THE BITCOIN ATM
Everything you need to know about Bitcoin Atm
A bitcoin ATM is defined as the kiosk that allows a person to exchange bitcoin and cash. Some Bitcoin ATMs offer bidirectional functionality enabling both the buying of bitcoin as well as the sale of Bitcoin for cash.In some circumstance,Bitcoin ATMs providers entails users to possess an existing account to transact on the machine.
Bitcoin machines are unlike the ATMs in the traditional sense and probably use the wording ATM as a neologism. Bitcoin kiosks are mainly the machines which are connected to the internet, allowing the input of cash in exchange for bitcoins given as a paper receipt or by moving money to a public key on the blockchain.
DESCRIPTION OF BITCOIN ATM
They resemble the traditional ATMs ,But bitcoin kiosk do not connect to a bank account and instead connect the owner or user directly to a bitcoin exchange. According to an advisory issued by the Consumer Financial Protection Bureau, and may also involve high charges transaction fees-the media reports describe the transaction fees as high as 7% and exchange rates $50 over rates could be gotten elsewhere.
Little history about Bitcoin ATM
On October 29,2013,a Robocoin machine opened in the waves coffee shop in downtown Vancouver, Canada.This machine is known to be the world’s first publicity available Bitcoin ATM. Robocoin ceased operations in January 2016. Some Robocoin machines have then since been changed to run other software.the first machine in the U.S came online on February 18,2014 in a cigar bar in the new mexico. It was scrapped 30 days later.
In april 2014, CoinMe became the first bitcoin ATM provider with a cash transmitter license installing a unit in seattle, Washington.A new zealand bitcoin machine operator was developed and announced in 2014 but had to shut down operations due to interference with banks.in 2014,a former Robocoin operator in the united kingdom hacked through its bitcoin ATMs to run oon software from rival manufacturer and on December 8,2013,the Europe’s first bitcoin ATM was installed in Slovakia.
Bitcoin ATMs opeartors needs to regulate the limits on deposits and withdrawals based on AML/KYC standars applicable in the jurisdiction where their ATMs are positioned. In some countries or states,this require money transmitter license.
HOW DO CRYPTO ATMs WORK
The first bitcoin ATM is said to have been installed in early 2013 by the now-defunct company, Robocoin.
When bitcoin was still in its infancy(when newly invented),since then,several other manufacturers and providers have brought their own machines in locations ranging from coffee shops to bars.
According to the Coin ATM Radar, there are now over 2200 bitcoin ATMs located in 63 different countries around the globe. The website is an excellent resource for anyone looking for a machine close to their geographic location.
Bitcoins ATMs provide all its user with the choice to either purchase or sell cryptocurrency in exchange for local and federal government-issued currency, however, probably if the businesses didn’t to invest in a more expensive machine, they may select to offer only one service and not a two-way one.
Once it is been ascertained that a particular bitcoin ATM is the right choice for yourself,the you will have to carryout a type of validation process that typically inquires verification of phone number.
HOW DO BITCOIN ATMs WORK
If you are purchasing Bitcoin, the Machine will definitely ask you or your bitcoin wallet address.typing the entire receiving address into the machine with only a number pad is likely an exercise in futility.The alternative is mainly to scan the receiving address QR code instead. Almost every smartphone wallet app will provide this functionality. Place the barcode on the machine scanner and allow it to proceed.at this point it will request you to insert your cash into the machine and confirm that you wish to proceed.
The procedure to sell bitcoins in exchange for fiat is also similar to the above process.Instead of providing a receiving wallet address by the owner,the machine itself will display a QR code on the screen to which is needed for sending the bitcoin.once a certain number of verifications have been ascertained on the blockchain, the machine will eject currency equal to the transferred amount.
Another advantage of bitcoin ATMs is the guarantee of privacy and security ensured by this machines. Online exchanges require an individual to verify a complete identity regardless of whether the amount you wished to trade is minuscule or mainly insignificant.
On the other hand, Bitcoins ATMs require informations as the phone number provided the amount wished to transact is below a particular threshold range.it is important to note,however that the convenience of a bitcoin ATM may sometimes come at a very hefty price premium .During times of extreme volatility in either directions. Bitcoin ATM owners may sometimes desire to prevent themselves from risks by setting the bitcoin exchange rate higher or either lower.
The actual amount of price range depends solely on whether you (investor) is willing to buy or sell cryptocurrency from the machine but it is likely to be there regardless. some Bitcoin ATMs will not allow you to trade beyond a particular amount limit per day. This is majorly because of their required presence with local laws and reforms that are in place to enhance prevention of money laundering and other various illicit activities.
For that reason, many bitcoins ATMs around the world will require to complete a simple KYC verification before proceeding to transact large amount of crypto.
However, of all the countries with Bitcoins ATMs ,it visibly appears that united states is home to the most numbers of the machines at close to having 1500 of them in all. Restaurants and caffé tends to be the most common venues where the ATM can be found but uniquely a large percentage of them also exists at corporate offices and big supermarkets.
Like any other traditional ATM which are owned by banks,every such bitcoins machine is never limited to a highest value that can be withdrawn before it needs refilling.
In the time past,some set of people used Bitcoin ATMs as a convenient method of fund remittance from one country to another. Futhermore, Bitcoin’s global reach allows you transactions of held cryptocurrency in the wallet regardless of the country being based in.