Pros and Cons of Buying Bitcoin with Cash
One of the many ways to purchase Bitcoin is by paying with cash. You can buy Bitcoin with cash through a peer-to-peer exchange, a centralized exchange, a Bitcoin ATM, and an in-person Bitcoin exchange office among other options. For each of these channels, there are benefits and drawbacks. An outline of the benefits and drawbacks of buying Bitcoin with cash is provided in this article.
Pros of Buying Bitcoin with Cash
This section will look at the benefits of buying Bitcoin with cash at any of the exchanges mentioned above. Let's look at them now.
A speedy deal
Each time a Bitcoin transaction involves a cash payment, the process is very fast. This is due to the fact that traders do not have to deal with the inconvenience of networks involved in other payment methods. For example, a solid network connection is required if you wish to make a payment using a credit or debit card. If the connection is good, the payment will be verified in a matter of minutes. However, if the connection is weak, it can be hours or even days before the seller receives their payment. Bitcoin transactions cannot move forward without proof of payment. But this issue is not present while using cash, resulting in a quicker transaction as a consequence.
Ideal for a small amount of Bitcoin
In terms of safety, buying Bitcoin with cash benefits those who want to purchase a smaller amount over those who want to purchase a larger amount. This is due to the fact that purchasing a small amount of Bitcoin will only necessitate using a small amount of money. It is safer to carry a little amount of cash than a larger amount.
Some fees are avoided
In all Bitcoin transactions, there are fees associated with every other payment method aside from cash payments. Whether you pay using a debit or credit card, PayPal, SWIFT, SEPA, or bank transfer, all have payment fees associated with them. Since you are handing the seller cash, this fee is avoided when using the cash payment option.
Cons of Buying Bitcoin with Cash
Although buying Bitcoin with cash has many advantages, there are some drawbacks as well. Let's investigate them.
Not ideal for high volumes of Bitcoin
For Bitcoin investors or traders who wish to purchase large amounts of Bitcoin, buying Bitcoin with cash is not an option. This is due to the fact that purchasing in large amounts requires carrying large sums of cash. They could be robbed while going to the exchange or the person they wish to buy from, especially if they are in an unsafe region. Additionally, the money could become physically difficult to transport and carry.
Not all exchanges accept payment in cash
Cash payments in physical currency are only accepted in person at physical Bitcoin exchange offices like those operated by NakitCoins and Coinsfera. They are not accepted by other exchanges. Furthermore, these two exchanges only have a few branches, which prevents certain investors from easily accessing them.
This article has looked at the benefits and drawbacks of buying Bitcoin with cash. To determine when you should take this into consideration as a payment alternative, carefully evaluate them.