Bitcoin usage continues to grow in popularity online, but what about offline — how does a Bitcoin ATM work?
Unlike the ATMs that you insert your debit card into to withdraw cash, the Bitcoin ATMs disperse bitcoins.
If you’re new to Bitcoin, you’ll learn that using a Bitcoin ATM is simple. In this article, we show how to use this crypto vending machine, as well as how Bitcoin ATM operation works.
What Is a Bitcoin ATM?
A Bitcoin ATM (aka BTM) is a kiosk that lets you withdraw and send Bitcoins and, occasionally, other cryptocurrencies. It looks like a standard ATM, with a screen, a keypad, and a slot.
The BTM allows you to exchange your bitcoins for cash and, conversely, buy bitcoins using cash.
Yet, not all Bitcoin ATMs offer the same services, so you’ll want to confirm the mechanics of the one you intend to use.
How to Use a Bitcoin ATM
If you’re new to the crypto industry, you might find yourself in a how do I use a Bitcoin ATM for the first time situation. Luckily, the process is simple.
Before you learn about Bitcoin ATM mechanics, there’s one thing you have to do first: establish a Bitcoin wallet.
It’s crucial to have a crypto wallet in place or know the recipient’s wallet information before initiating a transaction. This will enable you to send and receive digital currency with ease.
While you can send and purchase bitcoins online via some well-known crypto exchanges, you can also buy them through Bitcoin ATM transactions. But how does a Bitcoin ATM work when you want to send money? Step #1 Verify your identity by answering the prompts on the screen. This usually involves entering your phone number and a pre-selected PIN. Step #2 Depending on the ATM, the prompt will ask you both the amount and type of cryptocurrency you’d like to purchase and send. Step #3 Scan the QR code or enter the unique wallet address of the intended party. You can send money to your own or someone else’s wallet. Step #4 The kiosk will then ask you to enter the permissible fiat (or cash) into the ATM, automatically converting it into the coin’s current market rate. Step #5 As you insert the cash, the prompt will require a confirmation of your selected choices. Once you approve the transaction, expect your bitcoins to arrive at their destination momentarily.How to Send Money Through Bitcoin ATM
How to Make a Bitcoin ATM Withdrawal
Sending ATM bitcoins is easy, and making a crypto-to-cash withdrawal is no different. Learn how to make a Bitcoin ATM withdrawal in just five steps.
Step #1
Follow the prompts on the screen to identify yourself and access your crypto wallet. Typically, this involves entering your phone number and a pre-selected PIN.
Step #2
After choosing to sell your bitcoins, you’ll enter the sum you want to sell. The machine will then convert the amount into the cash dollar market rate.
Step #3
You’ll then scan your QR code or enter your unique wallet address to verify your available funds.
Step #4
After entering the intended crypto wallet address, you’ll get a prompt to confirm your request to sell bitcoins for a proposed dollar amount.
Step #5
Once you confirm a transaction, the machine will disperse the cash, just like your regular ATM.
Pros of Using Bitcoin ATM
Since BTMs are a relatively new technology, some may feel apprehensive about using them. However, it’s important to note the advantages they offer to alleviate any concerns. Let’s take a closer look at some of the benefits of using BTMs.
Ease of Use
A new user might not know how to buy, sell, or exchange cryptocurrency, but the Bitcoin ATM simplifies the process. The directions are easy to understand and user-friendly. This gives newbies the confidence in managing their crypto.
Privacy
While some Bitcoin ATMs may ask for your banking information, most won’t. The majority request only a phone number and crypto wallet identifier, as a safety measure.
No Identification Required
Although you may need a photo ID to send or receive money at a financial institution, this is not required for a Bitcoin ATM. As long as you have a crypto wallet, you can make your transaction from nameless identification.
Cons of Using Bitcoin ATM
While there are numerous benefits of using a Bitcoin ATM, it’s also important to consider the drawbacks. Here are some of them:
High Fees
Due to the current limited supply and high demand for Bitcoin ATMs, higher processing fees have become a recurring complaint. While the average fees range around 5–12%, each ATM determines the final rate.
Location
Although Bitcoin ATMs are gaining popularity across the country, finding one in your area may be challenging. Typically, Bitcoin ATMs are placed in densely populated areas. This could mean a considerable traveling distance for most people.
Risk of Fraud
While cryptocurrency is considered a secure payment method, scammers can still manipulate users into sending money using Bitcoin ATMs. Thus, it’s crucial to exercise extreme caution when buying or sending bitcoins to an unfamiliar recipient.
Where Can You Find Bitcoin ATMs?
The United States is home to the highest number of Bitcoin ATMs — 26,899. The only other country in the world with thousands of BTMs is Canada, where 2,845 machines can be found.
One of the easiest ways to locate one near you is by using Bitcoin ATM finders.
When you enter your location, these sites provide information on where the Bitcoin ATMs are in your geographical area. Some even offer information on the fees associated with each machine, who owns it, the type of cryptocurrency it allows you to buy, and discounts.
Conclusion
The crypto ATMs work like most standard ATMs. Once you have your crypto wallet information, using any BTM to make a withdrawal or send bitcoins is a straightforward process when following the steps above.
Bitcoin ATMs are gaining popularity, no doubt, due to the growing confidence in the longevity of Bitcoin. It’s just a matter of time before your neighborhood Bitcoin ATM pops up!
Just be sure to practice caution when sending funds and look for reputable ATMs that offer you low fees.
FAQs
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