What is a Bitcoin ATM and How Does It Work?

bitcoin

Bitcoin ATM’s alleviate the hassle of driving to and from the bank, while ATMs act as a simple way to send Bitcoin from one machine to another. The one downfall of Bitcoin ATM’s is that they do not eliminate the need for bank accounts. These ATMs will take Bitcoin from a user account and then deposit Bitcoin directly to a Bitcoin ATM for withdrawal when the user wants to access their account.

Before opting for an ATM, it is a good idea to research the company behind the machine. Some Bitcoin ATMs have a good chunk of their machines set up in New York in an effort to capitalize on their market. The New York Bitcoin ATMs have become extremely popular in the last year or so, and there seem to be more ATMs popping up in other cities.

How does it work?

Bitcoin ATM will work exactly like most ATMs. You drop by at a location, make your purchase, and then you can walk out with your Bitcoin. That is a standard ATM trait, but there is one downside; after you buy your Bitcoin, you have to drop by to claim your Bitcoin if you are in a different city or country. The blockchain law of several countries has prohibited their financial institutions from trading or accepting bitcoin in trades. This is something you need to remember when you travel overseas.

As for how you tell you Bitcoin is in the wallet, you go to an ATM, and you hand them your Bitcoin, they go to the company and send you your Bitcoins or give you an address to send to. There is a small charge for this in the sense that you also have to pay for the transaction fees. The fee is a small percentage of the purchase price, but it still adds up to a significant amount when it comes all together.

There is no doubt that if Bitcoin ATM’s can do so much, so quickly, then everyone should be using them. The problem is that there is still the hassle of planning for the day you want to make a purchase rather than going to the bank and having to depend on a cashier’s list and waiting in line.

Bitcoin ATM’s make for an easy way to buy and sell because of Bitcoin’s value, and because your cash or credit card is never tied to an account, it is always a secure way to buy. The Bitcoin ATM’s are also convenient because you can make your purchase right in the store. No demand on the day, and wait for the machines to process your purchase or the hassle of finding a place to drop off or pick up a Bitcoin.

Bottom Line

If you plan to buy or sell Bitcoin, consider using an ATM. ATM stands for Automated Teller Machine, and they are often the best way to buy or sell Bitcoins because of their ease of use and automation.

If you have never used an ATM to buy or sell your Bitcoins, then an ATM can make it incredibly easy to lock in your price and walk out with your money. No online banking or waiting in line another 10 minutes for Bitcoin and many places to spend it at. Stop doing all of the necessary work, and earn Bitcoin when you go outside.

The TME Team

Technology enthusiastic, gadgets lover, aims to crack exclusive news and loves to explore my personal views.

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