Did you know that there are now over 4,000 different types of cryptocurrency? Despite the explosion of different currencies a small handful still retains control of almost the entire market.
Nowhere is this more apparent than with Bitcoin. These days, cryptocurrency remains so popular that there are even ATMs made specifically for Bitcoin. If you want to know more about these Bitcoin ATMs, then you’re in the right place.
In this article, we’ll teach you everything you need to know about using these devices. That way you can access your Bitcoin supply on the go.
What Do Bitcoin ATMs Do?
A Bitcoin ATM is an in-person kiosk that allows users to manage their Bitcoin funds. These types of kiosks can be either unidirectional or bidirectional. Unidirectional kiosks allow the user to purchase either Bitcoin or Bitcoin Cash with a debit card or cash.
Bidirectional kiosks, on the other hand, allow the user to both purchase Bitcoin, as well as sell their Bitcoin for cash. Currently, there are many more unidirectional Bitcoin ATMs than there are bidirectional ones.
Only about 30% of Bitcoin ATMs throughout the world are bidirectional. Instead of connecting to a bank account, like a traditional ATM, Bitcoin ATMs connect to your Bitcoin wallet or an exchange.
After a transaction, you will either get a paper receipt, or a public key placed on a blockchain. Bitcoin ATMs tend to come with pretty high transaction fees. The typical fee ranges from 7% to 20%. However, they can go as high as 25%.
What Should You Do Before Going to a Bitcoin ATM
Before you go to a Bitcoin ATM it’s important to first set up your digital wallet. A digital wallet works in the same ways as a physical one — it gives you a place to store your money. However, this is only in a metaphoric sense when it comes to a digital wallet.
After all, your actual Bitcoin resides in an online ledger that forms a part of a blockchain. However, your digital wallet shows you your balance and allows you to track it. There is a variety of different digital wallets you can use.
Some of them utilize hardware devices, while others work through software you can access on your desktop. Typically, you can set up your digital wallet on an app of some sort.
However, if your wallet doesn’t come with an app, then look for the alphanumeric key that comes with it. This, or a QR code, will allow you to access the wallet at a Bitcoin ATM.
How Do You Find a Bitcoin ATM?
Now that you have everything set up properly it’s time to find an ATM near you. Luckily, there are plenty of resources that can help you access you find one close to you.
For example, Byte Federal has a resource that instantly shows you can the location of all ATMs. Simply plug in your zip code, city, or state and it will find a Bitcoin ATM near you. Once you locate one, drive to ATM so that you can access it.
How Do You Use Bitcoin ATMs?
There are two main transactions you can complete on Bitcoin ATMs: buying Bitcoin, selling it, and sending it. In this section, we’ll go over how to do these types of basic transactions on the ATMs.
How to Use a Bitcoin ATM to Buy Bitcoin
First, create an account with the Bitcoin ATM operator. This will give you a private identity to use. From there you should indicate the Bitcoin wallet address you’re using. Once you complete this, you can begin inserting cash into the ATM.
For example, let’s say you want to buy $500 worth of Bitcoin. You’ll insert $500 in cash into the machine. Then, the operator sells you $500 worth of Bitcoin at the current market value.
They’ll also deduct any fees that come with using the ATM. Once the cryptocurrency is in your Bitcoin wallet you’ll receive confirmation that the transaction occurred.
How to Use a Bitcoin ATM to Sell Bitcoin
Keep in mind that only 30% of Bitcoin ATMs allow you to sell your cryptocurrency. Most of them only deal with buying. Like buying Bitcoin, you will also need to create an account with the Bitcoin ATM operator to sell.
Once you log in and connect your wallet you should be able to access your funds. From there, you can decide how much you want to sell. However, before you can sell the transaction must first be verified through the Bitcoin network before you can withdraw your cash.
Keep in mind that this process often takes a lot longer than buying Bitcoin and can vary depending on the skill of your operator. Once the transaction goes through, you can collect your cash, minus any fees for using the Bitcoin ATM.
How to Use a Bitcoin ATM to Send Bitcoin
Many Bitcoin ATMs also allow you to send the cryptocurrency to someone else. To do this, log into your account. Then, indicate the amount of cash you want to send. After you do this select the address of the Bitcoin wallet you want to send it to.
Finally, insert cash into the machine. It will then be deposited into the Bitcoin wallet that you specified.
Want More Content? Keep Reading
We hope this article helped you learn more about Bitcoin ATMs and how to use them. As you can see, Bitcoin ATMs are different from traditional ones in you can buy, sell and send cryptocurrency.
This makes them invaluable for people who need to manage their supply on the go. Did you enjoy this article? If the answer is yes, then you’re in the right place. Keep reading to find more content that you’re sure to love.