What are Bitcoin ATMs? This is a common question from many people, especially those who are new to this investment industry. The virtual currency ATM works differently compared to traditional ATMs, which you will find everywhere.
A Bitcoin ATM is like a booth that allows people to buy bitcoins directly through credit and debit cards. This ATM looks like a traditional ATM, but it is not linked to a bank account. Rather, it is directly connected to a Bitcoin exchange or wallet.
In addition, you will find Bitcoin ATMs in hundreds of locations in the US, but also in Spain. The United States has reportedly acquired the lion’s share of cryptocurrency ATMs within its region. This network of ATMs offers you the possibility to exchange Bitcoin instantly.
You can also call Bitcoin ATMs physical centers where you can buy bitcoins and other virtual currencies with your fiat currencies.
How does a Bitcoin ATM work?
Buying and selling through Bitcoin ATMs may seem difficult, but honestly, it is not. It is much simpler and even a young investor can easily understand how it works. So now let’s see how a Bitcoin ATM works.
1. Verify your identity
If you haven’t used a Bitcoin ATM before, you may not be aware that you need to verify your identity before using it.
At most Bitcoin ATMs, they have to verify your identity with your phone number. Therefore, you will receive a notification by message on your mobile. You can then continue with transactions once you have finished confirming your identity.
2. To sell Bitcoin
After confirming your identity, you must decide if you are going to sell or buy Bitcoin. If you already have Bitcoin and want to sell it through a Bitcoin ATM, then you must send the Bitcoin from your digital wallet to the QR code provided by the Bitcoin ATM.
Do not be afraid when using this machine as it is completely safe. You can follow all the instructions displayed on the Bitcoin ATM.
On the other hand, keep in mind that the Bitcoin ATM charges a small fee for the transaction. There are already many platforms, such as Coin ATM Radar, that can help you to have information about the exact location, fees, limits and much more of all the Bitcoin ATMs near you.
3. To buy Bitcoin
Now, if you want to buy Bitcoin through Bitcoin ATMs, you can do it without problems.
Using the Bitcoin ATM scanner, scan the QR code on your wallet. To continue to the next step, you can enter the desired amount and deposit the cash at the ATM or use your debit or credit cards.
You will have to wait a few minutes to process the purchase. Then, you can check in your digital wallet if you have received the purchased bitcoins or not.
Pros of Using a Bitcoin ATM
There are some advantages to using a Bitcoin ATM, and they are listed below:
- The number of Bitcoin ATMs is growing all over the world.
- Bitcoin ATMs are improving their technology all over the world.
- It is extremely comfortable to transact.
- It gives citizens access to Bitcoin.
- Bitcoin ATMs are very secure.
Cons of Using a Bitcoin ATM
The main disadvantages related to Bitcoin ATMs are:
- There are still few such ATMs in the world.
- You are not completely anonymous because they require you to verify your identity.
- There is a limit on deposit and withdrawal amounts.
- Transaction fees are high.