Buying Bitcoin with Cash, Here’s How

Since their debut, cryptocurrencies have helped revolutionize the economy worldwide, managing to establish themselves as one of the most popular investment tools for investors. An alternative method for circulating money, which plays an increasingly predominant role in the economy.

It is therefore not surprising that more and more people are interested in this world, so much so that they are looking for the easiest and fastest way to enter it. Among these is the possibility of purchasing the cryptocurrency par excellence, namely Bitcoin, in cash. But how can you do it? Let’s go into detail and see everything there is to know about it.

Methods for Buying Bitcoin in Cash

Buying Bitcoin is much simpler than you might think. Most investors decide to do this through cryptocurrency exchanges, which are online platforms that allow you to buy and sell Bitcoin.

But not only that, you can also take advantage of some connections between the digital world of cryptocurrencies and the physical world of money, allowing you to carry out buying and selling through cash operations. Below are some methods from which you can choose the one that best suits your needs.

Foreign currency exchanges

Many countries, generally outside the EU, have less stringent regulations regarding the buying and selling of cryptocurrencies. As a result, by going to these places it is possible to exchange Bitcoin in exchange for cash more easily. To do this, all you have to do is go to one of the shops that deal with currency exchange, agree on the transaction fees and provide the information requested to complete the operation. One of the major critical points of this method is precisely the fact that you have to reach the country of reference in person.

However, nothing prevents you from combining business with pleasure, taking the opportunity to take a nice vacation and at the same time make a particularly interesting investment. Thanks to this method, in fact, it is possible to make transactions with relatively high amounts without having to deal with KYC procedures and at the same time protecting your privacy. Before booking the ticket, however, we invite you to make the appropriate assessments, taking into account the fact that the commissions can be very high. It is therefore better to do the math well and evaluate whether the benefits actually outweigh the costs.

Buying Bitcoin at a tobacconist

In several countries, it is possible to buy Bitcoin with cash simply by going to a tobacconist. It should be noted that not all tobacconists offer this service. We therefore recommend that you look for the nearest facility where you can carry out this operation, which involves the purchase of a gift card or voucher.

Once you have the latter, you must redeem the Bitcoins on the supplier’s website or directly on your wallet. In this case too, we recommend that you pay attention to the commissions, which could be particularly high. But not only that, it is also a good idea to understand whether it is actually possible to redeem the funds based on your privacy preferences. In some cases, in fact, you may be asked to follow KYC procedures to transfer the funds to your wallet.

Peer-to-Peer Transactions

A method used by those who want to buy anonymously, Peer-to-Peer transactions, abbreviated P2P, consist of buying Bitcoin directly from a private individual. In practice, a meeting is organized in person with another individual willing to sell Bitcoin in exchange for cash. The criticality of this method lies in finding a person willing to sell their Bitcoin in exchange for cash and above all that this person is trustworthy.

The right path to follow could be to take part in crypto meetups in your area in order to meet other people interested in the topic and possibly potential buyers or sellers, depending on the transaction you want to make. In any case, the advice is to always organize the meeting in a public place, in order to avoid unpleasant situations. But not only that, at the beginning it is recommended to make small transactions in order to reduce the damage in case you come across a scam.

Bitcoin ATMs

Another method to buy bitcoins in cash is represented by Bitcoin ATMs. In several Italian cities, such as Rome, Milan and Turin, in fact, there are these particular types of ATMs that work just like traditional ATMs, but they dispense virtual coins. To use the services of these Bitcoin ATMs you must register.

To this end, you must show a copy of the front and back of your identification document. But not only that, you must indicate your telephone number, verify it thanks to the Otp code received via SMS and use it to access the ATM. Once this operation has been carried out, it is possible to buy or sell Bitcoin.

To perform a sale transaction, all you have to do is select the cryptocurrency you are interested in and indicate the amount in euros, as well as the mobile number you used to register. You will then receive a receipt containing the amount and a QR Code relating to the wallet to which you want to send it. Once you have received an SMS confirming the payment, you must select the cryptocurrency sold, then press “Redeem ticket” or “Redeem code”. To complete the transaction, all you have to do is scan the QR Code previously printed by the ATM and withdraw the cash.

The purchase transaction of cryptocurrencies via ATM is also equally simple. Once in front of the counter, in fact, you just have to follow the instructions on the screen. Depending on the ATM, you may be asked to carry out the verification or to directly indicate the address of your wallet. Insert the cash, confirm the transaction, wait for the transaction to be completed and that’s it. Even in this case, you risk having to deal with rather high commissions that can reach 10%.

Cash withdrawal limits: current legislation

Over the last 20 years, the limit on the use of cash has undergone many changes. In this regard, it is worth noting that a limit has been imposed on transfers of money to third parties to put a stop to money laundering and black market payments. In fact, no limit is imposed for personal use, while limits must be taken into account in the case of transfers to third parties. Going into detail, according to the provisions of Article 49 of Legislative Decree No. 231 of 21 November 2007, subsequently amended:

"Starting from 1 July 2020 and until 31 December 2022, the prohibition referred to in paragraph 1 and the threshold referred to in paragraph 3 refer to the figure of 2,000 euros. Starting from 1 January 2023, the aforementioned prohibition referred to in paragraph 1 refers to the figure of ((5,000 euros))".

It follows that starting from 2023, the maximum ceiling to be respected for transactions with cash is equal to 5 thousand euros.

Is it worth buying and selling Bitcoin in cash?

It is not possible to establish a priori whether or not it is worth buying Bitcoin in cash. This is because the answer differs depending on the needs of each individual subject. There are, however, several advantages and disadvantages that you have to deal with. In particular, as regards the advantages, we include the speed of the transaction, given the absence of registration procedures that in general turn out to be particularly complex.

But not only that, buying Bitcoin in cash helps protect privacy, since transactions can be anonymous and therefore less traceable. If all this were not enough, the methods illustrated above allow you to buy Bitcoin quickly and easily even for those who do not have a credit card or a bank account. At the same time, unfortunately, there is no shortage of disadvantages, such as the commissions that can be particularly high. Also pay attention to security. Before carrying out a buying and selling operation with an unknown person, it is a good idea to take the right precautions, in order to avoid falling into possible traps.

Original article published on Money.it Italy. Original title: Comprare Bitcoin in contanti, ecco come fare