A Guide for Using a Bitcoin ATM
Bitcoin ATMs (Automated Teller Machines) are one of the most revolutionary discoveries in the cryptocurrency industry. They made obtaining Bitcoins easier and faster. Besides, ATMs are cheaper than conventional cryptocurrency acquisition methods. Thanks to blockchain technology, Bitcoin ATMs are incredibly secure. To receive more extensive information about bitcoin trading, visit bitprime-gold.co.
In 2013, Canadians successfully developed the first-ever Bitcoin ATM. About a year late, the United States installed the first one. Today, the technology has spread to various regions, making cryptocurrency transactions even better. Statistics show more than 28000 such machines in operation around the globe.
The operation concept behind a Bitcoin ATM is the same as that of a conventional one. For example, you need a bank account to use the traditional Automated Teller Machines. On the other hand, one requires a Bitcoin wallet to use a Bitcoin Teller Machine (BTM). Two types of Bitcoin ATMs are currently available.
The first type supports unidirectional transactions. And this means you can use one only for selling or buying Bitcoins. Bidirectional Bitcoin Teller Machines can let users buy and sell Bitcoins minus going to a different machine elsewhere. It isn’t easy differentiating between a conventional and Bitcoin Teller Machine because of their striking resemblance.
In many cases, the hardware is the same, except for the machines’ software. As a result, you’ll find it effortless to use the Bitcoin version, provided you’re familiar with the conventional Bitcoin ATMs. Here’s everything to know about using Bitcoin Teller Machines.
What You Need
Like with other pieces of technology, you require certain things to be able to use BTM services. Some requirements facilitate the transaction process, while others are for identity verification purposes. Here’s what you need to use a Bitcoin ATM.
Bitcoin Wallet
Unlike fiat currency, you require a digital wallet to receive, store or send Bitcoins to other users. The wallet is a specialized application, enabling users to perform various transaction operations. Hot Bitcoin wallets are more desirable than cold ones because you can access them easily via the internet.
Your Bitcoin wallet has a unique identification string called the public key (Address). The key is the same as an email address or username in a conventional transaction. Additionally, people need the public key to receive funds. The other vital feature of the Bitcoin wallet is the private key.
Like passwords, private keys are personal, and you can’t share them with anyone. You use them to authorize transactions from your Bitcoin wallet. The recipient’s account public key is necessary when selling Bitcoins using an Automated Teller Machine. It tells the machine where to send the money.
Identification Documents
However, identity verification is a must when using a BTM. And this is inevitable, especially when transacting enormous amounts. You can use your national identity card, phone number, or driving license for verification.
Using a Bitcoin ATM
- First, locate and go to your nearest BTM kiosk with all the requirements. Press the GET STARTED button and carefully follow the instructions on the screen. The machine will prompt you to enter your phone number.
- After entering a valid phone number, the Bitcoin ATM will ask you to scan your digital wallet’s QR code. This process automatically tells the BTM the address to deposit the Bitcoins you’re about to buy.
- Determine the amount of cash you need for the purchase. Most Bitcoin Teller Machines have an inbuilt currency converter. And this allows you to estimate the amount of fiat currency to deposit.
- Inset the cash into the machine’s receptacle slot. Now click the CONFIRM button and wait. It can take up to 1 hour for the transaction to appear on your wallet’s history. The time varies depending on traffic on the network at a given time.
Note: The procedure for selling Bitcoins using a BTM is the same as buying. However, you’ll select the CASH OUT option at the beginning instead of BUY.
Parting Shot
Using Bitcoin ATMs is simple and efficient. It doesn’t require special training as long as you know how to use the traditional Automated Teller Machines. However, BTM transactions are more expensive than conventional ones. Additionally, the transactions are secure because the machines run on the blockchain network. You need a phone number or any legal identification document for purchases or sales involving massive amounts.
This article has been published in accordance with Socialnomics’ disclosure policy.
