Buying Bitcoin from a Bitcoin ATM Machine
- July 25, 2017
Seeing the growth and popularity of digital currency Bitcoin ATM machines are springing up all around the world. In many new cities and places, Bitcoin ATM machines are coming up where you can buy and sell Bitcoin currency at ease. There are many preferred ways of buying Bitcoin available in the market, but Bitcoin ATM machines mostly opt. This particular process gives you the option to buy Bitcoin without logging to any online portals or interacting with other individuals. But before you start buying Bitcoin from Bitcoin ATMs there are many important things to consider. Here are some:
- Most of the Bitcoin ATMs in the market are one directional. This means either you can buy or sell Bitcoins. However, in some places, two-directional bitcoins are more, and it gives you more option.
- Finding Bitcoin ATM near to your place can be a changed. In some places, governments have imposed strict regulations that determine under what conditions and where an ATM machine can be installed.
- Bitcoin ATM machines are all subject to regulations; every user needs to prove his or her identity before buying or selling Bitcoins. This authentication process is carried out through fingerprints, ID card scanner and hand palm by the Bitcoin ATM. All these depend on the model of Bitcoin ATM Machine you are using and the place where this machine is installed.
How Bitcoin ATM Works?
Bitcoin ATM machines are installed in many popular locations around the globe, and it is known to dispense Bitcoins for suitable currencies. There are some two-directional Bitcoin machines too which can help you dispense cash for Bitcoins. The buying process of Bitcoin is quite interesting. Bitcoins are dispensed to the buyer’s Bitcoin wallet or on a paper wallet that is generated and printed by the Bitcoin ATM. The price of Bitcoin keeps changing, and it depends on the current exchange rate when you are buying this digital currency from ATMs.
Bitcoin ATM machines retrieve the real time price from the internet and based on that transfers digital currency to your wallet. In addition to that, an additional fee is deducted by the Bitcoin ATM for its service. Bitcoin ATM fees vary somewhere between 5 to 10 percent depending on the operator. With some BTM kiosks, there are zero charges or fees.
The Bitcoin ATM either has a certain amount of Bitcoins to sell or else it connects to any online exchange so that it can buy Bitcoins in real time on your behalf. This method is based on how the owner or operator configured the machine. Moreover, the machine also needs to take into count whether real time brokering of Bitcoins is allowed or not in that location. For instance in the state of Texas, all Bitcoin ATMs can legally operate without having any money transmitter license if ATMs don’t make real time.
The Purchasing Process
Here is the Bitcoin ATM purchasing process:
- First, walk up to the Bitcoin ATM and scan the QT code. The QR code shows the address of your Bitcoin wallet which is located on a paper wallet or mobile device. Use the ATM scanner featured with the Bitcoin ATM to scan the QR code. This is the address where you purchased. Bitcoins will be sent to. Some users don’t have the Bitcoin wallet, in such cases, the machine will give you the option to generate and print paper wallet once the purchasing process is completed.
- Based on the Bitcoin ATM model, jurisdiction’s financial rules or regulations and how the Bitcoin ATM machine is configured you may be asked to scan your fingerprints, hand and necessary ID cards. This is how verification process is carried out, and anti-laundering selling or buying limits are enforced. There are some instances where you won’t be asked for any identification which means you can buy Bitcoins anonymously.
- Now enter the number of bitcoins that you want to purchase or the amount of traditional currency which you want to spend. There are certain purchase limitations in few places, make sure you have all these details before buying or selling Bitcoins for the first time. The amount of Bitcoin you want to buy may be limited based on the regulations as well as the amount of currency available with the machine’s wallet.
- Insert cash and wait for some time so that purchased Bitcoins are all sent to your Bitcoin wallet address. Bitcoin users who opted for the paper wallet to be generated, for the, it will be printed and bought digital currencies will be loaded on the public address.
Finding a Bitcoin ATM
As you could see in the previous section buying of Bitcoin using BTM kiosks is quite easy, and almost any individual can do that anytime. The only important thing you need to ensure is locating Bitcoin ATM machines around your place. Several portals are coming up where you can easily locate Bitcoin ATM machines. CoinATMFinder is one of the best options where you can find a world map, and there you can easily get all details about Bitcoin ATM around any place. Alongside the location, you can find information about Bitcoin fees, user reviews, and other details.