Bitcoin ATMs are electronic kiosks that let users purchase and sell Bitcoin using cash or a debit card. Every crypto ATM sells Bitcoin, and select ATMs offer additional cryptocurrencies, too. Note that not all BTC ATMs only have buy options and don’t permit selling.
A Bitcoin ATM doesn’t link to your bank account the way a conventional ATM would. Instead, they link to the user’s digital wallet when processing transactions and sending BTC to the user.
How Does a Bitcoin ATM Work?
A Bitcoin ATM connects to a crypto exchange and converts the cash you deposit into BTC. Then, the transactions get processed via the blockchain. Think of the blockchain as a digital ledger to record crypto transactions.
Bitcoin ATMs connect to the digital wallets of customers and usually use a QR code to do so. From there, users can deposit cash and transfer the BTC they’ve purchased straight to the digital wallet.
You might come across some BTC ATMs that use a cryptocurrency exchange app. The app authorizes the use of a voucher bought for cash.
The app process allows customers to make deposits, pick which crypto to buy, and print out a scannable voucher. The voucher gets scanned through the mobile app, and the funds get deposited directly into the customer’s wallet.
Some Bitcoin ATMs provide features for two-way transactions that also let users sell BTC for cash. Selling BTC at an ATM involves a similar method to buying BTC. Users scan the QR code of their digital wallet, choose how much BTC to sell, and receive cash.
Is There a Bitcoin ATM Near Me?
There are BTC ATMs spread all over the world, but most of them are found in America and Canada. Many apps exist to track Bitcoin ATM locations nearby and list their details, such as addresses and features.
Often Bitcoin ATMs reside in convenience stores and gas stations, much like traditional ATMs. They look similar to traditional ATMs as well, so keep an eye out for the signature bitcoin logo on the machines.
How To Use Bitcoin ATMs
Before using a BTC ATM, you’ll need to have a cellphone, phone number, recent picture (optional at some ATMs), and a digital wallet set up. Every Bitcoin ATM has its own methods, but they typically share common usage steps.
If you don’t have a digital wallet yet, sign up for one, or ATMs can’t enable transactions. There are many free and popular online wallets to choose from, and some BTC ATMs even have their own digital wallets.
After finding an ATM in your location, you’ll need to verify your identity. The majority of BTC ATMs only require your phone number, but some machines ask to scan a photo ID or ask for your Social Security Number.
You’ll scan your digital wallet after completing verification so that you can move on to buying BTC. As previously mentioned, most wallets use QR codes which makes the scanning process fast and simple.
Next, pick either BTC or any other available cryptocurrencies that you want to buy. Select the quantity you want, review the amount, deposit cash or use another payment method, and finish your transaction.
Because BTC ATM transactions get completed via the blockchain, it might take a little while to process. You’ll get a confirmation message after the BTC gets deposited into your wallet successfully. Some Bitcoin ATMs print out transaction receipts as well.
Are They Safe to Use?
You can rest assured that Bitcoin automated teller machines are completely secure and safe thanks to blockchain technology. The blockchain records and verifies your funds when they’re sent to your digital wallet.
The blockchain is a public ledger that is unchangeable and secured using cryptography to defend customers from fraud. Most BTC ATMs observe Know Your Customer best practices to verify identities.
Scanning your photo ID or typing in your tax ID number might make you feel a little nervous. Some BTC ATMs can indeed be weak against phishing scams. Just remember to protect your BTC by never sharing the personal password of your digital wallet.
Transactions and Fees
Bitcoin ATMs often receive complaints about how they charge bigger fees than standard ATMs for transactions. That’s because their fees usually contain a crypto exchange fee, an exchange fee for cash, or a convenience fee for processing debit cards.
Some BTC ATM fees can reach heights of 20% or more of the transaction amount, depending on the provider and transaction size. Keep in mind that the average Bitcoin ATM usually only charges around 15% in fees, but that’s still a fairly high amount.
If you get lucky, you might find a BTC ATM with fees as low as 2% to 4% of the overall transaction.
Benefits of Buying Bitcoin
A huge advantage of Bitcoin is that it’s a very useful and adaptable type of currency. It only takes a couple of minutes to transfer BTC to a different user, and more and more places now accept the currency for their goods and services. T
BTC makes it easy to spend money and exchange currencies in foreign countries much more effortless. You also don’t have to worry about exchange fees, and you can sell Bitcoins easily whenever you like, no matter the time.
Bitcoin isn’t fully anonymous, but users only get identified by numerical codes and can have numerous public keys. The method guarantees there isn’t any public tracking happening and that transactions cant be linked back to the user.
BTC transactions are forever viewable to give full transparency. But despite this, they’re still kept safe against fraud because of the blockchain technology used. Furthermore, only wallet owners can see how many Bitcoins they have stored.
There are also added security and anonymity measures you can use, such as generating a completely new digital wallet address. That way, if your wallet address ever becomes public, switching it keeps your personal information protected.
Traditional banks and standard currency systems can lead to personal information leaking out and costly outcomes. With BTC, you don’t need to give out any personal information to complete the transactions so there’s nothing to leak and more user privacy.
BTC is a decentralized currency which means that it’s not controlled by an individual government or central banking system. So, it’s unlikely that authorities would ever be able to freeze your account and request your Bitcoins.
Bitcoin users have freedom and power over their money because the BTC price isn’t related to government policies. Most avid crypto users see this aspect of BTC as one of its major advantages.
What Are the Risks?
Back when BTC was developed by the pen name Satoshi Nakamoto, they set a mining limit of 21 million Bitcoins. Because that’s all that can ever exist, some see Bitcoin as being very scarce.
The scarcity of BTC is what makes it have so much value, but it’s also what makes its prices fluctuate unpredictably. The price itself becomes the sole variable that can change to guarantee a demand.
There are also other elements that affect Bitcoin’s volatility and make it inconsistent. For example, some news headlines might get perceived negatively by investors and make them question BTC’s coming value, uses, and possible security breaches.
Not everyone sees Bitcoin’s decentralized nature as a benefit. Some see this feature as a disadvantage of Bitcoin because investing has no regulations, which means less protection.
Bitcoin transactions don’t have any legal protection, and they usually can’t be reversed, unlike traditional bank transactions. This drawback leaves BTC transactions vulnerable to scams.
Another problem with BTC being decentralized is that it offers no promise of a minimum valuation. So, if a large bunch of investors agree to stop using BTC and they all sell, the value might drop significantly.
Using Bitcoin ATMs
So, what is a Bitcoin ATM, and is it safe? It’s an outlet through which customers can buy BTC at a kiosk using cash or a debit card. Blockchain technology ensures that BTC transactions are secure and no personal information gets leaked.
Now you know how these machines work, how to find them, what you’ll need, and the pros and cons of BTC. Check out the rest of our blog for more helpful information about the exciting world of cryptocurrencies.