Banking and Finance

How Does a Bitcoin ATM Work? Everything You Need to Know

In 2009, back when Bitcoin was first released into the world, it was given away for free by the thousands. Nobody knew what it was or how much it was worth.

Those who were lucky enough to foresee a bright future for Bitcoin held onto their tokens, or at least a few of them. But most people gave them away, traded them, or sold them for almost nothing.

Today, Bitcoin is worth more than $60,000. And it’s only going to continue rising. Want some for yourself? Head to a Bitcoin ATM.

How does a bitcoin machine in Montreal work, you may ask? Just like a standard ATM. You insert cash or a credit or debit card, decide how much Bitcoin to buy, and voila, you’ve got some of the world’s most valuable assets.

There’s a bit more involved with using one, however. Keep reading to learn how and why to use a Bitcoin ATM today.

Why Use a Bitcoin ATM

First off, why would you want to use a Bitcoin ATM in the first place? After all, you can just make a purchase using an online cryptocurrency exchange.

Well, the main benefit is that you can purchase Bitcoin directly

How Does a Bitcoin ATM Work?

So you want to invest in crypto, but want to ensure you do so the right way. Bitcoin ATMs are a popular choice for both new and experienced crypto investors to get their hands on some Bitcoin.

They look and feel just like normal ATMs. You’ll start by inserting a payment method, either cash or a payment card like a debit or credit card.

But instead of adding this cash to a bank account, the money is used to purchase Bitcoin. Bitcoin ATMs are connected to online cryptocurrency exchanges. So when you use a Bitcoin ATM, you’re technically using an online exchange, but in an easy, fast way that lets, you buy with cash.

The ATM will utilize live exchange rates based on the current price of Bitcoin, which fluctuates constantly throughout the day.

And when you need to cash any of your Bitcoin out, you can head to an ATM, choose to withdraw from your current Bitcoin wallet, and pull out the cash you need. Alternatively, you can just pay with Bitcoin anytime you find a merchant that accepts it.

It saves multiple steps, from having to deposit cash into a traditional ATM, then logging onto the internet and transferring money to an online exchange, before actually buying any crypto.

Read Also:10 Profitable Business Ideas in the USA

How to Use a Bitcoin ATM

Now that you know how a Bitcoin ATM works, it’s time to go out and use one. Here’s what you’ll need to do to use a Bitcoin ATM, so you can invest in Bitcoin the easy way:

Set Up a Free Wallet

When buying Bitcoin from an ATM, you’ll need a place to store it. Most people store their Bitcoin on crypto wallets. These can be apps downloaded on your computer or smartphone, or they can be hard drives that store crypto offline.

Regardless of which wallet you choose, it will have a digital address. This address is where you will send your new Bitcoin.

Choose which type of wallet you want to get, and set it up. Because there is no account or personal information required, it’s very fast to do so. Software wallets can take less than a minute to set up and are free to use.

If using Bitcoin ATMs regularly, a wallet on your phone will be the most convenient.

Locate an ATM

Once you have a wallet ready to go, you can head to your nearest Bitcoin ATM. These are popping up all over the country, so there is probably one close by.

Check out the Byte Federal website to find the widest selection of trustworthy Bitcoin ATMs nationwide. They are simple to use and have a few different cryptocurrencies you can purchase using the ATM. And if you ever need help, it’s easy to contact support right then and there.

Create Account

To use a Bitcoin, you’ll first need to create an account. Any company that offers the purchase and sale of cryptocurrencies will require KYC. This stands for know your customer and is a way to verify the identity of the user.

When using a Bitcoin ATM, the KC process will likely be much faster than what you’d experience online directly with a crypto exchange.

Usually, you’ll add some personal information and verify a photo of your ID card.

Insert a Payment Method

With your account ready to go, you can then insert your payment method of choice and select how much Bitcoin you’d like to purchase. You’ll see a quote with the current exchange rate.

You’ll need to complete your transaction in a timely fashion to secure that rate, otherwise, it can change.

Send Bitcoin to Your Wallet

Any type of cryptocurrency transaction will take a little bit of time to complete. This is not a result of the ATM, but of the blockchain that a cryptocurrency is built on.

Some crypto transactions can happen in seconds, while others can take minutes. It comes down to how congested the network is, which is essentially how many people are transacting at any given time. With a Bitcoin ATM, the time should be pretty quick.

Once you make your purchase, you can provide the crypto wallet address that you want to store your Bitcoin on. You should be able to pull up a QR code on your phone and scan it on the ATM for a quick and easy process.

Ride the Wave

With some Bitcoin in your wallet, all that’s left to do now is ride the crypto wave. Sure, crypto, especially Bitcoin is volatile. You’ll experience some downs, but you can also ride the wave as we watch this coin hit some new all-time highs shortly.

So how does a Bitcoin ATM work? Not that much different than a normal ATM. Simply use cash to purchase Bitcoin, and withdraw cash when you are ready to sell some Bitcoin.

What are you waiting for? Start stocking up on the greatest investment of all time!

Want to learn more? Head over to our blog today to continue reading.

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