You know about ATMs (Automated Teller Machines) and use them at least once a month or more, but do you know what bitcoin atm is and how to use them? Bitcoin ATMs, or simply crypto ATMs, are stand-alone kiosks used to sell and purchase bitcoin and other cryptocurrencies in exchange for cash or debit and credit cards. More than 14,000 bitcoin ATMs are currently operating worldwide, and 2,549 are only in Canada. The highest number of bitcoin ATMs is in the United States of America, with more than 24,700. Not all Crypto ATMs allow all the features, as some are limited to just the purchase of bitcoin, not selling, while some of the bitcoin ATMs are not operating in other cryptocurrencies and are only limited to a few of them.
How Do Bitcoin ATM Operate
Although Bitcoin ATMs are similar to normal ATMs used for depositing and withdrawing cash, however, there are a few features which differentiate them. Crypto ATM differs from simple ATM as it does not allow bank customers to physically deposit, withdraw or transfer funds in an individual’s bank account. Rather, bitcoin ATMs produce blockchain-based transactions that send cryptocurrencies to the user’s digital wallet using a QR code. Bitcoin ATMs are connected to the Internet, usually utilize QR codes, are rarely operated by major financial institutions, and do not connect customers to a bank account. Some bitcoin ATMs use a crypto exchange app that also allows the redemption of a voucher or coupon purchased for cash. This feature allows users to deposit funds, select which crypto to purchase, and then print a voucher that can be scanned with a mobile app.
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How To Use A Bitcoin ATM
Now you know what bitcoin ATMs are, you must be curious about how to use them. A crypto ATM is the same as a simple atm, but some distinct features exist. To use a bitcoin atm, you will require a mobile phone, a phone number, and access to a digital wallet.
Sign Up For A Digital Wallet
A Digital wallet is a necessary thing to use Crypto ATMs. Digital Wallet is connected to bitcoin atm to facilitate the transaction, so you will need to sign up for it to purchase crypto. Online wallets are available where you can sign up to start with crypto transactions.
Find A Crypto ATM
You might wonder where these crypto atm’s are. As there are not many machines installed as simple atm, so it will be difficult to find one. Those businesses that need atm machines will also have these kiosks to facilitate their customers. You can locate it using a service like Coin ATM Radar, or a simple Google search can help you locate a bitcoin atm near me. These machines can be found near renowned banks, and one of example in Canada is near rbc royal bank atm.
Authentication Of Identity
Similar to opening bank accounts, most crypto ATMs will at least need a phone number to verify your identity. Still, some may require further verification, such as entering your Social Security number or scanning a photo ID.
Digital Wallet Scanning
You need to scan your wallet address to buy Bitcoin or other cryptocurrencies. A QR code needs to be scanned into the crypto ATM to get started.
Make A Purchase
Now you are done with all the necessary procedures. You are ready to select the cryptocurrency that you wish to purchase, choose how much to pay, and complete the transaction. Deposit cash or pay with another accepted payment method.
How Much Do Bitcoin ATM Charge
It is commonly known that crypto ATMs charge high fees for transactions. This fee is charged as a percentage of the transaction done rather than a fixed dollar rate. These charges include a cash exchange fee, crypto exchange fee, or card processing fee. Transaction fees are charged as much as 20% depending upon the bitcoin ATM and the transaction being processed. However, Fees vary by ATM and can be as low as 2% to 4%. Often the exchange rate offered could be more competitive as consumers can find elsewhere.
Also Read: Automated Teller Machine Is a Finance Industry Dependency Today
Bitcoin ATM Could Be Risky
With many benefits involved, there are some drawbacks to crypto atm.
Accessibility
As with less demand for cryptocurrency transactions, Bitcoin ATMs are limited in terms of number and locations; you may travel for long distances to find one.
Limited Transactions
Compared to bank ATMs, there are the minimum and maximum transaction limits set by the crypto ATM company. It ranges between $10 to $10,000.
Conclusion
Bitcoin ATMs are very effective in terms of crypto transactions. Having some drawbacks, crypto kiosks will be increasing in future.
