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January 27, 2023
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What You Need To Know About Bitcoin ATMs

A Bitcoin ATM is a device that buys or sells bitcoins for cash. It looks like a traditional ATM, but it is not linked to a bank account. Customers are instead connected to Bitcoin exchanges.

It is very easy to buy Bitcoin using Bitcoin ATMs, and it is also very private. It is even possible to buy bitcoins with cash at some Bitcoin ATMs without a bank account at some ATMs.

Bitcoin ATMs are convenient ways to purchase and sell Bitcoin without the hassle of online crypto exchanges. For Bitcoin ATMs to work, users must have an existing account.

Bitcoin ATMs, or BTMs, are divided into two types:

Unidirectional Machines: These machines support either the purchase or sale of cryptocurrencies in one direction.

Bi-directional Machines: Computers capable of buying and selling cryptocurrencies in both directions.

How To Use A Bitcoin ATM?

It is relatively easy to use a Bitcoin ATM. The steps are as follows:

  1. Check out nearby machines.
  2. Cash should be inserted into the machine (which will convert it into bitcoin at the market rate).
  3. After that, you will be asked for the address of your wallet (the address where the bitcoins will be sent).
  4. You need to confirm the transaction.
  5. Get your bitcoins or cash.

Pros Of Using A Bitcoin Teller Machine

Bitcoin teller machines offer the following advantages:

  1. Buying and/or selling Bitcoin with it is fast and convenient.
  2. To transact, you do not need a physical card or a bank card.
  3. You can remain anonymous with some machines (in countries without KYC requirements).
  4. Provides Bitcoin access to anyone without a bank account or who does not wish to have one.
  5. It allows people in areas with limited access to cryptocurrency to purchase Bitcoin.
  6. Due to the number of BTMs around the world, it’s an accessible way to transact bitcoins.

Cons Of Using A Bitcoin Teller Machine

There are also some disadvantages that come with using Bitcoin Teller Machines. Some of them are:

  1. Fees for transactions are very high. For buying or selling Bitcoin, Bitcoin ATM fees typically range from 7% to 12%.
  2. Generally, Bitcoin Teller Machines do not support large withdrawals and deposits (ranging from $1000 to $10,000).
  3. Your transaction will not be completely anonymous because most locations require identity verification.

Similarly to regular automated teller machines, ATMs and BTMs are physical kiosks. In contrast to typical ATMs, it allows users to purchase bitcoins in exchange for cash or debit cards. It is also possible to sell Bitcoin for cash at some BTMs.

It is similar to a typical ATM when it comes to the design of BTMs. It connects to a Bitcoin wallet instead of a bank account. A Bitcoin wallet replaces bank cards as repositories from which coins are sent or debited. ATMs with Bitcoin software look very similar to traditional ATMs because they are in fact traditional ATMs.

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