By now you’ve probably noticed that something called a “Bitcoin ATM” has started popping up all over the place—in malls, convenience stores, even at gas stations.
Everyone knows what a regular ATM is. But what are Bitcoin ATMs? And how does a Bitcoin ATM work? Those are the questions that a lot of people are asking, so you’ve come to the right place to find the answers.
In a nutshell, a Bitcoin ATM is very similar to a regular ATM. Bitcoin ATMs let you purchase Bitcoin (or other cryptocurrencies) and deposit it in a Bitcoin wallet. You can also sell your cryptocurrency and cash it out (for a fiat currency, like US dollars).
Let’s take a closer look at how to use a Bitcoin ATM.
Okay, the first thing we need to look at is what steps you have to take before using a Bitcoin ATM.
A Bitcoin ATM is easy to use—in fact, it’s as simple as using a traditional ATM. But before you can do so, you’ll need to have a few things in order. Here’s what you need to prepare before using a Bitcoin ATM.
Set Up a Digital Wallet
Before you can do anything with a Bitcoin ATM, you’ll have to establish a personal digital wallet.
This is the equivalent of a bank account with a traditional ATM. It’s the virtual repository of your cryptocurrencies, and it allows you to track your Bitcoin or other cryptocurrency transactions.
Locate a Nearby Bitcoin ATM
Armed with a functioning cryptocurrency wallet, you’re ready to start making Bitcoin transactions.
It should be pretty easy to find a Bitcoin ATM nearby. They’re common in most large and small metropolitan areas, so you shouldn’t have much trouble finding one near you.
Using a Bitcoin ATM
Now comes the fun part.
You’ve set up your digital wallet, and you’ve located a nearby Bitcoin ATM. You will also have to set up an account with whichever company operates the ATM you intend to use.
The initial step when using a Bitcoin ATM is to verify your identity. This is a simple procedure that usually requires you to input your mobile phone number. You’ll then be asked to enter the single-use passcode that was texted to your phone.
After these preliminaries, you’re ready to start using the cryptocurrency ATM. If you’re buying Bitcoin (or another cryptocurrency), you’ll need to feed cash into the machine, as you would an ordinary ATM. The appropriate amount of cryptocurrency will then be credited to your account.
A Bitcoin ATM withdrawal works a little differently. When you sell Bitcoin from your digital wallet, you’ll receive an equivalent amount of cash from the machine. These transactions do take a little longer, however, since the exchange must be verified on the blockchain.
Start Using Bitcoin ATMs Today
There’s not much to it. Using a Bitcoin ATM is very much like using a traditional ATM.
Bitcoin ATMs are a fast, easy way to get into the cryptocurrency game. So now that you know how to use one, what are you waiting for? Get out there and start trading cryptos.
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