Purchasing bitcoins can often be a complicated and lengthy process, with lots of verification and authentication. The traditional method of using your bitcoin wallet to make bank transfers to cryptocurrency exchanges requires a lot of personal information and makes your bitcoin wallet easily traceable. For whatever reason you have, you may not want your bitcoin wallet to be traced which brings us to the purchase of bitcoins with cash and deposits.
- Cash Purchase Via Mail
Self-explanatory method of purchasing bitcoins, you set up your own bitcoin wallet then post cash through the mail to the bitcoin seller who will deposit bitcoins into your bitcoin wallet within 5 hours of being received on average. The exchange rate for the transaction will be agreed upon prior to the sending of any currency. The seller will use order reference numbers to ensure the correct amount is deposited into your account. The buyer will use parcel tracking to ensure the seller gets the parcel on time.
It is noted that the buyer should be aware of the scam risks involved in sending money to any old claimed seller. With that being said, there are reputable websites that offer this service with buyer’s discretion and safety such as AgoraDesk.
- Cash Deposits
Another way to purchase bitcoins with cash is via cash deposits. It will only require a buyer and a seller with bank accounts and bitcoin wallets, so long as they both know the details of each other’s bank/bitcoin wallet. No other personal information is required.
As usual, they will first agree upon an exchange rate. Once done so the seller will give the buyer their bank details and the buyer will give the seller their bitcoin wallet details. The buyer will then deposit cash at their bank, into the seller’s bank account. Which when completed, the seller will deposit the correct amount of bitcoins into the buyer’s account.
- Bitcoin ATMs
Bringing the virtual currency into the physical world: bitcoin ATMs are becoming increasingly popular with the public. They function as would a normal ATM, you can deposit cash into the machine in return for bitcoin currency added to your virtual bitcoin wallet or onto your paper wallet. A paper wallet is basically a QR code on a piece of paper printed by the ATM which holds the bitcoins and can either be converted back into cash via a bitcoin ATM or transferred into a bitcoin wallet.
The steps to operating a bitcoin wallet are as follows:
Approach the machine and select if you would like to use a paper wallet or a bitcoin wallet.
- Depositing: Scan your paper wallet or bitcoin wallet using a QR code and the ATM.
– Insert the cash you would like to deposit into the bitcoin account
– Confirm the deposit of the transaction and instantly, the machine will either credit your bitcoin wallet for the desired amount or print you a new paper wallet with the added amount of bitcoins (making the previous paper wallet worthless).
- Withdrawing: Scan either your paper wallet or bitcoin wallet using a QR code and the ATM.
– Select how much you would like to withdraw.
– Cash will be dispersed.
Although they might be hard to come across where you live, if you do manage to find one, bitcoin ATMs are an instant method of buying bitcoins.
- Buying In Person With Cash
Say you do not entirely trust the idea of transferring your money to somebody who you don’t entirely know. You might prefer to meet them first in-person to judge them as a character. Which some sellers certainly appreciate and are happy to do so. Of course, it is going to be easier to find a seller a bit local to you if you are to exchange currencies in person. There is nothing illegal about this either so unlike illegal exchanges, you can just sit at a coffee shop and complete the transaction. You hand the seller cash and he will (usually on his laptop or phone) transfer the bitcoins into your wallet.
The bitcoin network is very secure as it is and there is normally a very low risk of being tracked for processing a transaction for bitcoins but one of the main benefits from purchasing bitcoins with cash is that you need to submit next to zero personal information.