On November 10, 2021, Bitcoin hit an all-time high value of over $68,000. While the value’s dropped since then, this cryptocurrency is still worth investing in.
While most people buy Bitcoin (and sell) online, there are also Bitcoin ATMs. What is a Bitcoin ATM? It’s a kiosk that lets you buy and sell Bitcoin, as well as other additional functions, such as gift cards purchases.
Now, you might be wondering: how do Bitcoin ATMs work? Well, read on to find out!
How Do Bitcoin ATMs Work?
Bitcoin ATMs work through an internet connection. While they share the same name with regular ATMs, they don’t work in quite the same way.
With a regular ATM, you can deposit and withdraw cash. You might think with a Bitcoin ATM, you can deposit and withdraw Bitcoins, but not quite.
Instead, Bitcoin ATMs allow you to buy Bitcoin to store in a digital wallet by depositing cash into the kiosk. They also let you sell Bitcoin from your digital wallet and get instant cash for it.
How to Use a Bitcoin ATM
First, you’ll want to find a location near you, seeing as you have to visit one in person. You can find one here. What you do next will depend on if you’re buying or selling.
Be aware that most (if not all) Bitcoin ATMs will charge you a service fee. This is usually a percentage of your transaction instead of a flat fee.
To buy crypto on a Bitcoin ATM, select that option. Punch in how much Bitcoin you want to buy, and the kiosk will confirm with you, showing you the dollar-to-Bitcoin rate.
You can then deposit cash to pay for the Bitcoin. Once the kiosk registers the payment, you can then scan a QR code to get the Bitcoin in your cryptocurrency wallet.
If you don’t already have a crypto wallet, then the Bitcoin ATM will generate a temporary one for you. This will be printed out, so be careful not to lose the paper. If you do, you’ll lose your Bitcoin too.
To sell Bitcoin, select the option on the screen and then scan the QR code for your Bitcoin wallet. Punch in how much you wish to sell, and again, the kiosk will show you what the current Bitcoin-to-dollar rate is.
If you’re ok with the rate, confirm the sale and the amount will be deducted from your digital wallet. You’ll then receive the dollar amount in cash from the Bitcoin ATM.
Try Out a Crypto ATM
Now you know the answer to the question, “how do Bitcoin ATMs work?” Considering you can buy and sell Bitcoin on these, it’s very convenient, especially if you’ve got a few ATMs near you. So look up where the closest ones are, head out, and give it a try!
To learn more about cryptocurrencies, don’t miss out on our other blog posts!