There has been explosive growth in the world of crypto in recent years. A growth that has seen digital assets such as Bitcoin, Litecoin, Ethereum, and others become massively popular among investors and enthusiasts alike. Although using online platforms to buy crypto is one of the commonly used options, some people prefer to buy cryptocurrency with cash.
The beauty of buying cryptocurrency with cash is that it can be a more convenient and private way to buy virtual assets. However, it still comes with some risks and challenges that you need to take precautions to avoid. Below are some safety tips to follow when you want to buy cryptocurrency with cash:
Check the seller’s reputation
One of the main ways you can buy cryptocurrency with cash is to purchase directly from sellers you can contact online through social media or peer-to-peer platforms. While these platforms help to connect buyers and sellers, you are responsible for checking the seller’s authenticity and ensuring they are reliable before you decide to buy from them.
You should do a background check on the seller, especially their history and reputation. You can check out reviews and feedback from buyers who have transacted with them previously to ensure the seller has a positive reputation.
Use a reputable crypto exchange office
Another option you can choose to buy cryptocurrency with cash is through an exchange that runs physical offices that people can visit and transact. If you choose to go with this method, you need to select a reliable crypto exchange that has no history of customers losing their assets to scammers or in other ways. You also need to check what previous customers say about their service and choose an exchange with a good service.
Meet sellers in safe locations
When you want to buy crypto with cash from a seller who is a stranger, whom you have probably met online, you should take adequate precautions and only meet them in safe public places such as coffee shops. You could also consider meeting them in a police station parking lot or places with video surveillance to discourage potential criminals—or to have video footage of the meeting.
Use a secure escrow service
When you are buying cryptocurrency with cash, there is a risk of the seller pocketing the cash but not delivering the digital currencies. To avoid such problems, it would be best to consider using a reliable third-party escrow service as you transact. The escrow service holds the assets until both parties meet their end of the bargain and fulfill their obligations. This way, you can reduce the risk of losing your cash to unscrupulous sellers.
Use a mobile wallet
You should consider installing a crypto wallet on your smartphone as you embark on buying cryptocurrency with cash. The purpose of doing this is so that you can verify that the seller has sent you the cryptocurrency into your wallet before you complete the cash transaction.
Trust your instincts
You should trust your sixth sense as you transact, and if you feel something is not quite right, or you’re not comfortable with the situation, you should not go ahead with the deal. It would be better to abort the exchange than to risk your financial security or safety.
If you want to buy cryptocurrency with cash, you should take proper safety and security precautions. While it is a viable and private method to acquire digital assets, it has some risks. Therefore, before you close any deal, conduct thorough research and follow the above tips for a secure and successful transaction.
Solomon Njoroge is a freelance writer with broad experience writing about Cryptocurrency, Technology, E-commerce, and other niches for various websites and publications. He is passionate about researching and writing content that enlightens readers, especially about creating wealth and business matters, to enhance success in entrepreneurship.