Amazingly, over the past 12 years, Bitcoin, followed by other cryptocurrencies, has become the most popular topic in finance and technology, even on social media. Owning at least a fraction of Bitcoin has diverted people as an alternative way to invest and gain profit. People who initially trusted and kept bitcoins made them even wealthy. But what about today? How does an ordinary person, for most of the time, use cash or have extra cash but want to buy and own bitcoins?
Cryptocurrency, like Bitcoin, becomes a safe and secure way to do business transactions and remittances. It only shows that it is continuously evolving – it starts to be widely accepted even up to ordinary people, paving the way to the birth of Bitcoin ATMs in 2013.
They are suitable for anyone who wants to buy or invest BTC at a given point of time can only use cash, or not much into using credit cards or debit cards online. Bitcoin ATMs are one convenient way to own cryptos today, and they are expanding.
How Does a Bitcoin ATM Work?
It is a reasonable request if you want to entrust your hard-earned money to Bitcoin ATM company providers compliant with laws. Dig deeper into how Bitcoin ATMs work and understand requirements before doing transactions.
Compliance
To make transactions in Bitcoin ATMs trustworthy, machines like Paydepot BTC ATM always comply with government laws and bank regulations and have the required registrations:
- Registered be with FinCEN or Financial Crimes Enforcement Network
- Know Your Customer (KYC) regulation compliant
- Bank Secrecy Act (BSA) compliant
- Anti-money laundering (AML) compliant
Components
If the regular ATMs can perform deposits and withdraw cash and do so, Bitcoin ATMs work differently. At a glance, you may see simple and regular machines or kiosks. They have a monitor, cash acceptor, and dispenser, but what makes it different from regular ATMs is the QR or quick response code scanner.
These Bitcoin ATMs have software installed and are directly connected to the cryptocurrency exchange network via the internet. You can either buy or sell bitcoins and other cryptocurrencies using your cash.
Blockchain Transaction
Once the transaction starts with the help of the internet, the machine will act as an agent and send feeds directly to the cryptocurrency trading platforms and then perform a blockchain transaction. With the blockchain, all the participating computer systems will duplicate and copy your transaction.
A blockchain transaction is impossible to alter, tamper, or even cheat, making any transaction safe and secure. Once the transaction has been confirmed, passed, and completed, it will reflect on your digital wallet or trading platform as a digital asset.
How to Use a Bitcoin ATM?
Bitcoin ATMs have been an alternative way to buy or invest in Bitcoin or any cryptocurrency using cash. They can be seen mostly in commercial areas like cafes, grocery shops, malls, workplaces, etc. Please be advised that the machine charges variable transaction fees. The processing timeline may also vary. But the convenience of real-time buying using cash will give you the opportunities to invest when rates are going down and profit over time. Or selling opportunities when prices are going up.
Making a transaction in Bitcoin ATMs is simple. All you need is your cash, smartphone, mobile number, and a Bitcoin wallet (or any digital wallet and trading platform).
These are the simple steps and guidelines on how to use a BTM when buying a Bitcoin.
- Open your digital wallet, and go to the screen where you show your wallet’s QR code.
- On the Bitcoin ATM, choose Buy and accept the Disclaimer that will pop up on the machine.
- Input your mobile number and wait for a text message of code that later you need to enter on the BTM screen to Pass the verification process and proceed to the next step.
- Place your smartphone displaying the QR code facing the QR code scanner. You may also enter the Bitcoin wallet address manually.
- Enter the amount you wanted to buy, which has a maximum limit that varies from the Bitcoin ATM providers.
- Insert your cash and tap the finish button.
- Wait until the blockchain transaction is completed.
- Once completed, the machine will print out a transaction receipt.
- Go back to your digital wallet, and the equal amount of Bitcoin (any crypto) should reflect on your balance or assets, fast and secure.
If you wish to withdraw, there are Bitcoin ATMs that can perform selling and dispensing cash. They also vary on the transaction.
- Generally, you need to enter your mobile number to receive the redemption code before proceeding with the transaction.
- Some machines require your smartphone’s digital wallet to scan the QR and generate a redemption receipt with codes.
- Soon after you receive a message to enter the redemption code, the Bitcoin ATM will now dispense cash.
Final Thoughts
Bitcoin ATMs are growing. Ordinary people are becoming more knowledgeable of the convenience and future importance of owning a digital wallet and digital currency. We can say that cryptocurrency is the money of the future. The future starts now, find the nearest Bitcoin ATM and start investing!
