Abbreviated as BATM, a Bitcoin ATM is an automatic teller machine which allows an individual to buy bitcoins. Bitcoin ATM kiosks are exchange platforms which provide a medium for converting cash bills into electronic form. Bitcoin ATM kiosks are connected to the internet and allow people to insert cash or credit cards in exchange for Bitcoins. A Bitcoin ATM might also be able to dispense cash like a traditional ATM. This depends on the model of the machine. Though they are similar to traditional ATMs in terms of appearance, they do not connect to a bank account. Instead, they directly connect the customer to a bitcoin exchange. It thus provides a localized and convenient way to purchase bitcoin in person. Commonly, you can find a Bitcoin ATM in restaurants, malls, airports, departmental stores, or retail shops. Bitcoin ATMs are also called Bitcoin vending machines or Bitcoin kiosks.
How To Use A Bitcoin ATM?
Similar to a traditional ATM, one must have a verified account called the Bitcoin wallet for accessing the services offered by the Bitcoin ATM. The following are the steps to purchase Bitcoins from the kiosk.
- To start, press the ‘Buy Bitcoin’ button on the screen.
- After you press it, the ATM will ask you to scan the QR code of your Bitcoin wallet, which will enable you to receive Bitcoins. For this, you would need to open your bitcoin mobile wallet and generate a receive Bitcoin QR code.
- After this, place your phone in front of the QR code reader which is placed at the bottom right of the ATM. The ATM will then acknowledge your wallet address in a moment.
- After the ATM scans the QR code, the machine will prompt you to place your banknotes on the bottom left of the ATM for the cash amount for which you want to purchase Bitcoins.
- After placing the amount of cash for which you want to buy bitcoins, the machine will ask you if you would be adding more money or whether you have completed the transaction and if you would like to receive the coins in your wallet.
- To end the transaction, click on “send coins.” The Bitcoin you purchased will now be sent to your mobile wallet. This will take a few minutes as the transaction will have to be confirmed on the Bitcoin blockchain.
Some Bitcoin ATMs may also need user verification through fingerprint scanning or mobile phone number validation. This depends on the operator and is usually required in the case of larger transactions.
Types Of Bitcoin ATMs
The two types of Bitcoin ATMs are:
- One-way Bitcoin ATMs– These help users exchange cash for Bitcoin. If you put cash in the ATM, you will receive Bitcoin in your mobile wallet. These are termed as fiat to crypto, which means that they convert fiat currency into cryptocurrency.
- Two-way Bitcoin ATMs– These allow users to buy bitcoin with cash and exchange bitcoins back into cash. A two-way ATM helps you “cash-out” of your Bitcoin investment. These are called crypto to fiat ATMs.
Process Of Buying Bitcoin At An ATM
This process varies from one ATM to the other. But the general process is as follows:
- Enter the exact amount of bitcoins you wish to buy.
- Scan the QR code of your mobile wallet and provide your bitcoin address.
- Deposit cash into the ATM.
- Once your transaction is confirmed, you will receive bitcoin in your mobile wallet.
Exchanging Bitcoin For Cash
If you are using a two-way ATM, the process is as follows:
- Input the cash amount which you want to receive.
- Transfer the Bitcoin equivalent of that amount to the QR code which was generated by the ATM.
- Withdraw cash from the ATM.
Advantages of Bitcoin ATMs
1.Secure Exchange Platform
These ATMs are run by genuine business entities and operators. These have been established on legal documentation, and the owners have provided valid contacts. As there is no third-party involved in operating the machine, the possibility for fraud is zero. It is tamper-proof. There are some machines which also allow anonymity, which means that the user will leave no trail after transactions.
2. User interactive Feature
Bitcoin ATMs are user-friendly. They direct the user in each step of processing transactions. As buying and selling of Bitcoins are straightforward, it takes the shortest time to complete transactions.
They are the fastest platforms for buying and selling Bitcoins. The model of the machine determines its operational speed. Most of the machines process commands in less than 15 seconds. A user must scan the QR code, click on insert or withdraw bills, and press the send button to complete the transaction.
4. Good For Business
Anyone can operate a Bitcoin machine as it is readily available and is sold to any willing buyer. It returns a considerable amount of interest. Based on information shared by entities running the business, the monthly cumulative income generation hardly goes below $1000. It is also a good way to invite customers if you are running a restaurant or a retail shop.
Some of the popular Bitcoin ATM brands available in the market are:
- BitAccess Bitcoin ATM
- Skyhook Bitcoin ATM
- Lamassu Bitcoin Machine
- Satoshi1 Bitcoin Machine
- Robocoin kiosk
- Genesis1 Bitcoin Machine
Finding A Bitcoin ATM Near You
You can locate a bitcoin ATM near you by using the Coin ATM Radar Service in the Worldwide Bitcoin ATM Map. Visit the main website and enter the location in the search tab. Click on the ATM nearest to you and then click on the directions tab to identify the nearest Bitcoin ATM on Google Maps.
The exchanges of crypto coins have been revolutionized by Bitcoin ATMs as they have made transactions more decentralized. Since the advent of these secure and user-friendly machines, an increasing number of business entities are using them for attracting more customers who seek other services like these besides transacting at the machines. Bitcoin is commonly regarded as the ‘digital gold,’ owing to the value attached to it. So, thanks to Bitcoin ATMs, you are now all set to start your journey as a bitcoin investor!