Currently there are numerous Bitcoin Teller Machines or BTMs all over the world, but it works a little different from fiat ATMs. From fiat ATMs you withdraw fiat currency, a legal tender issued by a government, using debit or credit card, while at BTMs you can buy bitcoins using fiat currency. It works like an exchange place where you take bitcoins in exchange of fiat money, so it is not like fiat ATMs. With some BTMs, you can sell your bitcoins too. BTMs are good for them who are not using banking system.
Bitcoin ATMs are useful for the area that has less banking system or the people who are unable to understand technological system. BTMs provide you more security and privacy particularly when you are going to buy Bitcoin there. according to estimation, there are around 1600 Bitcoin ATMs all over the world while two years ago, the number of BTMs was around 450. Around 4 times growth has been seen in the number of Bitcoin ATMs last two years.
How Bitcoin Teller Machines can be used
First you need to know the location of a BTM near your area. You can take the help of online services like CoinATMradar to find a BTM near your location.
All BTMs do not offer two-way transactions. Two way transactions mean fiat to Bitcoin and Bitcoin to fiat. Some manufacturers provide the machines that allow you to buy and sell Bitcoin.
Without ID you can’t buy Bitcoins, as Most BTMs require ID or phone numbers to make transactions. Even you have to disclose your personal information depending on the BTM operator. Your personal information helps you get permission and safeguard your Bitcoins.
You might need to have a phone to get One Time Password (OTP) for verification. After verification you can be able to buy Bitcoins with the BTM. With some BTMs, you might have to give an ID card using BTM scanner.
How can you buy Bitcoin using BTM?
After verification of your identity, you will be allowed to buy Bitcoins using dollar or other currencies. You just have to follow the instructions showed on the screens. According to instructions, first you need to type the dollar amount on the screen to buy Bitcoins and then machine will tell you the place or deposit area to enter the fiat currency singly. When you have deposited the money, you will either get an offline wallet or your Bitcoins will be transferred to Bitcoin wallet. Some machines are also capable to send Bitcoins to your email address.
On the creation of a Bitcoin wallet, you get a slip of paper on which a QR code is printed that helps you get the private key. You will have to use the private key while accessing your wallet in which the Bitcoins are kept securely.
In case of transferring the Bitcoins to your old wallet, you need to scan a QR code with the BTM scanner. QR code contains the wallet address which you need to send your bitcoins.
The QR code can also be sent to your email id if it is set to receive the Bitcoins. Email can also be encrypted using a password.
If you buy Bitcoins from BTMs, you will have to pay 5 to 10% higher than the current Bitcoin price on exchanges. Several factors such as machine maintenance, rent, charges, regulatory requirement and volatility increase the Bitcoin price at BTM. Despite higher price of Bitcoin, investors still want to buy Bitcoins at BTM because the machine can be easily operated and at some machines you don’t have to produce ID.
To complete the transaction, the BTMs need to verify Know Your Customer (KYC)/ Anti Money Laundering (AMC). In case of doubtful activity, the regulatory authority will be reported with all details. If the KYC information is correct, the machine will permit you to buy Bitcoin.
How to sell Bitcoin at BTM?
If you want to sell your Bitcoins at BTM, you just have to place the amount of Bitcoin on the machine screen and the amount will be transferred to the address printed on the screen. Once the transaction is complete, fiat currency will be sent to your account. When you buy Bitcoins at BTM, you have to pay 5 to 10% higher rate; similarly, on the time of Bitcoin selling at BTM, the price of Bitcoin will be reduced by 5 to 10%.
Source:
https://blog.unocoin.com/how-do-bitcoin-atms-work-b774828bd9ad
how about fee!!!
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i wonder how long before these machines become mainstream ...nice and informative wrietup
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Thank you
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