Roderick Greene

What is a Bitcoin ATM?

Once a product has been made, there are hundreds of companies that ancillary to it that begin to emerge to support the business. Think about the various accessory companies for iPhones that introduced after the iPhone first came out.

The same is true for bitcoin. From digital wallets and exchanges to influencers, media sites as well as social media, Bitcoin and other crypto currencies have dominated the world of business. One of the most interesting developments that has emerged from this trend is the bitcoin ATM. In this blog article, Coin Cloud will be discussing what Bitcoin ATMs are and how they function.

What are Bitcoin ATMs?

The Bitcoin ATM works in the similar way to traditional ATMs. It permits users to make financial transactions through a portal. Traditional ATMs let users withdraw cash and deposit it, while Bitcoin ATMs permit you to purchase and sell Bitcoin with cash. While some of the early Bitcoin ATMs, as well as most of them today, did not permit users to offer Bitcoin, Coin Cloud ATMs do. Users are able to safely and securely buy and sell Bitcoin with cash.

Bitcoin ATMs comprise the monitor and QR scanner, a dispenser and bill acceptor. These components are connected via software on the backend to facilitate the purchase and sale of Bitcoin.

Bitcoin ATMs are, however, not connected to bank accounts. Instead, they connect directly to cryptocurrency exchanges through the Internet. They allow users to immediately buy and sell Bitcoin.

In 2013 the Waves coffee shop in Vancouver was the site of the very first Bitcoin ATM. While the ATM was removed from the market however, it was the machine that helped others Bitcoin ATM companies to innovate in the sector.

How do Bitcoin ATMs work?

Selling and buying Bitcoin using a Bitcoin ATM is broken down into two simple steps:

Step 1: Verify your identity. Step 1: Confirm your identity whenever a user comes up to an electronic device for the first time. There are numerous ways to prove your identity, based on the machine you are using. For use with Coin Cloud machines, you must input your mobile number in the machine. Following that, you will receive an SMS with a verification code which is used to get into the machine. Once verified, customers can continue with their transaction.

Step 2: Select to Buy or Sell Bitcoins. Once a user is logged into the BTM then they must decide whether or not they would like to purchase or sell Bitcoin. To purchase bitcoin ATM one feeds cash into the machine, then generates a QR code from the cryptocurrency wallet they have on their mobile, which is scanned to receive their purchased Bitcoin.

To sell Bitcoin, a user sends Bitcoin through their wallet into the QR code that is provided by the Bitcoin ATM. Some Bitcoin ATMs will immediately disburse cash, while other ATMs may require a few minutes to process. The verification time is significantly quicker than exchanges that are online. Learn more about the ways Coin Cloud allows buying and selling Bitcoin quick and easy for our users.