Although Bitcoin has become a household name worldwide, most people are confused when they hear the term Bitcoin ATM. It happens because people have associated ATMs with printed money since the very beginning of these ‘magical’ machines across traffic junctions and nearby banks. Here’s the fact, though.
You need little effort to understand the concept behind Bitcoin ATM. And if you have one of these ATMs nearby, you can avail yourself of some benefits. However, you must know how Bitcoin ATMs work and how you can use them. In this article, we have explained everything you should know.
This article should be your handy guide to Bitcoin ATM. Shall we begin?
What Is a Bitcoin ATM?
A Bitcoin ATM is more or less a brick-and-mortar version of a cryptocurrency exchange. They look like ATMs that you have seen with fiat currency banks but work differently. Anyone can use a Bitcoin ATM to purchase Bitcoin using printed currency or a credit/debit card. At the same time, some Bitcoin ATMs let you withdraw cash by paying Bitcoin as well.
Like the traditional ATMs, Bitcoin ATMs also allow you to carry out transactions instantly. They work 24×7, meaning that a Bitcoin ATM can cater to your urgent Bitcoin purchase needs.
Where Can I Find Bitcoin ATMs?
Unlike what you may think first, Bitcoin ATMs are becoming common across the world. You can currently find at least one Bitcoin ATM in more than 75 countries, which is excellent. The total number of Bitcoin ATMs is somewhere around 6000. Considering how new the concepts of cryptocurrency and Bitcoin are, this is a fantastic figure indeed.
Finding a Bitcoin ATM isn’t as easy as finding a regular ATM, though. A Google search isn’t the best option to find a Bitcoin ATM nearby. Instead, you can use one of the dedicated websites that help users locate the nearest Bitcoin ATMs. Coin ATM Radar is probably the best option because it lists more than 14,000 crypto ATMs spread across 71 countries.
Now that you know how to find one, we will answer some common questions.
Is Bitcoin ATM Free to Use?
No, Bitcoin ATMs are not free. As you know, Bitcoin is a decentralized currency, and no single entity provides you the services. Because of this fact, the Bitcoin ATMs are controlled by third-party service providers. These providers may charge you a service fee and a transaction fee when you buy or sell Bitcoin through the ATM. Depending on the ATM you choose, these fees may be high or low.
Are Bitcoin ATMs Safe and Secure?
Like everything else in the blockchain world, Bitcoin ATMs also employ top-quality measures to maintain the safety and security of transactions. As long as you use one of the trusted Bitcoin ATMs, you can be sure that:
- The Bitcoin you purchase via cash reaches the wallet that you have provided/
- You get cash for the amount of Bitcoin you sell, minus the service/transaction fees.
Of course, you must ensure that you enter the correct wallet details when you buy/sell Bitcoin via an ATM.
How Does a Bitcoin ATM Work?
Here’s the quickest explanation of how Bitcoin ATMs work:
Bitcoin ATMs are always connected to a cryptocurrency exchange through the internet. When a user wants to buy or sell Bitcoin through these ATMs, they must provide some necessary details. Based on the country where the ATM is placed, different AML and KYC regulations may apply to each Bitcoin ATM transaction.
At the same time, there are Bitcoin ATMs that offer advanced privacy by charging higher fees. When you use one of these ATMs, you don’t have to provide any AML/KYC details to the KIOSK. Instead, you pay money to get Bitcoin, and you receive cash for selling Bitcoin.
You should do some research before you use these anonymity-friendly ATMs, though. Sometimes, the fees may be as high as 10% of the transaction amount. Then, again, if you don’t want anyone to know that you’re dealing with Bitcoins, such ATMs will help you a lot.
Is Bitcoin ATM Anonymous?
Not all Bitcoin ATMs give you the same amount of anonymity when it comes to transactions. It is essential to check the AML/KYC standpoint of a Bitcoin ATM before buying or selling Bitcoin via the ATM.
What Are the Benefits of Using a Bitcoin ATM?
Here are some of the advantages of Bitcoin ATMs:
- You can use printed currency or a credit/debit card to purchase Bitcoin.
- In most cases, you don’t have to provide your identity to the ATM.
- You can instantly receive cash when you sell your Bitcoin via a Bitcoin ATM.
Sounds impressive, doesn’t it?
The Bottom Line
We hope you understand the concept of Bitcoin ATMs and how they work. Now that you know these, you can use one of these KIOSKs to deal with Bitcoin transactions when you are nearby one, right?
You can also buy Bitcoin or any other cryptocurrency directly via our exchange service.