A Bitcoin ATM is a machine that allows you to buy or sell Bitcoin using cash or a card without needing a traditional bank account. These ATMs simplify the process of trading Bitcoin and are growing in popularity.
In this guide, you’ll learn how to use Bitcoin ATMs and their pros and cons. We’ll also cover how to follow best practices when using these machines.
What is a Bitcoin ATM?
A Bitcoin ATM— or BTM — is a convenient machine that allows you to buy or sell Bitcoin using cash or a debit card. These ATMs make buying or selling Bitcoin easy without needing a regular bank account or an online crypto exchange. Bitcoin ATMs are becoming quite popular, especially with the increase in the number of people using cryptos.
A Brief History of Bitcoin ATMs
The first Bitcoin ATM was installed in October 2013 by a company called Robocoin in a Waves Coffee shop in Vancouver, Canada. Although it stopped operating there in 2015 due to operational problems, the number of Bitcoin ATMs has grown significantly since then.
Over time, more companies started making Bitcoin ATMs, which began popping up in different countries worldwide. At the time of writing, there are nearly 37,199 Bitcoin ATMs worldwide. Most of these ATMs are located in the United States.
While these machines definitely offer convenience, they often have high transaction fees. This could be one of the reasons why we still haven’t seen widespread adoption of these machines.
Bitcoin ATMs have also faced several legal issues. The operators of these ATMs are legally bound by anti-money laundering (AML) and know-your-customer (KYC) regulations in crypto, which means that they must verify the user’s identity. This can be a downside for users who prefer to keep their information private.
Some countries have very strict regulations surrounding Bitcoin, and this can extend to Bitcoin ATMs. For example, the FCA in the UK has carried out raids on locations suspected of hosting unregistered Bitcoin ATMs.
Today, Bitcoin ATMs are making Bitcoin more accessible to regular users, but their long-term adoption and feasibility are yet to be proven.
How to Use a Bitcoin ATM: Step-by-Step Buying Guide
Have you ever wondered how does a Bitcoin ATM work? It’s quite similar to traditional ATMs, which are user-friendly and offer a quick way to transact (with a few specific nuances). Here are some simple yet detailed steps that show you how to use a Bitcoin ATM machine:
1). Prepare Your Wallet
Before using a Bitcoin ATM, you need a crypto wallet compatible with Bitcoin to store your BTC. There are many types of crypto wallets you can opt for that are available as an app or a separate physical device.
Choose a wallet that works best for you and keeps your crypto safe. Make sure to have your wallet’s QR code or public Bitcoin address ready, as you’ll need it to receive the Bitcoin you buy.
2). Locate a Nearby Bitcoin ATM
Use websites like CoinATMRadar or bitcoin.com’s ATM map to find a Bitcoin ATM nearby. These websites tell you where the ATMs are when they’re open and what cryptos they support.
When choosing an ATM, it is very important to check for Bitcoin transaction fees, limits, and the machine’s location. Try to use a machine in a well-lit, safe place, especially if you plan to buy a lot of Bitcoin.
3). Complete Identity Verification (If Required)
As discussed before,…
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