Have you ever thought about how to purchase bitcoin with good old cash? That’s where Bitcoin ATMs come in handy!
A Bitcoin ATM is just what it sounds like—an automated machine designed for buying and selling bitcoin (BTC). Typically located in public areas, these machines allow you to exchange cash or use a debit card to buy or sell BTC (and occasionally other cryptocurrencies). It functions similarly to a regular bank ATM, but instead of linking you to your bank account, it opens the door to the thrilling realm of cryptocurrency.
How Does Bitcoin ATM Work?
Bitcoin ATMs are quite user-friendly. To purchase bitcoin, you simply insert cash into the machine, scan your wallet’s QR code, and the ATM will automatically send the BTC to your wallet address. We’ll go into more detail about the steps below, but remember, you’ll need to have a crypto wallet set up if you haven’t done so yet.
Depending on where you are, some Bitcoin ATMs may allow you to both buy and sell. However, keep in mind that certain ATMs might only support buying or selling.
If the ATM does permit selling bitcoin, you can transfer your coins from your wallet to the address shown on the machine. After the transaction is confirmed on the blockchain (which can take some time), the ATM will dispense your cash. Just be sure to check if the ATM you’re using has selling capabilities.
The Fee
Bitcoin ATMs offer great convenience, but that ease of use comes at a cost. Typically, these crypto ATMs impose significant fees, ranging from 7% to 20% for each transaction. This is considerably higher than the fees you would encounter on an online exchange.
Pros
- User-friendly: Perfect for newcomers looking to explore cryptocurrency without the hassle of online exchanges.
- Cash accessible: You can conveniently purchase bitcoin using cash, no bank account required.
- Fairly fast: There’s no waiting around for days as you might with certain bank transfers.
Cons
- Expensive charges: The ease of use can be costly, often exceeding the fees associated with online options.
- Restricted access: Although they are becoming increasingly popular, you may still face challenges locating one in your area, depending on your location.
- Safety concerns: Stay alert. As with any device that deals with cash, Bitcoin ATMs can be vulnerable to theft or scams. Additionally, there are counterfeit machines to watch out for.
How to Use It?
Ready to give it a shot? Here’s a simple guide on using a Bitcoin ATM:
- Set up a crypto wallet: You’ll need a wallet address to receive your bitcoin, so ensure you have one that can create a QR code.
- Locate a Bitcoin ATM: Use an online tool like Coin ATM Radar to find the closest machine. Be cautious of counterfeit machines. Choose one with positive recent reviews and clear details (like owner contact info, price feed, and fees).
- Verify your identity: Some ATMs may require your phone number or a photo ID, depending on the amount of bitcoin you’re buying or selling.
- Scan your wallet’s QR code: When you’re ready to make a purchase, scan the QR code from your wallet so the machine knows where to send your bitcoin.
- Complete the payment: Follow the instructions on the screen to insert your cash or swipe your debit card for the desired amount.
- Confirm the transaction: After the blockchain verifies the transaction, your bitcoin will show up in your wallet. Just keep in mind that it might take a little time, depending on network traffic.