What is a Bitcoin ATM?
A Bitcoin ATM is a physical kiosk designed for users to quickly and easily buy or sell Bitcoin and other cryptocurrencies using cash or debit cards. These machines are often found in retail stores, malls, or other public areas, providing a fast way to access cryptocurrency without requiring online exchanges. Unlike traditional ATMs connected to bank accounts, Bitcoin ATMs connect to the internet and facilitate transactions on the blockchain, often requiring users to scan their wallets’ QR codes to send or receive funds.
Bitcoin ATMs typically offer two main functions: buying and selling cryptocurrency. When purchasing, users insert cash or use a debit card, and the machine transfers the equivalent amount of Bitcoin to the user’s digital wallet. Selling bitcoin typically involves sending cryptocurrency to the machine’s address, after which it dispenses cash to the user.
To use a Bitcoin ATM, users may need to complete a verification process, which can vary based on local regulations and machine settings. Some machines require phone number verification, ID scanning, or even a selfie for additional security, especially for larger transactions. Bitcoin ATMs also charge fees ranging from 5% to 20% of the transaction amount, reflecting the convenience of the service.
Bitcoin ATMs offer a straightforward way for individuals to engage with cryptocurrency, catering to both tech-savvy users and beginners looking for a simple method to buy or sell bitcoin.
