- 1. What is a Bitcoin ATM?
- 2. How Bitcoin ATM Works?
- 3. Types of Bitcoin ATM
- 4. How to use a bitcoin ATM?
- 5. FAQs
What is a Bitcoin ATM?
A bitcoin ATM is a kiosk or a standalone device that allows people to buy and sell bitcoin or other cryptocurrencies to purchase Bitcoin by using cash or debit card.
How Bitcoin ATM Works?
A bitcoin ATM works differently from other automated teller machines (ATM). It won’t allow users to deposit, transfer funds or physically withdraw from one’s bank account. A Bitcoin ATMs support Blockchain transactions. So Bitcoin ATMs are connected to the Internet and send and receive tokens to users’ digital wallets by utilizing QR codes.
You can buy and sell Bitcoins anonymously. Yes, that’s true. To use Bitcoin ATM, you don’t require KYC or AML for transactions. That means you can keep your identity secure and private. However, amazing things don’t come for free, so the privacy of Bitcoin ATMs is chargeable. Bitcoin ATMs charge 7 to 10% fees on buying or selling Bitcoins.
The Good news is, the CoinCasso cryptocurrency exchange offers a discount of 50% on having a certain number of tokens for transactions. So, don’t wait to sign up now for secure and easy Bitcoin transactions.
Even more, the Bitcoin ATM will ask you for a text verification code for your transaction volume by providing a phone number. Or it may ask to submit, government-issued identification, such as a driver’s license, before completing a transaction.
- Almost all Bitcoin ATMs have already set a lower and higher cash limit on deposits.
- US Bitcoin ATM operators have to register with the Financial Crimes Enforcement Network (FinCEN) and anti-money laundering provisions of the Bank Secrecy Act (BSA). [Source]
Types of Bitcoin ATM
There are two types of Bitcoin ATMs:
- Unidirectional (one-way):
One-way Bitcoin ATM allows users to exchange cash for Bitcoin. Once you put cash in the ATM, your mobile wallet will receive the Bitcoin. This process is called fiat to crypto. In simple words to convert fiat currency into cryptocurrency, you can use Unidirectional Bitcoin ATM.
- Bidirectional (two-way):
Two-way Bitcoin ATM allows users to purchase bitcoin with cash and sell it back into cash. Bidirectional Bitcoin ATMs also help you to “cash-out” (crypto to fiat) of your Bitcoin investment.
- Around 14,000 bitcoin ATMs are in service globally. [Source]
- There are many Bitcoin ATMs that accept bitcoin debit cards and allows cash withdraw. But you can find this type of ATM only when you travel to a foreign country.
After getting knowledge of Bitcoin ATM types, let us discuss how to use it with a step-by-step guide.
How to use a bitcoin ATM?
Here are 4 steps to use Bitcoin ATMs.
Open a Bitcoin Wallet in Your Phone
First of all, you have to download a mobile wallet on your smartphone and need to set up an application. Just create an account by registering an email ID and password. That’s it! There are various options available to choose Bitcoin Mobile Wallets. You can choose CoinCasso (offers CCWalletApp) or Blockchain Wallet.
How to find a BTM Near You?
BTMs (Bitcoin ATMs) are also known as Bitcoin teller Machines or Bitcoin kiosks. You can find BTMs in bars, shops, or cafés whose owners support this new financial innovation. However, you can’t find BTMs everywhere in your city as it has a limit. To know where you can find Bitcoin ATMs, you can use a few of a handful of resources, like CoinATMRadar, Bitcoin ATM Map, or Coin ATM Finder.
Buy and sell Bitcoin at the Bitcoin ATM
The bitcoin buying process varies from BTM to BTM. But let’s focus on some of the general processes:
- Access the Bitcoin ATM dashboard
- Type the purchase bitcoin amount
- Insert the cash amount
- To receive the bitcoin, scan your wallet’s QR code
- Transaction will proceed
- Wait for confirmation
- Receive the coins in your wallet
- Complete the transaction.
Sell Bitcoins at the Bitcoin ATM
- Access the Bitcoin ATM dashboard
- Select the withdraw cash option.
- Choose Bitcoin.
- Insert the withdrawal amount.
- Send Bitcoins to the given QR code address from your mobile wallet.
- Collect your cash.
Now moving forward with certain questions that will help you to know more about Bitcoin ATM.
Bitcoin ATM Fee
As we have discussed earlier, customers have to pay service fees to use bitcoin ATMs. Generally, the fee structure of BTMs is based on percentages of transactions. BTMs don’t take service fees as a fixed dollar. Therefore, for a better fee structure, Consumer Financial Protection Bureau (CFPB) suggests keeping very high fees on the use of Bitcoin ATMs and less competitive fees on exchange rates. As a result, CoinFlip – the Bitcoin ATM operator, says the average bitcoin purchase fees will be 7% higher than the spot price for Bitcoin.
If you have a certain amount of tokens and want to get a great discount on your bitcoin exchange then use CoinCasso.
Bitcoin ATM Locations
As we all know Bitcoin ATMs are gaining high popularity in the U.S. According to Coin ATM Radar’s online Bitcoin ATMs directory, the estimated BTMs ratio is more than 9,000 in the U.S. as of October 2020.
Do Bitcoin ATMs give cash?
Yes, you can convert your bitcoin into cash and withdraw the cash from Bitcoin ATM. But not all BTMs offer selling or withdrawal service. So, to convert your bitcoin into cash the machine must be Bidirectional BTM.
Are Bitcoin ATMs safe?
The shady activities and anonymous nature of crypto transactions, and the rampant hacking have left everyone with this question. But, it’s time to clear the mind.
The answer to this question is “Big YES”. It is safe to use bitcoin ATMs, as all the BTMs follow a similar process with the underlying technology, like Blockchain. So, when you proceed with the transaction, the BTM will let you real-time login into the blockchain and every transaction will take place as a decentralized ledger. This means, getting hacked is virtually impossible.
If you want to know more about crypto news then follow the news offered by CoinCasso.