How Do Bitcoin ATMs Work? An Informative Guide
Did you know that around 22 percent of Americans own a share of Bitcoin? With its growing popularity comes more ways to buy and sell Bitcoin. Many crypto enthusiasts are using a Bitcoin ATM for their transactions.
But what is a Bitcoin ATM? How do Bitcoin ATMs work and are they safe and easy to use?
The following guide will explore Bitcoin ATMs and fill you in on everything you need to know. Read on and learn if the convenient ATMs are a reliable way to buy cryptocurrency.
How Do Bitcoin ATMs Work?
Bitcoin ATMs work as a kiosk connected to the internet so that customers can make transactions on the go. Customers can buy and sell Bitcoin or other cryptocurrencies using cash.
You can receive cash from the ATM when you sell your Bitcoin or other currencies. However, some Bitcoin ATMs have limits on how much you can sell each day. You can also send Bitcoin to someone else’s wallet at the ATMs.
It’s important to note that Bitcoin ATMs usually have a deposit limit as well. A larger transaction might require a text code confirmation via your phone.
Some ask for government-issued IDs like your driver’s license to complete crypto transactions. Remember that you must have a smartphone present at all Bitcoin ATMs.
Be prepared to pay a transaction fee to use Bitcoin ATMs. The fees are usually a percentage of the overall transaction rather than a set dollar amount.
Different companies charge different fees and some can be as high as 7%. Consider all the ATM options in your area and compare their fees to find the best rates.
Bitcoin ATMs vs Standard ATMs
A Bitcoin ATM is not exactly the same as a traditional ATM. Standard ATMs let customers withdraw, deposit, or transfer funds from their bank accounts. They require a bank card and pin number to complete transactions.
Bitcoin ATMs create blockchain-based transactions instead of using banking information. The process sends cryptocurrencies to the customer’s digital wallet rather than a bank account.
Most Bitcoin ATMs use QR codes to complete transactions with wallets. They work instantly to protect against volatility (changing prices). The ATMs usually use 2-factor authentication for safety as well.
Bitcoin ATM Locations
The popularity of cryptocurrency is ever-growing and Bitcoin ATMs have become more common each year. The first publicly available Bitcoin ATM debuted in Vancouver, Canada in 2013.
Today, there are over 14,000 Bitcoin ATMs worldwide. They’re often located in high foot traffic areas and close to gas stations like standard ATMs. Visit bytefederal.com for more information on Bitcoin ATM locations.
Use Bitcoin ATMs With Confidence
So, how do Bitcoin ATMs work? They work similarly to traditional ATMs with reliable security measures and fast transactions. Give these convenient crypto kiosks a try the next time you see one in your area.
We hope this guide has helped you understand Bitcoin ATMs and their benefits. Check out the rest of our blog for more fascinating articles and helpful tips.
Image Attribution:
Pixabay.com royalty-free image #3132717, ‘bitcoin, blockchain, cryptocurrency’ uploaded by user TheDigitalArtist, retrieved from https://pixabay.com/photos/bitcoin-blockchain-cryptocurrency-3132717/ on October 25th, 2021. License details available at https://pixabay.com/en/service/terms/#usage – image is licensed under Creative Commons CC0 license.
