Cryptocurrencies like Bitcoin have taken the world by storm. The Crypto industry is booming, and thousands of businesses are popping up to contribute to the growth and evolution. To trade in bitcoins and other cryptocurrencies, a number of digital wallets and exchanges have been developed. Due to its popularity, companies have come out to support and develop interesting things, including Bitcoin ATMs.
Here’s a detailed guide about Bitcoin ATMs, what they are and how do they work.
What are Bitcoin ATMs?
A Bitcoin ATM is a standalone platform, similar to a standard ATM that allows users to purchase and sell bitcoins for cash. However, it doesn’t work in the same way as a traditional automated teller machine (ATM), which lets users withdraw, deposit, or transfer money. Instead, it allows users to purchase bitcoins with cash and sell them for cash out; both transactions take place through a QR code. Currently, there are 14,000 + Bitcoin ATMs available in the world. All of them employ QR codes to exchange Bitcoins and store them in users’ digital wallets. They are all transacted via https://bitcoinsprint.io/
Understanding Bitcoin ATMs
Customers can buy and sell bitcoins and other cryptocurrencies using a bitcoin ATM. It comprises a monitor, QR scanner, bill acceptor and dispenser. Software is used to connect all the backend components, making bitcoin buying and selling secure and reliable.
The other difference between a traditional ATM and Bitcoin ATM is that it is not connected to any bank account. Buyers and sellers can trade bitcoins directly with the crypto exchange platform through the Internet.
In 2013, the first Bitcoin ATM was set up in Vancouver, Canada. That ATM was later removed, but it encouraged companies to innovate and place Bitcoin ATMs worldwide.
How do Bitcoin ATMs work?
Buying and selling Bitcoin is an easy but time-consuming process. You may easily purchase any cryptocurrency using cash utilising a Bitcoin ATM and then sell it when the price is high. The process of using a Bitcoin ATM is divided into two simple steps:
Step 1: Check your identity.
The first thing a machine does is verify a user’s identity. It follows various ways to verify the identifications of users using BTM machines. When users use a Bitcoin ATM, they first need to enter their mobile phone numbers into the machine. Next, the user will receive a verification code by text message, which they must enter into the machine. Once the code is verified, users will process your transaction.
Step 2: Decide to Buy or Sell
After a user’s identity is verified, the BTM allows them to log in and choose whether they want to buy or sell Bitcoin. To purchase Bitcoin, a user has to insert cash into the machine and then use their mobile device to create a QR code, which they scan to receive their cryptocurrency.
Users must send bitcoins from their digital wallet to the QR code generated by the bitcoin ATM in order to sell bitcoins. Depending on the machine, some Bitcoin ATMs cash out your BTC holdings instantly, while others could take some time. These verification processes are, nevertheless, far faster than internet exchanges. A Bitcoin ATM is a better option if you are looking for Bitcoin cash out. It might save you time, allowing you to buy and sell quickly and safely.
Do BTMs charge fees for buying and selling BTC?
There are various benefits of using BTMs for buying and selling BTC holdings. But, there are disadvantages, such as charging a service fee whenever a customer uses a Bitcoin ATM. The fee is calculated as a percentage of the transaction instead of a fixed value. It makes buying and selling with BTM unexpectedly very high, and consumers don’t get many good exchange rates during transactions. Many claim that the average buying cost of Bitcoins is 7% more expensive than the spot price.
Summing Up!
Bitcoin ATMs are installed and operated by companies focused on building a business in the Crypto industry. But they are installed in limited countries, such as the U.S. has over 9,000 Kiosks. You can also use Yuan Pay Group to trade bitcoins and other cryptocurrencies anytime.