Since the introduction of cryptocurrency, Bitcoin has remained the most popular digital currency and has become a generally acceptable means of payment.
Over the years, bitcoin has experienced several challenges ranging from government ban, critics from economist experts, and the likes of others but still, it continued to strive positively.
The growth is so intense that you may have observed little change when you go to the ATM to withdraw or perform other transactions.
There seems to be a different kiosk just next to the usual ATM stand which has the tag “Bitcoin ATM”. This can be found in convenience stores, petrol stations, and other businesses that have begun to accept bitcoin as a form of payment.
If you have seen this, and you want to know how to use a bitcoin ATM, then continue reading this article.
What is a Bitcoin ATM?
According to Investopedia, “A bitcoin ATM is an Internet-connected kiosk that allows customers to purchase bitcoins and/or other cryptocurrencies with deposited cash”.
People often confuse the bitcoin ATM with the usual ATM (Automated Teller Machine). The Automated teller machine provides an opportunity for bank customers to physically withdraw, deposit, or even transfer funds in someone’s bank account.
The bitcoin ATM on the other hand allows blockchain-related transactions which send cryptocurrency to a user’s digital wallet with the aid of a QR code.
As Bitcoin grows in popularity throughout the world, more stores and businesses are beginning to embrace it as a viable payment method for transactions. And as such more Bitcoin ATMs are springing up.
These ATMs make buying and selling Bitcoin much easier and enable Bitcoin trading in a physical location. The Bitcoin ATM provides you with the service of either buying or selling Bitcoin. While some allow you to buy bitcoin only.
Furthermore, Bitcoin ATMs function similarly to normal banking ATMs. The bitcoin ATM allows customers to purchase Bitcoin and other cryptocurrencies in exchange for cash.
This means you may buy Bitcoin with cash at a Bitcoin ATM and then transmit it to a Bitcoin wallet. It takes only a few steps to complete a transaction, and utilizing one of these ATMs to buy and sell cryptocurrency is quite simple.
How to Use a Bitcoin ATM
Follow these steps to understand how to use a bitcoin ATM in buying and selling bitcoin.
#1. Locate a Nearby Bitcoin ATM
The first step on how to use a bitcoin atm is by finding a bitcoin ATM location near you. You can do so with the aid of Coin ATM Radar.
The Coin ATM Rader keeps track of all information concerning Bitcoin ATMs, such as fees, verification methods, and online status, among other things. At Coin ATM Rader you will be provided with a live map that would guide you on how to locate nearby bitcoin ATMs. This is how to use the Coin ATM Rader:
- Enter the Coin ATM Rader website on your device
- Put in your location in the available search bar which you can find at the top left corner
- Now, click on the search icon and a list of Bitcoin ATM nearby would come up
- Select the Bitcoin ATM you prefer and click on “Get directions” The google map will provide you with location and address.
#2. Make use of the Bitcoin ATM to buy bitcoin
The second and most important step is buying Bitcoin with the aid of the ATM. This particular step can be carried out through the following:
a. Click on “Buy Range in which you wish to Buy Bitcoin”
Let’s say you want to purchase a bitcoin worth about $400. You are expected to click on the $0-$500 range. Let’s say you want to buy a Bitcoin worth $800, you are expected to click on the $500-$1000 range
b. Scan the QR code of your wallet
After you must have selected the buy range in which you wish to buy Bitcoin. You would now use your device (Mobile Phone)go to your preferred Bitcoin trading platform, locate your bitcoin wallet QR and scan it. The purchased Bitcoin would be sent to this particular user wallet.
You should have in mind that even if you don’t have a Bitcoin wallet, it is possible to print a paper wallet at that location where the Bitcoin ATM is mounted and can be imported into a wallet later on. To avoid this, you can always just download a bitcoin wallet from your device’s App store.
READ MORE: 20 Most Stable Cryptocurrency This Year
c. Insert cash into the ATM
After you must have scanned the QR code of your wallet and transferred the purchased Bitcoin to your wallet.
You will now insert a cash bill into the Bitcoin ATM. The amount of cash that you inserted and the amount of Bitcoin worth of the cash you inserted which you are expected to receive in return will be displayed on the screen of the Bitcoin ATM.
You should also note that the Bitcoin wallet address to which Bitcoins will be transmitted will also be displayed.
d. Click on “confirm purchase”
After you must have inserted cash into the ATM and confirmed the amount of BItcoin worth of the cash you inserted, you will see the confirm purchase option down below the screen. Click on it and the purchase will be confirmed.
e. Click on “Done” to complete the transaction and receipt will be printed
At the end of the whole transaction, you will see the Done option at the end of the screen. Click on it to complete the entire transaction and your receipt will be printed. After every transaction, Bitcoins will be sent to the address you scanned. Kindly ensure to keep the receipt which serves as your proof of purchase.
The best part of this whole process is that it is easy, straightforward, and should not take more than 5min maximum, just like the traditional ATM machine.
Benefits of Bitcoin ATM
The ATM has several benefits to users and they include:
#1. Bitcoin ATMs are faster
One of the best aspects of utilizing a Bitcoin ATM is how quick and simple it is. Using one of these ATM machines, as opposed to other means of buying and selling Bitcoins, will allow you to buy or sell the cryptocurrency in seconds.
It takes time to learn how to use an online bitcoin exchange. The verification process can also be lengthy, and transactions can take a long time to complete.
On the other hand, when utilizing a Bitcoin ATM, identity verification is quick, and bitcoins may be traded and placed into a digital wallet in a matter of minutes.
#2. Bitcoin ATMs are safe
One of the most significant advantages of Bitcoin is that it is more secure than traditional forms of money.
While this is true of other methods of purchasing Bitcoin, it is a significant advantage when compared to other types of ATMs.
Some individuals may be concerned that Bitcoin ATM kiosks will not be a safe way to purchase and sell Bitcoin, however, this is untrue.
#3. Bitcoin ATMs Are Easy to Use
Bitcoin ATMs can also be quite handy for folks who are more comfortable with traditional means of withdrawing and depositing currency.
Byte Federal Bitcoin ATMs operate similarly to traditional ATMs and are just as simple and straightforward to use.
The Bitcoin ATM Warnings
Just like every other software or invention, there are rules guiding it which must be respected or observed.
The Bitcoin ATM has a couple of important factors which every user must have in mind when making use of it. These factors include:
- Never purchase Bitcoins for 3rd parties:
No matter how busy people may be, always avoid buying bitcoin for someone or even someone buying Bitcoin for you. It is wrong as a third-party purchase is not advised.
- No Refunds:
Any transaction made using a Bitcoin ATM is irreversible. This is due to the nature of Bitcoin and how it has been designed.
- Scam alert:
You cannot pay bills or services using a Bitcoin ATM; if someone asks you to pay for a service or pay a bill using the ATM, you are most likely being duped; do not do so! If you use a paper wallet for transactions, never email a picture of it to anyone. This is because anyone who has your paper wallet or a picture of it has complete access to your funds.
In this article, we have discussed how to use a Bitcoin ATM and all other key topics that would guide you in doing so correctly.
If you have any questions or suggestions, let us know in the comments section below!