Bitcoin is the most popular and powerful cryptocurrency in the market right now. With many people and institutions adopting it as a new form of currency, it is also being referred to as the ‘Digital Gold’ because of its ever-increasing demand. With this demand comes more people wanting to access it securely and instantly, hence the concept of Bitcoin ATMs came into the limelight.
What Is a Bitcoin ATM?
A Bitcoin ATM is a self-sustaining machine or kiosk that allows its consumer to purchase or trade cryptocurrencies for a fee. These kiosks are, in turn, connected to the network via the Internet, which allows customers to purchase crypto tokens with a debit or cash deposit. In order to look for Bitcoin ATMs near you, you can use websites like https://paydepot.com/, which has one of the world’s largest Bitcoin ATM networks.
How Does a Bitcoin ATM Work?
A traditional cash ATM machine is usually run by a financial organization and allows you to connect to your bank account to withdraw or deposit money, as well as perform other sorts of activities.
Bitcoin ATMs, on the other hand, are linked to a crypto trade platform on the Internet. This site is in charge of managing transactions without the intervention of banks or other financial organizations.
Bitcoins are issued directly to the buyer’s personal wallet (through a scanned QR code on the buyer’s mobile device or a paper wallet). A monitor, QR scanner, bill acceptor, and dispenser are all parts that make a Bitcoin ATM. These components are connected via software on the back-end to make selling and purchasing Bitcoin swift, convenient, and safe.
The cost of the purchase is determined by the current exchange rate, which the ATM obtains in real-time from the Internet. The ATM may charge an extra percentage fee for the service, which usually is reflected in the final transaction.
How to Use a Bitcoin ATM
Using a Bitcoin ATM is very simple – they are made to be transparent and hassle-free for its users. In order to use the services provided by the ATM, users need to be registered first with their KYC and set up an account with the Bitcoin ATM provider.
Since Bitcoin ATMs have only been around only for a few years, not everybody knows how to use them. Hence, below are a few important steps that can act as a guide for the new users of Bitcoin ATMs.
Buying Bitcoin Using a Bitcoin ATM
The buying process in any Bitcoin ATM is basically the same as below:
- Verifying your identity first. Depending on the ATM you’re using, this process might be done in a variety of ways. In general, you will be asked to enter your cell phone number and OTP (one-time-password), although other forms of verification techniques, such as palm-scanning, are also used.
- Select the option of buying. There will be different ranges, so click on the one in which the amount you choose to buy falls under. For example, if you wish to buy $220 worth of Bitcoin, click on the $0-$500 range.
- Scan the QR code of your wallet. A wallet is where your bitcoins will be virtually transferred to after purchasing them.
- Print a paper wallet at the kiosk and import it later. If you don’t have a wallet, or you can download a wallet from the Play Store.
- Insert cash into the ATM. The quantity of cash you inserted and the number of BTC you will get in return will be displayed on the screen. The ATM will also showcase the wallet address to where your bitcoins will be transmitted.
- Select the confirm purchase option. Once you click on confirm purchase, the transaction will be processed, and you will receive your bitcoins into your wallet instantaneously.
- Select the and done option. To finalize the transaction – click on the done option and check your wallet whether you have received the coins. A receipt will be issued by the ATM, which you must keep safe since it is your evidence of purchase.
Selling Bitcoin Using a Bitcoin ATM
To sell Bitcoin, you must scan the QR code on the ATM monitor and transmit bitcoins from your wallet to sell bitcoins and receive cash in exchange.
Most of the time, this procedure is rapid, and cash is issued from the machine right away, but certain Bitcoin ATMs may take a few minutes to conduct the exchange before you can get your money. However, these confirmation timeframes are way ahead of those of Internet exchanges.
With Bitcoin’s value growing ten-folds day by day, the demand to access it quickly and safely has become more prominent. Hence, Bitcoin ATMs will play an immense role in the coming years and become an invaluable part of the digital currency world.