Once a product is created in any booming industry, thousands of ancillary businesses begin popping up to support that industry.
This is no different in the world of cryptocurrency — from digital wallets and exchanges to media sites and influencers, Bitcoin and other cryptocurrencies have taken the business world by storm. However, one of the most interesting developments to come out of this craze is the Bitcoin ATM.
Like traditional ATMs, a Bitcoin ATM is a portal through which users can engage in a financial transaction. The difference here is that traditional ATMs allow users to withdraw and deposit cash, whereas Bitcoin ATMs allow users to buy and sell Bitcoin using cash.
A Bitcoin ATM is a standalone machine that allows users to deposit fiat currency and exchange it for Bitcoin or other cryptocurrencies. The internet-connected kiosks allow people to bypass traditional financial institutions to buy and sell cryptocurrency.
While the machines may resemble an ATM from a traditional bank, they don’t operate differently. A traditional ATM will connect to your bank account to authorize the withdrawal of cash from your account. Many Bitcoin ATMs only allow cash deposits to purchase Bitcoin or other cryptocurrencies. Newer machines may allow you to exchange Bitcoin for fiat currency and provide cash. While traditional ATMs can complete transactions in seconds, a Bitcoin ATM can take anywhere from 10 minutes to an hour to complete a transaction.
Bitcoin ATMs near Michigan are comprised of a monitor, QR scanner, bill acceptor, and dispenser. On the backend, these components are tied together via software to make Bitcoin quick, easy, and secure buying and selling.
However, Bitcoin ATMs are different from traditional ATMs because they are not connected to a bank account. Instead, they are connected directly to a cryptocurrency exchange via the Internet. These exchanges are what allow users to buy and sell Bitcoin instantly.
How Do Bitcoin ATMs Work?
Buying and selling Bitcoin using a Bitcoin ATM can be broken down into two simple steps:
Step 1: Verify your identity. When a user first comes up to a machine, they must verify their identity. This can be done in various ways depending on the machine. For example, for Bitcoin ATM near Michigan, users must input their mobile phone numbers into the machine; they will receive a verification code by text message to enter the machine. Once confirmed, users can proceed with the transaction.
Step 2: Decide to Buy or Sell. Once a user is logged into the BTM, they must decide whether or not they want to buy or sell Bitcoin. To buy Bitcoin, a user feeds cash into the machine and then generates a QR code from their cryptocurrency wallet on their mobile device, scanned to receive their purchased Bitcoin.
To sell Bitcoin, a user sends Bitcoin from their digital wallet to the QR code provided by the Bitcoin ATM. Depending on the machine, some Bitcoin ATMs will dispense cash to the user immediately, while others may take a bit of time to process the transaction. Nonetheless, these verification times are exponentially quicker than online exchanges.
All Bitcoin ATMs near Michigan allows you to use cash to buy Bitcoin and send it to a Bitcoin wallet of your choosing. And many of these kiosks also allow you to sell Bitcoin and receive cash. You can also insert cash and send it to someone else’s Bitcoin wallet or account. You need a smartphone.