You can use a Bitcoin ATM to buy or sell your Bitcoin in a few simple steps.
Bitcoin ATMs are no longer a new concept in the crypto space. The demand and usage for such crypto ATMs are increasing with time.
According to Grand View Research, the market size of global crypto ATMs was $75 million in 2021. Moreover, this market is expected to have a 61.7% compound annual growth rate (CAGR) between 2022 and 2030.
In January 2023, the Bitshop founders acquired Genesis Coin Inc, the world’s largest Bitcoin ATM software platform. Also, this acquisition is one of the recent and significant events related to the crypto ATM space.
At the time of writing, more than 38,000 crypto ATMs are installed worldwide. Moreover, over 36,000 such ATMs are located in North America.
First, let’s understand Bitcoin ATMs.
What is a Bitcoin ATM?
As the name suggests, a Bitcoin ATM is similar to a bank’s automated teller machine (ATM). However, Bitcoin ATM allows you to buy or sell Bitcoin and other cryptocurrencies.
In Bitcoin ATMs, this machine is connected to your crypto wallet instead of connecting with your bank. As a result, you can use your wallet to send and receive Bitcoins or other supported cryptos.
Bitcoin ATMs are available at gas stations, airports, cafes, and convenience stores. However, the minimum and maximum transaction limits vary based on the company that operates the crypto ATM.
Canada was reported to be the first country to open a Bitcoin ATM in October 2013. Currently, crypto ATMs are located worldwide, with almost 94% in North America. Also, the United States has approximately 87% of total crypto ATMs.
As you know about a Bitcoin ATM, let’s check how it works!
How Do Bitcoin ATMs Work?
Bitcoin ATMs have almost the same physical features as traditional ATMs for user convenience. You can visit this electronic machine to buy and sell Bitcoins using your crypto wallet.
The price of Bitcoin and other supported cryptocurrencies are regularly updated on the device. Moreover, this live price clarifies the number of cryptos you can buy according to your available fund.
Apart from Bitcoin, some Bitcoin ATMs also allow you to buy major cryptocurrencies. Examples of such supported cryptos include Bitcoin Cash, Ethereum, and Litecoin.
In most cases, you need to pay using fiat currencies to buy Bitcoins and other cryptos. Whereas you can’t execute transactions using a bank’s credit and debit cards.
The features provided by Bitcoin ATMs varies based on the company that offers the service. Moreover, these companies also decide the commission charged for the cryptocurrency transaction.
Bitcoin ATMs charge fees based on a fixed percentage of the total value of the transaction. So, choose the machine that charges fewer fees than others.
How to Use a Bitcoin ATM?
You can follow the steps mentioned below to use a Bitcoin ATM:
Step 1: Find the Nearest Bitcoin ATM
The first step is to find a Bitcoin ATM in your location. For instance, you can use Coin ATM Radar to locate nearby Bitcoin ATMs quickly.
You can enter your current location on the Bitcoin ATM locator or search using your address. Moreover, you can also check the distance of various ATMs to choose a convenient one.
In addition, you can also filter out Bitcoin ATMs based on their operations. For example, you can choose ATMs that provide both buy and sell options.
Step 2: Keep Your Crypto Wallet Ready
Once you find a Bitcoin ATM, you need to unlock your mobile device and set up a crypto wallet. You can use an existing wallet or create a new one for the transaction.
You can use your crypto wallet to store the cryptos that you buy. Moreover, you can also sell your crypto assets available on the wallet.
Step 3: Set up a Bitcoin ATM Account
Bitcoin ATMs ask you to enter your personal information. This step acts as a verification process.
You need to provide a name, email address, and phone number. Also, you need to verify your phone number using a verification code.
Step 4: Scan Your QR Code
After completing the verification process, you need to open your crypto wallet. Then select the QR code that represents your wallet address.
The Bitcoin ATM comes with an inbuilt QR code scanner. Moreover, this scanner will instantly detect your code and select your wallet address to send Bitcoin or other cryptos.
Step 5: Insert Fiat Currency
Now, insert your fiat currency inside the cash deposit slot of the Bitcoin ATM. Ensure that the ATM supports the fiat currency you possess.
Once your currency is accepted, the machine will display the value of Bitcoin you can buy. For example, suppose Bitcoin is trading around $20,000, and you insert $100; in this case, you’ll receive 0.005 Bitcoin(BTC) in return.
Step 6: Confirm Your Transaction
Next, you need to double-check the transaction details. Ensure that the Bitcoin value and the wallet address are accurate.
Finally, hit the “CONFIRM” or “BUY” option displayed on your screen. You’ll receive the Bitcoin (BTC) in your wallet. It’s a simple process, right?
Now let’s check the types of Bitcoin ATMs.
Types of Bitcoin ATM
Bitcoin ATM mainly consists of two types:
#1. Bi-Directional Bitcoin ATMs
Bi-directional type of Bitcoin ATMs allows you to buy and sell Bitcoins. The majority of these available machines come under this type.
You can find cash deposit and withdrawal slots on every bi-directional Bitcoin ATM. Moreover, this machine also comes with a QR code scanner.
#2. Unidirectional Bitcoin ATMs
Unidirectional Bitcoin ATMs only support one form of transaction. You can use this machine to buy or sell your Bitcoin.
In the case of “buy only” machines, you can insert fiat currency and buy Bitcoin in your wallet. Whereas “sell only” machines allow you to cash out the value of Bitcoin that is available in your wallet.
How to Sell Bitcoin at a Bitcoin ATM?
You can follow these general instructions to sell your Bitcoins using a Bitcoin ATM:
Log in to the Bitcoin ATM using your user credentials. If you are a new user, create a new account.
Most Bitcoin ATMs provide two options, “BUY BTC” and “SELL BTC.” Choose “SELL BTC.”
Enter the value of the Bitcoin you want to sell. Also, check with the Bitcoin ATM operators regarding the withdrawal limits.
Now, scan your QR code that represents your crypto wallet’s address. You can also scan using a mobile device or from a printout.
Verify your identity using mobile number verification. You’ll receive a verification code on your mobile device; enter that code on the device.
Next, check the transaction details of your Bitcoin transaction and then click “CONFIRM.”
Wait for the transaction to complete. After the transaction, collect your cash from the machine. Also, remember to take the receipt of the transaction.
Note: After the transaction, the value of Bitcoin (BTC) will be debited from your wallet. Also, the debited value includes the Bitcoin ATM fees.
Benefits of Bitcoin ATM
The major benefits Bitcoin ATM offers include the following:
User-friendly: You can use these machines to buy and sell Bitcoin instantly.
No Cards Required: You don’t need to carry a credit or debit card to buy or sell Bitcoin.
High Transaction Speed: Using Bitcoin ATMs, you can execute faster transactions.
Convenient: You can use Bitcoin ATMs anytime without worrying about market opening and closing timings.
Security: As the Bitcoin transaction uses blockchain technology, your fund and crypto are safe and secure.
Now, let’s have a look at the challenges Bitcoin ATMs face:
Challenges for Bitcoin ATM
#1. High Transaction Fees
Most of the Bitcoin ATMs charge an average rate of around 8% fees. However, the charge can also go up to 30%.
The high fees on Bitcoin transactions are a major concern among users. Lowering this transaction fee will solve a major challenge for Bitcoin ATMs. In addition, low fees will also encourage people to use this machine for crypto transactions.
#2. Limited Customer Support
Bitcoin ATMs are at their early stage, and customers require guidance in some features of the machine. However, the operators of the machines take time to resolve the user issues.
Moreover, software malfunction and other issues with the machine usually take days to fix. Therefore, providing a quick and efficient solution to customer problems will be crucial in adopting Bitcoin ATMs.
#3. Limit on Transactions
Bitcoin ATMs come with a transaction limit. Therefore, you can only use these machines to conduct transactions between the value range assigned by the operators. Also, the transaction limit of Bitcoin ATMs can vary based on government regulations.
You can use Bitcoin ATMs to deposit and withdraw Bitcoins of value up to $10,000. The increase in the upper transaction limit can also make way for faster adoption of Bitcoin ATMs.
#4. Limited Availability
Although thousands of Bitcoin ATMs exist, most are concentrated mainly in North America. This high geographical concentration limits a larger population from accessing these machines.
Also, Bitcoin ATMs aren’t available in remote places, and sometimes people will have to travel longer to find a machine. A larger availability of Bitcoin ATMs can help attract more global crypto participation.
Bitcoin ATMs are easy and convenient for users. You can follow the steps mentioned in this article to use a Bitcoin ATM.
The availability of Bitcoin ATMs depends on your location. Moreover, you can use a crypto ATM tracker to find a nearby machine.
Finally, ensure to check the fees charged by the crypto ATM operators.
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