The rise of bitcoin and other cryptocurrencies has been impossible to avoid. The market has hit the mainstream and broad public consciousness with cryptocurrencies now available to buy on the high street via ATMs also known as ‘Bitcoin ATMs’. These allow the user to easily purchase cryptocurrencies from a machine, anonymously. Explore more about Bitcoin ATM | Coin Baazar.
What is Bitcoin ATM or BTM?
Bitcoin ATM (also called BTM) isn’t really an ATM in a real sense of the term. Although it looks similar to a regular ATM, a Bitcoin ATM differs in certain important aspects. Rather, this is a physical centre where you can buy Bitcoins with fiat money as well as Sell Bitcoins too. BTM is meant to provide access to Bitcoins to the individuals who aren’t a part of any banking system. The purchased bitcoins go to the customer’s digital wallet.
In essence, a Bitcoin ATM is not really an ATM in the traditional sense of the word but is rather more like a kiosk or terminal that allows users to connect to exchanges. Bitcoin ATMs either provide you with a printed-out “paper wallet” receipt of your transaction or shift over the purchased amount of bitcoins to a public key address. Thus instead of punching in your pin to access your checking or savings accounts, you’re really just using a Bitcoin ATM to interact with a given Bitcoin exchange.
Today, Bitcoin has become so popular cryptocurrency that more and more people want to know how many bitcoins are there. As indicated by Coin ATM Radar, there are more than 2200 BTMs located in 63 different countries. BTMs offers its users with the choice to either sell or purchase cryptocurrency in exchange for fiat currency. If the businesses did not wish to invest in a more expensive machine, they may choose to offer only one service and not a two-way one.
Once you have ascertained that a particular Bitcoin ATM is the right choice for you, you will have to perform a type of validation process that typically involves verifying your phone number.
If you are purchasing Bitcoin, the machine will ask you for your Bitcoin wallet address. Typing the entire receiving address into a machine with only a number pad is likely an exercise in futility. The alternative is to scan the receiving address QR code instead. Almost every smartphone wallet app will provide this functionality. Place the barcode on the scanner and allow the machine to proceed. At this point, it will ask you to insert your cash into the machine and confirms your wish to proceed.
The procedure to sell your Bitcoin in exchange for fiat is not too different from the above process. Instead of providing a receiving wallet address yourself, the machine will display a QR code on the screen to which you will need to send your Bitcoin. Once a certain number of verifications have been confirmed on the blockchain, the machine will eject currency equal to the transferred amount.
Some Bitcoin ATMs will also not allow you to trade beyond a certain limit per day. This is because of their required presence with local laws and regulations that are in place to prevent money laundering and other illicit activities.
For that reason, many Bitcoin ATMs around the world will require you to complete a simple KYC verification before proceeding to transact large amounts of cryptocurrency.
The Transaction Process:-
The BTMs save Know Your Customer (KYC)/Anti Money Laundering (AMC) details, scrutinize them and report suspicious activity to the regulatory authority. After obtaining these details, the machines allow you to buy Bitcoin. The operators buy Bitcoin from exchanges and allow BTM users to withdraw Bitcoin from their wallets. One can buy as much Bitcoin as the operator holds.
How to use a BTM :
Although there are quite many BTM manufacturers in the present, yet their machines follow a basic operational process. Go through these steps:-
- Get the QR code for your bitcoin wallet on your portable device.
- After that run that QR code under the BTM’s machine scanner.
- Enter the amount that needs to be exchanged for your bitcoins.
- Wait for the machine to process and to give the confirmation of your transaction.
- Check your bitcoin wallet if your transaction is processed.
PROS OF BUYING BITCOIN USING BTM:-
Bitcoin ATMs offer a number of advantages over other methods of purchasing bitcoins. All that’s needed is a Bitcoin wallet or address and cash. Compare this to Bitcoin exchanges, which must comply with KYC and AML laws and require personal details and pictures of your ID. Bitcoin ATMs also make the buying process easy for first-time buyers. Most people are familiar with cash and traditional ATMs. Inserting cash into a machine and getting bitcoins in a few seconds is a very simple process. If you’re lucky enough to have a Bitcoin ATM in your area, it can also be a very convenient way to buy.
CONS OF BUYING BITCOIN USING BTM:-
The average Bitcoin ATM charges a 5-10% fee per purchase. The large markup is simply the price buyers are willing to pay for an easy way to buy bitcoins privately.