With the increasing popularity of Bitcoin and its definitive establishment in our current economy, growth in options and alternatives to trade was also expected.
For most users, the only known option to trade their Bitcoins is to register with a crypto exchange. Well, there is another option that is gaining more and more popularity, and it is the use of Bitcoin ATMs. Yes, just like the ATMs where we usually withdraw our money from banks, but adapted to Bitcoin.
It was in Vancouver in 2013 where the first ATM for Bitcoin was opened and, since that date, there has been a growing wave of ATM installations worldwide, this, of course, as the market has continued to rise considerably.
But, let's get to the point of interest...
How does a Bitcoin ATM work?
A Bitcoin ATM looks and works just like a traditional ATM, but with some important differences.
A traditional ATM requires you to have a debit or credit card issued by your bank, which you must insert into the ATM to get your money. The moment the ATM dispenses the cash, the transaction is considered complete.
The process performed at an ATM for Bitcoin is somewhat different. Instead of accessing your bank account and withdrawing your money with a debit or credit card, the Bitcoin ATM requires you to deposit cash, while indicating a valid wallet address where you intend to receive the cryptocurrencies you wish to purchase.
In such a way, Bitcoin ATMs connect the user to a cryptocurrency exchange that allows him to place a buy or sell order. Some ATM operators go a step further, offering their cryptocurrency holdings for sale to the user.
For now, most ATMs are owned by private companies that offer the service for a fee. There are other Bitcoin ATMs that are operated by a particular company that offers its wallet for trading. These companies generally require users to have accounts with them to transact at any of their ATMs.
Do Bitcoin ATMs give out cash?
This depends solely on the type of ATM and the company that operates it. Some ATMs can deliver cash in exchange for Bitcoin, as well as accept cash for the purchase of cryptocurrencies.
These ATMs are referred to as two-way ATMs, as they offer both buying and selling functions. About 66.6% of Bitcoin ATMs support buy-only functions, while the remaining 33.3% perform both buy and sell functions.
Bitcoin ATMs that accept cash are often equipped with a bill catcher that allows them to identify counterfeit bills, thus protecting the ATMs from criminal acts.
How do you know if there is a Bitcoin ATM nearby?
If you are wanting to use a Bitcoin ATM and don't know where they are located, the best option is to use a website that tracks ATM installations around the world. CoinATMRadar is one of the most popular options. As they report, there are more than 7,000 ATMs installed worldwide, most of them spread between the USA, Canada, and the UK.
Irving Arrieta