How to Buy Ethereum with Cash
In terms of popularity, Ethereum is second only to Bitcoin. If you are considering purchasing Ethereum using cash, you should be aware of some of the fundamentals concerning Ethereum.
First off, Ethereum, technically speaking, is not the cryptocurrency itself. Rather, it is its own blockchain. The currency that runs and that fuels the Ethereum blockchain is known as Ether. However, it is not uncommon to see the term “Ether” and “Ethereum” used interchangeably when referring to the currency portion.
1. Points for Consideration
While the process for purchasing Ether with cash is very similar to that for purchasing other forms of cryptocurrency, there are a few unique subtleties related to Ether.
Before you get started you should have a clear idea of how much Ether you wish to purchase as well as what level of privacy and anonymity you wish to have.
2. Fees
Regardless of your method of payment — be it cash, credit card, or PayPal — there will always be some type of fee that must be paid. Purchasing Ether with cash normally involves some form of bank deposit. Since teller deposits normally do not incur a fee, the only fee to be covered is that of the transaction fee put in place by the platform that you are using for the purchase.
If bank or wire transfers are involved, you must account for the added fees that such services will require.
3. Revealing Personal Information
It is accurate to say that identification verification requirements are closely correlated to the amount of Ether that is being purchased. The higher the amount of Ether, the more likely that the platform on which you purchase it is going to require you to submit copies of your personal identification. These requirements will usually consist of images of a formal piece of identification, proof of address, and some will even require you to send a selfie holding up this documentation.
4. Ether Wallet
In order to complete your purchase of Ether, you are going to require an Ether wallet. We have other articles and guides that go deeper into explaining what an Ether wallet is and how to obtain one. For now, suffice it to say that it is an alphanumeric address that allows others to send you Ether. A rough analogy would be to see it as a bank routing number so that people can transfer funds to you.
There are wallets that reside online, others that reside on your computer or cell phone, there are also those that reside on stand-alone hardware — there are even paper wallets. Any of those choices can be used to receive your Ether.
5. How Long Does Buying Ether in Cash Take?
There are two main factors that come into play that determine how long it takes to complete a transaction involving the purchase of Ether. If you start the clock running the moment that you deposit or otherwise send your payment and stop it when your Ether appears in your wallet, the process can take as little as 20 to 30 minutes, or as much as several hours.
The first time factor to consider is how long it takes you to submit the payment. If it involves a bank of deposit, that would include the time that it takes for you to go to a branch and make a teller window deposit. Then you must add the time that it takes for you to upload the verification of your deposit — usually an image of your deposit slip. You must then wait for the platform that you are using to validate your deposit. Bank transfers might be faster in this regard.
Once your deposit has been verified, it will then take at minimum the time for a new block to be hashed on the Ethereum blockchain — usually 20 to 25 minutes — for your Ether to show up in your wallet.
6. LocalEthereum.com
LocalEthereum is what is known as a peer-to-peer Ether marketplace. It is a digital platform that brings buyers and sellers of Ether together. The platform only serves to broker the deal and to structure the escrow smart contract that protects the parties involved.
The smart contract resides on the Ethereum blockchain. It is structured so that proof-of-funds exist for both buyer and seller. This allows for both parties of the transaction to be protected. It ensures that the seller will get their payment and that the buyer will receive their Ether.
Each seller on LocalEthereum can choose what method of payment they are willing to accept. This can include bank deposits, bank transfers, international wires, and even in-person cash transactions.
One thing to be aware of with LocalEthereum and other peer-to-peer marketplaces is that as a buyer you will be subject to the availability and conditions of the sellers.
LocalEthereum is a good option for privacy and anonymity. Not only do the smart contracts and decentralized escrows offer maximum privacy by residing on the Ethereum blockchain, but even their ancillary services, like the communication portal for buyer and seller, is encrypted end-to-end using the Signal protocol. Additionally, for buyers that do not have an Ether wallet, they can obtain one free of charge on LocalEthereum. Even though it is embedded in your web browser, it generates the private keys offline. That adds a powerful layer of security for an online wallet. It basically keeps the access to your Ether off their servers.
When it comes to using cash to purchase Ether, peer-to-peer marketplaces such as LocalEthereum are one of your strongest options.
7. Bittylicious.com
If you live in the UK, Bittylicious is a platform for buying and selling Ether. You can pay via a bank transfer or use the “Pingit” feature if you have a Barclay’s bank account. True, these forms of payment are not as anonymous as a teller deposit or a direct cash purchase, but they still qualify as cash sales.
8. Coinbase
Coinbase is one of the best-known cryptocurrency exchanges in the world. Their platform allows you to purchase Ether through your bank account. The process requires you to register for a Coinbase account. You must then link your bank account to Coinbase. Once that your bank account is verified, you can use it to fund your purchases of Ether.
The fees are incorporated into the exchange rate that Coinbase quotes you at the time of your purchase of Ether.
Join CoinBase Now9. CEX.io
Known primarily as a platform for Bitcoin, CEX is another well-established cryptocurrency exchange that will allow users to purchase Ether with bank transfers. These can be SWIFT or SEPA based.
CEX offers you the method to purchase Ether and then have it deposited immediately to your Ether wallet. It also has a powerful trading platform in case you want to open trading positions in Ether after you purchased it with cash.
Visit CEX.IO Now10. Conclusion
Although the cash options for purchasing Ether are not as broad as those for Bitcoin, there are still enough solid and reputable platforms for this purpose to make it fast and easy.
If there is no concerted reason for you to limit yourself to cash for your Ether purchases, then you can broaden your options by using credit cards, debit cards and PayPal.