Bitcoin & Crypto ATMs
Bitcoin and Crypto ATMs are similar to regular ATMs. Generally Crypto ATMs are machines that allows users to withdraw or deposit crypto and fiat currency. The main difference is the exchange rates which fluctuate with the market. Above all, for lower value transactions and quick liquidation (for small sums), these ATMs can have great value for users.
There are two main kinds of Bitcoin and Crypto ATMs. Namely Cash Kiosks and ATMs. These ATMs are connected to the internet allowing for cash or digital fiat payments for Crypto or vice versa. Also these ATMs typically connect you directly to an exchange. This provides you with the ability to instantly execute transactions. However, some machines are filled with an inventory of cryptos and are refilled as needed.
Bitcoin ATM Users Can:
Convert Bitcoin and Crypto into cash and withdraw.
Deposit fiat via cash, debit, or credit and convert it to Bitcoin (or other crypto).
Deposit converted amounts into your Digital or Cold Storage Wallet.
Provide you with real time information about crypto prices on the exchange it is linked to.
(Some machines) allow users to make transactions anonymously.
Crypto ATM machines give access to people who are currently not in the banking system. Consequently they provide a solution for underbanked less tech savvy people who want to get involved with cryptos. Such as, when considering the problem with hyperinflation in countries like Zimbabwe and Argentine. Then the value that Bitcoin and Crypto ATMs adds becomes clear. As a result of the systemic distrust in the fiat systems in these countries.
However, benefits aside, these ATMs do have some downfalls. To begin with they can have higher transaction fees. Additionally, the exchange rates can be higher than if you were to goto a regular exchange directly.
How Bitcoin ATMs Work?
Step 1: Find an ATM near you
There are around 1,600 Bitcoin ATMs globally located in most major cities. For instance Genesis Block is partnered with Coin Here. Coin Here operates the largest 24/7 Bitcoin and Crypto ATM network in Asia.
Step 2: Identity Verification
Some machines require you to submit a KYC form, ID verification, phone number, or fingerprint scan.
Step 3: Scan Bitcoin Address for Deposit
After your identity has been verified. Next you’ll need to provide the ATM with the Wallet address you wish to deposit or withdraw funds. After that, most digital wallets can generate a QR code on your phone for the ATM to scan. Alternatively, you can provide a printed QR code printed on your paper wallet.
Step 4: Deposit Fiat or Withdraw Fiat
Deposit – Insert your cash in the designated denominations the machine accepts to the desired deposit amount.
Withdraw – Select the amount you wish to withdraw from your Digital Wallet or Paper Wallet.
Step 5: Confirm Deposit or Withdrawal
Confirm the amount you have just deposited or wish to withdraw on the ATM display. There you can complete the transaction by tapping “Finish”, “Buy”, or “CONFIRM”.
NOTE: Not all machines allow you to convert to and withdraw fiat currency.
For more information on how to use a Bitcoin ATM watch this tutorial video.