In any booming industry, once a product is created, thousands of ancillary businesses begin popping up to support that industry. As an example, think about all of the iPhone accessory brands that launched after the iPhone first dropped. In the world of cryptocurrency, this is no different — from digital wallets and exchanges to media sites and influencers. Bitcoin and other cryptocurrencies have taken the business world by storm. One of the most interesting developments to come out of this industry are Bitcoin ATMs. In this blog post, Coin Cloud will be discussing what Bitcoin ATMs are and how they work.
What Are Bitcoin ATMs?
Similar to traditional ATMs, a Bitcoin ATM is a portal through which users can engage in a financial transaction. The difference here is that traditional ATMs allow users to withdraw and deposit cash to their bank account, whereas Bitcoin ATMs allow users to buy and sell Bitcoin using cash. While some of the early versions of Bitcoin ATMs did not allow its users to sell bitcoin as well, Coin Cloud ATMs allow users to both buy Bitcoin using cash as well as sell Bitcoin for cash, safely and securely.
Bitcoin ATMs are comprised of a monitor, QR scanner, bill acceptor and dispenser. On the back end, all of these components are tied together via software to make the buying and selling of Bitcoin quick, easy and secure. However, Bitcoin ATMs are different than traditional ATMs in that they are not connected to a bank account. Instead, they are connected directly to a cryptocurrency exchange via the Internet. These exchanges are what allow users to buy and sell Bitcoin instantly.
The very first Bitcoin ATM reported was placed in 2013 at the Waves coffee shop in Vancouver, Canada. That ATM has since been removed, but it was this machine that paved the way for other Bitcoin ATM companies to innovate and carve out their niche in the industry.
How Do Bitcoin ATMs Work?
Buying and/or selling Bitcoin using a Bitcoin ATM can be broken down into two simple steps:
Step 1: Verify your identity.
When a user first goes to a machine, he or she must verify their identity. This can be done in a variety of different ways depending on the machine. For Coin Cloud machines, users must input their phone numbers into the machine where they will then receive a verification code sent to their mobile device to be entered into the machine. Once confirmed, users will be able to proceed with the transaction.
Step 2: Decide to Buy or Sell.
Once a user is logged into the BTM, he or she must decide whether or not they want to buy or sell Bitcoin. To buy Bitcoin, a user feeds cash into the machine. He or she will then generate a QR code from their cryptocurrency wallet on their mobile device to be scanned so that their purchased Bitcoin can be received.
To sell Bitcoin, a user must send Bitcoin from their digital wallet to the QR provided by the Bitcoin ATM. Depending on the machine, some Bitcoin ATMs will dispense cash to the user immediately, while others may take a bit of time to process the transaction. Nonetheless, these verification times are exponentially quicker than online exchanges. Check out how Coin Cloud makes buying and selling Bitcoin quick and easy for our users.
Why You Should Use Coin Cloud ATMs
Unlike online exchanges that can make its users wait days to even weeks to verify transactions, exchanges made with Coin Cloud machines are almost instant. In fact, users that want to sell Bitcoin can even reserve cash at the ATM ahead of time by using our mobile app at CoinCloudATM.com.
Coin Cloud provides all of its customers live customer support to aid them in any concerns that they may have. In a new space like cryptocurrency, having a strong support team working around the clock to ensure that you are engaging correctly and efficiently is vital — this is something we are very proud of at Coin Cloud.
With online exchanges, users must share their debit/credit card information and/or their bank account information to buy and sell Bitcoin. With Coin Cloud BTMs, customers need not to do either of those. Our ATMs ensure that our customers can buy and sell Bitcoin all while only sharing minimal information.
Coin Cloud users can choose the digital wallet of their liking. Our ATMs support all secure wallets. That being said, we do recommend that you use our free Coin Cloud Bitcoin wallet found in the App Store or Google Play store.
What Is Coin Cloud?
Coin Cloud is a Bitcoin ATM company headquartered in Las Vegas, Nevada. With over 627 locations nationwide, Coin Cloud boasts one of the largest and fastest-growing networks of two-way Bitcoin ATMs in the world. Our network has helped more than 144,000 customers buy and sell cryptocurrency since opening our doors in 2014. To find your nearest Bitcoin ATM, please visit CoinCloudATM.com.