What Are Bitcoin ATMs and How Do They Work?
An ATM for Bitcoin?
In any booming industry, once a product is created, thousands of ancillary businesses begin popping up to support that industry. As an example, think of all 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 craze is the Bitcoin ATM. 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 are able to engage in a financial transaction. The difference here is that traditional ATMs allow users to withdraw and deposit cash whereas Bitcoin ATMs allow users to buy and sell Bitcoin using cash. While some of the early versions of Bitcoin ATMs (and the majority of those in operation today) did not allow its users to sell Bitcoin as well, Coin Cloud ATMs allow users to both buy Bitcoin using cash and sell Bitcoin for cash, safely and securely.
Bitcoin ATMs are comprised of a monitor, QR scanner, bill acceptor and dispenser. On the backend, 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 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 (2) simple steps:
Step 1: Verify your identity. When a user first comes up to a machine, he or she must verify their identity. This can be done through a variety of different ways depending on the machine. For Coin Cloud machines, users must input their mobile phone numbers into the machine; they will then receive a verification code by text message to be entered into the machine. Once confirmed, users can 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, then generates a QR code from their cryptocurrency wallet on their mobile device, which is scanned to receive their purchased Bitcoin.
To sell Bitcoin, a user sends Bitcoin from their digital wallet to the QR code 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 BTMs
Unlike online exchanges that can make its users wait days to even weeks to verify transactions, trades made with Coin Cloud machines are almost instant. In fact, users who want to sell Bitcoin can even reserve cash at the BTM ahead of time by using our Coin Cloud Wallet app.
Coin Cloud provides live customer support to aid users with any concerns they may have. In a new space like cryptocurrency, having a strong support team working 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 Bitcoin ATMs, customers need not to do either of those. Our BTMs ensure that our customers can buy and sell Bitcoin while only sharing minimal information.
Coin Cloud users can choose the digital wallet of their liking. Our BTMs 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. It’s tailored for the ultimate experience at our machines.
Coin Cloud users have been trading Bitcoin with our machines since 2014, and we have the largest two-way Bitcoin ATM network in the world. We are experts in the cryptocurrency space and our technology and live support is here to show for it.
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.