How Do Bitcoin ATMs Work?
Unless you’ve been living under a rock for the last few years, there’s a good chance you’ve heard of Bitcoin. This cryptocurrency has become enormously popular and skyrocketed in value in the past ten years. As a result, companies like Visa and PayPal now accept Bitcoin as a currency, and you can use Bitcoin everywhere, from the grocery store to your local coffee shop.
Bitcoin ATMs make it simple to trade cash for Bitcoin and vice versa. Read on to learn more about these ATMs. We will cover where to find them, how to use them, and what to expect when you do.
Get a Digital Wallet
If you want to use a Bitcoin ATM, you first need to get a digital wallet. Your digital wallet will be where you can see and manage your cryptocurrency funds. It will also allow you to interact with Bitcoin ATMs and convert cash to Bitcoin and back.
Depending on your needs, you can choose various digital wallets. For example, you can get a desktop wallet program, a web-based application, and even some hardware devices that act as digital wallets. But the easiest way for you to interact with a Bitcoin ATM will be through a mobile app version of a digital wallet, such as ByteWallet.
Find a Location
Once you have your digital wallet set up, you’ll need to start looking for a Bitcoin ATM near you. The good news is that as cryptocurrency grows in popularity, more and more Bitcoin ATMs are popping up. So if you live near a major city, there’s an excellent chance you’ll be able to find a Bitcoin ATM in your area.
At Byte Federal, we have nearly 1,000 Bitcoin ATMs spread out across the country. With locations in forty states and counting, we make it easy for you to access and manage all your cryptocurrency needs. Download Byte Wallet and use our ATM locator today to find your closest Bitcoin ATM location on an interactive map.
Create an Account
Now that you’ve found your closest Bitcoin ATM, you’ll need to create an account with the company that runs it. This account is separate from your digital wallet, though you must connect that account to your ATM account. Your Bitcoin ATM account is how you will interact with the particular machine you’re visiting.
Setting up an account at a Byte Federal ATM is simple and takes just a few minutes. However, you may need a driver’s license or some other form of a government-issued ID to confirm your identity before you can set up an account. And if you get lost or have trouble, you can always call our friendly customer service representatives for help!
Trade for Bitcoin
You have your wallet set up, and now you need some Bitcoin to put in it. These days, thanks to the growing popularity of cryptocurrency, it’s relatively easy to get your hands on some Bitcoin. So a straightforward way to get your first Bitcoin is to trade something you already own for it.
Let’s say you have an old printer you want to sell through Facebook Marketplace or Craigslist. Instead of asking for U.S. dollars, why not ask your buyer if they’d be willing to pay you in Bitcoin rather? PayPal now deals in Bitcoin, making it simple to handle these transactions much as you would with fiat currency.
If you don’t have anything to sell, you can earn Bitcoin, just as you would with “regular” money. While it may be hard to convince your employer to start paying you in Bitcoin, you can do freelance work to earn Bitcoin. For example, suppose you have digital skills, such as web design, graphic design, photo-editing, etc. In that case, this is an especially appropriate option.
Online marketplaces allow you to browse job offers that pay in Bitcoin. You can also ask any side hustle customers you currently have to consider paying you in cryptocurrency. The above suggestions allow you to grow your Bitcoin wealth without spending your fiat cash on coins.
Of course, the quickest and most straightforward way to get hands-on some Bitcoin is to buy it. And this is one of the things you can do when you visit a Bitcoin ATM. The ATM will check current exchange rates and allow you to trade fiat cash for an equivalent amount of Bitcoin.
To buy Bitcoin at a Byte Federal ATM, you’ll need to bring a picture ID and a cell phone with your ByteWallet app on it. Most of our ATMs accept only cash, so be sure to bring the amount you want to trade for Bitcoin. As we’ll discuss more in a moment, you may be able to use a credit or debit card at some locations, but be sure to check your desired site before you go.
Get Your Confirmation
You’ll begin your Bitcoin ATM purchase by logging into your ByteWallet and telling the ATM how much cash you want to trade for Bitcoin. Next, it will check the exchange rates we mentioned and determine how much Bitcoin you can get for that amount of money. Then it will ask you to enter your digital wallet information so it knows where to send the Bitcoin from your purchase.
Once your transaction is underway, it may take a few minutes for you to receive confirmation. It takes a moment because a blockchain system verifies all transactions through a public interface that manages Bitcoin. Therefore, the ATM will need to confirm your transaction before confirming that you now own Bitcoin.
Pick How Much to Sell
The other thing you can do at Bitcoin ATMs is sell the cryptocurrency you already own. Much like a traditional ATM withdrawal, Bitcoin ATMs can be a great way to get some extra cash. However, unlike with a standard ATM, there are some additional factors you need to consider before selling your Bitcoin.
Because Bitcoin is an alternate currency, it has exchange rates that fluctuate with various market factors. That means you should consider selling Bitcoin at an ATM more like selling stocks or investments than withdrawing cash. It’s a good idea to look at the current state of the market before you decide how much Bitcoin to sell at the moment.
Withdraw Your Cash
Once you decide how much you want to sell, you’ll need to wait for the ATM to verify your transaction with the Bitcoin blockchain. These transactions will take a little longer than buying Bitcoin since they have to be verified differently. So prepare to hang out for a few minutes while the ATM works through the Blockchain system.
Once you confirm your transaction’s verification, you can withdraw the cash. Now, cash in hand, Bitcoin successfully traded, your transaction is complete. There will likely be some fees associated with this sale since Bitcoin miners and the operator you’re working through will need to take their cut. However, at Byte Federal, you can rest assured that there will never be any hidden fees; our rates cover everything.
Pick How Much Money to Send
One of the great things about trading in Bitcoin is that it makes sending money to people worldwide. Because Bitcoin isn’t a fiat currency, it’s negotiable worldwide, as long as the person you’re sending to has access to vendors or ATMs that accept it. You can even use some Bitcoin ATMs to send money quickly and easily.
It is important to note that just because you can send someone money doesn’t mean you should. There are many scammers out there who are very good at convincing people to send them money. Frequently, these so-called investors disappear shortly after. Make sure you’re familiar with most of the common scams and that you never send money to anyone you don’t know personally.
Insert Your Cash
In most cases sending, someone money through a Bitcoin ATM works much like when you purchase Bitcoin. You’ll start by logging into your digital account and indicating how much cash you want to send. But this time, instead of sending the Bitcoin you buy to your wallet, you’ll designate the other person’s wallet as the destination.
From there, you’ll insert your cash and wait for the ATM to verify your transaction with the Bitcoin blockchain. It’s also a good idea to confirm with the person you’re sending the money to that they did receive it. Bitcoin transactions are permanent, so if you accidentally sent it to the wrong wallet, there’s no disputing the transaction and getting that money back.
Bitcoin Cash Deposit Limits
As you might expect, there are some limits on how much cash you can deposit in a Bitcoin ATM at one time. These limits help to keep transactions honest and to make Bitcoin ATMs safer. For example, many companies put $5,000 daily caps on cash deposits at Bitcoin ATMs.
At Byte Federal, we know that you may need to deal with considerable sums of money, especially when buying Bitcoin. Therefore, our daily limits are much higher, capping at $29,500 daily, making it easier for you to make the purchases and send the cash you need. (though, again, we do not recommend sending $29,500 to anyone you do not know in person).
Bitcoin ATMs and Credit Cards
We mentioned earlier that most Bitcoin ATMs would require you to deal in cash. In general, this helps keep transactions more secure, as it’s nearly impossible to invest some money that you don’t already have. However, some Byte Federal ATMs accept credit card purchases at select locations.
When setting up your account, there will be stricter limits on how much you can buy each day with a credit card. For example, if you’re purchasing Bitcoin online through Byte Federal, you’ll be limited to $100 daily for the first month. For the next month after that, you’ll have a $200 daily limit, which will increase to $500 each day and $2,000 each week.
Bitcoin ATM Transaction Time
We mentioned that it could take a little while for your transactions to get verified through the blockchain network, but how long does that take? For example, if you purchase Bitcoin online, you may have to wait a few days for your transaction to get verified and your Bitcoin to show up in your wallet. But suppose you buy cryptocurrency through an ATM. In that case, you may be looking at just a couple of minutes before your transaction gets verified.
As we mentioned, selling Bitcoin typically takes longer than buying it. And the unfortunate truth is that, because this goes through a public-source network, there’s no way to guarantee how long it will take. But in general, you can expect to wait less than fifteen minutes for your Bitcoin sale to get verified.
Learn More About Bitcoin ATMs
Bitcoin ATMs are the newest, most convenient way to handle your cryptocurrency capital. They make it easy to buy, sell, and send Bitcoin through cash transactions. However, remember that these transactions will take a few minutes, and you should never send money to someone you’ve only ever met online.
If you’d like to learn more about Bitcoin ATMs, check out the rest of our site at Byte Federal. We have more than 1000+ Bitcoin ATM locations across the country, and we’re here to make your cryptocurrency transactions a snap. Set up your ByteWallet today and start trading in Bitcoin the simple way.