Bitcoin ATMs: A beginner’s guide to Bitcoin teller machines
About Bitcoin ATM
Bitcoin ATM (Automated Teller Machine) or BTM (Bitcoin Teller Machine) is a well-known way to purchase or cash out Bitcoin BTC $34,361, bypassing the classic banking concept. Their popularity has increased over numerous years along with the increase in the price of cryptocurrencies as well as an increase in the degree of trust in them.
In case you have not yet used such an ATM or would like to find out more about the mute, do not stop reading. In this post, I will analyze several interesting factors affecting Bitcoin ATMs. I will also provide you with the necessary data, for example, about the standard conditions and steps that should be followed in the presence of the acquisition or realization of bitcoins.
I will also give you an answer to the problem: how to bring funds to a bitcoin ATM? How much do I need to use a Bitcoin ATM?
What are Bitcoin ATMs?
Bitcoin ATMs, in certain variants referred to as BTMs, are kiosks where customers can receive, and in certain variants also sell bitcoin – 1 of the types of cryptocurrency. Bitcoin ATMs are owned and operated by third-party companies, the largest of which are Bitcoin Depot and Coinme.
In order to use a bitcoin ATM, a customer uses funds or a debit card to exchange traditional currency into bitcoins. In spite of the fact that bitcoin ATMs, as well as personally the rule, are just easily accessible to absolutely everyone, they have all without exception the possibility of requiring the consumer to stay with a bitcoin ATM operator.
Cryptocurrency (including bitcoin) is in no way connected together with the bank number, and in addition is entirely relative, using blockchain know-how.
This means that when the currency is exchanged at a bitcoin ATM, it does not appear in a bank account or in publicly available alternatives, but is transferred to an independent bitcoin wallet.
A Brief History of Bitcoin ATMs
The 1st ATM for cryptocurrency was opened for the first time on October 29, 2013. This was a Robocoin machine located in the Canadian Waves Coffee Shop in Vancouver.
It worked only until 2015 due to errors in the work of Bitstamp but gained wide acceptance as the 1st Bitcoin ATM in society. Soon after that, a Bitcoin ATM in Europe was revealed. It was in Bratislava (Country) and also was determined on December 8, 2013.
In such a case, the 1st Bitcoin ATM in the United States of America was determined on February 18, 2014, in Albuquerque, New Mexico. But someone stayed a little and also was dismantled in general through months of activity.
Just like as well as cryptocurrency itself, Bitcoin ATMs along with since such times have met with a lot of difficulties associated with regulation.
At the end of the points was reached an agreed opinion, according to which Bitcoin ATMs are in addition obliged to obey these same laws as well as laws that as well as classic ATMs.
These include limits in the number of actions according to the input and conclusion of money, which can be realized by a single individual in the period.
For example, in the United States of America, all operators of bitcoin ATMs without exception are obliged to register in the UZ according to the war together with economic offenses (FinCEN) and also to adhere to the statement of the Bank Secrecy Act (BSA) according to the war together with money laundering (AML).
Due to the size of the transaction, a Bitcoin ATM may need your mobile phone number to send you a proof cipher in the text version. Before making the action able needs to scan the act, confirming the person, for example, the driver’s license.
In addition, to the disappointment of numerous crypto-enthusiasts, almost all Bitcoin ATMs do not guarantee past anonymity. This is associated with the current instructions, which call on users to prove their person before committing actions, especially with large aggregates.
Today, there are approximately 28,000 Bitcoin ATMs, most of which are located in the United States of America. The part of North America accounts for almost 90% of the global trade of bitcoin ATMs.
At the moment, the largest manufacturers of bitcoin ATMs are Genesis Coin (part of the trade 41.5%) and General Bytes.
Most of the ATMs can be found in restaurants or special shopping centers, as well as in road transport areas, such as train stations and airports. As well as the principle, the owners of companies, seeking to determine BTM in the commercial premises, are obliged to agree with an Internet provider of bitcoin ATMs. The provider acquires the design of the machine in the area.
How does a Bitcoin ATM work?
Cryptocurrency ATMs connect to a cryptocurrency exchange and convert deposited cash into cryptocurrency. Transactions are processed on the blockchain, which is a digital ledger of cryptocurrency financial transactions.
Using a cryptocurrency ATM involves connecting the user’s digital wallet (usually with a quick response [QR] code), depositing cash, and transferring the purchased cryptocurrency directly to the digital wallet.
Some cryptocurrency exchanges use a cryptocurrency exchange app to redeem a voucher purchased with cash. This allows users to deposit funds, select the cryptocurrency to purchase, and then print a voucher that can be scanned with the mobile app to redeem the voucher and credit the funds directly to the user’s wallet.
Most cryptocurrency ATMs only offer one-way transactions, meaning cryptocurrency can be bought but cannot be sold. Some cryptocurrency ATMs offer two-way transactions, allowing users to buy and sell cryptocurrency in exchange for cash. Selling cryptocurrency is similar to buying: The user scans the QR code of their digital wallet, selects the amount of cryptocurrency to be sold, and receives cash at the ATM after the transaction is complete.
How to use a Bitcoin ATM?
Using a Bitcoin ATM is quite simple. Just follow the steps below:
- Find the ATM nearest to you.
- Insert cash into the ATM (the amount will be converted into bitcoins at the current market exchange rate).
- Enter your wallet address into the machine (this is where the Bitcoin will be sent).
- Confirm the transaction.
- Receive cash or bitcoins.
Selling Bitcoin using ATMs
Depending on the machine, you can either buy Bitcoin, sell it, or do both. Each particular machine has different instructions. However, in most cases, buying or selling cryptocurrency is not too different from withdrawing money with a bank card.
Below are general instructions on how to cash out or sell bitcoin at a bitcoin ATM:
- Choose your desired option. If you want to cash out, click “Sell BTC”.
- Scan the QR code of your wallet. You can scan it from the mobile app, print it out, or enter the address manually.
- Verify your identity. This varies by country, but most ATMs require users to enter a phone number, scan a valid ID, or take a photo. Some machines even accept fingerprints. Verification is a prerequisite for transactions involving large amounts of BTC.
- Send the cryptocurrency to the specified address. Usually, this can be done by scanning a QR code. Some machines dispense cash immediately, while others will have to wait for the recipient to confirm the transaction.
- Confirm the transaction on your end and wait for the machine to complete the transaction.
- Don’t forget to keep the receipt.
The procedure for using BTM to sell Bitcoin is much more varied, but these are the basic steps you will have to follow. They are also usually easy to use and very intuitive, so just pay attention to the instructions on the screen and enter the correct information.
Pros of using a Bitcoin teller machine
Some of the advantages of using a Bitcoin ATM include the following:
- It is a fast and convenient way to buy and/or sell Bitcoin.
- No physical cards or bank cards are required for transactions.
- Some machines (in countries where KYC is not required) do not require identity verification, allowing you to remain anonymous.
- Provides access to Bitcoins to people who do not have or prefer not to have bank accounts.
- Makes the purchase of Bitcoin accessible in regions where the ability to purchase cryptocurrency is limited.
- It is an affordable way to transact with Bitcoins as there are many BTMs around the world.
Cons of using a Bitcoin teller machine
Using Bitcoin ATMs has some disadvantages as well. Here are some of them:
- Very high transaction fees. The fees for buying or selling bitcoins at bitcoin ATMs are usually between 7% and 12%.
- The ATM may not be suitable for large transactions, as most ATMs limit withdrawals and deposits (between $1,000 and $10,000).
- Most locations require identity verification, which means your transaction will not be completely anonymous.
Important facts about bitcoin ATMs
Even though Bitcoin ATMs have been around for quite some time, they are still quite an innovative concept, arousing both curiosity and suspicion.
Here are a few important (and interesting) facts about this technology:
The speed of BTM adoption
The technology behind Bitcoin ATMs is still relatively young. Therefore, it is constantly being improved due to changes in security measures and regulations that need to be followed.
However, since the first Robocoin ATM was installed in a Vancouver coffee shop in 2013, ATMs have come a long way. Today, their number is growing exponentially, indicating that the general public is also adopting Bitcoin very quickly.
In 2020 alone, the number of Bitcoin ATMs installed in the U.S. increased dramatically (177%), possibly due to the growing demand for cashless payment methods.
Coin ATM Radar’s data on the number of Bitcoin ATMs installed shows that the upward trend is continuing, with the number approaching 30,000 in 2021:
Given the level at which the public’s attitude towards cryptocurrencies and bitcoin ATMs is currently, it can be assumed that the number will continue to grow in the coming years.
Bitcoin ATM fees
So how much does it cost to use a Bitcoin ATM? As we have already mentioned, despite the growing popularity of ATMs, the fees for using them remain quite high. Typically, bitcoin ATM fees range from 10% to 15%. However, they can go as high as 7% or as high as 25%.
If, for example, you buy $800 worth of bitcoin with an average purchase fee of $10, you will receive $720 worth of bitcoin and pay a fee of $80. That’s pretty significant.
On the other hand, let’s say you sell $1,000 worth of Bitcoin with a selling commission of 7%. That means you will only receive $930 in fiat currency and pay a commission of $70. Again, this is a pretty significant amount of money.
The way out of this situation is to do your research before going to the nearest vending machine. This way, you will be able to determine in advance which machines will have the lowest commission.
Conclusion: The future of Bitcoin ATMs
Since its inception in 2013, bitcoin has continued to rise in value. Back then, a single bitcoin was worth about 200 dollars. Years later, its value has grown to thousands of dollars despite price fluctuations.
Along with the massive increase in the value of Bitcoin, the number of ATMs trading it has also increased exponentially. This shows that Bitcoin and other cryptocurrencies continue to grow in popularity.
As the world continues to shift to digital solutions, including in financial transactions, bitcoin and other cryptocurrencies are only expected to grow in popularity.
Ever since Satoshi Nakamoto mined the first bitcoin, it has remained an independent online currency, unaffected by regulators and large financial institutions.
This is why many world leaders, financial elites, and economists have repeatedly voiced suspicions about it. However, thanks to Nakamoto’s “near-perfect code,” thankfully, the Bitcoin blockchain has never been hacked since its inception.
Despite this, there is no guarantee that the Bitcoin blockchain will remain impregnable indefinitely. Nevertheless, investors and enthusiasts are building on its track record and are confident in the continued safety and success of the cryptocurrency.
As such, we can expect Bitcoin ATMs to grow in number and popularity over the next few years. People like them for their affordability, convenience, and novelty.
Bitcoin ATM fees remain one of the major drawbacks of the technology, but for now, there is nothing that can be done about it as it provides many people with a safe and convenient way to purchase cryptocurrencies.
If you plan to buy or sell Bitcoin through a Bitcoin ATM, be sure to research online resources first to determine which Bitcoin ATMs offer the lowest fees.
Also, make sure you always enter the correct details (such as your digital wallet information), as it is often impossible to undo transactions caused by such errors.
We hope this article has helped you learn about the basics of Bitcoin ATMs. As always, feel free to check our homepage regularly for the latest rates, news and updates regarding various cryptocurrencies.