ATMs have become as ubiquitous as banks nowadays. Even small children know they can withdraw money at an ATM with a bank card and withdraw money.
That's why Bitcoin ATMs are the next natural step in cryptocurrency development. Now anyone who wants to can step up to a Bitcoin ATM to buy Bitcoin, and with certain ones, sell it as well.
If you are interested in purchasing Bitcoin but don't want to use your traditional bank account to do so because you wish to stay anonymous, find out the answer to the question, "What is a Bitcoin ATM? in the article below.
Also, learn how to use Bitcoin ATMs and their pros and cons.
What Is a Bitcoin ATM?
A Bitcoin ATM is used to conduct transactions related to Bitcoin. For example, you can buy Bitcoin using cash, a debit card, or your crypto wallet.
Most Bitcoin ATMs are still a one-way operation. That means that you can only buy Bitcoin using the ATM.
Some newer Bitcoin ATMs will allow you to withdraw cash for crypto. However, these ATMs are still hard to find.
The brilliant thing about Bitcoin ATMs is that they are increasing because you do not need a bank account to transact on them. When you use a traditional bank ATM, you insert or scan an authorized bank card (such as a debit card). And that card is issued by and attached to a bank account.
On the other hand, with Bitcoin ATMs, you only need a phone number, cash, and access to a crypto wallet.
This means you can still build your crypto portfolio using a Bitcoin ATM even if you don't have a bank account. Moreover, the transaction will be almost entirely anonymous—it is pseudo-anonymous because you will still need a phone number.
When you buy crypto on an exchange, there is a lengthy verification process, during which you must give quite a bit of information about yourself.
And if you can successfully verify yourself, you are in good shape, as you cannot use this exchange. Even conducting transactions takes quite a bit of time.
With a Bitcoin ATM, there's no need to verify yourself and no lengthy verification process. Also, conducting transactions at an ATM is fast.
You can set it up so you reserve cash at the Bitcoin ATM beforehand when selling Bitcoin. Similar to how you can buy a Starbucks drink before you even enter the store.
How Do You Use a Bitcoin ATM?
A Bitcoin ATM looks similar to a traditional ATM. It has a touch screen, QR scanner, bill acceptor, and dispenser. As with conventional ATMs, you will be directed through specific steps to conduct your transaction.
You need not worry; even if you have never used a Bitcoin ATM, you need not worry. The machine gives instructions on the screen to guide you through simple steps to buy or sell Bitcoin as desired.
You can find the nearest Bitcoin ATM using this map.
Are you surprised by the number of Bitcoin ATMs nearby your home or workplace? When writing this article, there are 38,638 Bitcoin ATMs, and probably hundreds or thousands more by the time more years pass.
One thing to remember is that every Bitcoin ATM will have a different transaction limit. And that figure can be small at times. For example, some ATMs only allow users to withdraw US$3,000 in cash. Yet others might allow withdrawals of as much as US$16,000.
If you urgently need a large amount of cash, you should visit several ATMs to get it all.
Also, since there has been an insane upsurge in the number of Bitcoin ATMs worldwide, there might be the danger of scams and fraud. So keep that in mind when using a Bitcoin ATM.
There are no 1-800 numbers you can call if your transaction on a Bitcoin ATM needs to be fixed. Customer service representatives will only be able to help you.
Here's a step-by-step guide to Bitcoin ATM withdrawal which you can peruse if you still need clarification about using one.
Pros
There are many pros to using a Bitcoin ATM to conduct crypto-related transactions. Even though, at this moment, you can only buy and sell Bitcoin on these ATMs; eventually, there might be ATMs where you could purchase various cryptocurrencies.
Let's look at some pros that you need to consider when using a Bitcoin ATM.
Convenient
The convenience factor is the biggest reason you might start using Bitcoin ATMs instead of a traditional crypto exchange. You might have tried to get verified at a conventional crypto exchange and found the process could have been better.
You can buy and sell Bitcoin in minutes without verification or lengthy confirmation with a Bitcoin ATM.
Quick and Easy
Again, it's easy for an individual to walk up to a Bitcoin ATM near their home and start buying it. No bank account is necessary—nothing but a phone number and a crypto wallet.
Anonymity
If you wish to remain highly anonymous and not have the government poking around in your crypto business, then a Bitcoin ATM is the way to do it. Yes, you need a phone number, But it's easy to get one nowadays without giving up too much of your personal information.
Cons
Some cons come up when using Bitcoin ATMs as well. They are as follows.
Transaction Fees
Nothing in this world comes free of charge. And that's the biggest problem with using a Bitcoin ATM as well.
Transaction fees while using a Bitcoin ATM are exorbitant. You are paying for the anonymity Bitcoin ATM provides, but the costs might be too high for some folks.
You might be paying a flat fee rate of $4 to $8 depending on the machine you use and gas fees ranging from under 1 percent to 5 percent.
That might be worth it to you because you can remain anonymous and not worry about paying taxes or whatever else on your Bitcoin (not that we recommend any illegal activity like that).
Fraud and Scams
Another thing to worry about when using a Bitcoin ATM is scammers having a field day with it. As with every other financial transaction you do, you have to be extremely careful about not clicking on random links in your email and never trust an email that seems too good to be true.
You might receive phishing emails saying that you need to complete a transaction on a Bitcoin ATM near you within a certain amount of time, or you will lose all your Bitcoin. Don't believe any of these phishing emails; they are just trying to rob you of your precious hard-earned Bitcoin.
As with traditional ATMs, data sniffers and spy cameras can be installed on these machines, resulting in unscrupulous people accessing your essential personal and crypto information. Therefore, always only use Bitcoin ATMs at locations you trust.
Availability
Even though there are more than 36,000 Bitcoin ATMs worldwide, you might find none in certain areas. Of course, this is changing over time, and one day, Bitcoin ATMs will be as ubiquitous as traditional ATMs.
But until that point, you might be in a Bitcoin ATM drought zone. If so, you must rely on traditional crypto exchanges to buy and sell Bitcoin.
If you want space to set up a Bitcoin ATM, consider buying and installing it in your storefront or restaurant. It's an excellent business, quite lucrative, and a way to stay on top of this fascinating trend.
Use a Bitcoin Teller to Buy Bitcoin
You wouldn't have imagined a day you could conduct Bitcoin transactions through an automatic teller machine without connecting your bank account or speaking to a live human. However, the crypto world is expanding and growing at a rapid rate, and who knows what other rapid innovations might happen in the next few years.
Now that you know the answer to the question, "What is a Bitcoin ATM?" you can use it to conduct important Bitcoin transactions easily and quickly.
Browse through related articles on our website and continue to grow your crypto-related knowledge.
