Since its launching in 2009, Bitcoin has become the best-known and the most traded cryptocurrency worldwide. With the escalating demand for and interest in the cryptocurrency, more and more methods of purchasing it have emerged—from good old-fashioned cash to using trading platforms.
Buying bitcoins with cash is one of the most popular ways, but what are the pros and cons of doing it this way? Read on to learn more.
Pros of Buying Bitcoin with Cash
Buying bitcoins with cash enables you to enjoy a far greater degree of anonymity when making the transaction. Unlike purchasing from online platforms where you will have to provide a lot of personal and potentially sensitive information such as your address, credit card details, and name, buying bitcoins with cash doesn’t require any of this. You’ll only meet with the seller and transact without having to reveal too much. If you’re concerned in any way about privacy, buying bitcoins with cash is the way to go.
Compared to online purchasing, buying bitcoins with cash is more secure. Online platforms can be hacked. There is also a risk of identity theft which can result in a great deal of stress and financial loss. Besides this, some online trading platforms have weak security platforms making them more vulnerable. With cash bitcoin transactions, there’s no risk of identity theft or hacking, making it safer.
When buying bitcoins online, you need to follow a series of steps. First, you need to place an order, enter your credit card details, make a purchase and wait for the transaction to be completed. This takes a lot of time compared to buying bitcoins with cash. With cash transactions, you don’t wait for the transaction to clear. In less than 20 minutes, you will have already completed the deal.
No Credit Check
Some online trading platforms may check your credit history before purchasing bitcoins online. When purchasing bitcoins with cash, there’s no credit check, which is beneficial if you have a poor or no credit history.
No Bank Account Needed
Unlike online transactions, where you need a credit card or bank account, cash transactions eliminate the need to open a bank account or obtain a credit card.
Cons of Buying Bitcoins with Cash
Online transactions leave records that help trace the transaction in case of a dispute. Cash transactions will not have any proper records making it difficult to prove the transaction occurred, and it can be more problematic when reporting the transaction for tax or other purposes.
Difficulty in Finding Reputable Sellers
Unlike online platforms where all the traders are verified before making a transaction, you may find it hard to find reputable bitcoin sellers when making a cash transaction. To be safe, conducting due diligence before making a cash transaction when buying bitcoins is essential. If possible, seek recommendations online or from friends who have bought bitcoins with cash.
Purchasing bitcoins with cash can prove to be more difficult than buying them online. Finding a seller willing to trade bitcoin for cash can be hard, as many prefer online transactions as they eliminate the need for physical meetings.
Purchasing bitcoins with cash has its pros and cons. On one hand, it offers security and anonymity and eliminates the need to have a bank account, but on the other hand, it can be hard to find a genuine and reputable seller. Whether you purchase bitcoins online or with cash, make an informed decision using the info we have provided to help you.