What does Bitcoin ATM do ?
Bitcoin ATM is a kiosk that is used to:
- Buy Bitcoin using fiat.
- Sell Bitcoin for fiat.
The ATM is connected to internet to get the current market price for Bitcoin when the transaction is executed.
Most Bitcoin ATMs also support other cryptocurrencies.
How to find Bitcoin ATM ?
ATMs are very common and can be found in every corner of any market.
However, Bitcoin ATMs are not as common. Hence you will have to use an ATM locator app like Coin atm radar.
How to use Bitcoin ATM ?
ATMs of different companies have different user interfaces. Also, different jurisdictions have different KYC requirements that ATMs would have to collect in order to service a user.
Limitations of Bitcoin ATMs
- KYC requirements: Almost all Bitcoin ATMs require users to identify themselves using phone numbers, identity cards etc.
- Fees: Bitcoin ATMs charge much higher fees as compared to online exchanges. This is because the ATM owner has to recoup his initial investment, pay rent for location, maintain the machine and take risk in case the machine is stolen while servicing just a handful of customers.
- Long wait time: It takes 10 mins to add a new block to the Bitcoin blockchain. Users might have to wait for more than 10 mins to complete their transactions in case the ATM does not use lightning network.
- Customer service: Usually there is no customer service in case a customer faces any difficulty completing his transactions.
Future of Bitcoin ATMs
Days, when one could use Bitcoin ATMs to buy Bitcoin anonymously, are over. Moreover, governemnts are not doing a good job in clarifying legal hurdles that ATM owners have to jump for installing a new ATM.
In addition ATMs have their limitations due to which they are not able to provide a good customer experience.