What if you didn’t know how to make the absolute most of your favorite cryptocurrency?
If you don’t know how to use a Bitcoin ATM, you’re not getting the most out of your investments. And you might even miss out on some critical financial opportunities if you don’t master the ATMs.
So what are these ATMs, and how do you use them? Keep reading to discover the answers!
What Is a Bitcoin ATM?
Our guide will walk you through exactly how to use a Bitcoin ATM. First, we need to answer a more fundamental question: What are these particular kinds of ATMs?
The basics of a Bitcoin ATM are right there in the name. It is a type of ATM that allows users to buy and send Bitcoins.
While that seems straightforward enough, it’s essential to understand Bitcoin ATMs and regular ATMs’ differences. For example, the primary purpose of a standard ATM is to help users withdraw cash when they need it. However, because cryptocurrency is decentralized and has no physical form, most Bitcoin ATMs don’t allow you to withdraw cash.
However, Bitcoin ATMs do accept cash, typically in the form of bills, allowing users to buy Bitcoin and other types of cryptocurrency when they are on the go.
Now that you know the basics of what a Bitcoin ATM is, it’s time to answer a fundamental question; Why should you use a Bitcoin ATM in the first place?
The Benefits of Bitcoin
Bitcoin has been around since 2008. However, the original creator of this cryptocurrency is shrouded in mystery. Between this and general public confusion, many interested in Bitcoin aren’t sure whether using Bitcoin is a good decision.
Are you personally on the fence about whether to start using Bitcoin or not? In that case, let’s take a closer look at some of Bitcoin’s benefits!
Perhaps the most significant benefit of Bitcoin and other forms of cryptocurrency is that you may be able to grow your investment dramatically. Bitcoin has become the “face” of cryptocurrency because of how much it has gained in value in only 13 years. So that quick transaction you make at a Bitcoin ATM may pay off tremendously.
Bitcoin transactions are also very safe. Thanks to the blockchain, you don’t have to worry about the traditional fraudulent activity that often comes with debit and credit cards and banks.
Finally, Bitcoin helps you have your cake and eat it, too. Cryptocurrency enables you to diversify your investments innovatively and excitingly. At the same time, things like Bitcoin ATMs help keep your money relatively liquid to use it whenever you want to.
As great as these benefits are, no form of currency is perfect. And we’ve got the lowdown on the potential drawbacks of using cryptocurrency.
Are There Any Drawbacks?
The exciting thing about Bitcoin and other forms of cryptocurrency is that the pros and cons are closely entwined. In fact, for each of the most significant Bitcoin benefits, there are minor drawbacks you should be aware of.
For example, while cryptocurrency offers you a chance to enjoy very high returns, you can also lose a lot of money in reasonably short order. Because this is such a volatile investment, it’s essential to go into every transaction only after doing your homework!
Similarly, the blockchain prevents your Bitcoin investment from getting caught up in traditional forms of financial fraud. But it would be best to be wary of issues such as black market crimes in which unscrupulous people steal digital wallet keys and make off with other people’s money.
Finally, while the liquidity of Bitcoin makes it a great way to diversify your investments, users should also be aware. There is no way to get your money back. That would mean no refunds, even if someone stole your money.
While some of the drawbacks may sound scary, it’s important to remember that these things rarely happen. Overall, investing in and using Bitcoin is safe and rewarding for users worldwide, especially once they master aspects of cryptocurrency such as the digital wallet.
The Role Of Your Wallet
Are you relatively new to the world of Bitcoin? In that case, you may be wondering where your virtual currency will be stored. Fittingly enough, you hold such currency (or, more accurately, records of your currency) in a virtual wallet.
How does this digital wallet work? The wallet helps keep a record of the cryptocurrency transactions you have made. By downloading a wallet to your smartphone, you can access important information about your Bitcoin wherever you go.
As you might imagine, having the right wallet can make a big difference when it comes to your financial security. Therefore, we recommend downloading ByteWallet today so you can begin enjoying its many convenient features.
The Importance Of Your Wallet Key
Speaking of digital wallets, you may be wondering how to open yours. After all, you can’t simply take it out of your pocket and fold it apart with your hands!
Instead, your digital wallet will come with a unique digital key. Most of the time, this is like a longer and more alphanumeric pin code. However, in some cases, you may be able to open your wallet by scanning a unique QR code.
Regardless of what form your wallet key takes, guard it very closely. If someone were to find out what your key is, they might access your cryptocurrency.
How To Use a Bitcoin ATM: Buying Cryptocurrency
Let’s say that you have your digital wallet, a secure wallet key, and now you want to buy some cryptocurrency. Did you know that you can get started with a Bitcoin ATM?
First, you need to create an account with the ATM company. Once you have an account secured, you can log into the ATM and buy Bitcoin.
The second step couldn’t be more straightforward. You insert cash, giving the ATM the exact amount of money you would like to purchase cryptocurrency. Of course, there will be a fee for this transaction like traditional ATMs.
Third, you need to enter the digital address of your wallet. You can then send the Bitcoin or other cryptocurrency you buy directly to your wallet.
And that’s all there is to it! Again, there is no need to receive any physical currency or receipt. Instead, your wallet will have a record of this transaction.
Selling Cryptocurrency Via ATM
As you can tell, buying cryptocurrency with a Bitcoin ATM is very straightforward. But what if you’d like to sell your cryptocurrency instead?
The first step is the same as above: you must log in to the Bitcoin ATM. And you will need to have cryptocurrency in your wallet if you intend to sell it.
The second step involves selecting how much of your crypto you wish to sell. Third, you need to verify the wallet address where your crypto is stored.
Fourth, you may need to wait briefly to verify your sale on the blockchain, which can take a bit longer than when you are simply buying currency. But choosing a faster machine (such as a Byewallet Bitcoin ATM) can speed the process up.
Finally, don’t forget that there are ATM fees on crypto sales and purchases.
Using a Bitcoin ATM To Send Crypto
There are several similarities and differences between Bitcoin ATMs and traditional ATMs. But one advantage that a Bitcoin ATM has is that you can easily send crypto to someone else with the touch of a button!
Once more, you begin by logging in. Next, you specify how much crypto you wish to send. After that, you input the wallet address of the person you want to send your cryptocurrency to.
Finally, insert cash to buy the cryptocurrency, and don’t forget about those fees. After that, the exact amount of crypto that you purchased will go directly to your intended recipient!
Is My Anonymity Protected?
You’re probably very concerned about your privacy if you’re into crypto. And part of the joy of Bitcoin is that you have a greater level of privacy protection. But can you count on that privacy when using a Bitcoin ATM?
In a word, yes! The ATMs work by contacting the blockchain. And this blockchain helps record transactions while still maintaining your sense of privacy.
How does that work, exactly? Simple: Your specific identity is separate from the transactions on the blockchain. So while your wallet gives you access to records of financial transactions, the public cannot look up transactions on the blockchain and easily track them back to you.
Are These ATMs As Safe As Other ATMs?
One of the questions we get quite a bit is, “Are Bitcoin ATMs safe?” The simple answer is that these ATMs are just as safe and secure as the traditional ATMs you have used for most of your life.
That is because the machines are built and maintained by professional companies who understand your needs for privacy and security. If such companies made vulnerable machines or constantly malfunctioned machines, they would get a bad reputation and lose most of their business.
And what happens if you do encounter a problem? You simply reach out to the ATM’s company for a swift resolution. For example, someone who has an issue with a ByteWallet ATM has merely to call 786-686-2983 or email firstname.lastname@example.org to get quick and considerate customer service.
Why Do I Have To Bring Cash To Bitcoin ATMs?
We have made frequent comparisons between Bitcoin ATMs and more traditional ATMs. But if you use ATMs a lot, you probably wonder why Bitcoin ATMs require that you bring physical cash. Why can’t you simply use a debit or credit card to both buy and send Bitcoin?
It all comes back to your privacy. Most cryptocurrency users work hard to guard their identities and other important information from various third parties. If our ATMs accepted these cards, we would be storing financial and customer data that most of our demographic don’t want us to hold.
And there is always a chance that your debit or credit card information could be compromised. If our ATMs accepted debit cards, it would make it easier for thieves and criminals to access your cryptocurrency.
Finally, cash underscores the finality of Bitcoin transactions. No refunds or chargebacks are available, so you should only spend precisely how much you wish to buy!
What Else Do I Need To Bring To the ATM?
We have underscored the need to bring cash to the Bitcoin ATM. But do you know what else you need to bring to get started?
You typically need to bring some form of picture ID. A driver’s license is usually the easiest option. Still, passports or other forms of government-issued identification may work as well.
You’ll also need your smartphone. Initially, this helps you register your account with the ATM. But you’ll also need your smartphone to check your transactions via your digital wallet.
You’re ready to get started as long as you have these things and some cash!
The First Steps On a Major Journey
Now that you know how to use a Bitcoin ATM, you’re ready to take the first steps on a significant cryptocurrency journey. But what if you didn’t have to walk that journey alone?
Here at ByteFederal, we specialize in all things cryptocurrency. So, to get more answers about cryptocurrency or Bitcoin ATMs, all you have to do is contact us today!