In the past, only cash could be withdrawn from an ATM, but now digital currencies like Bitcoin can be withdrawn. This article explains what Bitcoin ATMs are and how to use them.
In the past, if you wanted to buy Bitcoin, you were either going to need a computer or you were going to have to go through a series of laborious steps in order to get your hands on it.
Bitcoin automated teller machines (ATMs) are connected to the internet and frequently make use of quick response (QR) codes to transfer and receive tokens to and from customers’ digital wallets.
More than 14,000 automated teller machines that accept bitcoin are currently operational across the globe.
A common place to begin when reading how to buy bitcoin (BTC) is with the recommendation that you should first open an account with a cryptocurrency exchange and then either download or purchase a cryptocurrency wallet to store your bitcoin in.
However, there is an additional straightforward method available for acquiring bitcoin that does not require a computer, let alone a cryptocurrency exchange.
With a Bitcoin ATM machine, people have the opportunity to purchase Bitcoin (BTC) by inserting cash or their debit cards and completing a few fundamental steps.
Bitcoin ATM: What it is?
A bitcoin ATM is a self-service kiosk where users can deposit cash and withdraw bitcoins or other cryptocurrencies in exchange for those funds.
A bitcoin ATM is different from a traditional ATM, from which one can withdraw, deposit, or transfer fiat currency. Instead, bitcoin ATMs generate blockchain-based transactions that deposit cryptocurrency into the user’s digital wallet, typically via QR code.
People can use cash or debit cards at Bitcoin ATMs to purchase bitcoin and other cryptocurrencies. However, the name “automated teller machine” can be deceptive.
Bitcoin ATMs differ from traditional bank ATMs in that they don’t provide users access to their own bank accounts. To buy or sell bitcoins at a Bitcoin ATM, no account or verification is necessary.
Bitcoin ATMs, in contrast to cryptocurrency exchanges, allow customers to retain custody of their own bitcoin by sending the coins straight to a cryptocurrency wallet of their choosing.
You can choose to have your coins delivered directly to your “deposit address” on a decentralized exchange like Binance or Coinbase (COIN), where the exchange will act as custodian.
Perks of a Bitcoin ATM
- Financial Confidentiality
- Safety and Security
- Easy Use
- Speedy
Financial Confidentiality
The KYC process of getting Bitcoin is obligatory if you intend to use your wallet to buy and sell cryptocurrencies on an exchange.
Therefore, the exchange receives your information. This means that anyone can collect your data and share it with whomever they please. No financial dealings can be conducted in complete secrecy.
Bitcoin ATMs, on the other hand, are completely devoid of any such items.
Safety and Security
Bitcoin ATMs are highly secure, which is yet another argument in their favor. Any time you use an ATM that is located in a different building, you can rest assured that your transaction will be secure. There is no mediator between them in this exchange.
You’re only dealing with the bitcoin you’re using and the ATM. Using a stock exchange to buy and sell bitcoins exposes users to the risks of fraud and hacking. Bitcoin ATM transactions, on the other hand, are safe and secure because they involve no intermediaries.
Easy Use
Bitcoin ATMs can be easily managed by anyone familiar with conventional ATMs. These ATMs do not use a complex trading exchange method or any form of computer malware. This makes them the easiest method for conducting business in cryptocurrency.
Speedy
Additionally, the quickness of an ATM that accepts Bitcoin is a fantastic argument for using it. You do not need to register in order to make a digital coin transaction using your wallet information.
They are effortless to employ. Therefore, you are not required to go through a long KYC or registration process. A bitcoin transaction takes only a few minutes to complete, and there is no lengthy verification procedure.
Downsides to Bitcoin ATMs
- Poor customer service
- Transaction fees
- Availability
Poor customer service
Bitcoin ATMs are identical to their traditional ATM counterparts. In the same way that any modern technological device can have a software glitch, a lack of currency, or any other kind of mistake, automated teller machines are no exception.
Users can and should reach out to their preferred cryptocurrency firm in such situations. However, they may have to wait a while for that to bear fruit before they can justify using that bitcoin ATM.
The development of bitcoin ATMs is still in its infancy, which is why this is the case. Bitcoin cash-out providers have yet to establish a fully developed infrastructure.
Transaction fees
On average, bitcoin ATMs will charge you about 8% in fees. However, the word “average” should be emphasized because some businesses charge as much as 30% for every transaction. Consequently, despite their practicality, they are notorious for their exorbitant transaction fees.
Availability
Bitcoin ATMs are still uncommon because the technology is still relatively new (in a traditional sense). According to recent estimates, there are around 3,000 bitcoin ATMs in operation across the globe.
As technology evolves, more and more automated teller machines will be able to process cryptocurrency transactions.
How to use a Bitcoin ATM
- Download a crypto wallet
- Get a Bitcoin address
- Complete KYC
- Key in your desired amount
Download a crypto wallet
A commonplace feature of bitcoin ATMs is a QR code that directs users to download a specific cryptocurrency wallet that is compatible with the machine.
The Coinbase crypto wallet is widely used, but there is a long list of alternatives to consider. To begin using Bitcoin, if you haven’t already done so, download the wallet and run through the setup wizard.
Get a Bitcoin address
Your newly made wallet will automatically generate a one-of-a-kind bitcoin address. This address is where the Bitcoin ATM will deliver the coins you acquired after the transaction is confirmed and finished.
Following the on-screen directions is all that is required to use a Bitcoin ATM because they are designed to make purchasing bitcoins as easy as possible for anyone who has used an ATM in the past.
Complete KYC
The machines will be somewhat different from country to country and location to location, and some may require you to complete know-your-customer (KYC) processes before they will allow you to make a transaction. Both the minimum and maximum allowable purchase quantities are subject to change.
Key in the desired amount
You’ll need to input the amount you desire to buy and your cryptocurrency wallet address after you’ve set up the wallet and found your wallet address for incoming transactions.
As opposed to manually entering the information, most people simply scan the QR code displayed on their phone’s screen (which can lead to mistakes and cause your funds to be lost forever.)
It takes about 10 minutes to complete the transaction, but it could take up to an hour.
Final Thoughts
The expanding variety of public cryptocurrency usage choices may tip the scales in favor of investment.
If you already have some cryptocurrency, you might want to try out bitcoin ATMs and see if you like what they have to offer.
Seeing your cryptocurrency in the form of cash in your hands will prove the long-term success of bitcoin ATMs.
