How to Buy Bitcoin with Cash in 2023: A Beginner’s Guide
- By Localcoin
- June 26, 2023
In the ever-evolving landscape of cryptocurrencies, Bitcoin continues to be a prominent digital asset with over 420 million global crypto users as of July 2023. The methods for acquiring Bitcoin have expanded to cater to a wide range of preferences and needs.
One of these methods involves purchasing Bitcoin with cash, offering a straightforward way for individuals to acquire the cryptocurrency without relying on traditional banking systems. This approach can be particularly appealing to those who value privacy, simplicity, and the tactile nature of physical currency.
In this guide, we'll explore how to buy Bitcoin with cash in 2023, considering 3 common methods that are Bitcoin ATMs, crypto exchange websites and peer-to-peer platforms. It's important to note that while the general process remains consistent, the specific details may vary based on your location, regulations, and the advancements within the cryptocurrency space.
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5 Things You Need to Start Buying Bitcoin
So you’ve outlined your reasons for buying Bitcoin, you’ve got the facts and possibly even your investment strategy. Now it’s time to get organized to make your purchase. Depending on how you choose to purchase Bitcoin, here’s a breakdown of what you’ll need to start buying Bitcoin.
1. A Bitcoin-Compatible Crypto Wallet:
Before purchasing Bitcoin, you need a digital wallet to store your cryptocurrency securely. There are various types of wallets available, including hardware wallets, software wallets, and mobile wallets.
You’ll need to set up your wallet of choice and get familiar with how it works before you get to the point of purchase. It’s also important to make sure your wallet is Bitcoin-compatible.
2. A Method of Payment:
You will need one of the following methods of payment handy:
- Debit card
- Canadian bill(s)
- PayPal account
- Wire transfer
- Gift cards (for peer-to-peer transactions)
3. Personal Identification:
Many exchange platforms, brokers, trading apps and Bitcoin ATMs require identity verification. This may also depend on the amount of Bitcoin you are buying.
4. Directions to A Local Bitcoin ATM:
If you’re using a crypto ATM to purchase Bitcoin, find an ATM that’s easy for you to get to, whether you’re coming from home, work or running errands in the neighbourhood. You can find the Localcoin ATM nearest you here.
5. An Account on an Exchange, Trading or Peer-to-Peer Platform
If you’re using an online platform to purchase Bitcoin, set up an account with a secure internet connection.
3 Ways to Purchase Bitcoin with Cash in 2023
You’re finally ready to buy Bitcoins! The only thing left is to choose how you’d like to buy them. Buying crypto for the first time can seem daunting; you can’t just buy Bitcoin at the bank, and a quick online search will generate thousands of options. But it’s easier than you think!
Here are three popular methods for how to get Bitcoin with cash:
1. Bitcoin ATMs
Using a local Bitcoin ATM is an excellent, user-friendly option for crypto newcomers looking for a way to buy Bitcoin. These internet-enabled terminals help both newcomers and experts buy and sell Bitcoin safely, securely and with ease.
They work by connecting directly to blockchain networks, allowing you to purchase cryptocurrency with cash or sell cryptocurrency from your wallet. Because they don’t host your wallet, you have the freedom to choose which crypto wallet works best for you.
You might also be curious about how to send money through a Bitcoin ATM. These ATMs not only allow you to buy Bitcoin but also provide the option to send funds to other Bitcoin wallets.
Once you’ve located your local Bitcoin ATM, the process is simple and straightforward:
- Step 1: If the ATM offers buying/selling services for more than one currency, select Bitcoin (BTC).
- Step 2: Find the QR code associated with your Bitcoin address in your wallet, or plug in your hardware wallet.
- Step 3: Scan the QR code using the built-in camera.
- Step 4: Insert your bills when prompted.
- Step 5: Confirm the amount and complete your purchase. Transactions are usually instantaneous but may take anywhere between 10–30 minutes, or even 1–2 hours in some cases.
Note: Identification may be required for transactions over a certain dollar amount and ATM service fees are tied to changes in the price of Bitcoin. Also, It’s recommended to wait for at least one confirmation on the blockchain before spending or sending your purchased funds.
2. Online Crypto Exchange Platforms
One of the most common ways to buy, sell and trade cryptocurrencies like Bitcoin is through online exchange platforms. These are marketplaces that use internet-connected crypto wallets to facilitate crypto transactions. Once you’ve made an account, you can purchase coins using fiat currencies such as the Canadian dollar, or by trading between crypto coins.
Purchasing Bitcoin through online cryptocurrency exchange platforms involves a series of straightforward steps.
- Step 1: First, it's crucial to choose a reputable exchange known for its security and reliability, such as Coinbase or Binance.
- Step 2: Once you've created an account on the chosen platform, you'll need to deposit funds into it. Most exchanges offer various payment methods like bank transfers or credit/debit cards for this purpose.
- Step 3: Now that you have deposited funds in your account, navigate to the trading section and select Bitcoin as your desired cryptocurrency.
- Step 4: At this point, you can choose between a market order, which buys Bitcoin at the current market price, or a limit order, allowing you to specify a preferred purchase price.
- Step 5: After confirming the order details, you'll need to review and finalize the purchase.
- Step 6: For added security, consider transferring the acquired Bitcoin to a personal crypto wallet.
Note: Depending on the crypto exchange's policies, additional verification steps might be required.
3. Peer-to-Peer (P2P) Platforms
In contrast to exchange platforms, peer-to-peer marketplaces match up individual buyers and sellers, making direct trades possible. These platforms operate without holding any funds during the trade, and even allow you to trade for other commodities such as gift cards.
That said, these exchanges can invite scams and fraudulent behavior. The security, safety, privacy and asset control associated with these peer-to-peer exchanges can vary drastically. This makes them a less than ideal option for newcomers to cryptocurrency.
- Peer-to-peer platforms allow users to make direct trades with other users
- Other users may use peer-to-peer platforms fraudulently
- They may also collect personal information to verify your identity
- Bitcoin transaction fees can vary widely
Pros and Cons of Buying Bitcoin with Cash
Enhanced Privacy and Anonymity:
Buying Bitcoin with cash allows you to maintain a higher level of privacy and anonymity compared to traditional online exchanges. When you use online platforms, you often need to provide personal information, such as your name, address, and bank details. With cash transactions, you can acquire Bitcoin without revealing your identity or sensitive financial information.
Minimized Online Security Risks:
Online exchanges and platforms are vulnerable to cyberattacks, hacking, and data breaches. When you buy Bitcoin with cash, you eliminate the need to conduct transactions over the internet, reducing your exposure to online security risks. This can provide peace of mind, knowing that your funds are not susceptible to online vulnerabilities.
Purchasing Bitcoin with cash can result in faster and more immediate transactions compared to traditional exchange methods, which often involve waiting for bank transfers to clear. With cash transactions, you can receive your Bitcoin almost instantly, enabling you to take advantage of price fluctuations or investment opportunities.
Bitcoin ATMs and peer-to-peer platforms make it easier to buy Bitcoin locally, without relying on international exchanges. This is particularly beneficial for individuals who may have limited access to online exchanges due to geographical restrictions or unreliable internet connectivity. Buying locally can also foster a sense of community within the cryptocurrency ecosystem.
Safety Concerns and Scams:
When buying Bitcoin with cash, you often need to meet with the seller in person. This can expose you to safety risks, especially when dealing with unfamiliar individuals. There is a potential for encountering crypto scammers who might take advantage of your lack of experience or knowledge about the process, leading to financial losses or even personal harm.
Limited Availability and Accessibility:
Bitcoin ATMs and local sellers might not be readily available in all areas, making it difficult for some individuals to access this buying method. This lack of accessibility can be a significant drawback, especially for those who do not have convenient access to these services.
Complexity for Beginners:
The process of buying Bitcoin with cash can be more complex and intimidating, especially for individuals who are new to cryptocurrencies. The technical aspects of setting up a Bitcoin wallet, understanding the transaction process, and ensuring security can be overwhelming for beginners.
Buy Bitcoin with Cash using Localcoin ATM!
Now that you have read this comprehensive guide on how to buy Bitcoin with cash, you can think about purchasing digital currencies of your choice. Localcoin ATMs offer a simple, user-friendly way for anyone to buy and sell Bitcoin, Ethereum, Litecoin and Doge in Canada.
Newcomers and experts alike can easily access Localcoin ATMs when and where they need to. As one of North America’s largest Bitcoin ATM networks with more than 900+ terminals across Canada, we make buying and selling cryptocurrencies easy and accessible for crypto enthusiasts in their communities.
At Localcoin, our mission is to provide a simple, secure buying and selling experience of digital currency for customers across North America. From running North America’s largest Bitcoin ATM network to our online retail platform, we are constantly seeking to innovate in the blockchain infrastructure space. Welcome to our blog, where customers can educate themselves on the world of cryptocurrency, learn more about our company vision and more!