Bitcoin ATM, also called Bitcoin ATM or BTM, allows you to buy and sell bitcoins for cash. Most ATMs have purchase restrictions, and some even require mandatory verification (KYC).
Bitcoin ATM acts as a physical way to exchange cash for Bitcoin or Bitcoin for cash. The device consists of a scanner, a cash dispenser and a computer for transaction management.
A cryptocurrency is issued for a bitcoin wallet or a paper wallet of a buyer, for which it is necessary to scan a special QR code on a mobile device or on the paper wallet itself, which is generated during the operation and printed out in a separate check. This service is paid and additional commission is charged for it.
Most ATMs only work on the purchase of crypto.
All ATMs have a common purchase process:
- Verification phase (optional, may vary significantly depending on the type of ATM);Obtaining a bitcoin address for making a deposit (it can be generated and printed / sent by e-mail, but it is better to have it with you before using the device);
- Cash deposit to ATM;
- Confirmation of the operation (Bitcoin sent to your address).
This process may vary for each ATM.
The average commission at most ATMs is approximately 8.93%. It is worth noting that, while abroad, the buyer may encounter an increased commission due to the exchange from the country's currency to the dollar / euro, then to the local currency.
Advantages and disadvantages
Among the advantages of Bitcoin ATMs are the following:
- relatively easy use;
- the opportunity to use an innovative method of payment;
- transactions are faster than the standard currency exchange method.
However, BTM has a few more shortcomings, so the use of ATMs may not always be convenient for customers:
- High commission. The difference in fees is due to the need to maintain physical devices, and it is also possible to levy additional fees.
- Physical accessibility. Since Bitcoin ATMs are an innovation, far from every city they are present. Often finding such an ATM nearby is simply not possible.
- The risk of ordinary wallets. These risks are associated with the insecurity of this method of withdrawing funds / buying Bitcoin, since you can lose access to the wallet simply by forgetting the mnemonic phrase.
- Weak tech support. Failure to contact specialists in case of problems will be very difficult.
The final decision on usability, of course, always remains with the buyer, however, often the purchase and withdrawal of funds through cryptocurrency exchange services is a priority option. The exchange service Buyex.exchange offers the most convenient and high-quality method of exchanging cryptocurrency, all you need is to go through the easy registration procedure and start using the service now anywhere in the world.