A Bitcoin ATM, also known as Bitcoin Teller Machine (BTM), unarguably makes exchanging fiat currency for Bitcoin easy. in this guide i will show you how to use bitcoin atm
Bitcoin ATMs are just like the standard ATMs we see daily. Operationally, when you deposit cash into a traditional ATM, you use your debit card to access your account. But, at the Bitcoin ATM kiosk, no such debit card is required. Unlike online crypto exchanges, which require a lengthy sign-up and ID verification process, Bitcoin ATMs are just a quick and convenient way to buy/sell bitcoin in anonymity.
Irrespective of the unit you are buying, whether you want to buy $100 or $1000 worth of Bitcoin, no KYC/AML (Know Your Customer/Anti-money laundering) is required during the transaction.
On a lighter note, Bitcoin ATMs are also meant to offer access to Bitcoins to those who are not so tech-savvy or no access to a bank account. Reputed for its extreme ease of use, high speed, and extra privacy, having Bitcoin ATMs accessible to everyone all over the world makes the barrier to entry shallow for all,
Adoption of crypto may lead to an exponential growth of the crypto assets This feat is currently raving in El Salvador, as the country is the first country in the world to affirm Bitcoin as a piece of legal tender (official currency),
Today, at some locations where bank ATM can be found, like convenience stores, gas stations, and corporate buildings, another kiosk is next to the bank’s kiosk, which indicates a Bitcoin ATM. But, the itching question in this regard is how do you use a Bitcoin ATM, and does this Bitcoin ATM work?
Generally, all Bitcoin ATMs avail you the opportunity of using cash to buy Bitcoin and send it to the Bitcoin wallet of your choice. Also, many of these Bitcoin kiosks allow you to put your Bitcoin up for sale while you receive cash. All you need to do is insert cash, and this will be sent to the receiver’s Bitcoin wallet or account.
Major Pros Of Bitcoin ATM
1. Bitcoin ATM is one of the fastest and easier ways to buy/sell Bitcoin.
2. It does not require bank accounts.
3. Some machines don’t require any form of verification. This means you are completely anonymous
Major Cons Of Bitcoin ATM
1. High Transaction Fees
Considering the added expenses for machine maintenance, rent, regulatory measures, volatility, and other costs, Bitcoin ATMs typically charge 7-12% for buying/selling bitcoins.
2. Unsuitable For Large Transactions
Most Bitcoin ATMs have deposit and withdrawal limits between $1000-$10,000.
Generally, Bitcoin ATMs are very few compared to over 3 million fiat ATMs dotted around the globe.
How To Use Bitcoin ATM
Primarily, there are some steps to be taken before you can decide to go to the Bitcoin ATM. These are:
1. Procure A Digital Wallet
This feature is an inapposite similitude to our physical wallet, where we keep our physical money. Hence, a digital wallet is needed to store your digital money. Your digital money must go somewhere, and your Bitcoin wallet does create that platform to store the digital money. All Bitcoins live in an online ledger known as Blockchain, and they do not go out. Therefore, your digital wallet does not contain Bitcoins, but it is composed of balance and the ability to keep track of your cryptocurrency.
However, digital wallets can come in various forms, such as hardware devices, web-based, and desktop software, but a mobile app or web-based digital would be the best if you are interested in Bitcoin ATMs.
2. Set Up Your Digital Wallet With Easy Access
Making your wallet ready is a prerequisite for going to a Bitcoin ATM. This is relatively simple to do if you are using a mobile app. Meanwhile, mobile access can change depending on the type of wallet you have. All wallets have “keys,” always in the form of alphanumeric characters, to ensure the security of your cryptocurrency. It may be imperative for you to note this key or download a QR code, where you painstakingly follow the instructions your wallet provides.
3. Look For Bitcoin ATM Locations
Apriori the setting up of the wallet, finding a Bitcoin ATM nearest to you is the next step. Primarily supported by the coronavirus-induced shift toward contactless payments, Bitcoin ATM installations had an increase by +85% in 2020 to 11,798 terminals, outpacing 2019 near +50% rise by a significant margin, according to data source Coin ATM Radar. More than half of these ATMs are located in the United States.
However, it is pertinent to find the nearest Bitcoin ATM before making the trance of transacting with Bitcoin ATM. Therefore, Coin ATM Radar is the best tool for you. Regardless of where you are, it will show you all the closest machines to your location with the click of a button.
Outside the discourse of locating Bitcoin ATM near you, this tool will help you get helpful information like:
1. Access to the Bitcoin ATM map.
2. Get all the essential details specific to a Bitcoin ATM (Buy/Sell limits, BTC price, fees, Buy only, Sell only, or Buy/Sell).
3. Give you directly from your current location to the selected Bitcoin ATM.
4. See which machines available for exchanging other crypto coins like Ether, Litecoin, Zcash, and Dash.
Here are the steps to follow in locating a Bitcoin ATM closest to you:
1. Go to Coin Radar, and you will see a live worldwide Bitcoin ATM map.
2. Type in your city/address and press enter.
3. Select a Bitcoin ATM near you and click to see the details.
4. Click “Get Directions” to get the exact location and direction to your destination with Google maps.
5. This is optional: Click “View listing” to learn more about the Bitcoin ATM operator, including user feedback, operating hours, business name, etc.
How A Bitcoin ATM Works
Having the machine as a dependent factor, some Bitcoin ATMs may support two-way operation, allowing you to exchange fiat money for Bitcoin and vice versa. Nonetheless, most of the Bitcoin ATMs only support fiat to Bitcoin transactions.
Below is a list of the most popular Bitcoin ATMs available in the market:
1. Genesis1 Bitcoin ATM
2. Satoshi1 Bitcoin ATM
3. Satoshi2 Bitcoin ATM
4. Lamassu Bitcoin ATM
5. General Bytes BATM2 (one-way)
6. General Bytes BATM3 (two-way)
All these Bitcoin ATMs are connected to the internet, linking you to an exchange where you can buy/sell bitcoins.
How To Buy Bitcoin At A Bitcoin ATM
Just as different transactions can be done on the regular bank ATMs, the mode of operation is similar to Bitcoin ATMs, as Bitcoin can be easily bought from its ATM.
1. Create An Account
It is essential for you to create an account with the Bitcoin ATM operator, thereby privately establishing and verifying your identity.
This ID verification step is optional, depending on the machine type and operator. You might be required to provide your phone number for verification purposes. However, don’t think you can outsmart the system by using a fake phone number. This is owed to the fact that a One Time Password (OTP) code will be sent to your phone, which you will use to enter into the Bitcoin ATM to proceed.
Most machines may even require you to scan your ID card, such as passport, driver’s license, etc.
2. Bitcoin Wallet
You need a Bitcoin wallet that will securely store the records of all of your Bitcoin transactions. This can, however, be quickly done with a downloadable app on your smartphone. After registration and verification of your identity, you need to provide your Bitcoin address so that the machine knows exactly where to send the BTC you have bought. That is why it is highly recommended to get a Bitcoin wallet on your mobile device. Use the scanner to scan a QR code representing your wallet address, and the bitcoin will be transferred directly to your wallet.
Also, you can choose to receive your Bitcoin via email, as a QR code is delivered to your inbox. There is another option of printing out the QR code on paper (a paper wallet). Once you get the QR code on your email or paper wallet, scan it to get the private key. With the private key, you can access the Bitcoin you have bought.
3. Insert Cash Into The ATM
You do this and indicate which Bitcoin address you want to send it to. For instance, when you insert $100, the Bitcoin ATM operator sells you $100 worth of Bitcoin currently in the market, minus their operating fee.
4. Confirmation Notification
You will receive a confirmation that your Bitcoin wallet holds the secured record of the transaction, with the proof of the worth of Bitcoin you bought.
How To Sell Bitcoin At A Bitcoin ATM
Owning Bitcoin is evidence of having a Bitcoin wallet. However, many people have more than one wallet, just like in the case of a personal bank account. Hence, there is a need to decide in advance which wallet and key you want to use to sell your Bitcoin.
1. Importantly, if you do not initially have an account with a Bitcoin ATM operator, you will need to create one.
2. At one of the kiosks, you can log in to your account, indicate how much Bitcoin you want to sell and from which wallet address you want to sell.
3. The transaction will undergo verification on the Bitcoin network or Blockchain. You will then receive a notification when it has been verified, and you can withdraw cash.
Note: This takes a little longer than buying Bitcoin, and different operators also require more time than others.
4. Similar to buying Bitcoin, the ATM operator will charge a fee for the transaction. The cash collected will be in subtraction of the operator’s fee.
How To Send Cash To People Using A Bitcoin ATM
With Bitcoin ATM capable of sending Bitcoin to people, this can be achieved by selling some of your Bitcoin and send it to their Bitcoin wallet. But, if you want to send cash in place of Bitcoin at the Bitcoin ATM, the following is what you need to do:
1. You will need to have an account with the Bitcoin ATM operator.
2. Log in to your account on their kiosk and indicate the amount of cash you want to send, with the Bitcoin wallet address you are sending it to.
3. Insert cash, and it will be deposited in the receiver’s Bitcoin wallet in the form of Bitcoin to cash in and withdraw.
Meanwhile, the threshold and upper limit amount of cash deposited at a Bitcoin ATM is mainly variable, depending on the ATM operator. But, most upper limits are between $1,000 and $3,500. Also, may it be known that credit cards can not be used to buy Bitcoin at a Bitcoin ATM. This is chiefly the reason why many believe so much in the cryptocurrency operation. Although, a credit card can be used to buy Bitcoin through a peer-to-peer network.
So, with Bitcoin ATMs, it is super easy for anyone to exchange fiat currency into bitcoin and vis-a-vis.
This move is especially beneficial for unbanked people to gain access to cryptocurrency and partake in global e-commerce.
For international travellers who have to deal with the high fees at traditional currency exchanges, buying bitcoin before departure and selling it afterwards using Bitcoin ATMs is another fascinating alternative to convert into local currency. But, with the considerable volatility of cryptocurrency, it can be pretty risky. Nevertheless, despite the volatility and higher fees, Bitcoin ATMs play a pivotal role in increasing the adoption and accessibility to digital currency in the world.
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