How do Bitcoin ATMs work? This is a common question of many individuals, especially those who are new to this investing industry. The ATM of virtual currencies works differently as compared to traditional ATMs, which you will find all around.
A Bitcoin ATM is like a booth that enables individuals to buy Bitcoins directly via credit and debit cards. This ATM looks like a traditional ATM, but it is not linked to a bank account. However, it is connected directly to a Bitcoin exchange or wallet.
Besides, you will find Bitcoin ATMs in hundreds of locations in the US. According to the reports, the USA has acquired the largest shares of Crypto ATMs within its region. This ATM network offers you the facility to exchange Bitcoin instantly.
You can also call Bitcoin ATM as physical centers where you can buy Bitcoins and other virtual currencies with your fiat currencies.
How Does Bitcoin ATM Work?
Buying and selling via Bitcoin ATM can seem to be difficult, but honestly, it is not. It is far more simple, and even a young investor can easily understand its working. So now let’s know how Bitcoin works.
1. Verify Your Identity
If you haven’t used a Bitcoin ATM before then, you might not know that you have to verify your identity before using this virtual currency ATM.
Depending on the machine, you can continue with this machine. In most of the Bitcoin ATM machines, they have to verify their identity with their phone numbers. So, you will receive a notification via message on your number. Then, you can continue with the transactions once you are done by confirming your identity.
2. Selling Bitcoin
After confirming your identity, you have to decide whether you have to sell Bitcoin or buy. If you already have Bitcoin and want to sell it via Bitcoin ATM, then you have to send Bitcoins from your digital wallet to the QR code provided by the Bitcoin ATM.
Don’t be afraid while using this machine as it is completely secure. You can follow all the instructions displayed on the Bitcoin ATM machine.
On the other hand, keep in mind that Bitcoin ATM charges a small fee for the transaction. There are already many platforms, such as Coin ATM Radar, that can help you to provide information about the exact location, fees, limits, and much more of all Bitcoin ATMs.
3. Buying Bitcoin
Now, if you are willing to buy Bitcoins via Bitcoin ATMs, you can choose to buy Bitcoins.
Then, using the Bitcoin ATM scanner, you have to consider your wallet’s QR code. To continue with the next step, you can enter your desired amount and enter the cash into the ATM or use your debit cards.
Moreover, you have to wait for a few minutes to process the purchases. Then, you can check your digital wallet whether you have received your purchased Bitcoins or not.
Pros Of Using A Bitcoin ATM Machine
There are some advantages of using Bitcoin ATM machine, and these are listed below:
- The number of Bitcoin ATMs are growing worldwide.
- Bitcoin ATMs are rising technology all over the world.
- It is extremely convenient to make transactions.
- It gives access to Bitcoins to citizens.
- Bitcoin ATMs are safe.
Cons of Using A Bitcoin ATM Machine
The major cons related to Bitcoin ATM are as follow:
- Still, there are very few ATMs in the world.
- You are not completely anonymous because there is a need for an ID verification.
- There is a limit on deposit and withdrawal amount.
- Transaction fees are high.
According to Bitcoin Compass, the popularity of Bitcoin ATMs is growing nowadays as the demand for this virtual currency is increasing. So, the above-listed factors are the ways how Bitcoin ATMs work, and you must know this information if you are a Bitcoin user or willing to invest in the same.
Follow Technoroll for more crypto-related content.
Editorial Staff of the TechnoRoll, are a bunch of Tech Writers, who are writing on the trending topics related to technology news and gadgets reviews.