The Bitcoin ATM is one of the latest innovations in the digital currency space. It is a certain kiosk that allows a certain person to purchase Bitcoins through the use of cash or any debit cards. There are certain Bitcoin ATMs that offer bi-directional functionality. This means that any person can purchase and sell Bitcoins through cash.
The Bitcoin ATM or better known as the Bitcoin Teller Machine isn’t really comparable to the usually ATM machines in the banks. These are merely typical centers where a person can buy and sell the tokens with fiat money.
When using such means of buying Bitcoins, the BTM is quite more expensive than making any online transactions since it has a higher infrastructure cost as well. One of the steps, in order to start using the Bitcoin Teller Machine, is to first scan the person’s identification that the ATM will use for validation.
Meanwhile, there are also tendencies that some of the Bitcoin ATM providers may require the users to have an existing account prior to making any transaction. this machine can be both a cash kiosk or an ATM. It only depends on a person whether to use cash or a debit card when purchasing his or her Bitcoin token.
Bitcoin Teller Machine – How does it Work?
Whenever a user has finally validated his or her identification in the machine, the user will then feed in some cash and will generate the QR codes through her wallet. Through the use of the QR codes, which normally look like a large square of black and white pixels, the user will send the Bitcoin to the presented address in the code.
However, users should take note that there are other Bitcoin Teller Machines which will generate a paper wallet or an offline wallet. This, most of the time is the essential bearer of the instrument of the Bitcoins. In this recent age of digital currencies and trading, this Bitcoin ATM is generally a kind of tool that transmits money into certain businesses.
To that end, there are certain rulings that have to be completed including the Know Your Client and the Anti-Money Laundering procedures. This is one way to make sure that a certain person is making a legitimate transaction. In order for a person to register into such a money transmitting tool is generally costly, and therefore, it is no surprise why these ATMs require fees from its users.
Most often than not, the normal transaction fees for the Bitcoin ATMs ranges from 3 to 5%. Having said that most of the initial Bitcoin users are commonly enthusiasts in the industry, there are still lots of arguments that go around regarding the use of this teller machine.
Nevertheless, with the so many unresolved issues regarding this innovation, the Bitcoin ATM has given people the potential use of access into the digital currency world and be able to participate in the wide international e-commerce activity. This teller machine has essentially given each one to have access to their own global bank that makes Bitcoin reach all the corners of the world.
How to Use the Bitcoin ATM?
In order to start using the Bitcoin ATM, you need to have a certain level of knowledge about how the machine works. Normally, you should start looking for a BTM near you and this can only be made possible by using the Coin ATM Radar service. This service allows you to provide options of the ATMs nearby through the use of a live Bitcoin ATM map.
By using this service, you can locate the BTM closest to you and this will give you certain ideas on the different details that you need for your transaction. Meanwhile, Bitcoin ATM may support both buying and selling Bitcoins. Therefore, you also need to consider the manufacturer of the machine.
There are also other machines that allow you to buy the tokens even without the use of your identification, but mostly, will require for your mobile number. Some machines may need you to provide for a mobile number in order for you to get the One Time Password (OTP) authentication. When you already have your OTP, you are already good to go in terms of buying your Bitcoins through the BTM.
Once you already bought your Bitcoins, you can finally use them or just have it stay invested. Despite having to pay for a 5% transaction fee, most of the users still manage to use the BTM since it has easier access unlike other transactions made online.
Meanwhile, when planning to sell Bitcoins, you can still do it if you find a machine which supports such a transaction. In order for you to sell Bitcoins, you simply need to enter the amount that you wish to sell and directly send it to the address being displayed on the machine screen.
Most of the time, the selling price that is being offered on the BTMs are most likely 5% less compared to the exchange rates. When doing the transaction, you have to understand that the machine will have to scrutinize the details you provided. If there are instances that this machine happens to detect suspicious activity, they will have to report it immediately to the regulatory body.
In most cases, the use and operation of the Bitcoin teller machines is definitely a challenging task in the digital community. It is a must for the BTM operators to be able to adhere to the regulatory norms being set before them. In some countries like the United States, most of the operators have to register under the federal financial crime enforcement for them to obtain a specific money transmitter license.
While it may be the easiest option for users to buy a good amount of Bitcoin, people should always adhere to the requirements set upon by the operators to confirm the legality of every transaction. In more of the coming days, enthusiasts believe that the use of Bitcoin ATM will continually be enhanced and these machines will be made available in every part of the world.