Many people are probably dazzled why virtual money like Bitcoin should have an ATM. Besides, others are also asking whether the machines do dispense cash. This article provides answers to these questions and many more.
Well, the answer is very simple, Bitcoin despite being an electronic currency it also trades against fiat currencies. This means that you can exchange dollars, Euros or pounds with bitcoins. Bitcoin ATM kiosks are basically exchange platforms between fiat, Bitcoin and by extension altcoins.
It implies that any cryptocurrency trader can visit a Bitcoin ATM kiosk, cash in some fiat currency and buy Bitcoin tokens. These machines provide a medium for converting cash bills into electronic form. Some of the machines allow both buying and selling of Bitcoins. Majority of them only support the purchase of bitcoins but not selling.
A bitcoin ATM can also dispense cash like the traditional ATM. This, however, depends on the machine model. You can buy Bitcoins into your digital wallet or sell and withdraw your cash bills from the kiosk. Some machines also support conversion of bitcoins to other altcoins. Such machines also accept exchanges of the same coins.
One key feature of the machines is that they uphold the privacy of an individual by allowing for anonymity. You can buy or sell your bitcoins without AML or KYC needed for transactions. This is one aspect which makes them secure because they conceal the identity of users.
These Bitcoin ATM machines have a lot of improvement. They are embedded with biometric scanners to verify users and approve transactions. It verifies your fingerprints to allow access into your wallet. Further, the scanner authenticates the QR code on your mobile phone or on the generated ticket before proceeding to subsequent processing steps.
Types of Bitcoin ATMs
There are many companies producing the Bitcoin ATMs. Some of the brands mostly available in the market are:
• Robocoin kiosk
• BitAccess Bitcoin ATM
• BitXatm Bitcoin ATM
• Skyhook Bitcoin ATM
• BATM2 Bitcoin Machine
• BATM3 Bitcoin Machine
• Lamassu Bitcoin Machine
• Lamassu with Santo Tirso
• Satoshi1 Bitcoin Machine
• Satoshi2 Bitcoin Machine
• Genesis1 Bitcoin Machine
How does a Bitcoin ATM work?
Just like the traditional ATM, any must have a verified account which is a Bitcoin wallet to access services from the equipment. The working of the machine is closely similar to the traditional ATM systems. The steps below show how to buy Bitcoins from the kiosk.
• Press on the start button
• Choose your preferred language
• Feed in your mobile number
• Enter the validation code
• Scan your fingerprint
• Click on buy Bitcoins / any altcoin of choice
• Scan wallet/ generate a new one
• Scan the QR code for the wallet
• Insert your bill
• Send
• Pick the printed transaction ticket
The working procedure for all the Bitcoin machines is nearly analogous. The procedure largely resembles the normal bank ATM. They are easy to use since one step leads to another so that transactions are very swift. The machines are internet enabled making them quite efficient fast.
Advantages of Bitcoin ATMs
Speed
These machines work in seconds. They provide the fastest platform for buying and selling Bitcoins. The machine model also heavily determines its operational speed. Most of them process commands in less than 15 seconds. A user is just required to scan the QR code, click on insert or withdraw bills and upon pressing the send button the transaction is completed.
It is a secure exchange platform
The Bitcoin ATM kiosks are run by genuine operators or business entities. They are established on legal documentation and the owners have provided valid contacts which validate the business. The possibility of fraud is zero because there is no third party involved in transactions but just the user and the machine.
Despite the verification process being simple, it is tamper proof. Besides, some machines allow anonymity so that a user leaves no trail after transactions. These features make the machines more secure for cryptocurrency exchanges.
It is user interactive
Bitcoin ATMs are highly user-friendly. They are built to automatically direct the user in every single step of processing transactions. Buying and selling of Bitcoins are very straightforward so that it takes the shortest to time to complete transactions.
Good for business
You can decide to operate a Bitcoin ATM since the machines are readily available and sold to any willing buyer. It business returns some good interest. The monthly cumulative income generation can hardly go below $1000 based on recent information by entities running the business. Besides, it is a good way to invite more customers when it is part of your business, for instance, a retail store.
How to find a Bitcoin ATM closer to you
There is a Coin ATM Radar service in the Worldwide Bitcoin ATM map which enables users to locate nearby Bitcoin ATMs. You can visit the main website and enter your location in the search tab. Click on the nearest ATM, then on directions to identify the nearest Bitcoin ATM on the google maps.
Bitcoin ATMs have revolutionized exchanges of crypto coins because they have made transactions more decentralized. Any trader can visit the kiosks and buy and sell the coins quite faster. These machines are user-friendly and also very secure. Since their advent, many business entities have used them to increase customer seeking other services besides transacting at the machines. It is, however, important to note that the ATM kiosks are operated within business hours.
