Page Summary
A Bitcoin ATM is an automated teller machine that allows users to conduct Bitcoin transactions. The biggest advantage of Bitcoin ATMs is that users can buy Bitcoin with cash. In some cases, users can sell Bitcoin for cash. Bitcoin ATMs are also called BTMs. Using a Bitcoin ATM is more expensive than using a regular ATM and works differently. Bitcoin ATMs don’t work the same as regular ATMs because they are connected to a Bitcoin exchange instead of a bank. Users usually pay at least $5 to use a Bitcoin ATM.
How to buy Bitcoin with a Bitcoin ATM
You buy Bitcoin with a Bitcoin ATM by scanning a QR code that contacts your Bitcoin wallet with the Bitcoin ATM. Sometimes you also have to scan your ID card. After you have scanned the QR code you deposit money into the machine and indicate how much Bitcoin you want to have deposited to your wallet. The Bitcoin ATM will show you the current exchange rate and the fees it charges you. If you accept the rate you confirm the transaction and the machine will do the rest. Once the transaction is processed you will receive a receipt with all the transaction information.
How to sell Bitcoin with a Bitcoin ATM
You sell Bitcoin with a Bitcoin ATM by selecting the Withdraw Cash function of the Bitcoin ATM. You then scan your debit card and will receive a QR code. To proceed with the transaction you fill in how much Bitcoin you want to sell. You then send this amount of Bitcoin to the wallet address that corresponds to the QR code. Now you wait for the transaction to process. After that, you will receive the money on your debit card. Sometimes it is possible to withdraw this amount in cash.
Reasons to Use a Bitcoin ATM
The reasons for using a Bitcoin ATM are convenience, security, privacy, and trust. These four reasons are the most important aspects of any currency.
- Bitcoin ATMs are convenient because users can buy or sell Bitcoin fast. With some Bitcoin ATMs, users can even create a wallet directly.
- Bitcoin ATMs allow users to buy and sell Bitcoin anonymously because Bitcoin ATMs do not check users’ identities. They also have no KYC or AML guidelines to follow. KYC stands for Know Your Customer and AML stands for anti-money laundering. Most Bitcoin exchanges do have KYC and AML procedures in place. These procedures mean that exchanges have to identify customers.
- Bitcoin ATMs are secure because they don’t save any customer data. The Bitcoin transactions are also completed fast and most of the time there is no cash involved.
- The trustworthiness of Bitcoin ATMs is guaranteed by the level of security and privacy they offer. Users can see the exchange rate and fees on the screen and choose to accept or decline them.
The usage of Bitcoin ATMs also makes cryptocurrency viable as a real payment method. Although Bitcoin ATMs are easy to use, doing larger cryptocurrency transactions is easier to do on your PC or smartphone.
Conclusion
More and more people are using Bitcoin as payment nowadays. As a consequence Bitcoin transactions are rising. Bitcoin ATMs facilitate a small part of these transactions. In the future, we will see more Bitcoin ATMs across the globe. After reading this article you know how to use Bitcoin ATMs and how they work.
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Stefan Grasic (Dipl.-Jur) is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level. Stefan began trading in 2010 as a college student. Money was tight,…