How do Bitcoin ATMs work?
Bitcoin ATMs or automated teller machine is a kiosk consisting of a monitor, QR scanner, and bill acceptor that enables customers to purchase Bitcoin and Litecoin in exchange for cash autonomously. Bitcoin ATMs can appear similar to a traditional ATM that you might see at a bank, but a Bitcoin ATM exchanges cash for Bitcoin and Litecoin. Some Bitcoin kiosks accept debit or credit cards in exchange for cryptocurrency. Our Bitcoin ATMs work following this process:
There are two main types of physical Bitcoin ATMs, one-way (buy) functionality and two-way (buy & sell) functionality. The majority of cryptocurrency ATMs are one-way machines with buy functionality. A Bitcoin ATM exchanges cash for Bitcoin sent to a digital wallet rather than a bank account. Some Bitcoin kiosks accept debit or credit cards in exchange for Bitcoin.
Most point-of-sale machines move your purchased cryptocurrency to the users' public key on the blockchain. In contrast, some machines transfer funds onto a paper wallet receipt.
- Customers register their new account at the kiosk by presenting their US government-issued photo ID, entering their phone number and creating a PIN (personal identification number).
- Following registration, the customer scans their crypto wallet address using the QR scanner or enters the wallet address using the PIN pad or on-screen keyboard.
- Once the wallet address is entered, the customer inserts the amount of USD bills into the Bitcoin kiosk to purchase the desired amount of Bitcoin or Litecoin.
- The customer also has the option to receive their Bitcoin or Litecoin on a paper wallet containing the public and private keys relating to the purchased Bitcoin or Litecoin. If selected, the paper wallet will be printed from the Bitcoin ATM after the transaction is complete. The Bitcoin or Litecoin on the paper wallet can be added to a mobile wallet at any point in the future.
- After the customer has inserted the USD bills, the Bitcoin ATM provider releases the customer’s Bitcoin or Litecoin by broadcasting the transaction to the Bitcoin or Litecoin blockchain, where the transaction becomes visible to the Bitcoin or Litecoin network, including the customer’s crypto wallet. Once the transaction is confirmed, the Bitcoin or Litecoin becomes spendable by the customer.
What do I need to sign up?
How long do Bitcoin ATMs transactions take?
Will I get a receipt verifying my transaction?