallet, and log in: Being a non-custodial wallet, there are no verification requirements. You should note down the recovery passphrase and keep the paper safe when creating the account. Finally, activate the 2FA authentication.

The LocalCryptos website and mobile app also allow you to connect web3 wallets (all major Ethereum wallets like MetaMask and Ledger are supported) without having to create an account.

Step #2: Posting your buy ad: This is the best option through which to buy Bitcoin on the platform. It allows you to set your buy rates and terms freely. You can finally place an ad for sellers to see and they will contact you.

Visit the website homepage, select Offers from the menu, and Create an offer button. Click/tap Buy Bitcoin, scroll down and on the entry fields below type in the city name, choose a city, select currency, and tap/click Continue to Step 2.

Choose the payment method as Cash (in person), select your rate, and tap/click Continue to configure the rate, choose a percentage margin either below or above the market price. Choose a cryptocurrency market or exchange that will serve as a basis for deriving the market price. Proceed to Step #3.

Type the headline to stand out and enter terms (if possible specify here your suggestion on time and place to meet or other terms of trade you need).

Enter the maximum and minimum trade limits, the select time you will be available to trade, and say who you allow opening a trade with (you can select anybody or only those who have verified phone numbers, or those with whom you privately share the link). Click/tap Post offer.

You can now view and edit your offers from the Offers page in the menu. Sellers will see it later and initiate a trade.

Finding a sold ad: While logged in, you can find out who is selling Bitcoin. From the default page, the Buy option is active. Choose Crypto to buy as Bitcoin, your location, currency, amount to buy, and Cash in person as the payment method.

It will list multiple offers if there are any. These are people who are selling Bitcoin and from whom you can buy with the chosen method, namely Cash in person. You can sort them based on Top-rated, Online, Best price, and Popularity although that ranking appears debatable upon checking.

You will see tens or hundreds of traders who have completed several trades, as well as the minimum and maximum purchase amounts they allow.

However, you may need to take responsibility to avoid scams and other crimes and verify the details of your peer trader. This is helpful when trading huge sums of money and you can request for an ID image or other things.

Step #3: Click/tap Buy against the seller of your choice: You will see, after this, additional details about the seller. This includes their contact, availability, feedback, last seen, number of trades completed, how long it takes on average to reply to chats, and other details.

Enter the amount of money spent to buy Bitcoin or simply enter the number of Bitcoins to buy. Type in any message to the trader and click Open Trade. The chat platform allows you to talk to the seller and since they accept cash in person, you can arrange for a time and meet-up location if they haven’t specified any.

Make sure it is a secure, open, and public place and that you take precautions in case anything happens. Some scammers take advantage to steal from people once they meet them, so be careful if the person is not known to you.

Step #4: Pay for Bitcoins: Make a payment as per the amount indicated on the trading interface. Insist that the seller generates and gives you a payment receipt. This receipt is needed as evidence of payment in case the seller disputes the payment and does not release the Bitcoins.

Click on Paid on the LocalCryptos.com interface immediately after you have paid. This transfers the bought amount of Bitcoin to an escrow wallet. The seller or buyer cannot access them unless the seller releases them upon confirming receipt of payment or by the admins through a dispute resolution in case something goes wrong with the trade.

You can raise a dispute in case it takes too long for them to release, but if they do, the balance will show on your wallet.

Fees: Escrow fees: 0.25% for the maker and 0.75% for a taker. Users may pay deposit fees based on their payment method. BTC mining fees also apply.

Website: LocalCryptos

#2) Paxful

Paxful supports hundreds of payment methods for crypto buyers, among them paying with cash by mail, cash deposit, and cash in person.

How to buy Bitcoin with cash in person at Paxful:

Step #1: Research on faithful/trusted sellers: It is suggested to not deal with new sellers if buying Bitcoin with cash in person unless you know the person very well. It may be insecure or turn out to be a scam.

19 methods of buying with cash on Paxful —Amazon Cash, Cardless Cash, cash in person, EzRemit, Oxxo, Transfast, Xpress Money Service, Bancolombia Cash Deposit, cash by mail, cashier’s check, Hugo Cash, postal money order, Vodafone cash payment, Bitcoin ATM, check, MoneyGram, RIA Money Transfer, and Western Union.

Check if there is an option to use a Bitcoin ATM instead of cash in person because the ATM may be more reliable, secure, and safe.

Otherwise, be sure to ask for verification of the seller using their ID and address if the amount is higher than 50 USD. Be ready to also file a police case if something goes wrong because it may be very difficult for Paxful to assist if transactions are outside the platform.

Step #2: Also ensure to follow the procedure: Even if the buyer finds a way to contact you off of the platform, ensure to go through Paxful as it may be insecure or turn out to be scammy.

Step #3: Initiate the trade: Sign up, verify your account, and sign in. Set up the 2FA. Click/tap Buy from the main menu, select Buy Bitcoin, input the amount, set preferred currency, choose seller and buyer locations, and choose cash in person from the payment method in the sidebar widget.

It filters the sellers’ list in your country based on the above metrics. You can also filter users by user types – ambassador, associate, etc. some types might be more trusted to buy Bitcoin with cash because they have undergone an extra layer of security check by Paxful.

Find and select a vendor from the list. He or she has to accept cash in person as a payment method. Read the requirements of the vendor. Their terms may include verifying your details, e.g., through ID and selfies.

The other thing for a Cash in Person payment is that the seller will include meeting preferences, so be sure to consider them and see if you can fulfill those needs.

Step #4: Start the trade: Set the amount you want to buy in the widget if the requirements are OK. Click Buy now. It opens up a live chat where you can chat to agree on where and when to meet. The chat is recorded and can protect you in case something happens, so Paxful advises you to keep the communication inside the platform only if it is about the transaction.

The buyer should see that the seller is committed to giving a teller receipt. Send a message through the Paxful trade chat in case you feel confused during the transaction.

Step 5: Make payment and receive Bitcoin: Click/tap Paid after giving cash to the seller. Bitcoins are locked to escrow at this point and the seller cannot withdraw. They aren’t accessible to you either until the seller releases them to your wallet.

This protects both of you in case the seller is not paid or has some claims or you are scammed and the seller fails to release them after getting paid. The seller or buyer can raise a claim and Paxful can look at the details of the transaction to decide who to release the Bitcoin to. In this case acting as the arbitrator.

Creating your offer: It is also possible to create your offer to buy Bitcoin with cash. Set a margin, write clear offer terms and instructions, and state which proof of payment you need and the time you need to confirm the payment.

State where you propose to meet the seller if accepting Cash in Person. Prefer places for Cash in Person trades. Wait for the buyer to make an offer to trade with you after publishing the purchase offer. Discuss with them the details through chat.

Fees: 0.5% to 3% depending on the fiat payment method. Sending and other fees also apply separately.

Website: Paxful

#3) LocalBitcoins

LocalBitcoins.com removes cash in person as a payment method and retains many other methods that allow you to pay for Bitcoin with cash, including cash deposit, cash at ATMs, and Cash App.

A quick check reveals that it is still possible to date to buy Bitcoin using the cash-in-person method. It just places a safety burden and responsibility on the buyer and seller who are committing to transact with cash but it is a very active method of buying.

You need to make sure that you are dealing with a person that you can trust or know and then ensure the meeting place is safe/secure and that it is public. The fact that LocalBitcoins.com only supports cash at ATMs and cash deposits and not cash in person means it may not take any measures where the cash transaction may go wrong.

However, ensure you can get a teller receipt for the transaction just in case. There is always help when and if there is genuine proof of payment.

Buying Bitcoin with cash at LocalBitcoins.com also depends on the availability of a peer who accepts or is willing to pay cash. Sometimes it is hard to get anyone willing to commit to using this method. Otherwise, it follows the same purchase procedure on LocalBitcoins.com.

Fees: Free for buyers and sellers. 1% for sellers who advertise.

Website: LocalBitcoins

Physically From Independent Merchants and Retailers in Person

#1) LibertyX

LibertyX runs 20,000 retail stores and cash kiosks (including 12,000 ATMs) across the United States from where you can buy Bitcoins with cash. It allows buying up to $1000 worth of Bitcoins daily and charges a fee of 1%.

However, the stores can add their fee, bringing the total fee to around 1.5%. Merchant stores are available and accessible on the website. Simply click/tap Menu and then find locations, enter an address, or click/tap on Map to find a store/ATM.

How to buy Bitcoins with cash on LibertyX:

Step #1: Download the Android and iOS app, sign up and verify the account: Signing up with Facebook allows you to buy up to $1,000 worth of BTC free of charge.

Step #2: Find a store: Click Menu, choose to Find locations, Enter address/click Map and select a store. Choose cashier vs ATM.

Step #3: Create an order or tap Start Purchase on the app: Enter your Bitcoin wallet address where the cryptocurrency will be sent after purchase.

Select a purchase location or one from over 20,000 CVS and Rite Aid locations in the US to generate an order number from LibertyX. Visit the store and you will give the order number to the cashier together with the cash. He or she will give you a receipt in return. The Bitcoin is sent to the wallet address.

The order number can be used on a cash kiosk or ATM. Simply search for the kiosk from the map as specified before, enter the order number, insert cash, and tap the Complete Purchase button. It will send the Bitcoins.

You can buy up to $500 worth of Bitcoins per day in cash from LibertyX chain retailers like CVS and Rite Aid. You need level 3 verification on the account to trade with these.

However, independent retailers like cash stores allow you to buy Bitcoins worth up to $2,999.99 in cash per day. Independent stores include convenience stores, mobile phone retailers, grocery stores, electronic stores, and check cashers.

Fees: $4.95 flat retailer service fee per transaction; 3% – 8% consumer fee when buying via Independent Retailers, 8% – 9.50% consumer fee on ATMs; and 8% – 12% consumer fee on cash kiosks.

Website: LibertyX

Buying BTC Via ATM

Bitcoin ATMs are the best way of buying Bitcoin with cash all around the world. The Bitcoin ATM map shared previously lists 38,677 ATMs distributed around the world. The United States has the largest share of Bitcoin ATMs at 34,386 ATMs.

Most of these Bitcoin ATMs are found in Philadelphia, Charlotte, Newark, Las Vegas, St. Louis, Minneapolis, Boston, Baltimore, Indianapolis, Chicago, Denver, San Francisco, and Los Angeles, with each having over 300 ATMs. Los Angeles leads with a total of 1990 ATMs, while Chicago has 1,209.

#1) Physical ATM

How to buy Bitcoin with a physical ATM:

Step #1: Research or search for a crypto or Bitcoin ATM near you. The Bitcoin ATM map is a valuable tool here in case you have never used a Bitcoin ATM. Search for availability by country or city.

If you narrow down to ATMs available per city by clicking on the city on the map, you will see all of them on a map and can see the specific location address for each. That means you can visit a specific location in proximity and see the machine.

You can even see specific directions on a map by clicking/tapping on the Get directions icon on the ATM map. Of course, some may be out of order.

You can see from the map the supported currencies and whether you can buy, sell, or do both on the same machine. So you need to eye those that support buying Bitcoin in this case, and most will, if not all.

Step #2: Visit the selected ATM: Scan the QR code of the Bitcoin wallet address. This is the Bitcoin wallet address where you will get your Bitcoins. It could be the same wallet address as your LocalBitcoins.com Bitcoin wallet because it can be scanned with a QR code. The ATM can also generate a paper wallet.

Step #3: Scan other details: The ATM may require you to scan other details like your fingerprint or other verifications. This depends on the verification requirements of the said ATM configuration from the manufacturer.

Step #4: Enter the number of Bitcoins you want to buy: The alternative is to enter the amount of fiat currency you want to spend.

Step #5: At last, insert the cash required and wait until the Bitcoins are delivered to your Bitcoin wallet. Make sure to open the wallet and see if the Bitcoin has been delivered. Take the purchase receipt and paper wallet generated (if any) with you.

Fees: $4.95 flat retailer service fee per transaction; 3% – 8% consumer fee when buying via Independent Retailers, 8% – 9.50% consumer fee on ATMs; and 8% – 12% consumer fee on cash kiosks.

#2) Through Peer-to-Peer and Other Exchanges

LocalBitcoins cash at ATMs:

[image source]

Buying Bitcoins with ATMs on LocalBitcoins:

LocalBitcoins.com, which is a peer-to-peer cryptocurrency exchange, allows people to purchase Bitcoin from their peers. It thus allows people to trade with local national currencies like USD and pay with easily available and local payment methods custom to the traders. This includes cash payments.

The payment methods available can be accessed easily from the LocalBitcoins.com website. Click/tap Quick Buy at the top of the webpage and in the All Payment Method drop-down menu, you will see Cash at ATMs, among many other options.

The cash-at-ATM payment option on LocalBitcoins allows a customer to purchase Bitcoins through a Bitcoin ATM and we discuss that later. You do not need to buy through a specific LocalBitcoins Bitcoin ATM, but any other can work.

The LocalBitcoins.com ATMs were launched first in the year 2014, but the project seems to have died. Therefore, you will need to use any ATMs available near you.

Purchasing Bitcoins via Cash at an ATM method starts just like any other trade, as below:

Step #1: Initiate a trade at LocalBitcoins.com: Initiating a trade at LocalBitcoins.com happens as follows:

Sign up and verify your account as required on the LocalBitcoins website and mobile app. You can get a free online or web-based wallet after completing registering and verifying the account.
Search for advertisements. Enter the amount you want to buy, choose a payment method such as Cash at ATM and the base currency, choose a country, and click Search. All ads on which sellers are accepting Cash at ATMs as a payment method in the country of choice will appear on the list down. You can scroll down to find sellers who have higher ratings, trust scores, high amounts of trades, or maybe those offering cheaper prices, but the platform will rank them based on the price the best buy price appears up. You can also see the minimum and maximum each trader accepts on each ad. You can tick the option to show the best offers which limits the search to the best offers available per payment method per advertiser.
Click/tap Buy against an ad of your choice. You will see more details from the selected trader. This includes the payment window, payment terms, and even location.
Enter the amount to buy in the base currency and you will see the amount of BTC to receive. Click/tap Buy and you can now chat with the trader to arrange other things.

You can discuss cash-in-person trading if and when you feel or think the trader is trusted by you for cash in person, that you are safe and secure enough to do it, have taken precautions to prevent scamming or other dangers, and are ready.

Since this is a peer-to-peer trading platform, no one will penalize or prevent you from doing this or even changing the payment method. Make sure to get payment receipts if it is cash in person.

Buying on Bitcoin ATMs also works on Paxful.com:

Fees: The same fee applies to LocalBitcoins.com and LocalCryptos.com.

Cardless Cash Collection

Cardless cash is supported on LocalCryptos:

Buying Bitcoin with Cardless Cash Collection:

Banks like CBA, Westpac, St. George, BOM, and Bank of S.A. allow you to buy Bitcoin with cash without having to create an account. The account holder creates unique codes through the mobile banking app and redeems them at supported ATMs for cash. They do not need to use a bank card in this case.

Most banks offer a code value limit of $500 per account per day. It may be possible to get more with multiple accounts with one bank.

How to buy Bitcoin with cardless cash collection:

LocalCryptos.com and LocalBitcoins.com support this as a payment method. The seller needs to collect the cash at their convenient ATMs once you share the codes the unique codes generated with them.

Step #1: Download the bank app and create unique codes: The apps do support Cardless Cash as a payment method. Hence, choose this option on the app in question.

Step #2: Choose the amount you need to buy the specified amount of Bitcoin on LocalBitcoins, LocalCryptos, and other platforms: This leads to creating an 8-digit Cash Code and Cash Pin. The two numbers must be used within 30 minutes or another specified duration before expiry. You need to generate new ones when they expire.

Hence, you must send the codes immediately to the seller on LocalBitcoins, LocalCryptos, and Paxful to allow them to withdraw the cash from the ATM of their choice.

Step #3: Click/tap Paid after sending the codes: Open LocalBitcoins.com or LocalCryptos and, from the existing trade window, tap Paid. This takes the Bitcoins to an escrow wallet and makes them unavailable to the seller or buyer just in case the payment is disputed.

Bear in mind that LocalBitcoins, LocalCryptos, and Paxful act as arbitrators for the transaction in case there are payments or other disputes. Therefore, send a dispute request if you have paid and the seller does not release the BTC from escrow. The seller should be able to release the BTC after confirming the payment. Check the wallet balance.

Fees: The same fee applies to LocalBitcoins.com and LocalCryptos.com.

Buying BTC With Cash by Mail

Cash by mail on Paxful:

How to buy BTC with cash by mail:

You can follow the above procedure, but when it is time for payment, send the cash using FedEx, UPS, or regular post. FedEx allows sending through cheques. UPS allows sending any amount of cash via mail although it is not the best alternative (explore money orders, cashier’s checks, and other options).

However, ensure to send via certified email to minimize the risks in case someone opens the mail. Putting tracks on the envelope by way of a sticker can also improve security. Again, this payment method requires some patience from the seller and buyer.

Ensure you have proof of receiving the payment, whether by payment by mail or in person. Finally, the seller should be able to release the Bitcoin you are buying. Remember to leave feedback to the seller after the trade.

Fees: The same fee applies to LocalBitcoins.com and LocalCryptos.com.

Buying Bitcoin With Cash Deposit

The cash deposit option lets traders deposit cash directly into the specified seller’s bank account, money-sending methods like Western Union, mobile money agents, and other cash conversion methods. It also follows the same procedure under buying Bitcoin with the cash deposit section we will discuss later.

You can use almost all banks to deposit cash for a seller in the United States. The seller will let you know the specific bank with which they have an account alongside the account number (mostly done on the chat instead of exposing it publicly alongside the trade) and where you should deposit the money.

You will receive a cash deposit receipt that you can present to the platform if there is a dispute on the payment.