HOW TO USE A BITCOIN ATM
Bitcoin ATMs have come a long way in making the process of buying and selling bitcoins easier. There are different types of bitcoin ATMs from different companies. Some support both buy and sell transactions whereas others only support buying. Highlighted below is a brief tutorial on how to operate these machines.
Buying Bitcoins is easy.
You click on the buy bitcoins button then provide your address by either scanning the QR code on your wallet or loading it manually. Input cash bills in the ATM and click on either send or finish. The purchased bitcoins will immediately be sent to you. You can then print a receipt at the end of the transaction or have it emailed to you.
To sell bitcoins for fiats, you first of all need to have bitcoins in your wallet. You then sign into the ATM using your phone and PIN. After this, click on the withdraw button and input the number of bitcoins you want to sell. Click finish to get your cash and a transaction receipt. However, not all bitcoin ATMs support selling. The following machines are the only ones supporting this option.
- Genesis 1,
- Satoshi 2,
- BitAccess, and
- General Bytes’ BATMThree machine.
Advantages of Using Bitcoin ATMs
- You can go incognito and The ATMs are Secure
Privacy is highly incorporated into Bitcoin as a currency. The anonymity of the same level is maintained when it comes to Bitcoin ATMs. This feature allows a bitcoin user to make transactions without revealing his/her identity. It is especially easier when purchasing small amounts of bitcoin. The only exception is when the verification feature is turned on in the machine.
ATMs are a secure means of transacting compared to meeting someone from your local bitcoins office. You can, therefore, go about your day peacefully and safely as no one knows beforehand that you have a weighty amount of cash on you.
- Faster Transactions
A Bitcoin ATM is the quickest way to buy or sell cryptocurrency. The time used to conduct a transaction is based on the machine type. The Lamassu, for instance, can purchase Bitcoins in 15 seconds. All you need to do is scan the QR code of your Bitcoin address, feed bank notes into the machine then click the “send” button. The purchased Bitcoins are sent immediately. It may, however, take longer for first timers, this is due to the verification process which may be in the form of SMS, ID scans, fingerprint scans or palm vein scans. All in all, ATMs are more time efficient compared to transactions made at exchanges which may take several days.
- Ease of Use
Are you foreign to cryptocurrency and in need of acquiring a share? Worry not Bitcoin ATMs just solved your problem. You can now buy bitcoins using an ATM instead of registering at an online exchange and wiring a transfer for deposit funds. The registration, verification and transaction processes are nothing but straightforward when using a bitcoin machine. ATM manufacturers are working on simplifying the operations of the machines so that even kids are not left out. In addition to this, Bitcoin ATMs are functional during working hours which makes them convenient to use.
- Financial Inclusion
To use online exchange, you need to wire fiats (traditional currencies) as a deposit and in turn, you need a bank account. Half of the adult population worldwide is either unbanked or underbanked as reported by the World Bank. Bitcoins ATMs helps the financially excluded part of the population to purchase or sell bitcoins. By virtue of this, you do not necessarily need a bank account to transact. As for the financially included part of the population, it would be wise to consider using an ATM for transactions. Users have reported that banks have ended relationships and closed accounts. All this is after fund transfers from or to bitcoin exchanges were identified.
Disadvantages of Using a Bitcoin ATM
- Transaction Costs/Fees
A lot of users have launched complaints that ATMs charge a hefty amount as a fee for transacting. There is some truth is this considering the Bitcoin average fee is at 8.18% as of 31/03/2018. The fee is calculated based on 1587 machines supporting buy operations and 684 machines supporting sell operations. Assumptions have led to the belief that with a more mature and competitive market, the transaction costs will lessen.
- ATMs are difficult to locate and are (sometimes) unreliable
Bitcoin ATM machines are new, even to the bitcoin community and are hence sparsely distributed across the globe. Owing to this, users are compelled to travel long distances just to access one. Additionally, not all machines support both buy and sell operations and this causes inconveniences. Some machines are compact and relatively small. Due to this, they might be taken from their positions to be used as displays at Bitcoin conferences. The machines also hang causing frustration. The ATM’s are only operational during working hours as the need to be manned. Consequently, one cannot access them round the clock which is distressing. Reports have been made stating that some machines are completely out of service and non-functional.
Some Bitcoin ATM machines operate based on bitcoins in the wallet of the entrepreneur. It, however, becomes a challenge when there is a sharp rise in the bitcoin value. This is because some unethical businessmen refuse to offer services fully. They opt to withhold the bitcoins and gain profits instead of selling to customers and refill their wallets at higher prices. Some operators have attitudes that do not befit business operations. They run the ATMs connected to bitcoin exchanges and any transaction made by a customer is reflected on the online exchange.
Have You Looked for ATM’s and didn’t find one? Here are some more ways of buying Bitcoin without using an ID.
HOW TO BUY BITCOINS WITHOUT USING AN ID
- Bitcoin ATMs
Bitcoin ATMs operate like normal ATMs. The only difference is that you feed bank notes into the machines and your local currency is converted into Bitcoins and transferred into your wallet. They are made by various companies and the good news is most of them do not require any verification. You can, therefore, transact while your identity is concealed.
Do you want to purchase bitcoins using your credit card? Do you need to keep your identity hidden while at it? You can easily do this by visiting https://www.coinmama.com/. CoinMama is a credit card broker that allows you purchase any amount of bitcoin without using your ID for verification.
This is a peer-to-peer marketplace. Here, a buyer and a seller must have an agreement on a price and terms of trade before a transaction can be made. After an agreement is reached, then the buyer and seller meet and trade. A deposit can be made on LocalBitcoins.com if a one-on-one meeting cannot take place.
Here users agree on a price and the seller hands over bitcoins to BitQuick which acts as escrow (trusted third party). The buyer then deposits funds in the seller’s bank account and after the seller confirms payment, bitcoins are handed over to the buyer.
- Wall of Coins
Wall of Coins is a peer-to-peer money exchange site. Users’ cell phone numbers are required but not for verification. No Id is required for transactions.