Bitcoin has gained a lot of prominence over the past several years, and it keeps garnering more popularity as more and more people are fascinated by it.
But what is a Bitcoin ATM? Is it like the regular ATMs that seen around? Can you buy and sell bitcoins at such an ATM? Is it safe to use a Bitcoin ATM?
Well, the concept of Bitcoin ATMs is a relatively new one, and it is natural to have hundreds of questions and doubts in your mind. In this article, let’s find out more about Bitcoin ATMs and if they are safe at all.
What do you mean by Bitcoin ATM?
A Bitcoin ATM is known as a BTM. It is an automated teller machine that is connected to the Internet and also allows you to buy and sell Bitcoin besides other cryptocurrencies. Just like your regular bank ATM, you can find Bitcoin ATMs in different places. Traditional bank’s ATM allows you to deposit cash, withdraw money or transfer funds between other bank accounts. Bitcoin ATMs will enable you to purchase cryptocurrency using cash deposits. You also can sell cryptocurrency through Bitcoin ATMs, but this still does not involve any type of physical cash that is taken out. But of course, the Bitcoin price plays a crucial role.
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How does a Bitcoin ATM function?
The way a Bitcoin ATM works is that it basically uses a matrix barcode that is connected digitally to your cryptocurrency wallet. If you have not created a digital wallet for crypto, you can get one at the machine. Once your wallet is set-up and connected to the BTM, you will be able to buy and sell Bitcoin and other cryptocurrencies using the ATM.
Things to consider when using a BTM
- The Bitcoin ATM is connected to the Internet, so all the exchange rates are displayed in real time.
- Scan the matrix barcode on the BTM with your digital crypto wallet address. This step connects your wallet to the BTM.
- Choose which cryptocurrency you would want to buy, such as Bitcoin, Ethereum, or any other type, along with the amount that you would like to purchase.
- Feed cash into the machine just as you would do with a typical bank ATM.
- Wait for confirmation that the amount has hit your wallet, and then you are just good to go.
Selling your crypto assets at a Bitcoin ATM
Selling cryptocurrency at the Bitcoin ATM is different from buying. Instead of feeding the ATM cash, you can transfer Bitcoins from your digital wallet via scanning the matrix barcode associated with the Bitcoin ATM.
Is Bitcoin ATM safe to use?
As Bitcoin ATMs are well connected to the Internet, you would be wondering if they are safe and secure. Digital wallets are secure through encryption and are protected by passwords. All transaction are saved and documented because cryptocurrency can only be sent if you share the correct password and/or security credentials, like a unique code. A bad actor or hacker would need your digital wallet key, which could give them access. The private credentials and passwords will help keep your transaction more secure when using a BTM.
It’s important to note that Bitcoin ATMs do not dispense cash or transfer cryptocurrencies without the payment being implemented first. Bitcoin ATMs are equipped with technology that protects against hardware and software malfunctioning. Additionally, the blockchain, which is the technology that supports cryptocurrency transactions and ecosystem, is difficult for bad actors to breach.
Besides the safety of the Bitcoin ATM, anonymity plays a crucial role. The speed at which the transaction happens is one of the significant benefits. While using your typical cryptocurrency exchange online, there are different weighting terms, and sometimes transactions can also take a lot of time to be completed. So BTMS can safely start and finish the transaction in a matter of minutes.
