Blockchain 101: Bitcoin ATM

Bitcoin ATMs allow individuals to buy or sell bitcoins with cash or debit/credit cards in public places, providing a simple alternative to traditional exchanges, despite having higher transaction fees.
Bitcoin ATMs are machines that allow users to buy or sell bitcoins using cash or debit/credit cards. Similar to traditional ATMs, they are located in public places such as malls, airports, and train stations. Bitcoin ATMs have gained popularity due to their convenience and accessibility, allowing users to purchase or sell bitcoins without the need for an online exchange or bank transfer. However, it's essential to note that Bitcoin ATMs may charge higher transaction fees than traditional exchanges.
Bitcoin ATMs work in a relatively straightforward manner. They operate in two ways, either by selling bitcoins or buying bitcoins. To buy bitcoins, the user inserts cash or a debit/credit card, and the Bitcoin ATM will scan their bitcoin wallet's QR code to deposit the bitcoins. To sell bitcoins, the user sends bitcoins to the Bitcoin ATM's provided wallet address. The machine will then dispense the equivalent amount of cash. To ensure the transaction is secure, Bitcoin ATMs require verification of identity, such as a phone number, ID card, or palm print. However, Bitcoin ATMs have higher transaction fees compared to traditional exchanges, which can vary from 5% to 10%. Additionally, Bitcoin ATMs provide a convenient and accessible way to buy or sell bitcoins without having to go through traditional exchanges, especially for those without access to online exchanges or bank transfers.
Figure 01: How to Buy Bitcoin from Bitcoin ATM
Here are the steps to buy Bitcoin from a Bitcoin ATM:
It's important to note that different Bitcoin ATMs may have varying procedures, so it's best to read the instructions carefully before making any transactions. Additionally, Bitcoin ATMs may have higher transaction fees than traditional exchanges, so users should be aware of these costs before using them.
Figure 02: Pros and Cons of Bitcoin ATM
Bitcoin ATMs offer several advantages and disadvantages, including:
Overall, Bitcoin ATMs offer a quick and convenient way to buy or sell bitcoins, but users should weigh the pros and cons before making any transactions.
As with any financial transaction, users must be aware of potential scams when using Bitcoin ATMs. Common scams include the use of fake Bitcoin ATMs or phishing attempts to steal users' personal information. Scammers may also trick users into sending bitcoins to a fake wallet address or promise to sell bitcoins at a lower price to lure victims into providing their personal information or sending funds. To avoid Bitcoin ATM scams, users should verify the authenticity of the machine and the company behind it, double-check wallet addresses, and be cautious of unsolicited offers. It's also recommended to use Bitcoin ATMs located in secure and public places and to avoid using machines with suspicious or unfamiliar-looking interfaces.