Most people who buy and sell cryptocurrencies on a regular basis use an online crypto exchange. However, there are alternative ways of moving in and out of the crypto ecosystem, like a Bitcoin ATM. Cryptocurrencies like bitcoin operate on a peer-to-peer basis. This means there’s nothing to stop any two people in the world from trading crypto with each other.
A Bitcoin ATM is the most common way for people to turn crypto into cash (and visa versa). These machines are similar to traditional ATMs, so most people are able to understand how to use them rather quickly. That said, there are also a variety of different types of Bitcoin ATMs on the market. Some will allow you to turn cash into bitcoin on the spot without collecting much personal information. However, others will force you to go through an entire Know Your Customer process and collect your funds later via a website.
Bitcoin ATMs will usually charge higher fees than an online crypto exchanges. However, there are plenty of situations where it makes sense to use this onramp into the crypto world.
How Does a Bitcoin ATM Work?
Using a Bitcoin ATM feels a lot like using a traditional ATM at your local bank. However, the way in which cryptocurrency works can make the process of using a Bitcoin ATM different in a few key areas.
When you first arrive at a Bitcoin ATM, you will likely be presented with a screen that allows you to choose which cryptocurrency you would like to buy or sell. That said, there are plenty of ATMs out there that only allow users to buy or sell bitcoin. Once the user has chosen a crypto, there may be a user verification process. This allows the ATM operator to confirm the identity of the ATM user. In some situations, a user have to log in with an account they’ve already created online.
Verification Proccess
Alternatively, a user may be asked to take a picture of themselves or scan personally-identifying documents. More stringent verification requirements tend to be added for transactions of larger sizes. Of course, there are still some Bitcoin ATMs that do not require the user to enter any information about themselves. You should note that these types of machines are becoming increasingly rare.
After verifying your identity, you will then be able to make your purchase or sale of crypto for cash. Some machines will ask you to present a QR code associated with your bitcoin wallet in order to turn cash into bitcoin, while others will print a receipt that allows you to retrieve your purchased crypto online. Before you finalize your buy or sell order, you will be able to look at all of the specific details of your transaction, including the exchange rate and any associated fees. While fees at Bitcoin ATMs are higher than online exchanges, it’s important to remember that you’re paying for the convenience of being able to quickly move between cash and crypto.
Where Can I Find a Bitcoin ATM?
Although it can still be difficult to find retail stores that accept bitcoin and other cryptocurrencies as payment for goods and services, it’s usually not difficult to find a local Bitcoin ATM. According to Coin ATM Radar, there are more than 20,000 Bitcoin ATMs in the United States alone. With their website, you’re able to enter your current location. With that you will be able to find out if there are any Bitcoin ATMs available in your area. Don’t hesitate to check for Bitcoin ATMs even when you’re in a remote location. The most popular locations for these devices tend to be gas stations, corner stores, grocery stores, and malls.
Are BTM Purchases Anonymous?
One of the main selling points of using a Bitcoin ATM in the early days was that these devices offered a much higher level of privacy than the alternative options. While you won’t be able to turn large amounts of crypto into cash without verifying some personal information these days, it’s sometimes still possible to make smaller trades by sharing nothing more than a phone number. The ability to trade crypto anonymously via a Bitcoin ATM will mostly depend on the jurisdiction of the device. There are strong anti-money laundering regulations in the United States. This means that purchasing crypto anonymously in the U.S. will always be a difficult task.
In most cases, you are going to need to set up an account with a Bitcoin ATM operator. You will have to do this before you are able to buy or sell crypto on one of their machines. However, this verification process can usually start and finish within the same day.
Once you have an account with a BTM provider, you will be able to use their machines without any hassle. Additionally, your Bitcoin ATM provider may also have a platform for making trades online. Due to the need to get verified with each and every Bitcoin ATM company you use, it makes sense to sign up with a provider that has the greatest level of coverage throughout your home country.
This disclaimer informs readers that the views, thoughts, and opinions expressed in the text/sponsored content belong solely to the author, and not necessarily to Bitcoin of America, organization, committee or other group or individual. All investments are at your own risk and should be done after careful research.
