Experts predict that by 2026, the cryptocurrency market size will reach $1087.7 million. It’s hard to go anywhere and not hear about crypto. In fact, statistics suggest that on social media, a post about Bitcoin surfaces every three seconds. If buying crypto interests you, then you should know how a cryptocurrency ATM works. This article dives into all the details. Keep reading for a full scoop.
Crypto ATM Defined
ATM is the popular acronym for “automated teller machines.” Therefore, a crypto ATM is an electronic kiosk that stands alone. Users of a crypto ATM can buy and sell their cryptocurrencies with cash or debit card. All cryptocurrency ATMs sell Bitcoin. Some crypto machines offer other cryptocurrencies. Not every crypto ATM will let you sell your cryptocurrencies. Some cryptocurrency ATMs only allow purchases.
How a Crypto ATM Differs From a Traditional ATM
A traditional ATM connects to your bank account. Meanwhile, a crypto ATM does not connect to your bank account. Instead, to process a transaction or deliver crypto, it connects to your digital wallet. A cryptocurrency ATM allows a user to buy and sell crypto for cash. This includes the cryptocurrency Bitcoin.
Buying Crypto With a Crypto ATM
A cryptocurrency ATM connects to the crypto exchanges. When you deposit cash, it will convert to cryptocurrency. This is one way how to buy Bitcoin. Every transaction will process on the blockchain. They log financial transactions for cryptocurrency on this digital ledger.
Therefore, when you use a crypto ATM, it means you must connect to a user’s digital wallet. Often, a user will use a QR code, or quick response code, to do so. Buying crypto with a crypto ATM can involve depositing cash. When you purchase the cryptocurrency, it deposits to your digital wallet.
Additional Details For Consideration
Some cryptocurrency ATMs can leverage a crypto exchange app. Here, it allows cash to purchase a voucher redemption.
The user would deposit their funds and then select which crypto they are buying. After that, they can print a voucher. You can scan this voucher with a mobile app so you can redeem it, depositing the fund in your digital wallet.
How Is a Bitcoin ATM Different From a Crypto ATM?
Some Bitcoin ATMs will give you cash. Most crypto ATMs only offer one-way transactions. Buying crypto is okay, but you cannot sell cryptocurrency. Although some crypto ATMs allow transactions that are two-way, so buying crypto and selling crypto will work in exchange for cash. Selling cryptocurrency is like buying crypto. First, you scan your digital wallet with a QR code. Then, you would select how much cryptocurrency you wish to sell. After the transaction processes, you can receive your cash from the Bitcoin ATM.
Are There Risks?
Using a crypto ATM to buy crypto is easy. However, there are a few risks you should keep in mind. First, cryptocurrency ATMs can charge a big fee. Some could charge over 10% of your transaction, whereas a traditional crypto exchange only charges 1% to 4%.
Cryptocurrencies and the Blockchain Do Not Insure Your Funds
Some cryptocurrency exchanges offer “custody services.” This is for crypto funds that have anti-theft insurance. A crypto ATM does not have such insurance, requiring you to deposit funds straight into a digital wallet. Protecting your crypto holding can be secure with self-custody. However, there is no third-party insurance to assist you.
Limits on Transactions
This is the same for crypto exchanges. Crypto ATMs have a minimum and maximum amount set for their transactions. You find the range of limitations is $10 to $10,000.
How to Use Bitcoin ATM
Before you use a Bitcoin ATM, you must get a crypto wallet if you do not have one already. It is the only way you can deposit the Bitcoin or other type of cryptocurrency you buy. You can access your crypto with an alphanumeric key. A digital wallet can be one that is web-based, or there are options for hardware devices.
- Prep Your Wallet
You can do this in two ways. One way is to notate your digital wallet’s alphanumeric code. Another way for quicker access is to download a QR code.
- Locate Your Local Bitcoin ATM
It’s easy to find a Bitcoin ATM near you. We recommend you visit this link to find a convenient location.
- Set Up an Account
Now you need to set up your account with the Bitcoin ATM operator. You will need to enter a few personal details to complete this step.
- Enter Your Digital Wallet
You can simply follow the Bitcoin ATM prompts. This will require your alphanumeric key or QR code to complete.
- Insert Cash
Physically depositing cold, hard cash into the Bitcoin ATM is the next step. The operator transfers your cash into Bitcoin or another form of crypto if you wish.
Now, let’s say you deposit $100 in cash. If you want Bitcoin, you will receive $100 of Bitcoin at the market’s current price, less the Bitcoin ATM provider’s operating fee. Some operators could charge a miner’s fee too, which will also come from the amount of the deposit.
- Confirm the Purchase
You get one last opportunity to look over your purchase before confirming you wish to complete it. This includes seeing the fees you must pay prior to completing your transaction. The crypto machine may give you a receipt, and if so, be sure that you grab it before walking away.
How to Sell Bitcoin With a Bitcoin ATM
The directions of whether you can buy, sell or do both vary by machine. Typically, you can do both. If you want to cash out your Bitcoin at the local Bitcoin ATM, here is how you can achieve that.
- Click “Sell BTC”
The crypto machine will want to know what option you are choosing. You must enter your desire to cash out.
- Scan the QR Code
Your digital wallet has this. It can come as a printout or mobile app. If you would rather enter the address manually, you can do this as well.
- Verify Your Identity
This step largely depends on the country. Most Bitcoin ATMs require you to scan a valid ID, enter your phone number, or take a photo. There are some Bitcoin ATMs today that accept fingerprints.
Especially if you have a large transaction to perform, verification is important.
- Sending the Crypto
You will want to send it to your specified address. Often, this is as simple as scanning a QR code.
Some Bitcoin ATMs will dispense cash right away. Others will have you wait until the receiver confirms your transaction.
- Confirmation
On your end, you will want to confirm your transaction. Then, wait for the crypto machine to complete your transaction.
- Keep Your Receipt
Do not leave until you grab your receipt. Not only that but hold on to that receipt.
Is a Crypto ATM Safe?
They process transactions with blockchain technology. Inherently, yes, they are safe. You select the digital wallet where you want to transfer funds. The blockchain does the recording and verification of it. The blockchain is a public ledger. Therefore, it is immutable. It is also cryptographically secure. To protect a Blockchain ATM user from potential fraud, operators often leverage a KYC or “Know Your Customer” best practice. This is to verify you are who you say you are. You may need to scan a photo ID, for instance.
However, a crypto AMT could be a vulnerable ground for potential phishing and other hacker tactics. That is why it is critical that you never share a private key with anyone for your digital wallet.
The Benefits of Bitcoin
You hear a lot of praise about the invention of Bitcoin. It could be the next biggest thing to the creation of the Internet! It is a working digital currency that is both secure and decentralized. There are many benefits to Bitcoin. Here are a few.
It Does Not Require Permission
A traditional currency from a traditional bank requires permission from an institution, even the government. Bitcoin is free of the world. There are no limitations.
No One Can Seize it From You
What if you owe taxes or have a judgment against you? With the right legal justification, an entity can just go in and pull money from your account. Not with Bitcoin, though. You are your own bank. Therefore, no one can confiscate it from you.
There Is No Censorship
Even if another user does not like you personally, they cannot block you. Bitcoin uses PoW (proof-of-work) to allow you access. It strictly uses a computational algorithm.
Decentralized
The Bitcoin network is global, distributed among thousands of nodes or computers. Also, it distributes itself to millions of users. There is no reliance on a third party. Bitcoin is a cryptocurrency that specifically holds a limited supply. There are only 21 million bitcoins in creation, and that will never change. The rate they generate them is predictable.
When you buy Bitcoin, it is scarce and not prone to inflation.
Bitcoin Is Easy to Use and Fast!
Transactions with Bitcoin are nearly instantaneous. They are low in cost, too unlike what you see when you use a Visa card, Mastercard, or PayPal.
Bitcoin Holds a Push System
You won’t see a charge-back with Bitcoin. That is because once you send Bitcoin, you cannot reverse the transaction. This makes Bitcoin more like cash, per se. If you were to give a friend cash, you could not get it back unless your friend physically gives it back to you.
Bitcoin is Real Currency!
People and businesses use and accept Bitcoin around the globe. You can buy food, coffee, and more. You can even use Bitcoin when you travel. There are some who talk about Bitcoin being more magical because of its makeup. A user cannot double spend with it.
Offers Users Anonymity
Depending on how you use Bitcoin, it can be anonymous. The government cannot track it. A user does not need to give their name, email, social security, or anything else while making transactions from person to person. Bitcoin travels through the Internet, like anything else, in ones and zeros.
Even if you do not use it this way, it is pseudo-anonymous. There is more privacy than what you get with a traditional currency.
For a Digital Wallet, You Only Need the Internet
With your computer or smartphone, you can buy Bitcoin or sell Bitcoin. You can pay for certain items directly, too if a company or vendor accepts Bitcoin as a payment form.
Further, if accessing a traditional bank is challenging for you, a device with an Internet connection could be a lot more convenient. Today, there are even Bitcoin credit cards available.
Transparency
The Bitcoin money supply has all its available information on the blockchain, where anyone can view it. Therefore, when you make a transaction with Bitcoin, anyone can see it. Not to worry, your personal information is not visible.
Financial Freedom
Everything in this article you can do with your transactions, and you can make your transactions globally with complete financial freedom. As life-changing events are always over the horizon, with Bitcoin, you get economic stability.
Use a Cryptocurrency ATM Anywhere
Across the world, people are reaping the benefits of using their neighborhood cryptocurrency ATM. Now that you know how they work, it will be much simpler when you go operate one for the first time.
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