In any industry that is doing well, when a product is released, it gives rise to hundreds of ancillary branches an opportunity to support the initiative.
Cryptocurrency is no different from a market. From the rise of digital wallets and exchanges to social blogging sites and cryptocurrency influencers, Bitcoin and other brands have taken complete advantage to monetize the business. One of the most recent developments to arise out of this frenzy are Bitcoin ATMs. This blog will discuss what Bitcoin ATMs are and how they can help investors.
What Are Bitcoin ATMs?
Similar to fiat currency ATMs, a Bitcoin ATM is a machine using which users can engage in financial transactions. The difference between them is that fiat ATMs enable users to deposit and withdraw cash while Bitcoin ATMs allow users to purchase and sell Bitcoins using fiat currency. You could also call it a multipurpose BItcoin vending machine! While several early prototypes of Bitcoin ATMs did not enable users to sell Bitcoin, there are new BTC ATMs opening up which will help users buy Bitcoins with cash and sell Bitcoins for cash, with safety and security guaranteed.
Bitcoin ATMs consist of a monitor, bill acceptor, QR scanner, and dispenser. On the backend, these aspects are combined with software to facilitate buying and selling Bitcoins fast, simple, and secure.
Bitcoin ATMs, unlike traditional ATMs, are not connected to the user’s bank account. Instead, they are linked to a cryptocurrency exchange which will help the users buy and sell Bitcoins instantly depending on the current rates.
How Does a Bitcoin ATM Work?
Buying and selling Bitcoin using a Bitcoin ATM can be segregated into two easy steps:
- Verify user identity: When a person approaches the BTC ATM, they are required to verify their credentials. This can be done in a myriad of ways depending on the ATM. Some machines need the user’s mobile numbers, after which they will then receive an OTP to verify by text. Once it is entered into the machine and confirmed, the user can go ahead with their transaction.
- Decide whether to Buy or Sell: Once a user logs into the BTC ATM, they need to decide whether they want to buy or sell Bitcoins. To buy Bitcoins, the user needs to feed cash in the machine, generate a QR code from the user’s cryptocurrency wallet on their mobile,, This will be scanned to initiate their Bitcoin purchase.
To sell Bitcoins, the user needs to send Bitcoin from the digital wallet to the QR code displayed by the BTM. Depending on the company of the vending machine, some ATMs dispense cash to the seller immediately, while others take some time to process the sale transaction.
Benefits of ATMs
- Convenience: Unlike online cryptocurrency exchanges that make the users wait for days and even weeks on end to verify their transactions, Bitcoin ATMs provide almost instant help. Users who need to sell their Bitcoins can also reserve cash at the BTC ATM in advance by using the same wallet app as the ATM brand.
- Privacy: In online crypto exchanges, users are supposed to share their debit and credit card details or their bank account details for transactions. With Bitcoin ATMs, customers are not needed to enter either of those. The new BTMs make sure that the customers can buy and sell Bitcoins while sharing only minimal details.
- Assistance: The Bitcoin ATM companies now have live customer support to help users with their concerns or issues instantly. In a novice niche like cryptocurrency, providing a strong support unit to ensure that the customers are engaged properly and effectively is crucial to the essence of customer service, encouraging them to use ATMs instead of the exchange.
- Trust: Bitcoin ATM users have been active in buying or selling Bitcoin since 2014 with a few of the earliest brands boasting a two-way Bitcoin ATM network globally. Most of such brands are industry leaders and have the numbers to prove to users that they can be trusted with their Bitcoins and money.
- Security: ATM users can pick any digital wallet of their preference. The BTC ATMs of most companies support all types of secure wallets. That being said, it is still recommended that they use the same brand’s wallet for the best possible experience with customized functions.
Types of Bitcoin ATM Machines:
- Some crypto ATMs only offer Bitcoin, while others enable customers to invest in different types of digital currencies.
- There are some Bitcoin ATMs that can give you instant cash. However, the cost of usage is more than the regular crypto ATMs or on-using line transactions.
- The fees of use range from 6 to 20 percent of the transaction.
- The stimulus payment circulating in the US was used widely by enthusiasts to purchase cryptocurrency, creating a massive demand for Bitcoin.
Why is there a demand for Bitcoin ATMs?
- In July 2021, the number of cryptocurrency ATMs has grown to over 19,000 in the US.
- Bitcoin has seen a high influx in its demand over the last few years.
- The rising popularity of Bitcoin and other cryptocurrencies is the reason behind the set-up of so many BTC ATMs. Many users in the US have enthusiastically admitted their use of Bitcoins when low on fiat currency.
- The preference of BItcoins by people has several reasons, such as needing to be paid in cash while others do not possess bank accounts. Some simply want to send money abroad, while others need anonymity in transactions.
- The rise of cryptocurrency ATM’s popularity has grown more than 45% in recent years.
- Many people feel better while interacting with an actual machine over an online portal.
- COVID-19 was thought to cut short the success of BTC ATMs. However, it increased the set-ups and popularity of such ATMs.
The Waves Coffee Shop installed the first Bitcoin ATM in Vancouver, Canada in 2013. Little did anyone know that it would give rise to such a widespread movement, where cryptocurrency ATMs would be set up in the thousands in just a span of 7 to 8 years. The growth of BTC ATMs is still growing strong, and we expect to see more features being added to them in the future.