ATMs are a type of machine connected to the banking system that can access your account. They allow you to withdraw cash.
ATM stands for Automated Teller Machine. They aren’t actually tellers, or humans from the retail bank. ATMs provide 24/7 service that is just a machine.
One way to describe them is as crypto exchange kiosks. However, they do not provide instant recognition like the ATM acronym.
Here’s how a Bitcoin ATM works
Bitcoin ATMs allow users to buy Bitcoin and other cryptocurrencies with cash, or to sell Bitcoin and receive cash.
Bitcoin ATMs only accept cash as a form of currency.
The main issue with ATMs in this scenario is that they can become a target for bad actors to use Bitcoin, which is untraceable. To mitigate this, ATMs place limits on what you can buy and sell as well as requiring KYC.
What is a Bitcoin ATM and how does it work?
To buy Bitcoin, you will need the following: cash and a Bitcoin wallet. Find out what a Bitcoin wallet is and how it works in this article.
To start buying Bitcoin, you need to provide details about your wallet by scanning a QR code from your phone. This will allow the ATM to send Bitcoin to this address after purchasing it. Public Address are unable to transfer funds out, so this is completely safe.
When receiving a quote from the ATM, keep in mind that fees may be involved.
Once you hit accept, the timer will count down before the text appears to show how long it is available at that cost.
Once you have accepted the cash, confirm the transaction by looking at your mobile wallet. You may have to wait for the transaction to be confirmed.
If you wish to sell bitcoin for cash, the machine will provide you with a QR code to scan. You enter the amount of bitcoin you wish to sell and receive a price. You have a certain length of time after accepting the quote to send the Bitcoin. Cash will be distributed once received.
It costs about 10% to convert Bitcoin ATMs, but typical exchange rates are usually less (between 6 to 7%).
You need a wallet to buy and sell Bitcoins with a Bitcoin ATM. ATMs dispense paper vouchers which are redeemable via QR code. You still need a wallet in order to use the voucher.
While ATMs provide a new way to launder money, cryptos are the norm for most criminals. Crime is due to the anonymity that crypto use provides and ATMs offer greater financial access.