Bitcoin is climbing up the popularity ladder globally with more businesses and retailers joining the bandwagon for honoring and receiving payments. This has also added impetus to the growth of Bitcoin ATMs which can bring more convenience to the process of transacting in Bitcoins physically. The Bitcoin ATMs comprise a QR scanner, a monitor, bill acceptor, and dispenser. All these components operate under a unified software working in the background and fostering easy buying and selling of bitcoins. They differ from traditional ATMs in the fact that they are not connected to your bank account but the crypto exchange. The foremost Bitcoin ATM was set up in the year 2013 in Vancouver, Canada. Though that ATM has been removed it acted as a flagbearer for more Bitcoin ATM companies to follow suit and make their mark in the industry.
Steps of Using a Bitcoin ATM
- Bitcoin ATMs are usually located at bars, cafes, and shops. You can find their location easily using live maps. You will simply have to type in your zip code for getting multiple recommendations of Bitcoin ATMs alongside their operational hours and address.
- Before using a Bitcoin ATM, you will have to decide on a proper digital wallet for safely storing your crypto. Here you can take your pick amongst different options like hardware devices, web-based or desktop software. A web-based digital wallet or a mobile app can suffice your requirements in the best possible manner.
- Once you have chosen the wallet, you need to complete the setup process. This can be completed using a mobile app although the actual method of access might vary according to the wallet chosen. Following the accompanying instructions will provide you with a QR code or a key that can be used at the ATM. Apart from the crypto wallet, you will also require your smartphones, picture ID, and cash while making a transaction at a Bitcoin ATM.
- The following steps have to be followed if you are trying to buy Bitcoins:
- Firstly, you need to create an account on arriving at the ATM by following the on-screen instructions. Your picture ID is required during this step. Email or texts might be sent for additional verification which is why you need to carry your smartphone.
- On successful completion of verification, you can add cash to the Bitcoin ATM. You can choose the destination of your purchased Bitcoin either with a QR code or your Bitcoin mobile wallet. Bitcoins can be bought at the current market price with certain fees levied on the transaction. The Bitcoin rates are displayed in the kiosks so that you can understand the final amount before processing the transaction.
- Finally, Bitcoins shall be automatically added to your wallet and you will receive a transaction confirmation alert signaling the purchase.
- The following steps have to be followed if you are trying to sell Bitcoins:
- Once your account has been created, you can access your account using the ATM and select the quantity of Bitcoin you wish to sell. During this process, you need to select a digital wallet.
- The transaction will now pass through a verification process and on completion of the same you can proceed with the withdrawal to get the cash earned from the sale. This transaction takes between 10-30 minutes which is more than buying Bitcoins and you need to be patient during the same. A fee will be levied on the transaction and displayed at the ATM kiosk prominently.
- The following steps have to be followed if you are trying to send cash to friends or family using Bitcoins:
- Log onto your account from the nearest Bitcoin ATM and select the amount of cash you want to deposit.
- Now specify the wallet address where you wish to remit the money.
- Finally, insert the cash and wait for the process to receive a confirmation signal.
Reasons behind the Growing Popularity of Bitcoin ATMs
- Bitcoin ATMs are both intuitive and fast allowing both buying and selling of crypto within seconds. This comes in as a substantial advantage over peer methods of transacting in Bitcoins. The online cryptocurrency exchange has stringent verification requirements that are time taking and can delay your transactions. Identity verification using bitcoin ATMs is super-fast allowing users to transfer and transact their bitcoins into a digital wallet quickly.
- Dealing with cryptocurrency comes with its share of security concerns. But Bitcoin has proved to be a more secure choice than its peer cryptos. The same also holds for a Bitcoin ATM which secures the whole process and eliminates chances of third-party fraud.
- Using Bitcoin ATMs is extremely easy as they have a similar look and feel to regular ATMs. Laymen find it tough to transact in Bitcoin through crypto exchanges. This is where the simple ATMs come in to make the entire process easier to manage.
- Certain banks impose restrictions on making Bitcoin transactions and might close your account if you engage in the same. This is not the case with a Bitcoin ATM which doesn’t have any involvement of your bank. You can complete a transaction easily with a digital wallet.
Things to Keep In Mind While Using a Bitcoin ATM
- You should refrain from paying for bills and services using the Bitcoin ATM. Numerous internet ads, emails scams, and phone scams have tricked people into paying money by requesting utility bills payments, tax payments, and the like through a Bitcoin ATM. If you are being persuaded for honoring a particular payment using the Bitcoin ATM then this is most likely to be a scam.
- Once you enter into a transaction using the Bitcoin ATM, there is no way of getting a refund. This is why you need to double-check the details before making a transaction.
- It is advisable to refrain from buying Bitcoins for a third party using your Bitcoin ATM. You should stick to transferring money to a friend or family and transact in Bitcoins using the ATM.
Bitcoin kiosks resemble normal ATMs but remain connected to the Bitcoin blockchain via the internet. The commission charged by a Bitcoin ATM varies according to the operator’s pricing policy. However, it sums up to 7-9% of the transaction amount in most cases. Using the Bitcoin ATMs is a completely safe process involving authentication by entering pin-code sent to the registered mobile number, providing a selfie to confirm the personal ID, and passing the KYC process.