Published On: Fri, Jul 2nd, 2021

What Is a Bitcoin ATM? Is It as Simple as an ATM for Bitcoin?

Bitcoin as a digital currency has grown multiple folds in the last few years, with more and more people around the world accepting it as a form of currency and getting involved in either buying or selling it. The demand to access it safely and quickly has increased, which led to the rise of Bitcoin ATMs.

What Is a Bitcoin ATM?

A Bitcoin ATM (Automated Teller Machine) is a kiosk through which customers can avail the facility to buy or sell bitcoins and other cryptocurrencies using cash or a debit card. Customers may buy crypto tokens with cash at the kiosks, which are connected via the Internet to the blockchain network. 

Users must already have an account with a Bitcoin ATM provider in order to use the machine. For example, companies like Pay Depot provide their users the ability to buy & sell Bitcoin with cash at any one of their self-serving kiosks.

When Was It Created and Where Are They Available?

In 2013, the Waves coffee shop in Vancouver, Canada, installed the world’s first Bitcoin ATM. Although that particular ATM has since been removed, it was this machine that opened the path for other Bitcoin ATM businesses to develop and carve out a name in the cryptocurrency world.

In the year 2014, the first machine in the United States went online. North America has a greater number of ATMs compared to other countries. As of March 2021, More than 10,000 Bitcoin ATMs are available in the United States out of around 20,000+ Bitcoin ATMs that are available around the world, with Europe being the second-highest to install and use these machines. One can use a ‘Locate a Bitcoin ATM near me’ option from any reputable crypto exchange platforms, websites, or applications.

Is It Similar to Cash ATMs?

A cash ATM is not the same as a Bitcoin ATM. Customers can physically withdraw, deposit, or transfer cash from their bank accounts using traditional ATMs. Bitcoin ATMs, on the other hand, are directly connected to a cryptocurrency exchange through the Internet. Users may purchase and sell BTC instantaneously using these exchanges. The coins are sent straight to the user’s digital wallet via blockchain-based transactions generated by Bitcoin ATMs.

Is It Simple to Use Bitcoin ATMs?

Yes, it is quite simple to use Bitcoin ATMs, they are fast, secure, and user-friendly, just like the conventional cash ATMs. To get started, all you need is a digital crypto wallet. However, since they have only been around for a few years, some users still do need to understand the various user verification techniques employed in these machines. Below are some of the points that you will need to remember before using a Bitcoin ATM next time:

  • You will need to register an account with the Bitcoin ATM operator if you don’t already have one.
  • Own a digital Bitcoin wallet to securely store the records of all your transactions, which you can simply accomplish with any smartphone app.
  • In case if you want to buy BTC, then select the option and place money into the ATM, and tell the machine the Bitcoin wallet address you want it sent to. For example, suppose you put $500 in the machine. The Bitcoin ATM operator then offers you $100 worth of Bitcoin at the current market price after deducting the operator’s charge, which will then be reflected in your wallet with a secure record of this transaction.
  • In case you want to buy BTC, log in to your account, select the option and provide the amount you wish to sell, and select the wallet address from which you want to sell it. This transaction must be validated on the network, or blockchain, and once it is, you will be notified and able to withdraw your funds after the deduction of the operator’s fee.

Are Bitcoin ATMs Safe?

While dealing with bitcoins online, many users encounter a variety of concerns relating to privacy, support, transaction speed, and safety. One difficulty is that online transactions can take days to verify and complete, and investors are sometimes concerned that their currency exchange will be monitored by anonymous third parties.

On the other hand, Bitcoin ATMs are usually run by reputable operators, and the transactions done through these ATMs are almost always instantaneous. Customers are not required to disclose any financial or personal data. Personal wallets are usually used for transactions, which are regarded to be a safer alternative, and all transactions are entirely private.

To inculcate more trust among people, many Bitcoin ATM makers provide excellent customer service, which is helping to boost the appeal of these devices.

Conclusion

Bitcoin ATMs have grown in popularity in recent years, as more and more people choose Bitcoin as a new form of currency. To meet this demand, many companies have already begun installing these ATMs around the world in order to increase familiarity and mass engagement as well as grow their transaction volumes. Thus, Bitcoin ATMs play a major role in shaping the future of the digital currency world.

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