You might have noticed that bitcoin ATMs have shown up in your local gas stations, stores, and pretty much everywhere else you can take out cash.
This might be a little surprising to you if you’re not in the circles that normally discuss bitcoin. That said, knowing how these machines work and the benefits they provide might be useful to you.
We’re going to answer the question, “how does a bitcoin ATM work” today, giving you some insight into what these machines have to offer.
How Does a Bitcoin ATM Work?
If you’re a little rusty on your bitcoin understanding, don’t worry. We’ll give you a refresher.
Bitcoin is a digital currency that started a couple of decades ago but is now a common form of currency used all over the world. The gist is that there was a fixed amount of bitcoin created online, allowing it to hold a level of scarcity.
That bitcoin was then harvested by individuals who used sophisticated computer technology. For a period of time, bitcoin was extremely valuable, and it still is. Now, though, you can buy small fractions of bitcoin instead of working to harvest the entire coin itself.
It’s reached a point of accessibility where there are ATMs for this currency everywhere. So, what can you expect when you reach a bitcoin ATM?
Bitcoin ATM Withdrawal and Purchase
When you reach a bitcoin machine, you’ll first verify your identity. You will have to create an account to manage your currency beforehand, though. You can find various platforms to manage these accounts.
Once you’ve verified your identity, you have the choice to buy or sell bitcoin. In order to buy, you just need to insert cash into the machine and select the amount that you’d like to purchase.
Then, you’ll receive a code that you can enter into your phone. That code will direct you to a page where you can claim the bitcoin that you’ve purchased. If you’re looking to sell or withdraw money from your bitcoin account, there’s a slightly different process.
Each bitcoin cash ATM location has a QR code that you can use to link your bitcoin account to the machine. Then, you decide how much bitcoin you’d like to withdraw and the corresponding amount of cash will exit the machine.
That value will then be withdrawn from your bitcoin account.
These are great ways to manage your money for a couple of reasons. For one, there’s a degree of anonymity that you can’t find in normal ATMs. You don’t have to insert any cards or punch in pin numbers.
The interaction between your phone and the machine is totally encrypted. This means that you’re a lot safer than you would be withdrawing money in almost any other way.
Want to Learn More About Bitcoin?
So, how does a bitcoin ATM work? Much like a normal ATM, except a lot safer. Each bitcoin ATM withdrawal is very secure, allowing you to reduce the risk of being scammed.
There’s a lot more to learn about bitcoin, though. Whether you’re interested in its unique history or where the currency is headed, we’re here to help. Explore our site for more insight into cryptocurrency and its effect on the world.
