What is a Bitcoin ATM? A beginner’s guide to buying and selling cryptocurrency

Curious about what is a Bitcoin ATM? Learn about these electronic kiosks that let you buy or sell Bitcoin and other cryptocurrencies.

Recently, the popularity and mainstream acceptability of Bitcoin (BTC) have been growing, especially given the Jan. 10 approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).

The move meant that more people could now take advantage of Bitcoin’s price movements without actually having to own the cryptocurrency itself. This helped boost Bitcoin’s price to its highest ever and, more importantly, made it more legitimate as something you can invest in and use to keep your money safe.

Now, the focus is on making Bitcoin easier for everyone to use. This is where Bitcoin ATMs come into play. These are machines where you can buy or sell Bitcoin, along with other well-known digital currencies, all by yourself.

In this guide, we’ll learn about these machines, how they work, where to find them, and how to buy Bitcoin at an ATM.

What is a Bitcoin ATM?

A Bitcoin ATM, also known as a Bitcoin teller machine (BTM), or crypto ATM, is an electronic kiosk that lets you deposit cash in exchange for Bitcoin or other cryptocurrencies.

These machines often consist of a scanner, a cash dispenser, and an internet connection to manage the transactions. Withdrawing cash from these ATMs for Bitcoins essentially means selling your cryptocurrency to the ATM operator in exchange for fiat.

How does a Bitcoin ATM work?

At first glance, a Bitcoin kiosk might look very similar to a regular ATM, but do they work the same way? How does a Bitcoin ATM work? Mainly, it uses a system that allows different parts to communicate to each other, including you, the person running the machine, and the broader cryptocurrency network.

Firstly, there’s a verification system in place to meet regulatory standards. This system verifies users through ID scanning or SMS verification codes, helping prevent fraud and ensuring traceable transactions.

Next, BTMs connect to your crypto wallet. This connection can be established by scanning a Q

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Author: Julius Mutunkei

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