Nearly 75% of retailers have plans to start accepting cryptocurrency payments within the next 2 years. With the rising popularity of Bitcoin, the number of Bitcoin ATMs is growing rapidly as well.
If you want to buy or sell Bitcoin, one of the most convenient ways to do it these days is to visit a BTM. A Bitcoin ATM allows people to buy and sell cryptocurrency in a simple and effective way and is making cryptocurrency even more accessible.
In this guide, we’ll tell you what BTMs are and help you understand everything you need to know about them.
What Is a BTM?
A Bitcoin ATM (BTM) is similar to a regular ATM since it allows users to engage in financial transactions using a physical machine.
Using a physical Bitcoin teller machine, you can buy and sell Bitcoin using cash and can easily complete transactions. A Bitcoin ATM connects to the internet and works with a cryptocurrency exchange to allow users to make transactions with Bitcoin. A BTM features a bill acceptor, a bill dispenser, a monitor, and a QR scanner.
Bitcoin ATMs are fairly new and have been around since 2013, but have since grown more and more popular over time.
These days, there are many Bitcoin ATMs around the world. Anyone can use these BTMs to make transactions easily and efficiently without needing to use their computer to log onto a cryptocurrency exchange.
Advantages of Using Bitcoin ATMs
There are many reasons why people choose to use Bitcoin ATMs instead of logging onto cryptocurrency exchanges. Here are some of the top benefits of using a BTM.
Privacy
One of the major advantages of using a BTM is that they allow for private transactions. They allow for increased privacy when compared to using an online cryptocurrency exchange.
Large cryptocurrency exchanges will give user information to government bodies such as the IRS and you’ll have to meet KYC requirements to verify personal and banking information. This limits the amount of privacy and anonymity you’ll get when using an online exchange and many Bitcoin users don’t like this.
Although you’ll need to provide proof of your identity when using a Bitcoin ATM, the requirements are less intensive than with large exchanges. BTMs allow for an increased level of privacy overall.
Security
Another reason that people choose to buy and sell Bitcoin with a BTM is that BTMs offer an increased level of safety and security.
There have been cases in which an online exchange was hacked. There are also a lot of scams online.
Fortunately, a Bitcoin ATM is much more secure and has strong safety protocols in place. There is no possibility of third-party interference with a BTM since you’ll be interacting with the machine directly when making transactions.
Since you’ll need to verify your identity when making a transaction, the transaction will be secure. Nobody will be able to access your account without having your digital wallet key.
Efficiency
Many Bitcoin buyers and sellers love to use Bitcoin ATMs because they’re so fast and efficient.
While Bitcoin ATMs vary in speed and efficiency, many of them will take a very short amount of time to process and complete your transaction. Many BTMs will take only a minute or less to fully process the transaction.
The process of getting cash from an online exchange can be time-consuming. To do so, you’ll need to transfer money to your bank account from a Bitcoin wallet to get cash.
With a Bitcoin ATM, you can easily buy or sell Bitcoin almost instantly without waiting a long time for transactions to be processed.
Convenience
Another great advantage of Bitcoin ATMs is that they are easy to use.
Many people aren’t very tech-savvy and expect the process of using an online cryptocurrency exchange to be difficult and confusing. For people who feel this way, a Bitcoin ATM serves as a great solution.
Since so many people are already comfortable with using a regular bank ATM, they can easily grasp how to use a Bitcoin ATM as well.
While the process of using each of these types of ATMs does differ by quite a bit, the process is similar. This makes BTMs seem much less overwhelming to the average person.
What Fees Do Bitcoin ATMs Have?
Keep in mind that when using a Bitcoin ATM, you’ll typically need to pay transaction fees. Bitcoin ATMs vary by quite a bit, so you’ll need to learn more about the specific BTM operator that you’ll be using to find out what to expect.
Generally speaking, however, Bitcoin ATM fees will vary from around 10% per transaction to as much as 30% per transaction. On average, you may expect to pay around 15% for a Bitcoin ATM transaction.
While ATM fees can currently be pretty significant, however, they’re likely to go down over time. As more BTM operators pop up it’s likely that the competition will drive down the cost of BTM fees. This means that using a BTM will become even more cost-effective in the future.
Finding a Bitcoin ATM Near You
Before you can use a BTM, you’ll need to find out where one is located. Unfortunately, Bitcoin ATMs are currently a lot less common than standard bank ATMs, so you won’t find them everywhere.
Your chances of finding a great Bitcoin ATM to use improve if you’re closer to a large city. However, the number of available BTMs is growing fast and there’s a good chance that there could be a great Bitcoin ATM in your area.
Fortunately, there are some online tools that allow you to easily find a Bitcoin ATM near you. If you’re looking for a Byte Federal Bitcoin ATM, for example, you’ll want to view more info here.
How Bitcoin ATMs Work?
So once you’ve found a Bitcoin ATM and you’re ready to make a transaction, what steps do you need to follow?
Keep in mind that all Bitcoin ATM operators vary and some will require more information and different steps than others will. However, generally, here are the steps that you’ll need to follow to use a Bitcoin ATM.
1. Get a Bitcoin Wallet
Before you can make a transaction at a Bitcoin ATM, you need to have a cryptocurrency wallet to use. This can be either a software or hardware wallet, but you’ll need to be sure that it can send and receive digital money securely and that it supports Bitcoin.
To make a transaction, you’ll need to know your wallet address or use a QR code to buy or sell Bitcoin with it.
2. Create an Account
When using a BTM, you’ll usually need to create an account with the BTM operator. You can usually do this at the BTM itself, but may be able to do it in advance of your arrival as well.
You’ll need to complete your registration, and you’ll need to verify your identity with the BTM by using a photo ID. After you have verified your identity, you can then proceed with making a Bitcoin ATM transaction.
3. Initiate the Transaction
Once you’ve verified your identity, you’ll need to follow the prompts to make a transaction. You’ll need to note the amount that you would like to purchase or sell and then enter your wallet information to set up the transaction.
With most BTMs, you’ll use a QR code to ensure that you’re sending the Bitcoin to the right wallet. Usually, you’ll also be able to enter your Bitcoin wallet address as an alternative.
If entering a wallet address, double-check the information to ensure that everything goes smoothly.
4. Deposit Cash
At this point, the process of using a BTM will be very similar to using a bank ATM.
If you’re buying Bitcoin, then you’ll need to enter cash to make the transaction. If you’re selling Bitcoin instead, then the process will be slightly different. You’ll simply need to take the cash that is dispensed.
5. Confirm and Wait
After a transaction has been made, you may need to wait a while for it to go through. This length of time may depend on the operator of the BTM as well as other factors.
Usually, you’ll need to wait some time for your Bitcoin to arrive in your wallet. This could take as little as a few minutes or could take as long as an hour with some Bitcoin ATMs. Often, the delivery of Bitcoin will take only 10-15 minutes.
Understanding the Basics of BTMs
If you’re thinking about buying or selling Bitcoin, then you might want to consider using a BTM. Bitcoin ATMs serve as a convenient and secure way to make Bitcoin transactions, so you may want to try using one yourself.
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