What is Face-to-face transactions?

Selling Bitcoin P2P at an in-person location is also a possible method. Some online platforms facilitate selling BTC in person for cash, while parties may also simply choose to meet up with friends or family on their own and sell Bitcoin for cash. Selling Bitcoin in person requires you to understand how to send Bitcoin and work with a crypto wallet, or the platform on which you hold your funds (such as if you hold your funds on an exchange, for example).

Bitcoin’s value constantly fluctuates, so it’s important to know its price at the time of an in-person sale. Most traders use rates from prominent exchanges. Alternatively, services such as Cointelegraph’s Bitcoin Price Index can be used to identify the latest price of the crypto asset.

In some parts of the world, physical locations or shops also exist at which participants can go to exchange Bitcoin for physical currency, or exchange physical currency for Bitcoin.

It is important to take into account, however, that Bitcoin can trade at different prices across exchanges, and at differing prices in various regions globally. This discrepancy is called a “premium.” Essentially, a Bitcoin price premium is the amount at which an asset trades above or below the rest of the market or an underlying asset’s price (when referring to other types of trading, such as futures).

Bitcoin commonly trades at comparatively higher prices in South Korea — a market state that has been labeled the “Kimchi premium.” The Coinbase Pro crypto exchange has also been known to have a Bitcoin price premium

If you organize an in-person Bitcoin sale with a stranger, whether via a platform or otherwise, it is important to exercise caution. Potential dangers exist when trading Bitcoin in person with strangers, similar to the risks that come with other in-person financial transactions.