Bitcoin ATMs may be a familiar concept, or they may be quite unfamiliar to you, depending on your location and familiarity with cryptocurrencies. Until now, Bitcoin has primarily been bought and sold over the internet. However, with more and more Bitcoin ATMs popping up around the world, it is becoming more accessible to users who may not have easy access to the internet.
In the age of high technology, it may seem strange that Bitcoin ATMs exist, but they provide a convenient and secure way for users to buy and sell Bitcoin. If you’re curious about using one, CoinMinutes will explain how to use Bitcoin ATM in the article below.
What is a Bitcoin ATM?
If in the traditional market, ATMs are used to deposit and withdraw cash into users’ bank accounts, then in the Defi market, Bitcoin ATMs are a tool for users to withdraw from Bitcoin virtual currency to fiat currency. face quickly. To put it more simply, a BTC ATM is a machine that converts digital currency to real money based on market exchange rates.
In the simplest terms, Bitcoin ATMs are just like regular bank ATMs. Bitcoin ATMs will help users withdraw cash from their Bitcoin accounts. And you may need that cash for your usual expenses.
How to Use Bitcoin ATM?
Step 1: Prepare a virtual wallet
The first thing you need to do to use a Bitcoin ATM is to create a cryptocurrency wallet. More specifically, you need to create a Bitcoin wallet to help you store your coins/tokens and use it to make transactions with Bitcoin ATM.
Step 2: Find a Bitcoin ATM near your area
The next step is to find a Bitcoin ATM near you. Bitcoin dispensers are often located in high-traffic areas, such as shopping malls or airports. They look like traditional ATMs, so you need to pay close attention to the Bitcoin logo to find the right ATM that allows you to transact with Bitcoin.
Step 3: Set up an account with the ATM operator
At Bitcoin ATMs, it will require you to create an account with the ATM operator before you can make transactions on the machine. By scanning your ID or driver’s license, the ATM will receive your information and proceed with the account setup process.
Step 4: Enter the necessary wallet information
Next, you will proceed to enter your wallet information at the ATM, via a QR code or alphanumeric key. You will scan the code with your mobile phone and add the necessary information to complete the step of entering your wallet information.
Step 5: Deposit cash
Once you have your wallet information set up, you can deposit the cash you want to convert into Bitcoin. Information about the amount you deposit and the total amount of Bitcoin you receive back will be displayed on the ATM screen.
You need to verify that the Bitcoin wallet address and the amount sent are correct before accepting the transaction.
Step 6: Confirm the purchase
As a final step, you need to verify the transaction displayed on the ATM screen. Confirm the amount details as well as your purchase information and press the submit button. Once confirmed, the machine will transfer the corresponding amount of Bitcoin to your wallet. If the transaction is successful, you will receive a notification from the Bitcoin ATM.
Bitcoin ATM Fees
Most Bitcoin ATMs charge a small fee for Bitcoin transactions. For example, Coinsource, a popular Bitcoin ATM operator in the United States, charges between 7% and 15% per transaction, with an average fee of around 11% nationwide.
There are also minimum and maximum limits for each transaction. For example, most Bitcoin ATMs have a minimum of 20 USD per transaction. The upper limit can range from 3000 USD to 9000 USD per day, depending on the ATM provider.
Fees charged by these ATMs are subject to the regulations of the state in which they operate. So depending on the state you are in, fees may vary.
Pros and Cons of Using a Bitcoin Teller Machine
Although Bitcoin ATMs quickly meet the need to buy Bitcoin or convert BTC into cash. But when analyzed, this technology still has advantages and disadvantages:
- Use similar to bank ATMs, a friendly interface.
- No account verification is required.
- Diverse payment methods such as cash, debit card, or credit card (when buying BTC).
- Limited number and number of countries with Bitcoin ATMs.
- Funds withdrawn and BTC purchased are limited to 1 transaction.
- High transaction fees: 7 – 15%
Where to Find a BTM?
According to data from the online resource CoinATMRadar, the United States now has the most Bitcoin ATMs globally. More specifically, there are 3,924 machines installed nationwide, accounting for more than 65% of the total number of Bitcoin ATMs globally.
The city with the largest number is Los Angeles, with over 900 computers as of February 2021. Los Angeles is closely followed by Chicago, Houston, Atlanta, Dallas, and Miami, a popular and growing crypto city. However, there are also Bitcoin ATMs in places like Canada, the United Kingdom, Austria, Hong Kong, Switzerland, and Spain.
Is Bitcoin ATM easy to use?
Yes, Bitcoin ATM is designed to be very user-friendly. You just need to follow the simple steps that Coiminutes has compiled above to successfully use the Bitcoin ATM.
Types of altcoins supported by Bitcoin ATMs
Bitcoin ATM mainly supports Bitcoin, in addition, it also supports popular altcoins such as Ethereum, Litecoin, …
How much does a Bitcoin ATM charge per $1000?
Depending on the operator, fees for a $1,000 transaction at a Bitcoin ATM may vary. Typically, they include a transaction fee of 7-15%, plus exchange rate differences and other fixed fees. Check the ATM or operator’s website for specific fees.
Above is an article about how to use Bitcoin ATM that CoinMinutes compiled. Hope this article has provided you with useful knowledge.