So, how does bitcoin ATM works? In fact, what is a bitcoin ATM? A bitcoin ATM is designed to conduct a bitcoin transaction. They are also called BTMs. The BTM has become part of the larger day-to-day sell and buy practices in the west. Many malls and stores have implemented Bitcoin ATMs and people now can change dollars into bitcoin and otherwise.
Bitcoin is leading the cryptocurrency phenomenon, and together with the attention of bitcoin gotten by the top companies and stores in the US, it is not surprising to see bitcoin ATMs around. Recently, Tesla surprised the finance world when they decided to buy billions of worth of bitcoin and began accepting payments in one. Banks in the US reported that they would work on accepting the cryptocurrency as part of their services.
MasterCard and PayPal are another services that have ties with the the daily transaction that decided to join the bitcoin race. Today, you will find Bitcoin ATMs at airports, stores, and even food areas. Since the first launch in 2019, about 7000 bitcoin are giving the exchange service around the world. This number is expected to increase in the coming years following the fast acceptance of the currency.
Why Bitcoin ATMs
Bitcoin ATMs are meant primarily for convince. Other transaction methods, similar to the traditional method are more complicated and need more than you to finish the process. Instead the ATMs would help you get the about of bitcoin or cash you desire.
With their presence at many stores and institutions, these make the process of buying selling simpler. The machines are also thought to be sager and more private. Instead of dealing with the third person, with the BTM you only deal with the wallet and the machine.
So, How Does Bitcoin ATM Works?
A bitcoin ATM is kiosk that allows to buy and sell bitcoin using cash and debit card. Through the machine one can sell their bitcoin and receive a cash or insert a cash in to the machine to get bitcoins in their wallet.
Bitcoin ATM is different from the traditional ATMs. At bitcoin ATMs you can buy and sell bitcoins for cash or debit card. The bitcoin ATMs are wired to the internet and you get live update of your bitcoin account.
What makes how does bitcoin ATM works is that it excludes any central body such as banks and directly works with your account. The Bitcoin ATM connects customers directly a bitcoin exchange.
Bitcoin ATM facilitates the buy and sell process by providing simple steps to change money in to bitcoin and vise versa.
#how does bitcoin atm works: basics
Buy: How Does Bitcoin ATM Works
Buying a bitcoin is one of the options of the BTM. Here, just like the ATM that we already use, you need to follow easy steps to successfully buy bitcoins.
- First, choose ‘buy bitcoin’.
- Then you need to use your phone and BTM interface to scan QR code from your bitcoin wallet. (present ID if the machine asked. if not follow along.
- Enter the about of bitcoin you planned to purchase.- You see how much dollar worth of bitcoin you are about to purchase directly on the screen.- You estimate how much bitcoin you can purchase with the cash you already have.
- Then insert cash into the slot provides, usually at the right side of the BTM.
- Once the BTM processed your request, click ‘finish’
- Take your receipt from the machine.
That is the process. Once you completed the steps you need to check your bitcoin wallet and you should see an increase of bitcoin in your wallet.
Sell: How Does Bitcoin ATM Works
Selling bitcoin in the bitcoin ATM should not be hard either. You need to follow these simple steps.
- Click ‘withdraw cash’ – This option is sure when you need to get cash out of the machine. Sometimes you may need to sell your bitcoin to buy something somewhere that doesn’t accept bitcoin. This is the best option for the convenience of getting cash without going to the bank.
- Then select ‘bitcoin’ – Here you may get options for the type of cryptocurrency you need to sell. In this case, we are looking to sell bitcoin, therefore, select one.
- Enter the amount of bitcoin you need to sell- In most of the machines you will see the direct conversion into dollars. Therefore, it is easy to estimate how much of the bitcoin you are selling.
- Scan your QR code from your bitcoin wallet into the machine. – QR code is a barcode that you see in your wallet option.
- Once the process is completed, the machine will release cash.
#how does bitcoin atm works: Easy steps to sell an buy bitcoins
How Does Bitcoin ATM Works with charge fee?
The convenience of Bitcoin ATM doesn’t come with free service. an fact, the transaction with Bitcoin ATM incurs between 7 and 15 percent fee. Usually, transaction fees for ATM cost up to 16 percent service fee, and 7.5 percent fee on online transaction fee.
The cost is explained, through the transactions completed by the mining pools where miners complete the transaction with minimum fees. The cost is directly associated with the number of miners. The more the number of miners, the higher the fee.
#how does bitcoin atm works: with a small amount of transaction fees
Are Bitcoin ATMs safe?
Bitcoin ATMs are safe to use. You can only access the process using the QR wallet code, and accepting and sending tokens to your wallet. Some BTMs ask for your ID even after you entered your QR code.
The history of hacking associated with Bitcoin leaves one with the fear of the safety of the bitcoin ATMs. Is it’s safe to use bitcoin ATMs. Is there a probability that you will be hacked or highjacked while withdrawing or selling bitcoins? It depends. It was not known that one can be hacked until one morning in 2018 when security people found malware and hackers who sell them.
It depends on the two things, your care while you use the BTMs and the safety of the machine as well. You need to keep your info safe and hidden especially at places where you can withdraw without an ID traditional info.
The second is operators. Operators usually do a good job keeping machines safe from malware and transactions. In fact, malware attacks usually affect BTM owners, not users.
Therefore, many studies show that you don’t need to worry much for safety of BTMs. Keep your info safe, and stay away from BTMs in hidden, or crime areas.
#how does bitcoin atm works: safe transactions
Are Bitcoin ATMs Anonymous?
Studies show that Bitcoin ATMs are anonymous. However, they can be traced. The blockchain logs and displays the bitcoin transactions. Therefore, money laundering or illegal transactions can be traced throughout the process. However, while addresses are fully traceable, they cant be linked to a person or entity.
How Much Does a Bitcoin ATM cost?
The BTM machine including the hardware, delivery, taxes, installation setup would cost about $10k to $15k. The hard ware could cost you between 10 and 15 thousand dollars including a shipping price that could cost up to $1K, installation fee up to 2500, and tax fee that is up to a third of the price of the machine.
The main cost of installing bitcoin ATM is right after installing one. The lawyer cost, if things go wrong would cost you few hundreds per hour. A cost for operators that need to check the machine every month could cost you few thousand dollars.
Updating compliance policy could cost up to $10k every year.
Banks would charge up to .5% of the collected cash.
#how does bitcoin atm works: Hefty costs, but good returns
How much money can you withdraw from a Bitcoin ATM?
This time coinsource, that is associated with the world’s largest bitcoin ATM network allows withdraw amount of $5000. Therefore, based on location and other factors, you can only deposit or withdraw between $1k and $10k.
#how does bitcoin atm works: you only can withdraw moth more than $10k. $5k in many places.
How long does Bitcoin ATM take?
A confirmation takes about 10 minutes, and even upto an hour for the bitcoin to be deposited in your wallet after purchasing one from the BTMs.
Who are the Top Bitcoin ATM Provides?
The ATM providers just like the traditional ones, are provided by companies that import or produce one. The top providers are
1- Bitcoin Depot– is a fast growing, a multi cryptocurrency ATM network.
2- Bitnovo- Produces and sells bitcoin ATMs. You will have option to sell vouchers to redeem on the Bitnovo website.
3-Cryptospace– Incentivizes customers to buy an sell cryptocurrency.
4- Localcoin– is a BTM in canada , providing a service to buy and sell bitcoin.
#how does bitcoin atm works: takes few minutes to hours to update wallet data
Bitcoin ATM Locations
This time there are about 16000 crypto ATMs, in 71 countries. The most effective way to find a Bitcoin ATM location is to use the bitcoin map. Use the bitcoin ATM near me feature to find the machines easily.
#how does bitcoin atm works: find places near you
Conclusion, How does Bitcoin ATM Works
Bitcoin simply has become a central part of some of the services around the central globe. More than 9000 bitcoin ATMs are installed around the world in the last two years. The number is growing creating convenience and safety to the transaction process.
Now, you can buy and sell bitcoin at Bitcoin ATM only using a QR code from your bitcoin wallet. What you need to do is choose to buy or sell bitcoin. Then enter your QR code and select the amount you need buy and sell.
Source: cost of BTM and how does Bitcoin atm works