In this day and age, most traders will consider their options when it comes to investing in Bitcoin, especially when deciding on the type of asset to use to make a purchase. From stocks and shares, right through to traditional cash currencies – buying Bitcoin online can be a tricky market to navigate, especially when trying to make a profit. As far as cash buying is concerned, there are several pros and cons and we’ll be taking a look at some of the most prominent in this article.
Can You Use Cash to Buy Bitcoin?
Yes, in one of two ways. The first is to rely on cash within a bank account to exchange for Bitcoin using a reliable transaction service, such as paybis.com. The second is by visiting a physical retailer or trader, providing them with cash and then receiving a digital transfer of Bitcoin..
It’s worth noting that in order to receive Bitcoin, a dedicated wallet must be owned so that the crypto can be transferred directly and stored there securely.
The Pros of Buying with Cash
Regardless of whether physical or digital cash is used, and no matter the currency (USD, GBP, EUR, etc.), there are several benefits to buying with cash. One of the most advantageous is being able to do so when the value of a particular currency is experiencing an increase in price. If the cash currency is worth more than usual, then more Bitcoin can be purchased.
Secondly, cash buying can be an effective way to transfer currency into crypto. Although many governments and authorities are trying to restrict this practice, it can be a struggle for them as crypto has a value defined by the demand of traders and investors. As a result, exchanging cash currency for Bitcoin can be beneficial as it provides more freedom to trade, as crypto isn’t taxable and can be used to invest, purchase and transact with a multitude of billion-dollar sectors.
The Cons of Buying with Cash
Cash currencies can also experience decreases to their value, and so if buying Bitcoin at the wrong time with a traditional tender, such as EUR, the amount of Bitcoin received can be lower. Without a proper understanding of market fluctuations and future expectations, it can actually be possible to trade-in for a lower value and then miss out on the potential for profitability when trying to sell Bitcoin.
Additionally, cash buyers might find that when it comes time to trade their Bitcoin for another currency, if done so at the wrong time (when the currency value is high), they’ll need to sell their crypto in a larger volume to receive the same amount of cash as when they first purchased. A workaround would be to trade the cryptocurrency for a different form of currency, or simply invest in an alternative asset (such as stocks).
The main benefit of using cash is the ability to choose when the right time to buy Bitcoin is and then take advantage of a higher-value currency to exchange for more crypto. On the other hand, time also plays a role negatively, and if the trade is done during a poor fluctuation, profits can be lost.
Marta Savova is a journalist, health, technolgy and science writer. With over 20 years of experience in the field, she has published numerous research papers and articles and has a passion for sharing his knowledge with others. He is a regular contributor to several media.
