Nearly 17,000 new bitcoin ATMs have been installed in the past year as they make for a convenient way to buy cryptocurrency on the spot. However, they are still a new concept that emerged only in the last few years, so a quick lesson may be needed.
If you want to buy bitcoin and wondering about your options then a kiosk is a good place to start. But, you should know a few things before you go.
Read on to understand how does a bitcoin ATM work and how to use one.
What is a Bitcoin ATM?
A cryptocurrency ATM looks similar to a regular ATM, but it is used to buy and sometimes sell Bitcoin. Another main difference is that these machines are not connected to a centralized bank. Rather they link to a cryptocurrency network called a blockchain.
How Does a Bitcoin ATM Work?
Digital transactions are conducted online and sent to a virtual wallet address. So, there is no physical Bitcoin, however, some ATMs do offer ways to insert cash to buy crypto and sell them for fiat.
Private companies own bitcoin ATMs and simply acts as a computer to interact with bitcoin’s network.
Steps to Use a Bitcoin ATM
It is easy to buy bitcoin in a few steps. However, you need to follow the instructions before leaving your house to use a bitcoin ATM.
Get a Crypto Wallet
The first action you need to take to invest in crypto is to have a place to store it. You need a wallet address to send the bitcoin and hold it for future use.
There are a few wallet options but your best one for using an ATM is a mobile wallet app. This allows you to scan your QR code at the kiosk using your phone instead of typing in the long wallet address or printing out the QR code to scan.
Create a Bitcoin ATM Account
Most bitcoin ATM companies require you to create an account with them either online at home or at the kiosk itself. This process will verify your identity by taking your personal information and asking for an ID as well as a selfie. Information is not usually stored and is only used to determine that you are not a robot.
Locate a Kiosk
Next, you need to find a bitcoin ATM near you. Search for “bitcoin ATM buy here” to locate a directory of kiosks. Most machines can be found at gas stations, convenience stores, and shopping plazas.
Check online for the hours and specific requirements for the ATM as each company is different.
Investing with Your New Bitcoin
Now that you know how does a bitcoin ATM work, you can start investing in the digital asset. Although many stores accept bitcoin as a currency, holding onto your coins can become a worthy investment. If you do decide to keep your bitcoin then store them safely on an offline wallet and keep your private keys and passwords secure.
Check our Technology section for more cryptocurrency articles.