Bitcoin is possibly the most famous form of cryptocurrency available in the market at the very moment. It is a digital currency that allows users to invest in the stock market and also use the same to pay for selected services and goods. With the technological developments, Bitcoin has now released its very own ATM machines in some countries, such as the USA and Canada. Users can make use of these kiosks and invest in Bitcoin.
A lot of online service providers and firms are now available on the internet to ease out the investment process of various cryptocurrencies, including Bitcoin. They provide users with advice and technical help and make the process hassle-free. For additional information, users and investors can read more.
Bitcoin has made its investment process very easy for everyone, including the new beginners. With the installations of kiosks and ATMs, they have greatly simplified their processes. If you have not used a Bitcoin ATM yet, or are planning to use one, the below-mentioned list would help you a lot. Given below is a list of 3 things to know before using a Bitcoin ATM for the first time:
1. What are Bitcoin ATMs?
Bitcoin ATMs are self-help kiosks launched by the crypto giant in 2013. The very first Bitcoin Teller Machine, or simply a BTM, was installed in Vancouver, Canada in 2013, in a coffee shop, which allowed its customers to make payments using the digital currency. This was welcomed with a lot of enthusiasm and praise from users all over the world and soon the giant opened many other BTMs in various locations and countries, such as the USA, Italy, and other parts of Europe.
The BTMs work in a similar way as an ATM, but they link to a Bitcoin Account Wallet, instead of a bank account. BTMs have become immensely popular upon the introduction of the ‘bidirectional’ operation feature. Formerly, the Bitcoin ATMs only allowed the users to invest in Bitcoin and made it uni-directional.
With the advancements and developments in technology, the crypto giant allowed its users to use the kiosks in a twin-directional manner, where they were allowed to invest as well as to cash out their cryptocurrencies.
2. Bitcoin ATM Compliances
All the BTMs are compliant and answerable to the crypto giant. All regulations and activities of the BTMs are controlled and monitored with an Anti-Money Laundering (AML) software, designed and owned by Bitcoin itself, which facilitates smooth and risk-free movement and flow of cash and crypto alike. A customer KYC (Know Your Customer) is also done on the customers’ ends, in order to ensure authenticity and regulate cash outflow.
Users should check for both, an AML and a KYC software before operating with any Bitcoin ATM. The absence of either should be reported to Bitcoin as soon as possible, preferably right away, using their grievance cell or website.
3. How to use a BTM?
Well, now that you know what a BTM is and how it works, you must know how to use one. Given below is a step-wise detailed analysis of the same:
Before actually using one, you would require a digital wallet. To get started with the Bitcoin ATM, you would require a Bitcoin wallet, which is a mobile app and can be downloaded for free from any leading app store, or from the official website of Bitcoin.
Set up your wallet and fix your daily transaction limits and you are ready to roll.
Locate a Bitcoin ATM
You can use your phone’s maps or the official website of Bitcoin to locate the BTMs in your area, or your state. It must be noted that due to the recent surge in Bitcoin users, the Crypto giant is setting up new BTMs all over the world, to ensure hassle-free transactions of the digital currency.
Currently, BTMs are located in most parts of the USA, Canada, Europe and a few have been opened in South Africa. So if you have a BTM near you, you can follow the following steps to operate a BTM.
Using the ATM
You can use the Bitcoin ATM for three major purposes at the moment. Firstly, you can purchase Bitcoin off the kiosk and invest in the stock market. For this, you would have to establish a secure connection with the servers of Bitcoin and provide proof of your identity. This step is essential as it basically protects your information and money from getting stolen or hacked. Upon successful registration, you are good to go and can invest in any Bitcoin share you like.
For example, if you feed the BTM with a $100 bill, it will sell you Bitcoins worth the same, minus the BTM processing fee. Your phone would receive a notification, saying you had a secure and successful transaction. You could check your wallet, and it would show your balance. Many BTMs charge their users with BTM processing fees, but a few of them are totally free of cost as well.
A similar identification process is to be followed whilst using the machine for a cash-out process. It must be noted that the BTM does not actually provide the users with cash, instead it deducts the amount from the Bitcoin wallets and makes a deposit of the same in their bank accounts.
The third type of process is now available at selected locations, where the users have the option of sending virtual money from their Bitcoin wallets to other Bitcoin users using the BTMs. This feature is currently not widely available but it can be expected to have a mass roll-out in the near future.
Bitcoin and other forms of cryptocurrencies have become very popular in recent years and are here to stay for a long time. Users now can use the kiosk machines and BTMs installed at various locations by Bitcoin to ensure a secure and hassle-free transaction of their money.
However, it must be noted that these BTMs do not actually provide cash-out facilities, but rather convert and transfer the crypto to real-world cash and deposit it to the users’ bank accounts. BTMs are currently being installed at many more locations to make this digital currency available to all.