Despite the price fluctuations and risks associated with investing in cryptocurrency, people still want to have some of these virtual coins for themselves. And on top of the list for many crypto beginners is a piece of the original cryptocurrency; Bitcoin. Because most people cannot afford to carry out mining of Bitcoin, the easiest way to own some is buying. Now, there are different ways of buying Bitcoin including credit card, PayPal, bank transfer, cash, and through use of other cryptocurrencies.
While you can get services at a dedicated exchange, buying Bitcoins directly from other people is faster, safer and most importantly, offers more anonymity to the parties in the transaction.
If I told you that you can buy BTC in cash, then I am sure one of the things you’d have wanted to know from me would be how to buy bitcoin from other people directly. After that, you would want to get a list of the options you have when seeking to buy Bitcoin person-to-person.
Well, this article will explain how to buy bitcoins from other people, directly. We should understand that you can actually get Bitcoins from your family, friends, people you meet on social media platforms and/or through an exchange that connects sellers and buyers.
- 1 Are there any advantages of buying bitcoins from another person directly?
- 2 How to buy bitcoins from people using Localbitcoins?
Are there any advantages of buying bitcoins from another person directly?
- One of the main advantages is that most times, you wouldn’t be required to provide documentation to prove who you are.
- There are no extended verification delays- it’s almost instant; as soon as you pay the seller, you get your BTC.
- When done properly, this kind of purchase gives both the buyer and seller anonymity because you don’t need to disclose your personal information like names, addresses or bank details.
What about cons?
- Locating a trustworthy person can be a challenge.
- The process of agreeing to the price and amount of bitcoin can be long.
- Seller’s preferred payment method may not be suitable for you.
How do we then go about buying bitcoins from other people directly?
If it’s not your family or close friends you are transacting with, then the next best option is to find a reputable online exchange that will help you locate a seller. For transactions with family and friends, you may just give them your public key and once they send you BTC, you proceed to pay them.
There are a number of bitcoin marketplaces that will allow you to connect with a prospective seller by posting seller’s information on the website. These websites, which include popular sites like Paxful and Localbitcoins, have escrow services that ensure the buyers are protected against fraudulent transactions.
Sites like Localbitcoins provide user feedback so that you can gauge whether a seller has a good history or not. That helps you decide who to transact with and on your terms. Also important is the fact that these sites help you build your reputation online as a trustworthy buyer.
A word of caution:
Bitcoin and crypto in general, attract a lot of criminals who seek to exploit anonymity and irreversibility to rob people. Such cases have been on the rise and therefore, you are advised to always arrange to meet sellers in public places and to avoid odd hours.
With that in mind, let us examine a few options available for you to buy bitcoins face-to-face.
How to buy bitcoins from people using Localbitcoins?
Localbitcoins is a popular and highly trusted site that helps you buy bitcoins from people near you. The site provides a directory of sellers, complete with their transaction history and feedback from the community.
To buy, sign up for an account and login to browse sellers.
Once you pick your preferred seller, the site provides for seller-buyer messaging where the deal is completed.
The seller deposits bitcoin into an escrow account and you pay the seller before you get your BTC.
- Localbitcoins provides services worldwide and supports all currencies within the region
- Payment methods accepted- cash, bank transfer, PayPal, Neteller, MoneyGram and Western Union.
- Fee – 1% fee charged
- No verification required
Buy bitcoin instantly by cash on Paxful
Paxful is one of the best places to buy BTC instantly, in cash, and in person. It is that simple. The only thing you need to do is to find someone in your area who wants to sell and make a deal.
To transact on Paxful, go to their website and search check the offers on display.
You will need to create and log in to an account to access the offers. On the site, you can search or request for the best offers.
Sellers can specify whether they need verification or not.
- Supports all countries
- Fee – Paxful charges a 1% fee on all transactions
- No verification required
- Payment methods include cash, gift cards, credit cards, PayPal among others.
Buying Bitcoin in Person over the Counter
You can buy BTC using Bitcoin-OTC directly from other people. The site offers a listing service where you can access sellers. The site provides a platform on which you can assess a seller using the feedback history. Furthermore, BTC-otc is supported worldwide and doesn’t specify payment methods. This is good because it’s you and the seller who gets to agree on the most appropriate payment option.
- No verification is required when using the Bitcoin- OTC site.
- Uses an IRC channel and GPG/PGP public keys.
- You’d also have to find a third party escrow provider before you complete the sale, making it less anonymous.
- Very low fees and you can use whatever payment option is suitable for you.
Buying Bitcoin directly from other people is the best way to maintain anonymity during transactions. Although you can do this at a number of exchanges, caution should always be taken when dealing with strangers. Remember that Bitcoin is highly sought, including by criminals. Therefore, ensure you keep your purchased BTC in a safe offline wallet.