You may have noticed a Bitcoin ATM next to a traditional ATM in a convenience store, restaurant, or another retail outlet. Bitcoin is hot, and these cryptocurrency ATMs are popping up around the globe.
Bitcoin ATMs are easy to use. They make it possible for anyone to buy and sell Bitcoin safely and securely.
If you’ve wondered how a Bitcoin ATM works, we have some answers. After reading this, you’ll be ready for your first Bitcoin ATM transaction.
What Is A Bitcoin ATM
Bitcoin ATMs are similar to traditional ATMs. They provide a portal for a financial transaction using Bitcoin instead of traditional currency.
You can buy and sell Bitcoin with cash or a debit card (in some instances). Instead of connecting to a financial institution, these ATMs allow you to buy crypto for your digital wallet (or sell crypto for cash).
You can find Bitcoin ATMs anywhere you find traditional ATMs. Your local bar, coffee shop, gas station, or grocery store may already have one on-site.
As the Bitcoin craze continues, you’ll see more Bitcoin ATMs pop up. And this demand is only expected to increase in the future.
How Do Bitcoin ATMs Work
Although the process varies according to the manufacturer, using these ATMs requires two main steps.
Verify Your Identity
The first step is to verify your identity. Manufacturers sometimes differ in this process.
Most Bitcoin ATMs require you to submit a phone number to verify your identity. You then receive a verification code. You enter this code into the machine and proceed with your transaction. Bitcoin ATMs will also require your basic customer information (KYC) as they are considered financial institutions. No surprise, given how powerful they are for your financial sovereignty.
Decide Whether To Buy Or Sell
Once you’re logged in, you decide whether you want to buy or sell Bitcoin. If you choose to buy, you feed cash into the machine. You generate a QR code from your digital cryptocurrency wallet for the ATM to know where to send the funds to. In a final step, the ATM sends Bitcoin to your personal wallet.
To sell, you send Bitcoin from your digital wallet to the QR code the machine generates. Some machines provide an instant transaction while others take a bit longer.
The wait times are much faster than buying or selling through an online exchange which depends on the legacy and sometimes hostile banking system.
Set Up A Digital Wallet
Before you use a Bitcoin ATM, you’ll need to set up your digital wallet. It’s a simple process.
Use a mobile app to set up a wallet. Wallets have “keys” or alphanumeric characters you’ll use to access cryptocurrency.
Just like a physical wallet holds your cash, your digital wallet stores your digital currency. In essence, your digital wallet houses any bitcoin that you purchase.
Buying And Selling Process
Although the process may vary depending on the machine, there’s a general process to buying and selling Bitcoin through an ATM.
The process is simple. Follow the commands on the interface.
- Provide identification if necessary.
- On the interface, choose “buy Bitcoin.”
- Scan the QR code of your digital wallet.
- Insert cash.
- Choose “Done.”
- Take your receipt.
- Wait for the transaction to confirm on the Blockchain.
Once you’ve finalized your transaction, check your Bitcoin wallet to ensure you’ve received the correct amount.
Selling Bitcoin is easy with an ATM. Simply follow the instructions.
- On the interface, choose “withdraw cash.”
- Select “Bitcoin.”
- Input how much you want to sell.
- Transfer Bitcoins from your digital wallet to the QR code.
- Wait for the transaction to process.
- Withdraw the cash.
Check your wallet to ensure you have confirmation of the transaction.
Reasons To Use A Bitcoin ATM
People around the world love using ATMs to buy and sell Bitcoin. Many users feel these financial transactions are convenient, secure, and trustworthy.
For these reasons, people continue to use Bitcoin ATMs. And all these benefits drive the demand for more machines in more places where people shop, eat and play.
Bitcoin ATMs allow you to buy or sell Bitcoins in a matter of seconds. Cryptocurrency exchanges take much longer. People love the simplicity and convenience a Bitcoin ATM machine provides.
Online exchanges require personal information, including credit card and bank account information. Bitcoin ATMs require only minimal personal information for you to buy and sell Bitcoin.
Transactions are mostly private. While you do have to share some basic information with the ATM operator under obligations of financial laws applicable in your country, that information is not shared unless requested by law enforcement. Only you and the recipient have access to any personal information. Compared to the banking system and in particular credit and debit cards, crypto transactions offer more individual privacy
Today’s Bitcoin ATMs provide a safe, secure, and seamless way to buy and sell Bitcoin. As the adoption of cryptocurrency increases around the world, these technologies will continue to advance.
Helpful Customer Support
Live customer support is available to help users if they encounter any issues. Having access to support offers another layer of trust and security for Bitcoin ATM users.
Finding A Bitcoin ATM
There are thousands of Bitcoin ATMs around the world. Half of these are in the United States.
If you live in a metropolitan area, you may live near a Bitcoin ATM. But not everyone has easy access to this convenience.
Luckily, you can access an online map of ATM locations nearest you. The number of Bitcoin ATMs is doubling each year. And there’s no end in sight.
Using A Bitcoin ATM Machine
Bitcoin ATMs provide everyday cryptocurrency enthusiasts a quick and easy way to buy and sell Bitcoin. They’re great for anyone who wants a fast, safe, and convenient way to access this popular cryptocurrency.
A Bitcoin ATM is user-friendly and as easy to use as a traditional ATM. As Bitcoin surges in demand, expect to see more and more bitcoin ATMs in the same places you find bank ATMs.
To learn more about using or hosting a Bitcoin ATM, contact us today.