What Are Bitcoin ATMs and How Do They Work?
Bitcoin ATM is an exchange platform that helps in transacting Bitcoin, Fiat, and Altcoins. A cryptocurrency trader can drop in at a Bitcoin ATM kiosk and cash in their fiat currencies to buy Bitcoins. Few Bitcoin ATMs allow their users to buy and sell Bitcoins, while others only support Bitcoins’ purchases. Like a traditional ATM, a Bitcoin ATM can dispense cash, but this depends on the machine’s model. The user can buy/sell Bitcoins using the digital wallet or withdraw their cash from the kiosk. Further, few machines support the conversion of Bitcoins to Altcoins. In this article, we have explained what Bitcoin ATMs are and how they work.
What Is a Bitcoin ATM?
Bitcoin ATM is also known as BATM, is an automatic teller machine that allows users to purchase Bitcoins. Bitcoin ATMs are connected to the internet and permit the users to insert a credit card or cash in exchange for Bitcoins. Even though they are similar to traditional ATMs, they are not connected to the user’s bank account; rather, they connect the customer to the Bitcoin exchange directly.
Working of Bitcoin ATM
Similar to traditional ATMs, the user should have a verified account like a Bitcoin wallet for accessing the services of a Bitcoin ATM. Bitcoin ATMs working procedure resembles just like a normal bank ATM. Moreover, Bitcoin ATMs are easy-to-use, and the transactions are faster; these ATMs are internet-enabled, which makes them highly efficient and quicker.
How to Use a Bitcoin ATM?
The user should have a verified Bitcoin wallet if they want to access the services of Bitcoin ATM. Here are the steps to buy Bitcoins from Bitcoin ATM:-
- To buy Bitcoins, the user needs to click the “Buy Bitcoin” button on the Bitcoin ATM screen. The ATM will ask the user to scan their Bitcoin wallet’s QR code for receiving the Bitcoins.
- The next step is to place the phone in front of the QR code reader found on the bottom right side of the ATM. Immediately the ATM will acknowledge the wallet address.
- After scanning the QR code, the ATM will prompt the user to place the banknotes on the bottom left of the ATM for cash to purchase Bitcoins.
- After adding the cash to purchase bitcoins, the ATM will prompt the user to ask whether they have completed the transaction or add more money or if they like to receive the coins directly to the wallet.
- The user should click “send coins” where the purchased coins will be sent to the mobile wallet to complete the transaction. This process takes a few minutes as it needs to be confirmed on the blockchain of Bitcoin.
- Few ATMs need user verification via mobile phone number validation or through fingerprint scanning. This entirely depends upon the operator and is needed if the user carries out larger transactions.
Advantages of Bitcoin ATM
Here are the few advantages of Bitcoin ATM –
- Bitcoin ATMs are undertaken by legitimate business operators and entities. They have been established with verified legal documentation and have valid contacts. As there are no intermediaries involved in operating the Bitcoin ATMs, there is no possibility for fraud, hacking and it cannot be tampered with.
- Bitcoin ATMs features are user-friendly and interactive. They help the user step-by-step in processing the transactions. Moreover, buying and selling is a straightforward process that takes a short time to complete the transactions.
- Bitcoin ATMs are safe, and the transactions of buying and selling Bitcoins are done faster. Several machines process the user commands below 15 seconds, and the user needs to scan the QR code, click the button whether they want to buy, sell, or withdraw and click the appropriate button to complete the transaction.
To summarise, cryptocurrency exchanges have revolutionized the Bitcoin ATMs, and it has made the transactions decentralized; these machines are user-friendly and secure. The number of entities using Bitcoin ATMs is increasing every day. The major feature of these machines is they offer privacy to the user. It also allows anonymity; the user can buy or sell their Bitcoins without KYC or AML procedures required for transactions. This is one aspect that makes the Bitcoin ATM more secure, as they hide the user’s identity. Further, anybody can visit a Bitcoin ATM to buy/sell Bitcoins faster, and the ATMs are operated only within business hours. Apart from that, If you are interested in Bitcoin and want to make huge profit from Bitcoin trading then Bitcoin Revolution is the perfect platform for you. It is one of the trusted automated trading platforms which is based on an algorithm. Check out Bitcoin Revolution Reviews by experts to know more about this trusted Bitcoin trading platform.
- Do Bitcoin ATMs Charge a Fee?
Yes, Bitcoin ATMs do charge a fee, and currently, on average, Bitcoin ATM charges 8.4 % for buying Bitcoin through ATMs and 5.4% to sell Bitcoins for cash.
- Do Bitcoin ATMs Dispense Cash?
If a user wants to sell Bitcoin, they need to send Bitcoin from their wallet to the Bitcoin ATMs QR code. Based on the machine, ATMs dispense cash immediately to the user, while few others might take time to process the transaction.
- Can You Get Money From a Bitcoin ATM?
The user needs to login into their account, and they should select the withdrawal cash option. They need to enter the amount they would like to withdraw and send Bitcoin to the QR code’s wallet address. However, Bitcoin ATMs do have limits between $1000 to $10,000 for deposit/ withdrawal.
- Is Bitcoin ATM Safe?
Bitcoin ATMs are easy-to-use and are safe, which implies the user needs to follow the process of scanning the QR code, accept the payment, and then send the coins to their wallet as bitcoin is based on blockchain technology.