I am sure by now you have heard of bitcoin. It’s the digital currency that has emerged in the last five years and has rallied in price to reach over $1000 per bitcoin in late 2013. However, bitcoins are not only an investment, they can also be used to purchase goods and services at over 100,000 merchants globally. In this post, you will be introduced to five ways you can buy bitcoin without a bank account.
LocalBitcoins is the leading global over-the-counter bitcoin trading platform. Its service facilitates over-the-counter trading of local currencies in exchange for bitcoins in almost every country in the world. Interested parties post advertisements on the website where they state exchange rates and the payment methods for buying and selling bitcoins. Some users may reply to the advertisements and agree to meet the seller to purchase the bitcoins with cash or pay using online banking procedures. LocalBitcoins, apart from being a platform that links bitcoin buyers and sellers, also offers a feedback and reputation mechanism for users and an escrow service to prevent fraudulent transactions. I have personally used this service in London on numerous occasions and it worked perfectly fine. However, I highly recommended checking the reputation rating of your counterparty before agreeing to a transaction to ensure everything will go smoothly.
Paxful is a service that lets you purchase bitcoins and sell the virtual currency to any peer around the world. The site features a simple interface where users can create a wallet, get access to free merchant tools and build a reputation. At its core is a linking service that allows buyers and sellers of bitcoins to find each other plus an escrow service that protects
their transactions. As much as Paxful does not support in-person local trades, the online vendors are verified to guarantee buyer safety plus those who give new buyers the support they need get rewarded. An added advantage of Paxful is that it is deposit-less and does not have waiting times.
LibertyX is a bitcoin automated teller machine operator that manages machines in high-profile locations near United States universities like MIT and Harvard. The company is based in Boston and recently partnered with Qpay, a transaction processing specialist, to launch cash-for-bitcoin buying services through mobile phones and convenience stores throughout the US. As an upside, LibertyX sells you your first US$1,000 in Bitcoin without any fees. After that, it’s only a 1 % markup from spot price. The downside is that they won’t sell to you bitcoins without you handing over your personal details first.
A bitcoin ATM is an automated teller machine that allows an individual to exchange bitcoins for cash. Some ATMs even allow for both the purchase of bitcoin as well as redemption of bitcoins for cash. However, they are different from the traditional ATMs in that they are connected to the Internet. This feature enables the insertion of cash in exchange for bitcoins issued as a paper receipt or by shifting money to a public key on the blockchain. However, the downside of using ATMs is that they may charge transaction fees as high as 7% and exchange rates can be sub-optimal at times.
Wall of Coins
Wall of Coins is a transparent peer-to-peer market for buying and selling bitcoins. Wall of Coins directly connects buyers and sellers in a manner that is intelligent, trustworthy, and secure. The service is advantageous in that it is the first fully transparent market and also, the first to store funds entirely in cold storage. Also, only the email address and phone number are needed. Other verification requirements are not needed in order to make a transaction.
There are three payment methods that are available: Bank of America’s Teller Assist, cash deposit in various bank branches, and MoneyGram deposits. After keying in your details, Wall of Coins texts you a password which you then enter on their website to confirm the order. You then have three hours to deposit your cash into the bank account of the seller. Text a confirmation code back to Wall of Coins once you’ve made your deposit and your coins will be released to you from their escrow account and that’s it!
When purchasing bitcoins always make sure you get the best possible price with lowest possible transaction fees.