Bitcoin (BTC) has been paving the way for cryptocurrencies on the global market ever since it first appeared on the market in 2009. Since then, it has become a valuable new financial tool, worth more than 50,000 USD per coin in 2021. The Bitcoin market cap is constantly on the rise, with more individuals and companies looking to diversify their financial portfolios with the most trusted digital currency in the world.
Whether you are a BTC miner that uses serious computing power for mining Bitcoin, an individual who professionally deals with crypto exchanges on a daily basis, or someone who happens to earn some digital assets occasionally through freelance work on the internet, you need a fast way to cash out your funds.
There are many ways to use Bitcoin or to sell it and cash out, either through exchange platforms and subsequent bank transfers or via professional broker services, which are recommended methods for cashing out large amounts of money. However, during recent years, Bitcoin ATMs are becoming increasingly popular for buying and selling BTC, with over 16.000 of these machines available worldwide.
In this article, we’re going to take a look at how exactly Bitcoin ATMs work, what their benefits are, how to buy and sell cryptocurrencies through them, and finally, how to use them for withdrawing fiat money.
Why BATMs Are an Easy Way to Buy Bitcoin
In many ways, Bitcoin ATMs differ from traditional ATMs. These Bitcoin machines aren’t the property of financial institutions such as banks, but rather the property of different crypto platforms and companies that deal with digital assets. They are like kiosks with an internet connection that allow users to buy or sell Bitcoin, and in some cases, other cryptocurrencies as well.
It’s important to clear up that a Bitcoin ATM isn’t the same as your average bank automated teller machine that physically dispenses and allows you to deposit or transfer money from your bank account. A Bitcoin ATM is actually a machine that facilitates transactions on the blockchain by transferring digital assets to a designated online crypto wallet, with the use of scanned QR codes.
There are different types of Bitcoin ATMs. Most of them are used for facilitating crypto transfers and purchases of Bitcoin, but there are also lots of two-way ATMs that allow users to deposit money and sell Bitcoin for fiat currency in order to receive cash directly from the machine. Some Bitcoin ATMs even deal with different altcoins such as Bitcoin Cash, Litecoin, Ethereum, etc.
These ATMs charge a service fee that can vary depending on the manufacturer of the machine, but the fee is usually around 8.5 – 9.5% of the transfer.
In case you want to buy or sell some BTC using a Bitcoin ATM, the first thing you need to do is find a machine in your area using a website like Coin ATM Radar.
How to Buy Bitcoin with a Bitcoin ATM
The key difference between Bitcoin ATMs that allow both depositing and withdrawing cash and those that don’t offer this option, is that for the latter, you need to already have some money on your crypto exchange account in order to buy BTC, since you can’t deposit money into the ATM directly.
If you want to sell some assets using this type of ATM, you need to have a digital wallet, a bank account, a credit card, a debit card or an exchange platform, i.e. a destination to withdraw your fiat money to.
However, if you decide to use a two-way Bitcoin ATM to buy some coins, the process is really simple. Here is a step by step guide that is the same for BATMs regardless of the manufacturer:
- Select the Buy Bitcoin option.
- Scan the QR code with the destination wallet address you wish to send your Bitcoin to.
- In some cases, Bitcoin ATMs will require you to show an ID as part of the Know your customer protocol (KYC). This depends on the local laws of the country you are using the ATM in. In some cases, it depends on whether the manufacturer requires this step as a security measure.
- Enter the amount of Bitcoin you wish to buy.
- Deposit the required amount of cash into the ATM.
- Wait for the ATM to finish the transfer process.
- After the ATM confirms that the process is finished, check your digital Bitcoin wallet to be sure everything is in order.
Why BATMs Are an Easy Way to Sell Bitcoin
Normally, when you want to sell your bitcoins, you need to do it using a crypto exchange platform or a third-party broker service in order to convert the BTC to fiat money first and then to send it to your bank account. Of course, this is the best way for cashing out large amounts of BTC, since the exchange and withdrawal fees are lower for large amounts of cash.
Bitcoin ATMs, on the other hand, are a great, easy-to-use, and practical method for cashing out smaller amounts of BTC since they usually have withdrawal limits that range anywhere from 1,000 – 10,000 USD daily. This is still a fair amount of cash if you want to get some fiat money for your daily expenses, or even some larger sums of money if you visit a couple of ATMs in one day because the whole process of selling assets and withdrawing money is really fast.
Selling Bitcoin Using an ATM
Now we are going to take a look at how to sell Bitcoin and withdraw cash from a BTC ATM. You just have to follow these simple steps:
- Select the Withdraw Cash option from the menu.
- Use the keypad to enter your phone number.
- You will instantly receive a text message containing a verification code. Enter the code using the ATM keypad.
- If there are multiple cryptocurrencies available, select Bitcoin as the one you want to sell.
- Now enter the exact amount of money you want to withdraw from the ATM and take the redemption code receipt from the machine.
- A QR code will appear on the ATM screen. Scan the code with your digital crypto wallet app and send the required amount of BTC, following the instructions on the ATM screen.
- After one confirmation on the blockchain, you will receive a text message confirming your money is ready.
- Select the Redeem/Withdraw option and enter the redemption code from the receipt.
- Collect the money and your transfer receipt.
A Few Words Before You Go…
Bitcoin ATMs are a practical way to sell some BTC and cash it out, but you have to double check which ATMs are two-way and allow users to withdraw money. When you locate such an ATM, it is a really fast and handy method of getting quick cash from selling smaller amounts of BTC.