There are now multiple bitcoin ATMs worldwide, and new bitcoins are establishing rapidly because the number of cryptocurrency users is rising. Many people want to purchase bitcoins without digital fiat currency, but with physical cash, so they have to visit the bitcoin ATMs. In addition, some people like to sell cryptocurrency because they need immediate cash. When you sell bitcoins through the bitcoin ATM, you will get the cash amount as we withdraw in traditional ATMs by using our Debit or Credit card. That is why bitcoin ATMs exist worldwide to solve these types of bitcoin user problems.
What is a bitcoin ATM?
Bitcoin ATMs get invented to solve the problem of buying or selling bitcoin with domestic currency. Since web bitcoin exchanges like bitcoin-profit.com cannot provide these features, there is only one option: finding a bitcoin purchaser or seller in your local area who is willing to buy or sell for the physical domestic currency. So in simple words, Bitcoin Automated Teller Machine is a concept of Depositing domestic money and purchasing bitcoin with it and withdrawing cash by selling cryptocurrency. Thus there is no need for any bitcoin ATM card because it happens through your virtual bitcoin wallet.
Key Features of Bitcoin ATMs:
There are following key features of bitcoin wallets are given below:
- You do not need a physical bitcoin debit or credit card to buy or sell bitcoins because there is only a need for a virtual bitcoin wallet that you will use for the selling or buying.
- Bitcoin ATMs are available in urban states and cities because many people are aware of bitcoin technology and willing to buy through these platforms.
- You can use your domestic currency to place bitcoin orders and get fiat cash after selling through the bitcoin ATM.
- It provides a straightforward method for placing orders and selling, but the transactional charges are very high.
Why should you not purchase or sell bitcoin with this platform?
There are the following reasons that you should not use bitcoin ATMs for any transaction given below:
- Higher transactional fees: The charges for bitcoin transactions through the bitcoin ATMs are very high because they provide the feature of selling or placing orders with your home currency that no other software wallet offers. Half of the transactions go to the company that sets up the bitcoin ATMs in the city—the average bitcoin transaction charges between five to nine percent, which is very high. Hence, you can go with an exchange to buy bitcoin; otherwise, you will get charged higher fees that you cannot bear.
- Not available in all the locations: Many people from different areas do not know about bitcoin technology, and they do not show interest in buying or selling this cryptocurrency. The companies who set up the bitcoin ATMs first analyze the areas and bitcoin users, and after getting the report, they set up their system. If no people are interested, they do not install bitcoin ATMs. In urban cities and states, bitcoin ATMs are available in supermarket stores. A couple of people are newly introduced to bitcoin technology and want to spend it through bitcoin. Still, they do not get ATMs because there are only a couple of people, and the ATM installation company will not spend money for these couple of bitcoin users.
- Different features: There are multiple bitcoin ATMs in other supermarket stores with varying processing systems for purchasing and selling bitcoins. Some people who use one bitcoin ATM when going to another bitcoin ATM get confused because of the features. Some bitcoin ATMs do not provide a selling option, but others offer one.
- Technical Issues: Since the bitcoin ATM is also a machine, there are technical issues over the period, and sometimes transactions get cancelled. Since no third parties are working behind this network, and if you lose your bitcoin, it becomes impossible to get it back in your wallet, and you cannot contact the government to get back your bitcoins because they do not support bitcoin.
- No privacy: Because the bitcoin ATMs get installed by third parties, they keep track of your transactions, which means they can see how much you withdraw cash by selling and how much money you spend by buying bitcoin. Furthermore, they are obliged to give your record to the government when required, which means your transactions are not entirely private.
