Bitcoin ATMs – Their features and functionalities
Bitcoin ATMs are internet-connected booths through which an individual can buy Bitcoin using cash and a debit card, sell bitcoin, and withdraw money from a Technology of Bitcoin account. It emerged sometime around early 2010. In appearance, they look like normal ATMs but may even be built into a window or a wall like a kiosk. Bitcoin ATMs work on block-chain based transactions and send the currency directly into the user’s digital wallet. Bitcoin ATMs usually work with the help of a QR CODE.
History of Bitcoin ATM
It is widely believed that, in 2013, the first-ever Bitcoin ATM was installed and that was in Vancouver, Canada. Europe had its first Bitcoin ATM installed in the Slovakian city of Bratislava in December 2013, whereas the USA had its first Bitcoin ATM installed in Albuquerque, New Mexico, in February 2014, though it was removed within a month. Another licensed Bitcoin ATM was installed in Seattle, Washington, in May 2014.
Increasing popularity and number of bitcoin ATMs around the world
In recent times, they have become increasingly popular, with hundreds being installed in the last few years, especially in North America (Canada and USA), with over 75 per cent of ATMs located here as well in some European countries. There are an estimated over 10,000 Bitcoin ATMs installed throughout America and Europe. Even with hundreds of Bitcoin ATMs emerging, they are still in their infancy and are pretty rare in most regions worldwide.
Types of Bitcoin ATM
Primarily, Bitcoin ATMs are two types depending on their mode of function. These are unidirectional bitcoin ATMs and directional bitcoin ATMs.
UNIDIRECTIONAL: These ATMs only allow the purchase of Bitcoin through cash or bank cards but do not allow the selling of Bitcoins. That means you cannot exchange your Bitcoins for cash in these ATMs
BIDIRECTIONAL: These ATMs allow the purchase of Bitcoin through cash and bank cards as well as selling Bitcoin. That means a user can exchange their Bitcoin tokens for cash in this ATM
How do Bitcoin ATMs work?
To make a transaction through a bitcoin ATM you need a few steps to follow.
First, you will need a bitcoin account and a digital wallet where u can store your Bitcoin tokens. There are numerous digital wallets available in the form of hardware devices, web-based as well as desktop software. The easiest way to set up a digital wallet is to use a mobile app for the same.
Next, you have to find out which Bitcoin ATMs are available nearby. After you find it out, create a necessary account with that ATM operator.
Next, find out the location of the kiosk closest to you. After you reach the kiosk, you will need to put in your digital wallet details and its address. This will be used to identify the account to which the Bitcoin tokens will be sent.
Now, to buy bitcoin you can insert the cash bills. For example, if you enter $100, you will receive $100 worth of Bitcoin in your digital wallet.
To withdraw blockchain technology you need to go to the selling option and enter the amount. After that send the coins to the given QR code address and get your cash.
Keep note that some Bitcoin operators charge a fee on the transaction.
Drawbacks of Bitcoin ATM
Even though Bitcoin ATMs are becoming popular, there are a few drawbacks to them.
High transaction fee: One of the biggest drawbacks is the expensive fees that are charged in the buying and selling of Bitcoin through ATMs, with an average of 8 to 15 % of the transaction amount being charged as a transaction fee, which is quite high for most users. The highest transaction charge in a Bitcoin ATM is around a whopping 30%.
Location: Even though thousands of Bitcoin ATMs have emerged in the last few years, there are still not enough of them in most parts of the world. Of all the Bitcoin ATMs, almost all of them are located in Western Europe and North America, with very few to none existing in Asia, Africa, and Latin America.
Lack of uniform management: Since it is not being controlled by a central authority, sometimes, the ATMs fall into disrepair with no one to look after them and are left in non-functioning conditions, creating problems for users.
To sum up, the Bitcoin ATM is a pretty new development in the world of Bitcoin and cryptocurrency, allowing a quick new method to buy or sell Bitcoin, with some very impressive developments in the last decade. They are very effective, fast, and easy to use if maintained properly. Its impact and efficacy in the crypto world are still yet to be seen soon. For a more safe option to sell and buy Bitcoins, one can use the Bitcoin era app.