Did you know that there are now nearly thousands of Crypto ATMs that are installed across 77 nations? It is no secret that cryptocurrencies like Bitcoin have taken the world by storm.
Knowing how does a Bitcoin ATM work is necessary because many crypto users believe in a cashless world where only coins are traded. Imagine a “fiatless” society where all your money was yours with no strings attached.
Although this sounds incredible enough to so many people who purchase Bitcoin, life is not so easy. People still need to perform transactions, and Bitcoin ATMs make it easy to get your hands on more crypto.
Imagine how simple and fun it would be if your local donut store could accept your Bitcoins instead of forcing you to dig through your wallet to find some change.
The good news is that no matter whether you need a cup of coffee or a hotel room, you can top up your Bitcoin wallet without needing to go through a centralized bank.
This is where cryptocurrency ATMs come into place to help you buy or sell crypto that can be used anywhere. Here is everything you need to know about cryptocurrency trends and what is a Bitcoin ATM.
What Is a Bitcoin ATM?
A Bitcoin ATM is almost like a regular ATM where you withdraw cash from your bank account. A cryptocurrency ATM is an Automated Teller Machine that accepts your tokens and other crypto coins along with Bitcoin while helping you buy or sell coins.
This makes it even more useful to buy Bitcoin because you can easily spend it on things you consume by using an ATM to transfer funds. The best part is that a Bitcoin ATM can let you buy and sell coins.
However, you should always check if the ATM you are planning to use offers this function. Otherwise, you may need to find another one that provides this service.
Crypto ATMs also let you send your coins to another user’s wallet. This is the fastest way to transfer money if you need to pay back a friend for drinks over the weekend. All you need to do is enter the person’s address in the “recipient” field, and the transaction will be complete.
The Importance of Safe Transactions
Although a Bitcoin ATM is designed to keep your funds safe and secure, you should still be careful of some risks. For instance, always remember that Bitcoin transfers are irreversible.
This is due to the complex nature of blockchain technology. Therefore, you must be careful when entering your personal information. Never give out your Bitcoin wallet address to someone you do not trust wholeheartedly.
You should also consider that there are numerous Bitcoin ATM operators worldwide. Due to the world of cryptocurrency being unregulated and open to all, some operators may not be so honorable to conduct transactions.
Therefore, you must always take precautions when finding the right Bitcoin ATM. Avoid paying for any extra goods and services, and always read the reviews.
It is best to find a company that you can trust without a doubt to conduct your transactions. Check out this reputable Bitcoin ATM operator for more information to ensure your funds will always be safe and secure.
Cryptocurrency enthusiasts need to consistently take care when withdrawing money from an ATM. Even though there is no physical card for anyone to grab out of your hands, there are still cybercriminals and other thieves who can steal your data and money if you do not keep your information safe.
How Does a Bitcoin ATM Work?
Cryptocurrency ATMs are almost identical to normal ones that you see outside banks. However, they operate completely differently.
For instance, your cryptocurrency ATM will communicate directly with the Bitcoin blockchain instead of being connected to a bank.
You will need a traditional and digital wallet if you want to buy or sell Bitcoin through a crypto ATM. This is where you can insert bills into the ATM to scan a QR code. This is for your digital wallet.
Alternatively, you can also enter this information manually. This is how you can successfully use a Bitcoin ATM if you want to get cash or sell and buy coins. The cryptocurrency you receive from an ATM will come from the operator’s wallet.
Crypto Wallet
The first step to performing your cryptocurrency transaction is to get your hands on a wallet. The same way you would get one if you do not want to stuff a lot of cash loosely in your pockets.
However, this would be a digital wallet where you can store as many coins as possible. Your wallet needs to support the token if you want to buy Bitcoin. Remember that this wallet is necessary to send and receive money because it will be secure.
The next step is to prepare your wallet after you obtain one. Most Bitcoin ATMs are also called Teller Machines. These will let you scan QR codes to conduct Bitcoin transactions.
Always check if your digital wallet has this feature that lets you do this. This way, you can lower stress by eliminating the need to enter non-human-readable wallet addresses that can be extremely long.
After setting up your wallet, you must find a Bitcoin ATM near you. Cryptocurrencies are not widely accepted if you want to buy most things in your area.
Therefore, finding a Bitcoin ATM out in the wild can be tricky, especially if you do not live in a big city that thrives on tech. It is best to research the company you want to trade with and use their ATM.
On their website, they should provide information about the locations of all their machines to ensure that you can find the right one near you.
Setting Up Transactions
If you want to look futuristic by using a Bitcoin ATM for the first time, you will have to verify your identity thoroughly. This is vital to ensure that there is no crypto fraud.
The first step is to enter your cell phone number. Then you will need to enter your secret pin to gain access. After this step, you will be asked to pick which cryptocurrency you would like to get.
This is typical if an ATM offers more than one. Then you can enter the amount you want to buy. This is where your transaction is all set up and ready to go. Now you will need to type in your Bitcoin wallet address.
ATMs usually allow people to use QR codes to minimize the risk of sending the wrong address for their crypto wallets. Imagine sending money to the wrong wallet address that cannot be reversed.
Always pick the QR code function to make life easier. Otherwise, you must manually check and double-check every wallet address you enter to ensure that your funds do not end up in the wrong hands.
When you complete these steps, you will need to insert some cash to buy Bitcoin. Double-check your transaction info and put in the required cash into the machine.
Then you must confirm the purchase and wait for your new Bitcoins to arrive in your wallet. The best part is that delivery is rather quick, and you can expect to see your wallet updated within a few minutes if there are no hiccups during the transaction.
ATM Fees
Like banks and their ATMs, Bitcoin ATM operators will also have policies about transaction fees. Although some of them can set high fees, it can always be worth traveling a bit further to find a slightly cheaper ATM with the lowest fares.
When cryptocurrencies become more accepted globally, you will see a jump in the number of Bitcoin ATMs.
This is good news because it means that transaction fees will significantly drop since there will be more competition. However, until this happens, you should always use a reputable operator that is upfront about all their fees.
Are Bitcoin ATMs Safe?
You will be pleased to know that your finances will always be secure using a Bitcoin ATM. This is why it is important to work with an operator from a reputable brand that can provide a safe experience.
Top companies go to great lengths to develop cutting edge state-of-the-art-software. Operators also cannot successfully run a business without hardware or software breaking down.
But they can reduce the chances of this happening by taking extra precautions to ensure that every transaction goes through smoothly in the most efficient manner. Interacting with Bitcoin ATMs is exceptionally safe, and most do not keep a lot of cash to lower the risk of theft.
Is It Safe to Use Bitcoin?
No investment comes without risk. However, investing in Bitcoin and using the crypto carries different responsibilities and risks. They cannot be compared to traditional investments like bonds and stocks.
A bitcoin investor needs to play a mammoth role in keeping their funds safe. Unlike buying stocks or mutual funds, you need to take extra precautions to avoid your tokens going into the hands of criminals.
For instance, you need to keep your private key always guarded. This is the only way to keep your digital wallet secure and safe to help you find it again. It is also beneficial to transfer Bitcoin into a cold wallet.
This is an offline storage device like a flash drive. Instead of storing your crypto in an online hot wallet, your cold wallet storage can limit the risk of online theft.
These devices may cost a little bit of money, but it is always worth moving your Bitcoin into cold storage as soon as you purchase it.
Aside from remembering your private key, which is your password, you must keep the physical device containing your Bitcoins. Safe. Remember the man who lost thousands of Bitcoins worth several millions of dollars?
Bitcoin Scams
Now that Bitcoin has become relatively mainstream, everyone wants to get their hands on it. However, thieves will get creative to rob you in the digital world since there is nothing physical to steal by breaking into your home.
The more Bitcoin gains in value, the number of scams will also increase, targeting investors. Always watch out for websites that use fake testimonials and cryptocurrency lingo to make you think they are credible.
They will always promise a ton of quick returns. But this is a complete lie. The websites also go an extra step to make it seem like your investment is growing.
However, when you try to withdraw your gains, you may get trapped in buying more crypto from the scammer. You need to also beware of phishing scams where emails look like they are from a renowned cryptocurrency exchange.
These will be fake emails sent from a scam artist to get you to reveal your secret password. Many people fall for this scam because the emails sent will also have logos and branding to convince them that it is from their favorite crypto operator.
It is best to avoid clicking on any links that come in through these scam emails. Always protect your password and contact an exchange directly if you receive suspicious communications that ask for your data.
Buy Cryptocurrency Today
Now that you know the answer to, “How does a Bitcoin ATM work?” and how to use it safely, it is time to start lining up some safe transactions. Remember that Bitcoin ATMs work like bank machines that you have used before.
However, you need to complete some extra steps that involve verifying your identity and depositing cash into the machine. It is also a lot of fun setting up your digital and traditional wallets.
The good news is that if you select a reliable operator, there are no complicated procedures or schemes. You can safely conduct cryptocurrency transactions as though you are walking into a regular bank.
If you loved reading this cryptocurrency trends guide, check out some of our other posts for more information.
Founder Dinis Guarda
IntelligentHQ Your New Business Network.
IntelligentHQ is a Business network and an expert source for finance, capital markets and intelligence for thousands of global business professionals, startups, and companies.
We exist at the point of intersection between technology, social media, finance and innovation.
IntelligentHQ leverages innovation and scale of social digital technology, analytics, news, and distribution to create an unparalleled, full digital medium and social business networks spectrum.
IntelligentHQ is working hard, to become a trusted, and indispensable source of business news and analytics, within financial services and its associated supply chains and ecosystems
