Today, the Bitcoin ATM business popularity is growing rapidly due to the improved technology, increased functionality of devices, and the increased demand for this service. Therefore, many entrepreneurs are interested in this particular industry as well as the crypto community finds Bitcoin ATMs quite useful.
The first Bitcoin ATM was called Robocoin. It was opened on October 29, 2013, in Vancouver, and processed over 1,000,000 Canadian dollars in the following months. As of 1st January 2021, there are more than 14,000 ATMs around the globe. What Bitcoin ATMs are there, and how to use them? Find out in this article!
Types of Bitcoin ATM
A Bitcoin ATM looks like a usual ATM from which we used to withdraw money. However, the device is connected via the Internet to the Bitcoin blockchain. During the operation, it gives the user an address to which the cryptocurrency has been transferred (in a form of usual address or a QR code). The purchased cryptocurrency is transferred from one of the wallets of the company that owns the ATM.
There are three main options available for users:
Buy Bitcoin (purchase);
Sell Bitcoin (withdrawal);
The commission fee in a Bitcoin ATM depends on the pricing policy of the operator company. In most cases, it is 7-9% of the transaction amount.
Here are a couple of examples of these Bitcoin ATMs.
Genesis 1 is the most popular crypto ATM produced by the Genesis Coin Corporation. It features the AML/KYC verification procedure, so users have to take an identity card with them. Besides the ID, there can be required an additional fingerprint scan, verification checks via SMS, an ID card reader and a high-definition camera to the ATM to comply with applicable legal standards.
Coinme is a leading blockchain company, which helps the world gain access to digital currency. Coinme became the first state-licensed Bitcoin ATM operator in the U.S. and now, thanks to their partnership with Coinstar, operates one of the largest Bitcoin ATM networks in the world.
Using this Bitcoin ATM you can buy Bitcoin for cash in more than 200 countries around the world. The ATM takes a 7% commission fee. As for verification, you only need the QR code of your Bitcoin wallet to make a transaction.
How To Locate A Bitcoin ATM Near You
Is there a Bitcoin ATM near you? You can check on the CoinAtmRadar website, where it is possible to view a map with all the ATMs where you can buy and sell cryptocurrencies.
Using this service you can:
Explore the Bitcoin ATM Map
Locate the nearest crypto ATMs
Get all the necessary data about that ATM (commission fees, limits, whether it is buy-only, sell-only or buy/sell)
Get directions from your location to the selected ATM
Most Bitcoin ATMs are located in the United States and Europe. The leader for the number of crypto ATMs in Europe is the UK.
How to Use a Bitcoin ATM
There are several security procedures for each operation. You may be asked to enter a PIN code, which will be sent to the mobile phone number that you entered earlier or to confirm your identity by scanning your ID or taking a selfie.
The steps you need to follow may vary depending on which model of crypto ATMs you’re using, but the general algorithm is the following:
Pass verification. In most cases, the verification code will be sent as an SMS. There are options with scanning ID cards and even fingerprints. There is no verification step in some ATM models.
Enter the Bitcoin address to which you want your money to be sent. This is done either using the keyboard (and then you need to be careful to avoid typos) or using the QR code generated by the wallet application. Some terminals allow you to create new addresses and keys, but it is better not to rely on this function.
Deposit cash. Some ATMs accept credit cards. However, it’s not usual since the user can request a chargeback, and it is impossible to cancel a transaction on the Bitcoin blockchain.
Confirm the operation and then check your cryptocurrency wallet.
When buying crypto, you will need to deposit cash in your local currency. Then, the amount will be converted into the equivalent in BTC. After a while, it will be credited to the previously entered wallet, or you will need to create one if you don’t have it. Otherwise, the machine requires you to make a new one.
When withdrawing funds, you need to show the address of your wallet to the QR code scanner on the machine, and then enter the equivalent of Bitcoin that you want to sell by converting it into fiat. Not every ATM has the selling function. Make sure your local machine allows you to withdraw money.
Bitcoin ATM — Summary
Using Bitcoin ATMs is very simple since they allow you to buy or sell cryptocurrency instantly. As it has been mentioned previously, there are quite a few crypto ATMs in the world, some of which only allow buying bitcoins, some, only selling them. There are very few ATMs that can perform both types of operations.