Be Prepared Before You Buy Bitcoin With Cash
Posted on: 10 November 2022
If you want to buy Bitcoin with cash, you can do so. You need to find a place that will accept cash, of course, but you also need to understand a few things about the transaction. If you're already a seasoned Bitcoin buyer, these won't surprise you. But if you're new to Bitcoin, pay attention to these.
You Must Have a Bitcoin Wallet First
First, make sure you have a Bitcoin wallet already set up. Once you buy the Bitcoin, it has to go into your Bitcoin wallet. You can't set Bitcoin on some table somewhere as you set up your wallet during the purchase. You need that wallet to be ready to accept the Bitcoin immediately.
Your Transaction May Not Necessarily Be Private
Technically, using cash to purchase Bitcoin should be very anonymous. You're purchasing Bitcoin with a non-digital currency that doesn't leave digital traces everywhere. And some places do just let you buy Bitcoin for paper money. Others, however, may want you to verify your identity as a safety measure. If you're in a store where you have to do that, you're not really going to be anonymous. However, speak with the staff if you have concerns about where the ID information is kept or if you want to know what they do with the information. They may not keep a record at all, for example, and they just want to be sure they're dealing with people who are who they say they are.
There May Be Fees, Especially if You Use a Bitcoin ATM
It would be nice to trade cash for Bitcoin and get the Bitcoin amount you thought you could get. But just as other financial transactions often have fees attached, so do cash purchases of Bitcoin. You can find stores and other locations where there are no fees, or the fees are minimal. However, don't be surprised if the place you eventually buy Bitcoin at has a transaction fee of a few percent. This is especially true if you use a Bitcoin ATM. You may want to make a list of places that have lower transaction fees just in case you need to buy Bitcoin but aren't near a no-fee place; with that list, you know the place you eventually get to will not take too much of your money in fees.
Buying Bitcoin now can be tricky because of recent volatility, but the situation has calmed down enough that you can make your purchases with relative confidence. Start looking for places around you to buy Bitcoin with cash and plan your first purchase.
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