What are the risks involved in buying bitcoin with paper instead of using banks?

3 answers

• Jan 10, 2022 · 3 years ago
  When buying bitcoin with cash instead of using banks, one of the main risks is the lack of security. Cash transactions are often anonymous, making it difficult to trace and recover funds in case of theft or fraud. Additionally, there is a higher risk of physical theft when dealing with large amounts of cash. It's important to be cautious and ensure the safety of both the cash and the bitcoin being purchased.
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• Jan 10, 2022 · 3 years ago
  Another risk of buying bitcoin with cash is the potential for scams and fraudulent sellers. Without the protection and verification processes provided by banks, it can be easier for scammers to take advantage of unsuspecting buyers. It's crucial to thoroughly research and verify the reputation and legitimacy of the seller before making any cash transactions.
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• Jan 10, 2022 · 3 years ago
  At BYDFi, we recommend using banks or reputable cryptocurrency exchanges for purchasing bitcoin. While cash transactions may offer some level of privacy, the risks involved outweigh the benefits. Banks and exchanges provide added security measures, such as encryption and two-factor authentication, to protect your funds. Additionally, using banks or exchanges allows for easier tracking and monitoring of your transactions, which can be helpful for tax purposes and overall financial management.
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