Bitcoin is a type of digital currency that has been on the rise in recent years. Those who invest in Bitcoin often use them as an alternative to traditional currencies like the U.S. dollar and euro, as well as other types of commodities such as gold or silver. Bitcoin ATMs are one of the easiest ways to get your hands on some cryptocurrency. You can buy bitcoin on some online exchanges, but if you want to purchase digital currency without putting your credit card information on the internet, then a bitcoin ATM might be what you need. There are many of these machines scattered around the United States at malls or convenience stores that allow users to make transactions using cash money. Learn more about how you can use one right now.
What is a Bitcoin ATM?
Bitcoin ATMs are machines much like the typical U.S. Automated Teller Machine (ATM), but rather than allowing you to withdraw cash from your bank account, these terminals will enable you to deposit some money in exchange for Bitcoin or another type cryptocurrency. If you do not already own any bitcoin and want to know how to buy some, you can go to one of these machines and make your purchase using physical cash. Some people prefer using Bitcoin ATMs because they don’t have to worry about credit card fraud like they would on some online exchanges.
Bitcoin ATM Mechanics
Although Bitcoin ATMs are operated differently than standard ATMs, they both essentially fulfil the same function – giving customers access to their money when they need it most. Although these two devices have a lot in common, some key differences set them apart from each other. For example, to use a Bitcoin ATM, you will need a digital wallet where the cryptocurrency can be stored. You will not have this same requirement when using a standard ATM. The mechanics vary slightly as well. Most people choose to make their purchases using either paper money or coins. After inserting your cash into the bitcoin ATM, it will immediately convert the amount into bitcoin and then send that value over to your digital wallet for safekeeping.
How To Use a Bitcoin ATM Machine
The process of purchasing bitcoin at one of these terminals is surprisingly easy. You will need to find a machine that is available in your area, then go up and select how many bitcoins you would like to buy (this may vary depending on the type of machine you are using). It is important to be aware that bitcoin ATM rejects all credit and debit cards. Whenever you sell the cryptocurrency through the Bitcoin ATM, your Bitcoin, Bitcoin Cash, Ethereum and Litecoin are converted into dollars before releasing cash to you. Below is a procedure that enables you to bitcoin using a bitcoin ATM.
Step 1: Press “Buy Coins”
Once you locate a Bitcoin ATM around you, you are good to begin the process. The first step is to touch “Buy Coins,” and the machine will tell you how much bitcoin it sells at that particular time. It may vary depending on trends and changing values, but you will see the price both in your local currency or U.S. dollars and how much bitcoin you are purchasing at that time.
Step 2: Key in your phone number through the keypad
This is one of the most important steps in buying bitcoin or cryptocurrency using a Bitcoin ATM. You will be required to key in your phone number so that the machine can text you an authorization code, which you must enter to validate your transaction, so be sure to have this number on hand before you start.
Step 3: Key in the verification code that was sent to your phone
After you key in the phone number, the machine will automatically send an authorization code to you via text message. It would be best if you then input this unique passcode into the machine so that it can confirm that you are indeed making a purchase. If all goes well, then your transaction is complete! Note: Although Bitcoin ATMs allow users to buy cryptocurrencies with cash, they do not sell or transfer bitcoin themselves, which means you must have already stored the digital currency somewhere else before making your deposit. Therefore, these machines are often considered “Bitcoin ATMs” rather than “Bitcoin exchanges.” Once you get one of these machines in place at your local mall or convenience store, potential customers who want cryptocurrency will always be able to make a purchase without having to wait for their coins to be transferred from an online exchange.
Step 4: Select the cryptocurrency you wish to purchase
After you press “Buy Coins,” the screen will give you a list of cryptocurrencies that will be sold to you at that time, such as Litecoin, Bitcoin, Ethereum, or Bitcoin Cash. Simply select the cryptocurrency you wish to purchase and then press “Buy Now.” Bitcoins or other cryptocurrencies will be released from the machine as soon as it detects your deposit, which is stored within a digital wallet connected to your phone number. This process can take several minutes, depending on traffic at that particular time. Still, after a few minutes, you should receive a text message confirming that your purchase has been successful and that funds have been added to your wallet.
Step 5: Select the amount you wish to purchase
Once you have selected the currency, you can press “Buy Coins” once again to decide how many cryptocurrencies you would like to purchase. If it is your first time using this machine, choose an amount that will give you a small fee so that you can examine what purchasing cryptocurrency at a bitcoin ATM looks like. Here there are a number of options depending on the amount of purchase you want to make
Option 1: “$1 to $800”
Option 2: “$801 to $2,999” requires a scan of your ID
Option 3: “Over $3000” requires a scan of your ID and key in your SSN.
Step 6: Select how you want to collect your coins.
First, you need to decide where you would like to sell your coins. You can choose “Cash” if you want the machine to give you the cash equivalent of the cryptocurrency that was purchased, “Crypto” to withdraw the cryptocurrency equivalent of the coins that were purchased, or “Both” if you would like an option for both. If this is your first time using a Bitcoin ATM, we highly recommend selecting “Cash.”
Option 1: It is recommended that you do a scan of your QR code. If you do not have a digital Bitcoin wallet, it can be downloaded to the app on your phone, and you can scan the QR code and collect your money.
Option 2: Create a new paper wallet which is an option for Bitcoin Cash, Litecoin, and Bitcoin. Every paper wallet is special and is directly printed from a Bitcoin ATM. Only the purchaser possesses the private key of the wallet. In case the paper wallet is damaged or lost, the coins are lost as well. Therefore, it is recommended that you transfer the coins from the paper wallet to a digital wallet, which you can download from the App Store.
Option 3: Enter the wallet address manually after ensuring that the address is correct. Addresses must be very sensitive to the lower and upper case. If you key in the wrong address, all the coins are lost.
Step 7: Insert the cash bills and receive your cryptocurrencies
At this point, you insert the cash bills and wait for the machine to dispense cryptocurrencies together with a paper receipt. Remember, the Bitcoin ATM does not accept credit or debit cards, so you must pay with physical currency.
Step 8: Select “Finish”
After touching “Finish,” the coins will then be transferred to your digital wallet, and you will be able to check the transaction history through whichever wallet you choose.
Step 9: Select “Yes”
By touching the “Yes” button, a receipt will be printed for you. The receipt contains the information necessary to make future transactions. You should always keep this information to hand in case you misplace your other wallet or phone.
Step 10: Collect the Receipt
Once the receipt is printed, collect it and keep it safe for personal records.
Option 1: The receipt can be a paper wallet. This is a one-time storage facility for you to store your cryptocurrency offline, and it functions as a backup in case you need to make transactions online. This option is open only to Bitcoin Cash, Litecoin, and Bitcoin.
Option 2: The QR code on the receipt contains the number of coins that were purchased during this transaction plus all the information necessary for future transactions, such as fees and wallet addresses.
Option 3: If you do not have access to any digital wallet or if your phone was stolen, then there is also a manual option available through which you can withdraw cryptocurrencies from your phone without requiring any QR codes by doing a manual entry. However, this method should only be used in emergencies.
Once you have done this, you can use your cryptocurrency to make online or offline transactions. You can also choose to keep your coins in your digital wallet for future investments. Please note that cryptocurrency exchanges are likely to charge their fees for each transaction, which is not included in the purchase fee charged by the ATM vendor. Be sure to check information about these charges before making any purchases.
- What Is a Bitcoin ATM?
- How to Use a Bitcoin ATM
- Bitcoin ATMs: How Do They Work
- Guide to Bitcoin ATMs
- What To Consider Before Installing a Bitcoin ATM