It’s estimated that over 1 billion people worldwide use cryptocurrencies.
Since Bitcoin was released in 2009, it has rapidly exploded in popularity. This has led to many advancements in how Bitcoin and other cryptocurrencies can be used in everyday life.
One such advancement is Bitcoin ATMs. These have become common across the US, and several other countries are starting to make use of them.
So what are Bitcoin ATMs, and how much do they cost? Keep reading to learn more.
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What Is a Bitcoin ATM?
A Bitcoin ATM is a type of automated teller machine that allows you to deposit cash and convert it into Bitcoin, or (in some cases) withdraw Bitcoin as physical cash. Their appearance is essentially the same as a traditional ATM, but rather than connecting to a bank, they connect to the blockchain.
Note that some older Bitcoin ATMs may only allow you to buy Bitcoin, but some newer ones also let you sell it. You can carry out a transaction in seconds, although a Bitcoin ATM can take a bit longer to complete the transaction (up to an hour in some cases).
There are multiple Bitcoin ATM operators in the US. Each one has had to register with the FinCEN (Financial Crimes Enforcement Network). This is because there are anti-money laundering provisions that they’re required to comply with.
These provisions enforce certain restrictions. For example, there are limits on how much cash someone can deposit at one time, or how many transactions a user can make in a specific period.
How Do Bitcoin ATMs Work?
Many people still don’t know much about Bitcoin or other cryptocurrencies. As such, the thought of using a Bitcoin ATM may seem daunting.
They vary depending on the operator, but they’re all typically fairly easy to operate. In most cases, it will follow these steps:
1. Create a Digital Wallet
If you want to buy some Bitcoin, you need somewhere to store it. You can create a crypto wallet online – there are plenty to choose from. Depending on the Bitcoin ATM you plan to use, you may be able to create a digital wallet using the operator’s own software.
2. Locate a Bitcoin ATM
Certain apps can show you where Bitcoin ATMs are located near you. Alternatively, you can simply search on Google.
3. Verify Your Identity
You’ll need to provide some form of identification to use a Bitcoin ATM. This varies depending on the operator. Some need to scan your photo ID, some require a social security number, and some only need a phone number.
4. Scan Your Wallet
When you access the Bitcoin ATM, you’ll then need to scan your digital wallet. Most wallets will allow you to use a QR code to scan into the Bitcoin ATM. It’s best to use a wallet that does this, otherwise, you may need to enter your wallet address manually, which can be very tedious.
5. Make a Purchase
Depending on the operator, you may be able to choose from Bitcoin or a range of other cryptocurrencies. Select the one you want and enter how much you want to buy. You can then deposit your cash, or possibly use another payment method.
6. Wait for the Transaction to Complete
Transactions are often very quick, but can sometimes take a little while. Once it’s finished the Bitcoin ATM will confirm that the funds are in your wallet, and most will also give you a receipt.
If you’re using a machine that allows you to withdraw cash, the process is similar. It differs in that once you enter your wallet address (scan your QR code) you can choose how much Bitcoin to sell. It will then process the transaction and release the cash to you.
Where to Find Bitcoin ATMs
Crypto ATMs are starting to appear all over the world, but they’re far more prevalent in the US than anywhere else. Some states with the highest number of Bitcoin ATMs include California, Texas, and Florida.
You can find information on exact locations from the various operators. If you live in Tampa, Florida, for example, you can take a look at this crypto atm map from Byte Federal to find the closest machine to you.
Some locations that typically host Bitcoin ATMs are things like airports, gas stations, and shopping malls. The kinds of places you would find a traditional ATM are also where you’re most likely to find Bitcoin ATMs.
Benefits of Using a Bitcoin ATM
Despite how modern they are, Bitcoin ATMs are growing in popularity incredibly fast. This is due to the many benefits they offer:
Decentralization
One of the biggest benefits of using cryptocurrencies is also one of the main reasons Bitcoin was invented in the first place. Using it eliminates the need to rely on a financial institution, giving you complete control over your funds. You can access your crypto and convert it into cash (or vice versa) whenever you want.
Speed
The traditional way to buy Bitcoin is through an online exchange. If you want to use cash for this, you’ll need to deposit it into your bank account, transfer the fiat currency to an exchange, buy the Bitcoin, and then transfer it to your wallet. It’s almost always faster to deposit the cash directly into your wallet through a Bitcoin ATM.
Privacy
When depositing cash into a standard bank account (or doing anything else with the account) you need to go through a full ID check. You won’t have to worry so much about this with a Bitcoin ATM or other cryptocurrency services.
Ease of Use
If you already have a Bitcoin wallet set up, this is an incredibly easy way to purchase more crypto. The process above shows you how to use a Bitcoin ATM, and once you’ve done it a couple of times it will become second nature.
Security
Security is essential when it comes to finances – especially when the internet is involved. Blockchain technology provides an excellent level of security to minimize the risk of you losing money.
Availability
The first Bitcoin ATM in the world opened in Las Vegas on July 30, 2014. There are now tens of thousands across the world, with more arriving every year. You’re likely to have access to a Bitcoin ATM almost anywhere in the US, and as more appear, they’ll be even easier to find.
Benefits of Hosting a Bitcoin ATM
For businesses, hosting a Bitcoin ATM could be a great choice. It can offer a range of benefits, such as:
- Making a business stand out from the competition
- Driving more traffic to a business
- Increased revenue
- Keeping up with the times
- More marketing opportunities
- More options for customers
If you own a business, it could be a good idea to get in touch with a Bitcoin ATM operator if you want to take advantage of any of these benefits.
What Fees Are There?
When performing any crypto transactions, be it via a Bitcoin ATM or elsewhere, there are likely to be fees. These can vary depending on the operator, and may also vary if you’re buying other cryptocurrencies.
Some common fees you might find when using a Bitcoin ATM are a conversion fee, a transaction fee, or a crypto exchange fee. When using a debit card you might also have to pay a card processing fee.
Depending on the Bitcoin ATM in question, fees can sometimes range from 4% up to 20%. In most cases, they’re between around 9% and 12%. Because of this, it’s always worth looking up the fees an operator charges before using a Bitcoin ATM.
Are Bitcoin ATMs Safe?
Bitcoin ATMs are generally very safe. This is because they use blockchain technology to process all transactions.
All transfers to and from crypto wallets are verified and recorded on the blockchain. This is a public ledger that can’t be altered or manipulated by any parties.
On top of this, Bitcoin ATMs help protect you from fraud. Most of them follow KYC (Know Your Customer) best practices. This is what the ID verification is for.
You should be aware, however, that there can be a risk of phishing scams and other attacks. It’s crucial that you never share your private keys with anyone. Someone who gets hold of these may be able to steal all of the funds in your wallet.
The Future of Bitcoin ATMs
Bitcoin price is a crucial factor, and it tends to fluctuate. Many people still think crypto will die out. Looking at how things have gone over the last decade, however, it seems clear that Bitcoin and other cryptocurrencies will keep pushing further into the mainstream.
Along with this, more Bitcoin ATMs will continue to appear. They will likely become more efficient, allowing them to complete transactions faster, and reducing the total fees that they charge.
For more cryptocurrency articles, check out some of our other blog posts.
