When you’re learning about cryptocurrencies such as Bitcoin, you’ll see that at some point you need to find a way to convert your fiat currency into the cryptocurrency of your choice. A Bitcoin ATM or Cryptocurrency ATM is a great on-ramp or off-ramp to using blockchains.
In order to take advantage of a cryptocurrency and start participating, you’ll need to know how to use a Bitcoin ATM.
Keep reading to find out everything you need to know about Bitcoin ATMs.
What Is a Bitcoin ATM?
There are three types of Bitcoin ATM or Cryptocurrency ATM available. Most Bitcoin ATMs fall into the first two categories.
- Change a physical fiat currency into bitcoin or another cryptocurrency
- Change crypto and bitcoin into fiat currency
- Change fiat into bitcoin or bitcoin (and other cryptos) into fiat
What you can usually not do is use any type of fiat currency. It is generally restricted to the legal tender of the region.
A rare crypto ATM that does all three is Byte Federal. These ATMs also allow you to buy and sell gift cards and gold. You can also buy more than bitcoins — you can get ETH, Litecoin, and other select tokens or coins.
Part of the reason for ATMs is to avoid exchanges and custodial accounts. Bitcoin ATM networks have their own network addresses they move cryptocurrency from into the account of your choosing.
Exchanges almost always ask that you give them fiat currency, which they credit to your wallet, which they supply you. You can’t trade on different markets with this wallet and you usually have a cooldown period before you can buy crypto using the wallet or remove funds.
Bitcoin ATMs and cryptocurrency ATMs instead send your payment as fast as the blockchain can process the transaction. That’s typically a few minutes for most blockchains, although Bitcoin can take about 10 minutes.
One of the best things, compared to stocks and bonds, is that you don’t need to buy a whole token or coin. You can buy a part of a bitcoin for whatever the value of your fiat currency will cover.
How to Use a Bitcoin ATM
Most Bitcoin ATMs require you to do a KYC or “know your customer” ID verification. This helps to fight money laundering and is a federal requirement in order to operate within the confines of the law. In addition, they also adhere to AML or anti-money laundering rules, such as limiting the daily amount you can change.
This means you’ll need a few things to take with you to a Bitcoin ATM when you use it the first time and register.
- Your government-issued picture ID
- Your wallet address (public key) as a QR code
- Cash to convert into bitcoins
Once you get to the ATM for the first time, you’ll likely need to register on the network, show your picture ID, and assign your public key to your identity. This usually only takes a few minutes.
Following AML rules, you can’t send your cash to another person’s wallet in most cases. You must send your fiat currency to your own wallet.
Also, debit and credit cards are often not accepted at Bitcoin ATMs and cryptocurrency ATMs because transactions on blockchain networks are non-reversible.
Fiat to Crypto in a Jiffy
Now that you know how to use a Bitcoin ATM, feel free to trade at your leisure using the Bitcoin or cryptocurrency wallet of your choice!
Are you ready to search Bitcoin ATM new me? You’ll need to know about the best Bitcoin ATM around, not just the nearest one. To find out more, keep browsing our articles to find out all you need to know about tech and cryptocurrencies!