Did you know that the first Bitcoin ATM was placed in Vancouver, Canada? Nowadays, Bitcoin ATMs are becoming more worldwide known and accepted. Are you familiar with how to use a Bitcoin ATM locator?
If not, you’re in the right place. We have put together this guide to share our top tips for using a locator to find Bitcoin ATM locations. Read on to learn more.
1. Finding a Bitcoin ATM
When you are looking for the nearest Bitcoin ATM, you can use a reputable website such as Byte Federal and click “Find ATM Location.” This will bring you to a screen where you can enter in your address and it will locate the nearest Bitcoin ATM.
2. Gather What You Need
Before you take your trip to the local Bitcoin ATM, you want to gather everything you need in advance so that you don’t waste your time. One major thing to do before you go is set up a Bitcoin wallet and have it downloaded on your mobile device.
After you create your wallet, make sure you back it up before going to the ATM to buy your coins. This will save you time when you go to the Bitcoin ATM because you won’t have to also create a wallet while you’re there (saving you a step at the ATM).
There are many Bitcoin wallet options available, but a popular one is Bitcoin.com Wallet.
3. Using the ATM
Once you have your wallet downloaded and backed up, it’s time to use the Bitcoin ATM. When you arrive at the ATM, you will tap on the screen that you want to buy coins. Keep in mind that the wording might be slightly different depending on the machine, but the goal is to choose the option to buy and not sell.
After you select the buying option, then you will have to enter how much you want to buy. Most of the time, you will be asked to enter your mobile phone number so that they can send you a text for verification purposes. Once you verify, then the ATM will ask where you want your Bitcoin to be sent.
Here is where you will use the Bitcoin wallet receiving address from the wallet you created before coming to the ATM. If you are using the Bitcoin.com Wallet, tap the “Receive” button on the top left, and it will generate a new address for you.
You can use the QR code version of the wallet to avoid typing in a wrong digit. All you have to do is hold the QR code up to the Bitcoin ATM so that it can scan it. This lets the ATM know where it is sending your Bitcoin once you add your cash to the machine.
Once the wallet is scanned, it will have you confirm that the address is correct. Always triple-check and check again to make sure it is 100% correct before moving forward. If your money accidentally goes to the wrong address, there is no way to retrieve it.
Next, you will insert the cash into the machine to buy your Bitcoin. Pay attention to the minimum and maximum amounts the machine allows you to deposit. Also, although Bitcoin, as of the writing of this post, is costing around $19,000; you do not have to buy an entire coin, you can just buy a piece of the coin with as much or as little cash as you want.
After you insert your cash, the total amount of Bitcoin you are purchasing will appear on the screen.
If everything looks good, you can finish the process and the machine will print out a receipt showing you the transaction details. Shortly after (almost instantly) you will receive your Bitcoin in your digital wallet. It should not take longer than a few minutes.
4. Fees
Every time you use a Bitcoin ATM to buy Bitcoin or other coins the machine allows, there will be a fee you will also have to pay. The fees tend to be a lot higher than traditional withdrawal fees from traditional ATMs.
Instead of being a flat dollar amount, the fees are usually a percentage of your transaction. The percentage will vary based on the machine, but it can be anywhere from 8% to more than 25%. You might want to shop around if you want to pay the lowest possible fee.
The Future of Bitcoin ATMs
Although for the most part you can only use cash to buy coins at Bitcoin ATMs, there has been a movement to try to make these ATMs more like traditional banking ATMs.
Because of the high profits that ATM operators and owners can make when they own a Bitcoin ATM, it is highly likely that we will continue seeing these machine locations expand. Hopefully, the rise in locations will also make the fees more competitive and lower for the public.
Challenges of Running a Bitcoin ATM
If you are considering placing an ATM in your place of business to make a little extra money, it is important to be aware of the challenges that come with it. These are the most common risks:
Cyberattack Risk
In the event that a hacker creates a mirror attack on your machine, you can lose funds. In some extreme cases, the hacker can even make it so that you lose your ATM business.
Mirror attacks happen when someone’s transaction to and from the exchange is tracked and then re-created (like a mirror) to take more money out.
Exchange Rate
When you run a Bitcoin ATM, you have to monitor your exchange rate to avoid losing money. In order to continue having a profitable side business, you will always have to stay on top of the exchange rate. The reason is that Bitcoin and all the other cryptocurrencies fluctuate in price, and they are highly volatile.
If you do not correct the exchange rate then as the prices rise or fall, as the operator of the Bitcoin ATM, you will be responsible for paying the difference.
Physical Damage
One con is that your ATM can be stolen by those in need if you are not prepared. You want to make sure that you have the right security in place to avoid this from happening. Have cameras recording at all times, and try to choose a location that turns away robbers from moving forward with the plan to either rob the entire machine or physically damage it to take the cash out.
Criteria for ATM Placement
When you use a physical Bitcoin ATM, you need to place it where people will see it and want to use it. The entire performance of your machine, and how much money you make, will all depend on the ability to attract users.
You want to make sure you select a location that is convenient to people to either walk to or drive up to. Look for areas that have a high population and a lot of foot traffic. This is the same method that traditional banks use when they are deciding on where to place their ATMs.
Something else you want to keep in mind is the support that you offer. New customers are going to be a bit leery and worried about inserting their cash into fairly new technology. Make sure you offer a phone number or way to support customers that walk up to your ATM.
Last but not least, take into consideration the speed of accessing the ATM. You want to choose a spot that allows people fast access. If you’re in an area that most people drive in, then it’s a smart move to offer a location where someone can simply drive up to the machine and not have to get out of their car.
Ready to Use a Bitcoin ATM Locator?
Now that you have our top tips on using a Bitcoin ATM locator and how to buy crypto, you can apply what you learned and go use an ATM in the near future. Buying crypto at an ATM allows you to pay for your coins with cash instead of doing a wire transfer via an online exchange.
Please always keep in mind that investing in cryptocurrencies comes with a high risk because of its high volatility. With this in mind, you never want to invest more than you can afford to lose.
Did our guide help you out today? Please continue browsing our cryptocurrency section to stay up to date about everything in the crypto world.
