Bitcoin ATMs: A Beginner’s Guide to Bitcoin ATMs
Bitcoin ATMs: A Beginner’s Guide to Bitcoin ATMs
A Bitcoin or BTM (Bitcoin Teller Machine) ATM is a popular way to buy or withdraw Bitcoin without having to go via the regular banking system ( BTC ). Its popularity has risen in tandem with the rise in the value of cryptocurrencies and the amount of confidence in them over time.
Users may purchase and sell other cryptocurrencies including Ether (ETH), Bitcoin Cash (BCH), Dash (DASH), and Litecoin (LTC) at other ATMs.
Continue reading if you haven’t used one before or want to learn more about them. In this essay, we’ll discuss some fascinating aspects of Bitcoin ATMs. We’ll also provide you with important information like usual needs and things to think about while buying or selling Bitcoin.
We’ll also address topics like how to use a Bitcoin ATM to deposit money. What is the cost of using a Bitcoin ATM?
What Exactly is a Bitcoin ATM, or BTM?
An ATM, sometimes known as a BTM, is a physical kiosk that functions similarly to a traditional ATM. It differs from traditional ATMs in that it allows customers to purchase Bitcoin in return for cash or debit money. Users may also sell Bitcoin for cash at some BTMs.
BTMs resemble traditional ATMs in appearance. However, instead of a bank account, they link to a Bitcoin wallet. The Bitcoin wallet, rather than a bank card, acts as the repository from which coins are transmitted or loaded. Some Bitcoin ATMs resemble ordinary ATMs since they are standard ATMs with Bitcoin-specific software.
A Quick Overview of Bitcoin ATMs
On October 29, 2013, the first cryptocurrency ATM opened its doors. In Vancouver’s Waves of Canada coffee shop, there was a Robocoin ATM. It only functioned until 2015 due to Bitstamp issues, however, it is commonly regarded as the world’s first Bitcoin ATM. A Bitcoin ATM was soon launched in Europe. The installation took place on December 8, 2013, in Bratislava, Slovakia.
Meanwhile, on February 18, 2014, the first Bitcoin ATM in the United States was installed in Albuquerque, New Mexico. However, it was brief and was withdrawn only after one month of operation.
Bitcoin ATMs, like the cryptocurrency itself, have subsequently run into a slew of regulatory difficulties. Finally, an agreement was reached that Bitcoin ATMs would be subject to the same rules and regulations as ordinary ATMs.
This includes daily and per-transaction limitations on the number of withdrawals and deposits a person may make. In the United States, for example, all Bitcoin ATM operators must register with the Financial Crime Enforcement Network (FinCEN) and adhere to the Bank Secrecy Act’s anti-money laundering laws (BSA).
Depending on the value of the transaction, the Bitcoin ATM may require your cell phone number to give you an SMS verification code. You may be required to scan a government-issued identity document, including a driver’s license, before completing a purchase.
Furthermore, many Bitcoin ATMs no longer provide the privacy that they formerly provided, much to the chagrin of many crypto aficionados. This is owing to existing legislation requiring users to authenticate their identities before conducting transactions, particularly when dealing with big sums of money.
Currently, there are over 28,000 Bitcoin ATMs across the world, with the majority of them located in the United States. North America has about 90% of the worldwide Bitcoin ATM business. Genesis Coin (41.5 percent market share) and General Bytes are the two leading Bitcoin ATM manufacturers at the moment.
BTMs can be found at coffee shops, specialized businesses, and transit hubs like train stations and airports. A contract with a Bitcoin ATM provider is usually required for company owners who want a BTM placed in a retail area. The item will be installed on-site by the provider.
What is a Bitcoin ATM and how does it work?
Bitcoin ATMs, unlike online cryptocurrency exchanges, allow you to buy and sell Bitcoin quickly and easily. In most cases, Bitcoin ATMs demand that consumers have an existing account before they may use the machine.
The following are the two types of Bitcoin or BTM ATMs:
- One-way machines: These are one-way transaction devices that may be used to buy and sell cryptocurrency.
- Bidirectional machines: These are devices that can buy and sell cryptocurrency in both directions.
To trade cryptocurrencies for cash, BTMs must be linked to the internet. While most BTMs utilize a public key on the blockchain to transmit money, others still use paper receipts. When making large-amount transactions, Bitcoin ATMs frequently demand a verification step.
Bitcoin transactions are based on the blockchain, unlike standard ATMs, which enable you to physically deposit and take cash. They employ a QR code to deliver cryptocurrency to the user’s Bitcoin wallet. They are not operated by big financial institutions since they are not linked to a bank account. However, as previously stated, they are subject to the same rules and regulations.
Users are often required to scan a QR code corresponding to their Bitcoin wallet address. Following that, you may transfer the bought coins to your wallet. After a few minutes of processing, a trace of the transaction will be available in the user’s digital wallet.
The amount of money that may be placed using a BTM likewise has a maximum and minimum restriction. All Bitcoin traders must register with FinCEN in the United States. The Bank Secrecy Act’s anti-money laundering provisions apply to them as well (BSA). Depending on the value of the transaction, the Bitcoin ATM may require your phone number to give you an SMS verification code. You may be requested to scan a government-issued ID such as a driver’s license identification before completing a purchase.
What Is a Bitcoin ATM and How Do I Use It?
The processes for exchanging your fiat cash for Bitcoin at a Bitcoin ATM are outlined here. In a nutshell, here’s how you get Bitcoin from a Bitcoin ATM:
How to use a Bitcoin ATM to swap your fiat dollars for BTC.
Step 1: Enter Your Phone Number
Identity verification is required at Bitcoin ATMs. Before continuing with the transaction, they will normally ask for your cellphone number in order to acquire a verification code.
While Bitcoin ATMs were formerly known for their secrecy, they now must adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.
All BTMs must have some sort of identification authentication, including scanning a government-issued ID document or entering a phone number, as required by law.
Step 2: Make sure you’re who you say you are.
You must now verify your identity after giving your phone number. To do so, simply wait for the BTMs to issue you a verification code through text message. Then, on the machine you’re using, you must input that precise code.
Then you’ll get a notification that says, “Your code is 7654321.” “Thank you,” or anything like that. This step was added by the BTM makers to deter users from inputting bogus phone numbers on the machines.
Step 3: Scan Your Wallet for the QR Code
If you use a Bitcoin ATM, you almost certainly already have a Bitcoin address. The BTC will be transferred to this address.
You’ll need a Bitcoin address before you can use a Bitcoin ATM. It’s where the BTC will be sent by the machine. There are a few methods to obtain a public Bitcoin address if you don’t already have one:
- Using a paper purse as a purse
- Using a mobile app
- Using an exchange’s address
The most crucial item, though, is your QR code. This is your Bitcoin address, which you must scan in order for the Bitcoin ATM to know where to transfer your BTC. Multiple wallets are supported by BTC ATMs. If you’re unsure, it’s wise to verify with your wallet’s manufacturer.
Step 4: Choose a Fiat Currency
All you have to do now is type in the amount you wish to trade for Bitcoin. You just insert your money in the correct receptacle on the machine, just like you would at a traditional ATM that accepts cash deposits.
The machine will then tell you how much Bitcoin it is worth. If you type in $ 400, for example, you’ll get a message that looks like this: 0.0078 BTC = $ 400
Step 5: Confirm the Transaction Amount and Finish
All you have to do now is hit “BUY” or “CONFIRM” once you’ve checked that you’ve entered the proper amount of money and are pleased with the transaction. The Bitcoins you just purchased will be transferred to the Bitcoin address you validated with your QR code earlier.
Keep in mind that Bitcoin ATM transactions might take anywhere from 10 minutes to an hour to process. It normally takes the network six confirmations to achieve this, so don’t be concerned if the money doesn’t appear in your digital wallet right away.
At ATMs, you can sell Bitcoin.
You may purchase Bitcoin, sell Bitcoin, or do both depending on the ATM. The teller’s instructions differ. Buying and selling cryptocurrencies, on the other hand, is often no different from withdrawing money with a bank card.
When you wish to withdraw or sell Bitcoin from a Bitcoin ATM, follow these general instructions:
- Select the desired choice. To withdraw funds, select “Sell BTC” from the drop-down menu.
- Scan your wallet for the QR code. You may scan it with your mobile app, print it, or manually enter the address.
- Make sure you’re who you say you are. Although it varies by nation, most BTMs require users to input a phone number, scan a valid ID, or snap a photograph. Fingerprints are even accepted by some devices. For transactions involving high quantities of BTC, verification is required.
- Send the bitcoin to the address you provided. Scanning a QR code is the most common method. Some machines may give you cash right away, while others would require you to wait for the recipient’s confirmation.
- Confirm the transaction on your end and wait for the computer to finish it for you.
- Remember to keep the receipt.
The processes for using BTMs to sell Bitcoin are significantly more complicated, but these are the most important ones. On the other side, they’re typically simple to use and straightforward, so simply follow the on-screen directions and make sure you’re entering the necessary information.
Using a Bitcoin ATM Has Its Benefits
The following are some of the benefits of utilizing a Bitcoin ATM:
- It’s a quick and easy way to purchase and trade Bitcoin.
- Transactions can be completed without the use of physical or bank cards.
- Some ATMs do not need identity verification (in countries where KYC is not required), allowing you to remain anonymous.
- It allows those who do not have or choose not to have bank accounts to use Bitcoin.
- It makes Bitcoin more accessible in locations where there are few options for purchasing bitcoins.
- Because there are so many BTMs across the world, it is a convenient way to exchange Bitcoin.
The Drawbacks of Using a Bitcoin ATM
Using Bitcoin ATMs has certain drawbacks. Here are a few examples:
- Exorbitant transaction costs The costs for purchasing or selling Bitcoin at a Bitcoin ATM generally vary from 7% to 12%.
- Because most Bitcoin ATMs limit withdrawals and deposits (between $1,000 and $10,000), it may not be ideal for large transactions.
- Because most establishments demand identification verification, your transaction will not be fully anonymous.
Where Can I Find a Bitcoin ATM?
As previously stated, there are around 28,000 BTMs in the world, the majority of them are located in North America. Here’s a map of where Bitcoin ATMs may be found across the world:
According to Statista, the bulk of BTMs is located in North America and Europe, with additional ATMs strewn across the rest of the world.
You may run a local search on Coin ATM Radar to identify the precise location of a Bitcoin ATM near you. You only need to key in your location or city to locate the nearest BTM.
This is how you can use Coin ATM Radar to find a Bitcoin ATM:
1. Go to the Coin ATM Radar page. A map of Bitcoin ATMs with locations all around the world can be seen here.
2. Type your city or address in the top left corner of the map and hit “enter.”
3. You may also use the following filters to narrow down your results:
- The type of cryptocurrency you’d want to use to complete the transaction (BTC, ETH, DASH, LTC, etc.)
- The sort of transaction you’d like to do (Buy or Sell)
- The kind of machine you’ll require (ATM, teller machine, or other)
4. To learn more about a Bitcoin ATM near you, click on the location. You may learn more about the following topics:
- The building’s or location’s name
- Operating hours
- 3. Cryptocurrencies accepted
- Transactions that are supported
- ATM maker and kind
5. You may also use Google Maps to get turn-by-turn instructions from your position to the Bitcoin ATM by clicking “View details” or “Get directions.”
Facts to Know About Bitcoin ATMs
Despite the fact that Bitcoin ATMs have been around for a while, they are still a novel notion that elicits both intrigue and distrust.
Here are some key (and fascinating) facts regarding this piece of equipment:
1. The speed with which BTMs are adopted
Bitcoin ATM technology is still in its early stages. As a result, it continues to improve in tandem with changes in safety measures and laws that must be followed.
However, since the first Robocoin machine was placed at a Vancouver coffee shop in 2013, BTMs have gone a long way. Their number has exploded in recent years, indicating that the general population is quickly adopting Bitcoin.
The number of Bitcoin ATMs installed in the United States grew by 177 percent in 2020, maybe owing to growing demands for cashless payment alternatives. The data from Coin ATM Radar on Bitcoin ATMs reveals a strong increasing tendency, with numbers topping 30,000 by 2021:
Given the present state of cryptocurrency and Bitcoin ATM popularity among the general public, it appears that the numbers will keep climbing in the future years.
2. ATM Fees for Bitcoin
So, how much does using a Bitcoin ATM cost? Despite their rising popularity, Bitcoin ATM fees remain extremely expensive, as we’ve highlighted. Fees for Bitcoin ATMs typically range from 10% to 15%. They might be as low as 7% or as high as 25%, depending on the situation.
If you buy $ 800 worth of Bitcoin and pay an average purchase fee of $ 10, you will receive $ 720 worth of Bitcoin and pay an $ 80 commission. That is an important point.
Let’s assume you sell $1,000 worth of bitcoin for a 7% sales commission. This implies you’ll only get $ 930 in fiat money and will have to pay a $ 70 fee on the transaction. It is, once again, a large sum of money.
To avoid this, conduct research prior to visiting a machine near you. This way, you can figure out which machines have the lowest commissions ahead of time.
3. The Different Types of Altcoins Accepted by Bitcoin ATMs
Despite the fact that they are dubbed Bitcoin ATMs, the majority of these devices can also process transactions in other digital currencies. This implies you can buy and trade cryptocurrencies other than Bitcoin using them.
Because Bitcoin ATM technology is still very new, these machines only support a limited number of different cryptocurrencies. Given that there are now 1600 distinct types of cryptocurrencies, it may be some time before all of them are supported by the big BTM makers.
However, given the fast development and adoption of BTM technology, there is a significant probability that additional altcoins will be added to the list of altcoins supported by BTM manufacturers throughout the world.
Conclusion: Bitcoin ATMs in the Future
Bitcoin’s value has risen steadily since its debut in 2013. A Bitcoin was valued at roughly $ 200 at the time. Despite price swings, its worth has climbed to thousands of dollars over the years.
Along with its skyrocketing value, the number of Bitcoin ATMs has also skyrocketed. This demonstrates the popularity of Bitcoin and other cryptocurrencies.
Bitcoin and other cryptocurrencies are likely to grow in popularity as the world shifts to digital solutions in general, particularly financial transactions.
Bitcoin has remained an autonomous online currency, outside of the grasp of authorities and huge financial institutions, since Satoshi Nakamoto mined the first one.
This is also why many international leaders, financial elites, and economists have cast doubt on them on several occasions. The Bitcoin blockchain, on the other hand, has never been hacked since its inception, owing to Nakamoto’s “near-perfect programming.”
Despite this, there is no certainty that the Bitcoin blockchain will be untouchable permanently. Nonetheless, investors and enthusiasts rely on the cryptocurrency’s past record to stay optimistic about its long-term safety and profitability.
In this regard, it is projected that the number and popularity of Bitcoin ATMs will continue to rise in the future years. They are popular because they are easy to use, comfy, and unique. Bitcoin ATM fees are still one of the technology’s major problems, but they can’t be avoided for the time being because it provides a safe and convenient way to buy cryptocurrencies.
If you want to purchase or sell Bitcoin from a Bitcoin ATM, make sure you check internet resources beforehand to see which Bitcoin ATMs have the lowest costs. Also, make sure you always enter the proper information (such as your digital wallet information), as there is sometimes no way to reverse transactions caused by mistakes.
We hope that this essay has provided you with a basic understanding of Bitcoin ATMs. Please continue to visit our website for the most up-to-date prices, news, and updates on major cryptocurrencies.