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Cryptocurrency Finance

Essential things to know about Bitcoin ATMs

You can find many exchanges and online platforms for buying cryptocurrencies and assets. You can create your account by validating your identity with their KYC process and linking your bank account with your crypto wallet to make an online transaction. You can buy bitcoin through these ATMs by depositing fiat currency. 

Banks install ATM or automated teller machines, and you can visit such ATMs to deposit, withdraw and transfer your funds. The functioning of a Bitcoin ATM is different. You can buy bitcoin from bitcoin ATMs and transfer bitcoin to another crypto wallet through these ATMs. You need to scan the QR code available on your bitcoin app or wallet to access your crypto account through an ATM. But bitcoin ATMs are available in limited cities, and you can search for the nearest one on Google. There are approx. 14000 ATMs are available. 

According to the investors, bitcoin ATMs should be considered as kiosks because you cannot deposit fiat currency in these ATMs. These ATMs are connected to the internet, and you can transfer bitcoin to another account or wallet through these ATMs. You can also buy bitcoin by depositing cash, and you do not need to link your bank account with such ATMs. Plus, normal ATMs are run and operated by banks and financial institutions, but bitcoin ATMs are not connected with any bank or financial institution. 

How would you use bitcoin ATMs? 

If you have a crypto wallet, then you can find public keys, private keys, and a QR code on your wallet. You can use the public keys to receive crypto coins from another user, and you can scan the QR code available on your app to access your account through an ATM. You should not share your private keys with anyone because private keys can be used for transferring or sending bitcoin only. For example, you can send or transfer your bitcoin to another wallet by using your private keys. 

You can create a wallet through an ATM and purchase Bitcoin through Bitcoin ATMs. These ATMs set some transaction limits, and you can purchase bitcoin by depositing your fiat cash within this limit. You can also use bitcoin ATMs if you do not have a crypto wallet.

Different exchanges operate Bitcoin ATMs, and they have to maintain certain regulations to operate their ATMs. For example, all ATMs in the United States are controlled by the Financial Crimes Enforcement Network (FinCEN). These ATMs operate as per the anti-money laundering provisions of the Bank Secrecy Act (BSA).

To make a transaction through a bitcoin ATM, you need to verify your identity. You need to verify your mobile number. For example, you may be required to feed your phone number to make a transaction with an ATM, and you will get a verification code. Some ATMs are available to verify your KYC by entering your ID proof. You can enter your driving license number, or any other number issued by the government to verify your identity. 

Know the fees of Bitcoin ATMs

You do not need to pay a fixed charge to the transaction through Bitcoin ATMs. You need to pay a certain percentage of your total transaction or purchase value as a transaction fee, and you need to pay a hefty amount that can be saved through bitcoin exchanges. For example, you can use the btq app to save your transaction fees. Apart from paying a huge transaction fee, you cannot get the best value for your bitcoin from such ATMs, and most of these ATMs charge you 7-10% as a transaction fee. 

The crypto industry operates Bitcoin ATMs, and there are some companies available that offer such ATMs in some specific locations. They have their crypto platform or exchanges, and they offer this facility to acquire more customers or investors. Before using an ATM, you must check their transaction fee and security features. 

Concluding thoughts

This basic information about the functioning of Bitcoin ATM will simplify using it. In January 2021, there were around 11,000 Bitcoin ATMs, which is going to increase in the future. The surge in the number of use cases of Bitcoin ATMs will certainly be a mainstream currency system.

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