- June 8, 2022
If you’ve considered investing, chances are you’ve heard a lot about how to buy Bitcoin. And purchasing this cryptocurrency is indeed a great way to get more direct control over your financial resources. But what happens if you decide you want to convert some of that Bitcoin back into cash?
Making a Bitcoin ATM withdrawal can be a great way to capitalize on your Bitcoin investment. (In this article we will use the familiar term “withdrawal” – in actuality the process involves selling your Bitcoin to the ATM operator.) If you are more of a reader, scroll on to learn more about this process and how you can get cash from a Bitcoin ATM, or press play play for a video rundown.
Learn How To Use A Byte Federal Bitcoin ATM
What Is Bitcoin?
Before we delve into how to withdraw cash from a Bitcoin ATM, let’s talk some about what Bitcoin is. Bitcoin is one of the most popular and reputable cryptocurrencies currently on the market. The currency is entirely digital and is separate from any government or third-party banking organization.
Bitcoin was launched in 2009 and has exploded in the decade since. As of this writing, each Bitcoin is gaining value, and more and more vendors have started to accept the cryptocurrency. As a result, it has become immensely popular among people who want more direct control over their money or are worried about geopolitical turmoil’s impact on their finances.
How It Works
Most traditional currency (also known as fiat currency) is controlled and managed by national governments. But Bitcoin operates completely separate from any government and instead is regulated by a blockchain system. Anyone can access this blockchain and see what’s happening with the Bitcoin supply.
Bitcoin takes its value from the same sources that traditional currencies do. First of all, we’ve all agreed that these currencies have value and may be traded for goods and services. Secondly, there are a limited number of Bitcoins (21 million, to be exact), which gives the currency an inherent value.
A series of ever-more-complex computer algorithms addressed Bitcoin fraud. These codes are all but impossible to break, meaning that people can’t just code themselves up more Bitcoin whenever they’re short on cash. Because of this process, the Bitcoin supply stays consistent, preventing inflation from destroying the currency.
Benefits of Bitcoin
There are several benefits to working with Bitcoin, beginning with its financial independence. Because Bitcoin does not operate within any single government or banking organization, it’s immune to the whims of geopolitics. It’s also resistant to government seizure, which can save you if you lose a liability case or fall behind on child support payments.
Many people also enjoy the anonymity Bitcoin transactions provide. Unlike fiat currency transactions, you may not need to provide any identifying information to purchase with Bitcoin. Although any Bitcoin user can see all dealings with the currency, no info can tie that transaction back to you as a person.
Benefits of Bitcoin ATMs
If you plan to get into Bitcoin investing or use, Bitcoin ATMs can be a fantastic resource. For one thing, these ATMs give you access to faster and easier Bitcoin transactions. In addition, you can convert cash to Bitcoin and back again, allowing you to keep a finger on the pulse of cryptocurrency investing.
These ATMs also simplify the buying process for even the newest Bitcoin users. Some Bitcoin platforms can be confusing and may propose hidden fees. A Bitcoin ATM is simple to use, especially after reading this helpful guide!
Download the App
If you plan to use a Bitcoin ATM, you’ll first need to download an appropriate Bitcoin app onto your smartphone. This app will allow you to view and manage your Bitcoin balance. Think of it as your Bitcoin debit card; it gives you access to the world of Bitcoin investing and will be the way you interact with a Bitcoin ATM.
There are a few good mobile wallet apps you can use to access and manage your Bitcoin investments. We recommend ByteWallet for your cryptocurrency ATM and crypto banking needs, available for download in the Apple and Google Play app stores. Blockchain, Mycelium, and Jaxx are a few other good options available for free as well. If you don’t have access to a smartphone, you can also bring a printed QR code from an online wallet program known as a paper wallet.
Create an Account
Once you pick a mobile wallet app and get it downloaded, you’ll need to set up an account. This account will be where you view and manage your Bitcoin information, including buying and selling Bitcoin. It is important to note that you may need to provide some identifying information when you’re setting up this account.
In most cases, mobile wallet apps will at least ask you for your email address and some payment information. However, since most Bitcoin ATMs deal only in cash, you should not have to enter your banking info.
Find an ATM Near You
Once you have your mobile wallet app downloaded and your account created, it will be time to start looking for an ATM in your area. If you’re using our recommended, ByteWallet, refer to our convenient ATM locator directly within your app. As Bitcoin has become more popular, more and more ATMs have started to pop up around the country. As for Byte Federal, we have more than 1300+ ATM locations spread across the entire eastern half of the United States.
Byte Federal has locations from Florida to Maine to Missouri and California. You can check our interactive map to find an ATM location close to you, and we’re working every day to expand into new areas.
Of course, one of the most important things you need to do to make a withdrawal from a Bitcoin ATM is, well, own Bitcoin. However, if you can’t afford the hefty price tag of a whole Bitcoin, the currency does come in smaller, more affordable divisions. In fact, you can buy one one-hundred-millionth of a Bitcoin, called a satoshi.
There are several ways you can get Bitcoin, including purchasing it with cash at a Bitcoin ATM. You can also buy Bitcoin from online platforms with credit card purchases or bank transfers. If you’re making an online sale or providing a service for someone, you may also be able to accept Bitcoin as payment instead of traditional currency.
Check the Exchange Rates
Before you make your Bitcoin ATM withdrawal, you may want to check the current exchange rates for Bitcoin. You see, since Bitcoin is an independent currency, its value in relation to other fiat currencies fluctuates. This means that while your Bitcoin may be worth a certain amount of U.S. currency today, it may be worth a different amount tomorrow or next week.
Ideally, you want to make your cash withdrawal when Bitcoin exchange rates are high. So make a note of what exchange rates are like when you buy your Bitcoin. If possible, wait until exchange rates are higher before you cash in your Bitcoin so you can get the most from your investment.
Look at Withdrawal Limits
Before making your Bitcoin ATM withdrawal, you should check the withdrawal limits for the ATM you’re using. Many ATMs and Bitcoin vendors limit how much you can spend in a transaction in a single day. These limits help protect vendors and control the flow of Bitcoin. At Byte Federal 2-way Bitcoin ATMs you can usually exchange your Bitcoin for up to $6k in cash.
Bring a Picture ID
Before you leave to make your Bitcoin withdrawal, grab your wallet from the house. At many Bitcoin ATMs, including the Byte Federal machines, you’ll need a photo ID to make a withdrawal. This can include a government-issued ID, such as a driver’s license or a passport.
Many people value Bitcoin for its anonymity, and providing a photo ID may seem to remove that advantage. And while it is true that this requirement allows your withdrawals to be traced back to you, it does not impact the transactions you make in the Bitcoin world. Instead, this requirement simply protects you from someone else stealing your identity and using it to convert your Bitcoins back into cash.
Register with the ATM
Once you get to the ATM you plan to use, the first thing you’ll need to do is register with the ATM. This registration effectively lets the ATM know which Bitcoin account you’ll be withdrawing from and allows you to confirm your identity. You may be able to register with the ATM in various ways.
Depending on the ATM and the mobile wallet app you use, you may be able to connect to the ATM directly with your phone. You may also need to enter your phone number and then input the verification code you get from the ATM. Some ATMs may also require you to scan your ID to confirm your identity.
Select “Withdraw Cash”
After you get registered with the ATM, you’ll be able to start the actual transaction process. The process will guide you to a transaction screen with various options that may include different cryptocurrencies you can choose to sell. Be sure to select Bitcoin and then select “Withdraw cash.”
As you’re going through this process, you’ll notice that there are various options available to you for transactions. For example, you can buy Bitcoin at these ATMs and send it to other people. If you plan to use this last feature, avoid sending money to people you don’t know in person to avoid becoming the victim of a scam.
Scan the QR Code
Once you select “Withdraw cash,” the ATM will ask you how much money you want to withdraw. This step is where the exchange rates you looked up earlier will come into play. You’ll only be able to withdraw as much cash as your Bitcoin is currently worth or as much as the daily withdrawal limit, whichever is lower.
The ATM may take a moment to process your withdrawal request since it has to send a confirmation through the Bitcoin blockchain system. However, before that request goes through, you may see a QR code that will give you a redemption code for your cash. Scan this QR code with your phone camera and follow the directions at the link it sends you.
Collect Your Cash
After your blockchain request goes through, you’ll get a message indicating your transaction has been approved, and your cash is ready. In addition, the ATM may show a “Redeem” button that will allow you to enter your redemption code. This button will verify that your request is approved, and you are allowed to collect the cash you requested.
Once you enter your redemption code, the ATM will dispense the cash you’ve requested. Then, your Bitcoin balance will update. That’s it; your transaction is complete.
Learn to Make a Bitcoin ATM Withdrawal
If you’re ready to cash in on your Bitcoin investments, a Bitcoin ATM can be a great way to do it. Make sure you check on exchange rates and get your mobile wallet set up before going to the ATM. Bring a picture ID and follow all the instructions on the ATM screen to get your cash in hand quickly and easily!
If you’d like to make a Bitcoin ATM withdrawal, check out the rest of our site at Byte Federal. We have Bitcoin ATMs all over the country to make your cash withdrawal process as easy as possible. Learn more about us today and start finding the financial tools you need to thrive.