What Is a Bitcoin ATM? Let’s Find Out!

Cryptocurrencies are dramatically reshaping the world's financial industry and offer a unique way of making transactions that are fast and more secure. But what makes Bitcoin and cryptocurrencies make them even more unique are Bitcoin ATMs. Yes, they are machines, kiosks, whatever we call it. Buying and selling crypto tokens becomes physically available and attracts more investors because of its convenience.

Cryptocurrencies became more popular and now shake the financial world because most investment products require a bank, agents, and stockbrokers to invest, which often makes ordinary people get intimidated. Bitcoin or cryptocurrency ATM company providers like Paydepot and the like made buying and selling crypto tokens as easy as using a regular bank ATM.

What Is a Bitcoin ATM? Let’s Find Out!

This article will show and explain a Bitcoin ATM, including the other aspects behind it, what we see, and what we need to understand more.

What Is a Bitcoin ATM?

Bitcoin ATM's external components are mostly similar to a bank ATM. It is a machine with a monitor, receipt printer, cash acceptor and dispenser, and a QR code scanner, a unique feature of a Bitcoin ATM. You also need your smartphone to perform a transaction.

After creating a digital wallet and installing it in the smartphone, the QR codes generated from your digital wallet are vital to the buying and selling process whenever you use a Bitcoin ATM. There are also machines requiring you to enter your mobile number and a code sent via text message to complete the transaction, which is one way you can ensure that buying or selling in Bitcoin ATMs is private and secured.

Bitcoin ATMs installed in mostly familiar areas where they shop, dine, and have fun, like near cafes, malls, supermarkets, etc.

Compliance

For our peace of mind, before any crypto kiosk operator and provider can offer and install Bitcoin ATMs, they must comply with governments' laws and financial regulations, such as:

●      Must be registered with FinCEN or Financial Crimes Enforcement Network registered

●      Anti-money laundering (AML) compliant

●      Know Your Customer (KYC) regulation compliant

●      Bank Secrecy Act (BSA) compliant

Our participation is important to ensure that our transactions are valid and legal through complying with the Know Your Customer (KYC), which may require us to show a copy of our identification.

Blockchain Explained

Unlike any bank ATM, Bitcoin ATMs are not linked to bank systems. Instead, it is connected to cryptocurrency exchange which runs into a complicated and very secure computer system.

The Bitcoin ATM will act as an agent between you as the investor who will perform the buying or selling of crypto tokens and the cryptocurrency exchange platform over the internet. It will create an order and start to perform a blockchain transaction. Blockchain is impossible to alter, tamper or cheat, so it is more private and more secure and cannot be undermined.

When a transaction starts, it creates a block containing your current order (example, "Buy") in the form of codes, and including the information of the previous block of the transaction (another set of codes), creating a chain of transactions and then sending a copy to the participating computer systems. Therefore, tampering will not pass because it is impossible to alter all of these computer systems since there are numerous computers involved and act as witnesses to the transaction.

When the transaction is passed on the blockchain and completed, your money on the buying process will be converted into crypto tokens and reflected on your digital wallet.

Who Needs a Bitcoin ATM?

You may be asked: "Okay, I already have the latest model of the smartphone with internet (even 5G connection) and an app and platform that can perform buy or sell of cryptocurrencies. Why do I still need a Bitcoin ATM?"

Buy the "Dip"

The principle is simple, but when there is a sudden fall in the price of crypto so can you gain profit later. We know how volatile cryptocurrencies are, and gaining profit is overwhelming when there is a rise in prices.

However, not all the time are you prepared for the sudden changes in prices of cryptocurrencies, and you might find yourself in a situation that you wanted to buy bitcoins to take advantage of the "Dip," but you only have your cash with you. A Bitcoin ATM will be there to help you to take advantage of the opportunity.

Market Segments

Survey shows that there are a lot of people who wanted to invest or try to invest in cryptocurrencies that are part of these markets:

●      Unbanked individuals

●      Baby boomers (born between 1946 to 1964)

●      Millennials (born between 1981 to 1996)

Many of these group people are curious, investment starters, and have more cash than actual bank savings. Most of them have an increasing appetite to invest in digital assets or cryptocurrencies because of the reality that there are people who became wealthy. Bitcoin ATM kiosks will conveniently help and accommodate.

Quick Cash

Like a bank ATM, Bitcoin ATMs can be reliable when you find yourself in a place where you need extra cash, but you only have a phone and digital wallet. By searching online ATM locators, you can find the available Bitcoin ATM that can perform withdrawal transactions by selling your crypto tokens.

Final Thoughts

The help of 19,000 and counting Bitcoin ATMs worldwide proves that it is never too late to invest for our future and gain financial freedom. The emerging market of cryptocurrencies gives us hope and reshapes how we make transactions more convenient, faster, and secure.

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