WHAT IS A BITCOIN ATM?

A bitcoin ATM, also known as BATM, is a kiosk or a standalone machine where users can buy Bitcoin using an ATM. Most Crypto Automated teller machines (ATMs) can buy and sell different types of cryptocurrencies. While some of these crypto ATMs only offer Buying and selling of Bitcoins. All the Bitcoin ATMs have the option to buy but not the opportunity to sell.

The first Bitcoin ATM was a Robocoin machine set up in a coffee shop in Vancouver, Canada, on October 29, 2013. It allowed its users to exchange their credits of the digital currency for cash and vice-versa. If you live in the US, you can find these ATMs in retail stores, airports, gas stations, bars, restaurants, etc. As of August 2022, there are 39030 Crypto ATMs in the world. With the most number of bitcoin ATMs in the USA (34057 locations). 

This ATM makes buying and selling using real money/cash very easy and simple. Earlier, people had to put money in cryptocurrency exchange, and then they could buy or sell. 

A bitcoin ATM does not work like the normal ATMs. Bitcoin ATMs allow users to use cash or credit cash and exchange it for bitcoin. A bitcoin ATM connects to a bitcoin exchange making it very easy to buy and sell bitcoins. You can even remit using a Bitcoin ATM. It has made sending money overseas simple and inexpensive.

KEY TAKEAWAYS

 1) Such an ATM is a kiosk via which people can buy or sell bitcoin or other cryptocurrencies. 

 2) Though it has a few similarities to an automated teller machine (ATM), it’s not the same. A bitcoin ATM is connected to the internet, which produces blockchain technology-based transactions that send cryptocurrencies to the user’s digital wallet.

BITCOIN ATM PROVIDERS

Installing an ATM is an excellent idea for your business. It can increase the number of people who enter your store, increasing the business’s revenue. Following is a list of Bitcoin ATM providers- 

• Bitcoin Depot – It is the fastest growing Cryptocurrency ATM network, easily found in the US. It provides buying and selling of bitcoins.

• Bitnovo – Bitnovo offers the option to sell bitnovo vouchers to redeem on the Bitnovo website. Customers can take advantage of many benefits without registering.

• Cryptospace -The first Cryptospace ATMs that encourage buying and selling cryptocurrencies by providing various offers and services. One of the services includes a built-in cash balancing system which is very helpful as it eliminates the need for armoured services to move cash.

• Lamassu – They created, engineered, and shipped the globe’s first bitcoin ATM in 2013. They provided an entirely new level of the multi-cryptocurrency machine. 

• Localcoin- Focuses on maintaining client privacy across Canada. Their goal is to make buying and selling cryptocurrency easy and simple.

• Netcoins – Netcoins transforms any gadget (PC, iPad, iPhone) into a virtual crypto ATM. You can use any current Wi-Fi-enabled gadgets for availing services provided by net coins virtual crypto ATM.

STEPS ON HOW TO USE AN BITCOIN ATM –

Before learning about how to use a this ATM, here are a few things you should know – 

ATM providers can demand their consumers to use a specific cryptocurrency trading platform or proprietary wallet. Due to this, certain bitcoin ATMs cannot be used by all. 

 Many bitcoin ATMs have a minimum and maximum limit on each transaction. The Bank Secrecy Act’s (BSA) anti-money laundering regulations have to be followed by all bitcoin ATM providers in the United States, as stated by the Financial Crimes Enforcement Network (FinCEN) (BSA). Due to this, people who conduct larger transactions on a bitcoin ATM must submit personal details such as cell phone numbers for verification. For confirmation of their identity, users might even be asked to scan a government-issued identification such as a passport or a driver’s license.

Following are the steps on how to use the bitcoin ATM –

• Crypto wallet – First and foremost, you will need a crypto wallet to store the bitcoin you buy before using a bitcoin ATM. These resources are stored on the blockchain, but you require a cryptocurrency wallet to keep track of your balance which grants you access to it via an alphanumeric password. These wallets may be hardware or web-based applications.

Learn more about crypto wallets.

• Find a Bitcoin ATM – Find an ATM that suits your need and is close for easy accessibility. There are many guides out there which can help you find all the Bitcoin ATMs in your locality.

• Account set up – Once you have found a suitable bitcoin ATM, it’s time to set up an account with the ATM operator. It will be a series of personal questions and more for verification.

• Wallet information – Enter the details of your wallet. You must follow instructions at the ATM to identify your wallet using a QR code or your password. 

• To buy bitcoins or any other cryptocurrency – The bitcoin ATM operator converts the physical cash that you put into bitcoin or the other cryptocurrency you want. For instance, if you put in $500, you’ll get $500 worth of bitcoin at the current rate, less the operational cost and the miner’s fee (which is charged by some ATMs), which is subtracted from the deposit amount.

• Verify your purchase – Before completing the transaction, this is your final chance to go over and confirm your purchase and the costs you will be paying. Once sure, you are good to go!

STEPS ON HOW TO REMIT MONEY VIA BITCOIN ATM

 As mentioned earlier, you can even remit money via a Bitcoin ATM Steps to do so are as follows- 

· The sender uses a bitcoin ATM or teller machine to buy bitcoins in exchange for cash.

 · The recipient receives bitcoins from the sender, and then he sells those bitcoins for cash at a local bitcoin ATM.

The entire process can be simplified as the recipient is not required to know much about the bitcoin. When the transaction is initiated, the recipient can take a snapshot of the QR code and send it to the sender, and he can use the code directly. In this scenario, the recipient won’t need to install any software or a wallet; He will withdraw cash from the bitcoin machine. 

BITCOIN ATM FEES

A service fee is levied to users of bitcoin ATMs. Instead of a set monetary amount, this fee is often charged as a percentage of the transaction. The Consumer Financial Protection Bureau (CFPB) has warned that Bitcoin ATM usage fees can be extremely high and that the exchange rates might not be as favorable as those that customers could find elsewhere.

Most Bitcoin ATMs ask for 9 and 12 per cent for purchasing bitcoin. However, you could get fees as little as 4% and as high as 20%. Many online cryptocurrency exchanges charge less than 1.5 per cent on highly liquid transactions such as Bitcoin. It clearly shows why it might not be the most favorable option. 

FUTURE OF BITCOIN ATMs

Most Bitcoin ATMs allow users to deposit cash and often charge a high fee. Many Bitcoin ATM providers are trying to make these bitcoin ATMs like the conventional ATMs, which include allowing cash withdrawals. Some bitcoin ATMs already provide this service. 

CONCLUSION

Crypto has become the new buzzword in the investing world, and it looks like it will stay here for a long time. Plus, considering the high fees charged by the ATM providers, it’s pretty clear that these machines will continue to pop up in every locality.