How Do Bitcoin ATMs Work?

Author Justin Gilmore

Whether it’s in hotel lobbies, restaurants, convenient stores, large public events, or any number of other places, ATMs have become commonplace in today’s world. However, there’s a similar machine that’s starting to make headway in our society, and it’s the Bitcoin ATM. While these hold some resemblance to traditional ATMs, they serve a different function. Rather than withdrawing money or conducting banking transactions, they allow consumers to buy and sell Bitcoin and other cryptocurrencies while on the go. So, how exactly do Bitcoin ATMs work?

At first glance, the prospects of using a Bitcoin ATM may seem a little intimidating. However, they are designed in a way that makes them easy to use for people who don’t have a lot of experience with Bitcoin and cryptocurrencies, including people who aren’t that great at using technology altogether. Most Bitcoin ATMs are set up to help people purchase Bitcoins, although some also allow users to sell Bitcoins.

Naturally, the first step is to confirm your identity. Rather than having a traditional ATM card, Bitcoin ATMs will often ask for your phone number. You will then be sent a verification code via text message that you will enter into the machine. Most Bitcoin ATMs will also ask users to scan a driver’s license or another form of ID in order to verify personal information.

After you have confirmed your ID, you will input a dollar value indicating how much money you want to spend on your Bitcoin purchase. There will usually be a limit as to how much you can purchase but nothing that would inhibit most users. Once you pick a dollar amount, you insert that money into the machine. However, some machines will accept credit cards for users purchasing large amounts of Bitcoin.

Once you have inserted your money or credit card, the Bitcoin ATM will connect with a cryptocurrency exchange platform and make the purchase. The software should search through various exchange platforms to find the best exchange rate. If you already have a bitcoin wallet, you can scan it on the Bitcoin ATM and the machines will send the Bitcoins you just purchased straight to that wallet. You also have the option to print out an offline wallet with the details of your purchase or have the QU code sent to you via email.

The process of selling Bitcoins at a Bitcoin ATM is similar, although not every machine may offer a selling option. Once your ID has been verified, you input the amount you want to sell in standard currency and send that amount in Bitcoins to the address on the screen. The machine will then dispense cash just like a traditional ATM.

It may sound confusing at first, but the same could be said of standard ATMs the time you used them. After using a Bitcoin ATM once or twice, most people should get the hang of it. There are even resources to help you locate the Bitcoin ATM nearest to you. You may be surprised to learn just how many Bitcoin ATMs there are in the world, how easy they are to find, and most importantly, how easy they are to use.

Contact, LLC today to learn more about bitcoin ATMs.