Are Bitcoin ATMs Safe to Use?

Author Justin Gilmore

There’s a new type of ATM popping up in hotel lobbies, convenience stores, and all of the other usual places where ATMs can typically be found. But these are not like any other ATM, they are Bitcoin ATMs. Rather than being used to withdraw money or conduct banking, Bitcoin ATMs allow people to buy and sometimes sell Bitcoin and other cryptocurrencies on the go. Of course, since they are still relatively new, many people are wondering about the safety of Bitcoin ATMs.

Fortunately, there are a lot of measures in place that help ensure that Bitcoin ATMs are safe to use. While the process of using a Bitcoin ATM is a little different from traditional ATMs, the safety measures are comparable. If you feel safe using a traditional ATM to withdraw money, you shouldn’t have any concerns about using a Bitcoin ATM.

First, it’s worth mentioning that Bitcoin ATMs are not connected in any way with traditional banking institutions. However, most Bitcoin ATMs are owned and operated by established business entities that should be trusted. Most operators include their address, email address, and phone number on the machine, making it easy for users to contact them if there’s a problem. Users should also take comfort knowing that they only interact with the interface of the machine. Like traditional ATM transactions, everything on a Bitcoin ATM is performed via the Internet, so there are no other people involved.

The purchase of buying Bitcoins through a Bitcoin ATM also has security measures in place. Assuming you already have a Bitcoin address and cryptocurrency wallet, you can scan your QR code to start the process. You will then enter your phone number into the machine, receiving a one-time password via text message within a few seconds. You just enter that password into the machine to confirm that it’s actually you standing in front of the machine and you’ll be free to proceed.

If you don’t already have a Bitcoin address, there are a few more steps for security reasons. You will likely be asked to ID, which usually involves the machine scanning both sides of your driver’s license. Some Bitcoin ATMs will also take a picture of you to double check that the person standing at the machine matches the picture on the driver’s license. As long as all of that checks out, you’ll be able to insert cash into the machine and purchase Bitcoin or other cryptocurrencies.

After making your purchase, the Bitcoins will be inserted right into the digital wallet that’s associated with the QR code you provided. You can also print out confirmation of your Bitcoin purchase or have it sent to you via email. Either way, you’ll have proof or your safe and secure purchase through the Bitcoin ATM.

Obviously, you’ll want to take the same security measures with a Bitcoin ATM as you would a traditional ATM. This means using a machine that’s in a well-lit area and an open space. Of course, it’s also good to know that many Bitcoin ATMs have security cameras and video analytics that can detect loitering or other types of suspicious behavior around the machine. If anything out of the ordinary occurs near the machine, security personnel can be notified. This should help ease any concern you have with using one of the many Bitcoin ATMs that are becoming more and more common in our world.

Contact AtmMachines.com, LLC to learn more about bitcoin ATMs.