What Is a Bitcoin ATM and How Does It Work?

You can buy Bitcoin at an ATM? That’s right, the rumors are true.

Bitcoin had record growth in 2021, and it’s likely not going anywhere anytime soon. On top of the surging popularity of Bitcoin and other cryptocurrencies, however, Bitcoin ATMs are becoming more popular and common as well.

But what is a Bitcoin ATM, and how does it work? Here’s everything that you need to know.

What Is a Bitcoin ATM?

A Bitcoin ATM works very similarly to a traditional ATM and allows users to make financial transactions. However, instead of withdrawing and depositing cash, a Bitcoin ATM allows a user to use cash to buy and sell Bitcoin and other cryptocurrencies. 

Bitcoin ATMs usually aren’t connected with a bank or major financial institution, but are instead connected directly to a cryptocurrency exchange. It will be necessary to use a Bitcoin wallet in order to transfer funds, and buyers will usually need to scan a QR code to use a Bitcoin ATM as well.

Bitcoin ATMs are far from being as common as standard ATMs, but their popularity is growing, and they are beginning to spread far and wide. Be sure to read up on the Bitcoin ATM locations near you if you want to try using one.

How to Use a Bitcoin ATM

The process for using a Bitcoin ATM varies depending on the operator, but will usually require similar steps. 

Typically, it will be necessary to verify your identity when you first go up to a Bitcoin ATM. This may be done in different ways depending on the operator, but will often require a mobile phone number. It may also be necessary to create an account with a Bitcoin ATM operator. 

Once you verify your identity, you can then buy or sell Bitcoin or another cryptocurrency. When you buy Bitcoin, you’ll first need to add cash to the machine. You’ll then use a QR code to scan and receive the Bitcoin you purchased using your Bitcoin wallet.

Selling Bitcoin is similar to buying Bitcoin, but will require you to select a Bitcoin wallet to transfer from. In some cases, cash will be dispensed immediately. In others, it will take a little bit of time before the transaction will be processed.

Some ATM operators will require you to pay a fee when making either of these transactions, while others won’t. You’ll want to check with the Bitcoin ATM operator to find out what you can expect.

Reasons to Use a Bitcoin ATM

There are many reasons why people decide to use Bitcoin ATMs. 

One of the main reasons to use a Bitcoin ATM is the convenience and the speed at which transactions are processed. Using Bitcoin ATMs is much faster than an online exchange. Some users also use Bitcoin ATMs because it’s easy and very similar to using a regular ATM.

Many people also find Bitcoin and cryptocurrency ATMs to be more secure. They tend to offer better privacy and support compared to online exchanges. 

Final Thoughts

So what is a Bitcoin ATM, and should you consider using one? By now, you should have an idea of what Bitcoin ATMs are and why they can be useful. Bitcoin ATMs are easy to use and can be very convenient if you want to buy or sell cryptocurrency.

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