Bitcoin ATMs, also known as Bitcoin Teller Machines are used to accept cash and to dispense Bitcoin in return. It allows the anonymous purchase of Bitcoin. The world’s first bitcoin ATM was opened on October 29, 2013, at Waves Coffee Shop in Vancouver, Canada. Well, this article is all about Bitcoin ATM and it works. Let’s look at it.
What Is A Bitcoin ATM?
Bitcoin ATMs or Bitcoin teller machines are not like normal ATMs rather than they are physical centers where you can purchase Bitcoins.
It is meant to help those people who are underbanked to get access to their Bitcoins easily. The most important aspect of BTM is that it allows you to buy or sell bitcoins anonymously.
This makes BTM an ideal and secure way to purchase bitcoins. Bitcoin ATMs consist of a monitor, QR scanner, bill acceptor, and dispenser.
Software that monitors and controls all these components make buying and selling Bitcoin possible.
The main difference between traditional ATMs and Bitcoin ATMs is that BTMs are not connected with the bank accounts like traditional ATMs.
Working of Bitcoin Teller Machine
Now there are 2200 Bitcoin ATMs located around 63 different countries. Below given are the steps involved while using a BTM.
👉 Using online services like CoinATMradar, locate and find the nearest BTM of you
👉 Some machines may support two-way transactions between bitcoin and fiat money, but some other machines only support fiat to bitcoin transactions, that is you can only buy bitcoin with fiat currency.
👉 Most of the machines require your phone number or any other ID verifications for access, while some machines grant access without these.
👉 You have to verify your phone number by using a one-time password. Some BTM s have a BTM scanner to scan your ID proofs.
👉 Now your registration process is over. If you want to buy Bitcoins, then enter the amount of fiat currency that you have to exchange with bitcoin and deposit the currency in the deposit area of the machine just like a cash deposit machine(CDM).
👉 After depositing money, the machine sends Bitcoins to your bitcoin wallets. Some machines may send bitcoins to your email address.
👉 If you want to transfer the bitcoins to your bitcoin wallet, then scan the QR code of your wallet using the BTM scanner.
👉 If you want to transfer the bitcoins directly to your email address, then the QR code will be sent to your email address.
👉 If in case, you want to sell the bitcoins, then enter the amount of Bitcoin you want to sell and send it to the address displayed in the monitor of BTM.
👉 Once the transaction is completed, the fiat currency will be dispensed.
Now BTM has become essential money transmitting tool. The next level of development of these bitcoin teller machines is known as coin cloud ATMs.
They are more convenient, secure, and trustable than normal Bitcoin teller machines. It also provides live customer support to aid its customers and ensures that the customers can buy or sell bitcoin by sharing minimal information.
Can a Bitcoin ATM be hacked?
Yes, it is possible to hack into it. 2018 saw the publication of an ad purporting to sell malware for the purpose of hacking Bitcoin ATMs by a hacker.
According to the advertisement, the malware disconnects the machine from the network, disables the alarm systems, and distributes a large amount of money to a variety of different locations. There has been no evidence of this malware being used as of yet.
Do Bitcoin ATMs Charge High Fees?
Yes. By and large, Bitcoin ATM fees are significantly higher than those charged by cryptocurrency exchanges or peer-to-peer exchanges, as the ATM provider must cover the cost of the physical space.
While purchasing large amounts of cryptocurrency from Bitcoin ATMs is not recommended in general, they can be a convenient workaround for those in urgent need of cryptocurrency (or who do not have access to a computer).