If you are interested in using an ATM to quickly cash out or buy Bitcoins, there are several ways in which you can execute BTC transactions, but one of the fastest is by using an ATM. In today’s guide, we will be explaining how to use a Bitcoin ATM.
What Is a Bitcoin ATM and How Does It Work?
A Bitcoin ATM, or a BATM, looks and operates just like regular ATMs, which are set up by banks.
There are, however, a few key differences between the two we must mention. Instead of using a debit card to access your account and execute transactions with your own money, the Bitcoin ATM scans a government ID and phone number and transfers the funds to and from a Bitcoin address.
The machine connects the user to an crypto exchange and allows him to perform either a buy or sell order, which is then quickly executed. A verification text is sent to the user’s phone and supplies a Bitcoin address where the user deposits the funds. The user will then receive the cash. But if he wants to buy Bitcoin, he has to deposit the fiat money into the machine and confirm the transaction, then the BTC is transferred to the address he provided.
Types of Bitcoin ATMs
There are several types of Bitcoin ATMs. The most common ones are those that have only the buy function, while some allow you to both sell and buy BTC.
The steps required to buy or sell BTC on an ATM vary based on the type of model you use. Some BATM providers have their own stock supply of Bitcoins, while others facilitate the transactions by connecting to an online exchange, where the transfer is actually made. Depending on the method used to supply the BTC funds, the waiting time for each ATM may differ to a certain degree.
BATMs require that you complete a KYC (know your customer) procedure, which is also different depending on the manufacturer and country of operation. While very few allow anonymous withdrawals and deposits, many will ask that you provide an ID or scan your fingerprint.
Fees and Limits
While Bitcoin ATMs are a fast way of getting BTC and cash, this speed comes with a high cost. A transaction at a BATM usually incurs a fee between 7 and 15 percent, in addition to a spread applied directly into the BTC price (this is usually for ATMs that use exchanges to facilitate their transfer).
BATMs also have limits to how much you can withdraw or deposit, usually between $1000-$10,000.
Below are some of the most popular Bitcoin ATM manufacturers:
General Bytes;
Finding a Bitcoin ATM
In recent years, Bitcoin ATMs and kiosks have risen in popularity, and now there are many of these machines set up all around the world.
There are nearly 7,000 BATMs in the world, with Genesis Coin and General Bytes holding the top positions for the most popular providers. There are several sites that you can use to locate BATMs such as Coin ATM Radar or Bitcoin ATM Map. Bitcoindepot features all the Bitcoin ATMs in the United States.
You can find ATMs that appear near your location, but you need to know that not all the listed BATMs are licensed and operating legally.
Find a Bitcoin ATM by Location
- Go to the Coin ATM Radar site.
- Click on “Use my current location” to enable the website to find and use your current location.
- Select an ATM near you.
Or you can use the Bitcoin ATM Map Search Box to locate the machines by countries, cities, and by address.
- Type in your address and click “enter.”
- Select a “Bitcoin ATM” near your location to view details.
- Click “Get Directions” on Google maps.
- In “View listing,” the site features information such as ATM type, user feedback, operating hours, business name, company or Supplier Name, supported cryptocurrencies and fiat currencies, supported operations, limits, and verifications, etc.
Bitcoin ATM Map also filters searches by ATM model, location, functionality options (one way or two way), buy and sell fees.
Now that you have located the most convenient ATM for your current location, we will show you how to use a Bitcoin ATM to buy and sell BTC.
You will have to keep in mind that the buying or selling process may vary deppending on the ATM provider you use, but the overall process is similar.
How to Use a Bitcoin ATM to Buy BTC
Step 1: Verify your identity
The verification process may not be mandatory for all ATMs, but most of them require that you complete some form of ID verification.
The methods of verification may consist of a phone number, ID card scan, or fingerprint scan, depending on the operator.
Step 2: Scan your BTC address
Tap on the screen on the ‘Buy BTC’ button.
Provide your Bitcoin address to the ATM by using your mobile phone to generate a QR code of your wallet and place it in front of the ATM’s scanner.
Select the amount of BTC you want to buy and tap to continue to the next step.
Step 3: Insert the bills into the machine
Put in the cash bills into the ATM. You will have to insert money one bill at a time into the designated deposit area.
Step 4: Confirm deposit
Approve the transaction by tapping on the “BUY,” “FINISH,” or “CONFIRM” function of your ATM.
You will have a waiting time to settle the transaction, and after that, the BTC will be credited to your wallet address.
How to Use a Bitcoin Atm to Sell BTC
The last part of our how to use bitcoin ATM guide will explain the selling process with BATMs:
- Tap on the dashboard and enter the amount of BTC you want to sell;
- Deposit your BTC in the address provided by the ATM;
- Wait for the confirmation to be completed;
- Take out the cash from the ATM.
Conclusion
Now that we have reached the end of our how to use bitcoin ATM guide, you can go and buy or sell BTC using an ATM with ease.
Pros:
- Fast and easy to sell or buy BTC;
- Anonymous transactions in some cases;
- No signing up on exchanges;
- No waiting time to create and validate an exchange account.
Cons:
- high transaction costs
- uneven geographical availability;
- have to put one bill at a time in the machine;
- you have limits on the amounts you can deposit or withdrawal
Featured image: bitcoin news