How does bitcoin ATM work?

Have you ever heard about bitcoin atm machines?

Dec 18, 2017

While nearly everyone has heard about bitcoin these days, many people are still confused about what is bitcoin, how to buy it and how to use a bitcoin atm. Let's start from the very beginning and try to understand why people are so excited about bitcoin and the best minds of mankind make predictions about its price and future prospects.

Bitcoin is a global digital money system or currency that allows users to send or receive money across the internet, even to someone they don’t trust or don’t know. The basis of bitcoins’ security is the mathematical field of cryptography. As true fans and aficionados of bitcoin like to say: you better try to buy at least a small part of bitcoin and use it in action in order to understand the principle of its functioning. You can do this in several ways. One of the most popular and fastest options is buying bitcoin via a terminal (or a bitcoin atm).

What is a bitcoin atm machine?

What is the mechanism of its operation? A bitcoin atm looks like an ordinary atm, but it doesn't work completely in the same way, as you can't physically withdraw bitcoin, because it's a digital currency. Additionally, it accepts only cash and requires some actions to confirm your identity. In general terms, bitcoin kiosks are machines which are connected to the internet (and blockchain), allowing users to exchange bitcoins (or other cryptocurrencies) and cash.

Before you start learning in practice, how does bitcoin atm work, you have to install a bitcoin wallet in order to secure your bitcoins. A bitcoin wallet is a software program that is basically the bitcoin equivalent of a bank account. It allows you to receive, store and send bitcoins to others. Almost every btm has the option to register the wallet on-the-spot, but we highly recommend to take care of that in advance, so that your bitcoin wallet is as reliable and convenient to use as possible.

How to use a bitcoin atm?

For purchasing of bitcoins you need to accept the terms of bitcoin atm’s service, confirm your identity, entering your mobile phone number, scan the QR-code of your bitcoin wallet and insert bills into the machine. The inserted amount and its equivalent in bitcoins will appear on the screen. Then you have to click a Pay-button when you are done and take your receipt with QR-code. It's finished. It takes one moment to finish an exchange, then the blockchain will be processing it.

Depending on your purposes of using bitcoins, you may decide to sell them. A definite advantage of atms is the fact that you do not need to have a credit card or bank account with any of the banks involved in order to implement transaction of bitcoins selling and receive your cash.

Selling bitcoins is sometimes more strict with respect to verification. The standard process is usually the following: choose “Sell bitcoins”, choose an amount and enter your mobile number. In case of large amount you have to scan your ID. Then you define the amount of cash you’d like to receive and get a QR code where bitcoins to be sent with required amount of bitcoins. Use your wallet and send bitcoins, that will be cash out immediately (depending on the bitcoin terminal model). Concise and responsive interface of our atms makes it fast and easy for user to get things done.

Advantages of a bitcoin machines business

After these simple actions you will become more familiar with the process of bitcoin terminal working and enjoy a simple, user-friendly interface with high speed of transactions performance. It’s obvious nowadays that for the customers, especially regular ones, these cutting-edge bitcoin kiosks have become a popular alternative to online bitcoin exchanges, which have serious disadvantages such as long processing time, more strict control and arguably colder customer support. For bitcoin atm investors, the barriers to entry are much lower in comparison to most bitcoin business models, not just bitcoin exchanges. Instead of coding an app and developing infrastructure, as an operator you simply purchase full cycle solution proposed by a bitcoin atm manufacturer. Check all the solutions proposed by COVAULT here

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