Did you know that the first Bitcoin transaction occurred in 2010? The cryptocurrency landscape looked quite different back then. For example, it wasn’t until 2013 that the first Bitcoin ATM was created (and they’re still not quite that mainstream now).
Put simply, it’s a brave new world out there for cryptocurrency, and hopefully, you’re ready to venture into it.
For those who want to explore the exciting world of digital currency exchange but aren’t quite sure how we’ve got good news. Learning how to use a Bitcoin ATM is simpler than it sounds.
From step-by-step instructions on the basics of buying and selling cryptocurrencies to an overview of all the benefits that come from having access to these automated machines — this guide has everything you need to know about using a Bitcoin ATM. Are you money?
What Is a Bitcoin ATM?
Bitcoin ATMs (also known as Bitcoin kiosks) are specialized machines used to deposit and withdraw Bitcoin from an individual’s Bitcoin wallet. Bitcoin ATMs usually resemble traditional banking ATMs. This means they look pretty much the same as a regular Bank of America or Chase ATM, for example.
However, they function differently. Instead of providing cash from a bank account, they allow Bitcoin users to buy or sell Bitcoin in exchange for the designated local currency. This is a revolutionary advancement in cryptocurrency technology. With Bitcoin ATMs, you can quickly, securely, and anonymously buy or sell Bitcoin without having to use online exchanges.
So, it’s easy to see why Bitcoin ATMs are becoming increasingly popular globally. Many entrepreneurs see them as a viable business opportunity since the fees associated with using the machines tend to be higher than when buying or selling Bitcoin on an online exchange.
Types of Bitcoin ATMs
While Bitcoin ATMs might seem to look the same, there are differences between them. Bitcoin ATMs come in many different types, each with its own set of features and benefits. For example, some Bitcoin ATMs have no deposit limits, whereas others may limit users’ deposits to certain amounts.
Bitcoin ATMs can also vary in terms of:
- Fees charged per transaction
- Location and availability
- Acceptance of cash or Bitcoin only
- Other services offered (such as check cashing or buying/selling Bitcoin for cash)
Overall, it doesn’t matter what kind of crypto coins you’re buying or selling. You’ll find that there are two main types of Bitcoin ATMs.
One-Way Bitcoin ATM
A one-way Bitcoin ATM is an automated machine that allows you to purchase Bitcoin using cash. This means that a one-way ATM does not allow you to withdraw any money or sell your Bitcoin. As the name suggests, it simply provides one service: the ability to buy Bitcoin.
One-way ATMs offer a quick and easy method of purchasing cryptocurrency. All you need is cash or debit cards and you’re able to complete the transaction in just a few minutes. You don’t have to open any bank accounts or worry about complex verification processes like with conventional exchanges.
Two-Way Bitcoin ATM
Need to buy and sell Bitcoin? If so, then you’ll want to look for a two-way Bitcoin ATM. A two-way Bitcoin ATM is a type of automated teller machine that enables users to buy and sell Bitcoin. This makes them a convenient way to exchange cash, debit, or credit cards for cryptocurrency.
Two-way Bitcoin ATMs also allow you to withdraw another cryptocurrency you’ve previously purchased. All in all, these kiosks are becoming increasingly common across the world, providing people with a secure physical venue to purchase and exchange digital funds efficiently.
For those looking for an easier and faster way to purchase or trade Bitcoins, two-way Bitcoin ATMs can be a great way to get started. They remove some of the work involved with figuring out how to use an online exchange but aren’t quite as advanced as a trading bot.
Advantages & Disadvantages of Using Bitcoin ATMs
Are you sold on the idea of using a Bitcoin machine? Let’s take one step back really quickly. Using a Bitcoin ATM to make transactions can be an exciting way to get involved in cryptocurrency, but it’s important to do your research beforehand.
Taking the time to explore both the advantages and disadvantages of Bitcoin ATMs before making a transaction with one will give you a better idea of what to expect. You’ll gain an understanding of:
- Related fees
- Potential limits on the amount of money you can withdraw or deposit
- Rules that may apply depending on how much money is being transferred
To help make the decision easier, here are a few of the pros and cons of using a Bitcoin ATM.
Advantages of Using Bitcoin ATMs
Overall, Bitcoin ATMs are a convenient way to buy Bitcoin. They are instant, easy to use, and allow you to pay with cash. Bitcoin ATMs also have some advantages over online exchanges.
For one, you can use them to buy Bitcoin without having to create an account or provide personal information. This makes them ideal for privacy-conscious users. For example, with most Bitcoin ATM networks, you don’t even have to enter your bank account details or provide your full legal name.
Bitcoin ATMs also have lower fees than online exchanges, making them a more cost-effective option. Note that this doesn’t mean they’re without fees (which we’ll discuss as one of the disadvantages below). However, you can avoid hidden fees and high commissions by choosing the right Bitcoin ATM.
Finally, most Bitcoin ATMs offer insanely high daily limits. For example, most banks set a limit of up to about $1,000 for daily withdrawals. With Bitcoin ATMs, however, you’ll find some that offer daily limits as high as over $25,000. This makes these ATMs a great way to withdraw higher amounts of cash.
Disadvantages of Using Bitcoin ATMs
The main disadvantages of using Bitcoin ATMs are the:
- High fees
- Lack of accessibility
- Lack of customer service
Namely, most people complain about the high fees. They’re not like regular ATMs where you can withdraw cash for free if you’re within your banking network. Bitcoin ATMs typically charge high fees, which can eat into your profits if you’re not careful.
There’s also the issue of finding a Bitcoin ATM. Depending on where you’re located around the world, you might find that you have few choices. While they’re becoming more popular, the fact that Bitcoin ATMs aren’t regularly available to everybody yet makes them somewhat unreliable (especially if you travel a lot).
Finally, if you have any problems with your transaction, there’s no customer service to help you out. This isn’t true for every Bitcoin ATM network, but it is true for most.
How to Use a Bitcoin ATM
Overall, the pros usually outweigh the cons when it comes to using a Bitcoin ATM to buy or sell cryptocurrency. However, with more and more people interested in investing in cryptocurrency, it’s becoming increasingly important to understand how to use a Bitcoin ATM.
But, you’re in luck. Learning how to use a Bitcoin ATM isn’t as complicated as it might seem. All you need to do is familiarize yourself with the process. Here is how to use a Bitcoin ATM, explained in a super simple step-by-step process that even beginners can easily understand.
Find a Bitcoin ATM Machine
First, you need to find a Bitcoin ATM near you. We’ll talk about a few ways to do this below. However, it’s usually as simple as looking on Google Maps near your location. Search for “Bitcoin ATM near me” and, if there are any, a few will pop up immediately. If you don’t see any on the map, it might be because they’re not available in your area.
Try a few different ATMs to see which you prefer. Remember that each has different fees and regulations. Over time, you’ll figure out which ones are best for your Bitcoin needs and which have the best fees for the types of transactions you’re interested in making.
Insert Cash Into the Machine
Next, you’ll enter cash into the machine. Because you don’t need an account to withdraw Bitcoins, you don’t need to enter personal information or even use a debit card to make the transaction. If you’re exchanging cash for Bitcoin then you’ll just enter the amount you’d like to exchange into the machine.
Enter Your Wallet Address
Then, you’ll be prompted to enter your Bitcoin wallet address. This is a string of letters and numbers that’s unique to you. So, you’ll need to ensure you have this on hand before you go to the Bitcoin ATM to complete your transaction.
Worried that this might compromise your privacy? Don’t worry! A wallet address is similar to an email address and simply identifies you so you can confirm the transaction.
Confirm the Transaction
Similar to a regular ATM, the Bitcoin ATM will prompt you to confirm the transaction. Look over the transaction details carefully, including any fees, to ensure it’s all correct. If it looks good, simply hit “confirm” and the ATM will process and complete the transaction. It’s that simple!
Where to Find a Bitcoin ATM
As mentioned above, Bitcoin ATMs still aren’t readily accessible all around the world. However, where they are available, they’re pretty easy to find.
Google Maps can be an effective tool when searching for where to find a Bitcoin ATM near you. Simply type “Bitcoin ATM” into the search bar, and it will lead you to the closest machines where you can buy or sell your coins.
Alternatively, websites such as Coin ATM Radar are helpful. Coin ATM Radar is an online directory where you can search for machines near your given location. Once you make your search, the site will provide detailed maps of where Bitcoin ATMs are located throughout your search area.
With either option, it’s never been easier to gain access to your digital currency quickly and securely. Simply be sure to research the background and history of the Bitcoin ATM you use. If you’re looking for a reliable Bitcoin ATM network in the United States, click to explore the benefits and features of ByteFederal.
Are Bitcoin ATMs Safe?
Now that you know how a Bitcoin ATM works, we bet you have one last question. Are Bitcoin ATMs safe? We get this question a lot and, honestly, the answer is that it depends. In general, they’re incredibly safe. However, you need to find a reliable Bitcoin ATM network to use.
Most Bitcoin ATMs are equipped with advanced technology, including digital cameras and biometric scanners (in a few cases but not many) to prevent fraud or theft. Additionally, the funds are transferred directly from one account (the ATM’s) to another (yours) without being exposed to any third-party risks.
Above all else, using a Bitcoin ATM is much safer than carrying large amounts of physical cash from one place to the next. For anyone looking for an easy and secure way to buy Bitcoin with cash, a Bitcoin ATM is a great choice. Simply do your research to ensure you’re buying or selling Bitcoin with the right ATM network.
Learn More About Cryptocurrency
With the rise of cryptocurrencies, understanding how to use a Bitcoin ATM is only one part of being successful when investing in them. Knowing how to pick investments, use AI crypto tools, and more can make all the difference.
That’s why we created a comprehensive guide for getting started with cryptocurrencies. It covers how to pick, understand, and invest in good cryptocurrencies like Bitcoin.
So, if you’re ready to get started down the path of cryptocurrency and looking for guidance, our comprehensive guide on How to Pick, Understand, and Invest in Good Crypto provides an excellent starting point.