How to buy Bitcoin with Cash
As the value of bitcoin continues to soar, so too, does the number of people looking to get their hands on them. Unfortunately however, the technology is still very much in its infancy. And as a result, they’re not exactly the easiest things to obtain.
For those new to bitcoin, one of the most attractive options is to simply meet somebody in person and pay them in cash. This does however pose a certain challenge i.e. finding a trustworthy stranger and finding a secure mechanism for handling the transfer.
While there are a number of different websites that provide this service, one of the best would have to be LocalBitcoins.com. The users are vetted, the user interface is largely intuitive and the transaction mechanism is as about as secure as it gets.
Should you find yourself in search of a way to buy bitcoins with cash, here’s how to do just that with LocalBitcoins.com.
Visit LocalBitcoins.com and sign up for a free account. Choose a username, enter your email address and choose a password. At this point, you will receive a verification email. Open it and verify your account before moving onto the next step.
Return to LocalBitcoins.com and log into your new account. You will notice a large orange box. Select:
- I want to buy bitcoins.
- Your current location.
- The amount of bitcoins that you want to purchase in GDP.
- Your preferred payment method, cash.
Finally, click “Find offers”.
You will be presented with a list of local traders willing to sell you Bitcoins in person for cash. To learn more about a seller, simply click on their name to view their profile. Pay special attention to their feedback score. Once you’ve chosen a trader, simply click the buy button.
Select the amount of Bitcoin that you wish to purchase, suggest a time and place in the message box, and click “Send Trade Request”. From this point on-wards, you can communicate with the seller via the LocalBitcoins messaging system.
Once the seller responds to your request, you will receive an email notification. At this point, return to LocalBitcoins.com, log into your account and go to your dashboard. Click View/Message to continue the conversation.
Once you have agreed on a time and a place to meet, ask the seller to fund the temporary transaction address with the correct amount of Bitcoins. Once this has been achieved, scroll down to “transaction status” and you will see that it has been funded. See Screenshot:
Once the transaction status changes to funded, write down the verification code highlighted above and take it with you to meet the seller.
Upon meeting with the seller, ask him/her to release the bitcoins from the temporary address into your Bitcoin Wallet. They can do this via text or WiFi. Once this has been completed, they will receive your verification code.
Finally, ask the seller for your verification code. Provided they have this code, you can be sure that the Bitcoins have been delivered to your wallet. It is now safe to hand over your money to the seller.
Tips for Using LocalBitcoins.com
- Reputable sellers are in hot demand and can therefore afford to charge a little bit more for their Bitcoins. This is a premium that’s well worth paying for.