Simple guide to Bitcoin ATMs – Bitcoin Magazine
What is a Bitcoin ATM?
A Bitcoin ATM is a machine that buys or sells bitcoin for cash. These ATMs look like traditional ones, but they are not linked to a bank account. Instead, they connect the customer with a Bitcoin exchange.
Bitcoin ATMs can be a quick and easy way to buy bitcoin, and they are also one of the most private ways to do it. Some Bitcoin ATMs even allow you to buy bitcoin with cash without requiring a bank account.
A brief history of Bitcoin ATMs
The first Bitcoin ATM was installed in October 2013 in Vancouver, Canada. The machine allowed people to exchange their Canadian dollars for bitcoin. Since then, the number of Bitcoin ATMs has exploded.
As of March 2022, there were over 8,000 Bitcoin ATMs around the world, with the majority of them in North America (4,854), Europe (2,177) and Asia (587). Now, recent figures place a total of over 35,000 worldwide.
How do Bitcoin ATMs work?
Bitcoin ATMs work by connecting to a Bitcoin exchange. When you use a Bitcoin ATM, the machine will give you cash in exchange for your bitcoin, or bitcoin in exchange for your cash. The exchange rate of bitcoin will depend on the current market rate at the time of the transaction.
What are the types of Bitcoin ATMs?
In general, there are two main types of Bitcoin ATMs: One-way and two-way. One-way Bitcoin ATMs only allow you to buy bitcoin, while two-way machines allow you to buy and sell.
Benefits of using a Bitcoin ATM?
Bitcoin ATMs offer several benefits:
- They are fast and easy to use – you can be up and running in minutes.
- They are more private – you do not always have to give a lot of personal information to the machine. Some people only require a mobile phone number to shop, which allows them to use a “burner” phone number.
- They are convenient – you can use them at any time, day or night.
What are the disadvantages of using a Bitcoin ATM?
Bitcoin ATMs also have some drawbacks:
- They can be expensive – some machines charge high fees (up to 20%) for each transaction.
- They may not be in your area – machines tend to be concentrated in cities and places with the highest populations.
- They are not always reliable – some machines have been known to malfunction or even disappear.
Where and how do I find a Bitcoin ATM?
If you want to find a Bitcoin ATM near you, Coin ATM Radar is a great resource. Just enter your location and it will show you all the machines nearby.
How to use a Bitcoin ATM?
Using a Bitcoin ATM is relatively easy. Just follow these steps:
- Find a machine near you.
- Insert cash into the machine (the amount will be converted to bitcoin at the current market rate).
- Enter your wallet address in the machine (this is where the bitcoin will be sent).
- Confirm the transaction.
- Collect cash or bitcoin.
What are the steps to sending cash to someone using a Bitcoin ATM?
To send money to someone using a Bitcoin ATM, follow these steps:
- Find a machine near you.
- Enter the amount of cash you want to send (the amount will be converted to bitcoin at the current market rate).
- Enter the recipient’s wallet address in the machine.
- Confirm the transaction.
- The recipient will receive bitcoin in the wallet.
How to withdraw money from a Bitcoin ATM?
To withdraw money from a Bitcoin ATM, follow these steps:
- Find a machine near you.
- Enter the amount of bitcoin you want to sell (the amount will be converted to cash at the current market rate).
- Enter your wallet address in the machine.
- Confirm the transaction.
- Collect cash from the machine.
What are the fees for using a Bitcoin ATM?
Bitcoin ATM fees can vary depending on the machine and location, but they are usually around 5-8%. Some devices may also charge additional fees, such as the “network fee”, which goes to the operators of the Bitcoin network itself, not the stock exchange.
Are Bitcoin ATMs Safe?
Bitcoin ATMs are generally safe to use, but there have been some reports of fraud and theft. It would help if you searched for reviews and reputation of a machine before using it.
The bottom line
Bitcoin ATMs are an appropriate way to buy and sell bitcoin, but they have a certain risk. Be sure to use machines from reputable companies that avoid requiring you to send money to a third-party wallet.
This is a guest post by Alice Mackenzie. Expressed opinions are entirely their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.
