Fascinating History of BTMs or Bitcoin ATMs

As per the reports, the first Bitcoin ATM was introduced in the year 2013 and it was established in Canda’s Vancouver. Then another machine was launched in Slovakia’s Bratislava on 8^th December 2013. The United States of America got its first BTM on 18^th February 2014. During their early implementation stages, these machines faced many challenges related to regulations. To overcome those challenges, it was decided that all the BTMs would follow the rules applicable to normal ATMs. That means there should be a limit on cryptocurrency withdrawals and deposits. Besides, the new rules made it mandatory for users to use a phone number and scan a valid ID to complete the transactions. However, the process of using these machines is very simple and one can complete a transaction within a few seconds.

Fees for Using Bitcoin ATMs

The transaction fees and policies will vary from one ATM operator to another. In general, most BTMs charge a flat fee for every transaction or a certain percentage of the total amount received or sent. This can range between 10 percent to 23 percent. In some cases, it can be more. So, it is always advisable to locate an ATM with lower transaction fees if you want to save more. Well, the experts have predicted that in the future the fees may go down as there will be more Bitcoin ATMs due to the wide acceptance of cryptocurrencies. Until then, prefer to use an online ATM finder that can sort BTMs by fees.

How Does a BTM Work?

These ATMs don’t look much different than flat ATMs. However, they operate in different ways and come integrated with advanced cryptography technology to facilitate a secure environment to carry out transactions. These machines are designed to communicate with the Bitcoin blockchain directly. To make any transaction, you just need two things, i.e., a traditional money and a digital crypto wallet. You just need to insert your money into the ATM and scan the wallet QR code to buy Bitcoins. Let’s explore the steps of using these ATMs in detail.

How to Correctly Use a BTM?

Create A Crypto Wallet

Before you can make any crypto transactions, it is important to create a wallet where you store cryptocurrencies or tokens. It can be a hardware or digital wallet. Ensure that you are using a secure one.

Prepare the Wallet

All BTMs allow users to make transactions by scanning the QR codes. So, ensure that the wallet you are using has this feature and activate it. With the QR code, you don’t have to enter that long wallet address every time to make a transaction.

Locate a BTM

You can use maps to find a BTM near you. Besides, you can also check the website of ATM service provider to locate their ATMs. You can also look for BTMs by fee, proximity, or operator.

Enter Your Phone Number

To complete a transaction, you need to identify yourself. For this, the machine will ask you to enter your mobile number. So, enter it to proceed further. Some BTMs may ask you to scan a government-verified ID to prove your identity.

Making Transaction

After entering your number, you will be asked to enter your PIN. After that, you need to choose the type of cryptocurrency you wish to get. Choose Bitcoin and then enter the total amount you want to buy.

Enter the Wallet Information

Once you are done with setting up your Bitcoin transaction, it’s time to enter your digital wallet address. While some ATMs allow you to scan the wallet QR code, some may want to enter the wallet address manually. If you are using the QR code option, then ensure that you are entering the correct address.

Insert Cash or Fiat Currency

Double-check the information and insert the cash or fiat currency into the ATM. Most BTMs accept cash deposits. Here, you just need to place the cash side of the deposit slot on the machine. After that, the machine will count the cash and will inform you of the cash value in terms of cryptocurrencies. For instance, if you have inserted USD 500., the machine will display something like this- USD 500= 0.0081 BTC.

Confirm Your Transaction

That’s it. Now all you need to do is confirm your crypto transaction and wait for a few seconds to complete the process. You will get your new Bitcoin instantly into your wallet. In general, it can take around 1 to 15 minutes based on the type of crypto coin you are buying.

Some Benefits of Using A BTM

• BTMs offer a convenient and faster way to sell and buy Bitcoin.
• These machines are designed to offer secure transitions with the help of cryptography technology.
• You don’t need to use any bank cards or physical ATM cards to carry out your crypto transactions.
• Some BTMs don’t even ask for identity verification and keep users’ identities anonymous.
• BTMs have made it easier for people to access Bitcoin who don’t have bank accounts. They can directly add Bitcoin to their crypto wallet using cash through these ATMs.
• These ATMs have made purchasing Bitcoin easier in areas where people have only a few options to buy crypto coins.
• These are globally available and an accessible way to make Bitcoin transactions.

Understanding the Future of These ATMs

Well, it can be said that the future of BTMs greatly depends on the expansion of the crypto market. Looking at the current market condition, it can be clearly stated that the demand for these ATMs will rise as more people have started using Bitcoins. In fact, some experts have projected that the BTM market may grow at a Compound Annual Growth Rate of around 58 percent by 20300.

Conclusion

If you want to use your cash to buy cryptocurrency or want to sell your Bitcoin, using a Bitcoin ATM will be an excellent choice. It is convenient and secure to use. These ATMs are located around the world, making it easier for Bitcoin users to conveniently receive and send Bitcoin. Now, that you understand the steps, using one won’t be challenging for you. Well, if you want to find out more about Bitcoin or other cryptocurrencies to expand your knowledge, you can always visit PurpleCrypt. Here, you will find important information on the crypto world that will make your crypto journey simple.