This year alone, Bitcoin ATMs have doubled, reaching 30,000 globally. With so many worldwide, there is no stopping this emerging technology.
Decentralization is here to stay. What’s all the hype about, though? With so many people unbanked in the world, there needed to be another solution.
Bitcoin continues to save the day, opening up financial opportunities for all. You must be wondering, “how do Bitcoin ATMs work?”. If so, keep reading and enjoy.
Before Buying Bitcoin
Before buying bitcoin, there are a few things you’ll need to get started. The first thing on your agenda is to get your hands on a Bitcoin wallet. As you may have guessed, with a Bitcoin wallet, you will be able to send and receive Bitcoin.
Your public address is what you’ll show when you want to receive funds. The address looks like a long random string of numbers and letters.
Your private key is what you’ll need when you wish to spend your bitcoin. The private key or secret phrase will consist of 12-24 words. Write these down and store them in a safe place away from prying eyes.
How Do Bitcoin ATMs Work?
What is a Bitcoin ATM? How do Bitcoin ATMs work?
They function as a Bitcoin exchange. As you would with a traditional ATM, you will either put cash in or take some out.
In this instance, this means either buying or selling bitcoin. In other words, a Bitcoin ATM (BTM) will be either bi-directional (buy and sell) or unidirectional (buy only).
Buying bitcoin with a Bitcoin ATM is an easy process. Navigate to the screen where it says, “Buy Bitcoin.” Input your public address by scanning your Bitcoin wallet’s QR code.
Decide how much you wish to purchase and enter it in. Depending on how much bitcoin you want to purchase, KYC may be necessary. This is to comply with regulations with the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
Put in the amount of necessary cash and wait for confirmation on the Bitcoin blockchain. Check your wallet to see your bitcoin.
Selling bitcoin will depend on the current market rate. If you are happy with how much fiat currency you’ll receive, hit “Sell Bitcoin” on the screen. Be aware of any necessary fees before accepting.
Bitcoin and cryptocurrency are known to fluctuate and be volatile at times. Once the transaction goes through, the BTM will spit out the money to you.
Locating a BTM
Locating a BTM is easy. You will most likely find them in gas stations, malls, and airports.
To see where one is in your area, head to bytefederal. You’re bound to find more and more showing up in your neighborhood.
Bit by Bit
Now when one of your friends or relatives asks you, “how do BitcoinATMs work?” you’ll be able to tell them. Better yet, you can show them. Bitcoin and crypto are for everybody, and it’s never too late to get started.
You don’t need to fear the financial markets. We are here to be your shepherd. Please read our blog to stay in the loop with all things crypto.