Bitcoin ATMs (BTM), unlike traditional ATMs, perform their transactions on a blockchain base. A QR code is usually used when transferring cryptocurrency to users' digital wallets. A user does not need to create any bank account to be able to trade. The first Bitcoin ATM was installed in 2013 in a cafe in Vancouver, Canada. Since then, the number and use of Bitcoin ATMs have increased in many countries around the world. Bitcoin ATMs are usually operated by companies that provide services in the crypto space. Bitcoin ATMs are divided into two types: one-way and two-way.
Both types of Bitcoin ATMs are connected to the internet. One-way ATMs only allow the buying of Bitcoin or other cryptocurrencies, while two-way ATMs allow both the buying and sale of these assets.
How Do Bitcoin ATMs Work?
Bitcoin ATMs connect users directly to a Bitcoin wallet or cryptocurrency exchange without linking to a bank account. Unlike traditional ATMs, there is no need for a bank account or card as it operates on a blockchain network. Users usually perform their transactions by scanning a QR code.
Steps to Follow When Buying Bitcoin from a Bitcoin ATM
The Bitcoin ATM is very easy to use. First, you need to download a Bitcoin wallet, which you can do by scanning the QR code on the ATM screen. When you want to make a transaction at the ATM, you need to enter your phone number. Your phone number allows the ATM to register your transactions and identify you. After you make the transaction, you will receive a verification code.
Once you enter the sent code into the ATM, the next step is to link your wallet address with the QR code. As soon as the wallet is identified, the Bitcoin ATM sends the Bitcoin users to want to buy to their wallet. When you deposit your cash into the ATM, the Bitcoin ATM informs users of the amount of money they have deposited and how much Bitcoin they can get in return. Transactions are subject to six approvals by the blockchain network. Previously, after receiving a receipt, users could wait up to an hour for their transaction to be confirmed. But now, thanks to the Lightning Network, users can complete their transactions in minutes. Once the transaction is confirmed, Bitcoin is transferred to the user's wallet.
Bitcoin ATM Fees
People who want to use a Bitcoin ATM (BTM) are charged a service fee. This charge is usually based on a percentage rate. The fee for using an ATM varies depending on the company that owns the machine. Transaction fees generally vary between 10% and 20%.
Bitcoin ATM Locations
According to Coin ATM Radar, 1,026 Bitcoin ATMs are located in the European Union region. In addition, while there were 2,342 Bitcoin ATMs in the US in January 2018, the data collected in the period until May 2021 says that the number of Bitcoin ATMs has exceeded 38,000. Bitcoin ATMs are available in approximately 78 countries. Users can view a map of Bitcoin ATMs on the Coin ATM Radar page and filter through the map to find the closest ATM to their location and make a trade.
What Are the Advantages and Disadvantages of Bitcoin ATMs?
Some advantages of a Bitcoin ATM are as follows:
- Bitcoin ATMs do not require a KYC (Know Your Customer) procedure and the registration process is easy.
- It is more advanced in terms of security. It provides extra security to users with a cold wallet application before the transaction is made.
- Since no bank account or debit card is required, it provides an opportunity for every individual to buy Bitcoin.
Some disadvantages of Bitcoin ATM are as follows:
- Bitcoin ATMs have lower and upper limits for some transactions. This is due to anti-money laundering regulations.
- Users can be charged high fees when trading.
- Although the number of Bitcoin ATMs is increasing day by day, they are still not available in some countries and cities. In addition, since it is a new technology, you may encounter many ATMs that do not work.
