You can use an ATM or automated teller machine to withdraw cash by using your credit or debit card, and you can also avail various features from an ATM. Similarly, you can use Bitcoin ATM or BTM for withdrawing your digital currency or Bitcoins, and these ATMs are designed with bi-directional functionality. It means, you can buy and sell your coins from an ATM. You can use a Bitcoin ATM only if you have a crypto account linked with your ATM.
Types of BTMs
There are two types of ATMs available for crypto currencies, such as unidirectional and bidirectional. According to research, it has been proved that only 30% of BTMs are unidirectional, and most of these unidirectional ATMs are located in the U.S. These machines are connected with the internet connection 24×7, and some of these ATMs can provide paper receipt also. To access the Bitcoin ATMs, you will need your private keys.
Apart from that, you can find some cash kiosks for buying and selling your coins, and you do not need to connect your bank account with these machines to make a transaction. In this case, you can use your digital wallet to buy and sell coins. Make sure, you must know the transaction fees charged by these ATMs because most of these ATMs are owned and operated by crypto exchanges and you will need to pay a hefty transaction fee for the same.
One Robocoin machine was introduced and established in the Waves coffee shop in downtown Vancouver, Canada in the year of 2013, and it is known as the first BTM in the world. Bratislava was the first place to experience Bitcoin ATMs.was . In 2014, Coinme introduced the first licensed ATM for Bitcoin in the U.S. and it was installed in the Spitfire Grill in Seattle.
What Are the Differences Between Normal ATMs and BTMs?
You can withdraw cash from a normal bank ATM because Automated Teller Machines installed by the banks can dispense cash. But you cannot withdraw cash from a BTM because these ATMs are not connected with the banking servers.
You can access a Bitcoin ATM by QR code available on your digital wallet, and you can buy or transfer your coins from your wallet through an ATM. If you do not have any wallet then you can open a digital wallet by verifying your KYC through a BTM.
But Bitcoin ATMs have some cash deposit limits and you cannot deposit cash beyond this limit set by the exchange. Bitcoin ATMs available in the United States are registered under the Financial Crimes Enforcement Network (FinCEN) and they are regulated according to the anti-money laundering law of the Bank Secrecy Act.
You can make a transaction through a Bitcoin ATM by using your wallet or QR code, but sometimes you need to provide your registered mobile no to get an OTP. You need to enter this OTP on the machine for identity verification. There are some ATMs available where you need to submit your KYC and you can scan your ID proof for the same.
Charges of Bitcoin ATMs
You will be charged a percentage of your transaction amount while you make a transaction through a Bitcoin ATM, and there are some ATMs available which will charge a fixed fee for every transaction. These charges are quite high and you can save your transaction fees by using your crypto account through an exchange. For example, you need to pay 7% of your transaction amount as transaction fees if you use a Bitcoin ATM operated by CoinFlip.
There are more than nine thousand BTMs available in the U.S. Companies based on the cryptography technology mainly operate such ATMs and a few of these machines are operated by the crypto platforms and exchanges for their own customers.
However, you need to choose a reliable platform where an ATM facility is available. Apart from that, you need to check the locations of such BTMs before you open a crypto account. In this case, the platform will help you make a good return in the future. Make sure, you must keep your private keys safe while you use an ATM and you must choose a platform for your crypto trading which is secured and safe.