Learn How to Use a Bitcoin ATM With Punt Casino’s Guide to the World of Bitcoin Machines

What is a Bitcoin ATM? Well, Bitcoin Automated Teller Machines (ATMs) enable users to convert cash into BTC, and vice versa. With over 38,000 Bitcoin machines worldwide, it’s likely you’ll encounter a Bitcoin ATM at some point during your cryptocurrency journey. 

Therefore, it’s important to familiarize yourself with how to use a Bitcoin ATM, how it works, and if it’s something that you would find useful. We’re about to answer the question “what is a Bitcoin machine”, take a brief look at how it works, and even give you a step-by-step guide on how to use a Bitcoin machine, so let’s make a quick withdrawal from Punt Casino’s bank of knowledge.

What is a Bitcoin ATM or a Bitcoin Machine?

A Bitcoin ATM is an Automated Teller Machine such as the one offered by traditional banks, differing from conventional ATMs in the sense that it facilitates crypto-fiat-crypto transactions. Just like an ordinary bank ATM connects you to your bank account, a BTC machine links to your Bitcoin wallet.

You see? You can’t even tell the difference between a Bitcoin ATM and a regular one. Introduced in 2013, the first Bitcoin machine was located in Canada, and the second pioneering Bitcoin ATM appeared in Europe the same year. However, it wasn’t until early 2014 when a BTC machine operated from the United States. 

Since the introduction of the first Bitcoin machine, their existence in some jurisdictions has certainly faced a few regulatory hurdles. Most Bitcoin ATMs operate under the same laws as legacy bank ATMs, and as such, there are varying limits as to how much you can transact within 24 hours.

The United States accounts for over 80 percent of all BTC machines in operation worldwide (look at you, USA!), followed by Europe. Also note that the bulk of the ATMs out there are located in highly populated cities, with some bigger cities, such as New York and London, having stacks of them. 

Here’s an example of a Bitcoin ATM at a gas station in New York – “Bitcoin or Cheetos, anyone?”

BTC machines hinge their popularity on ease of use, convenience, and security. Popular web resources such as CoinATMradar offer a “find Bitcoin ATM near me” feature that helps locate an ATM closest to you – wouldn’t that be a great feature for finding jackpot games that are about to pay out? 

How Do Bitcoin ATMs Work?

In most cases, a Bitcoin ATM user needs to have an active BTC wallet to access the machine’s services. How BTC machines work depends on whether they are “unidirectional” or “bidirectional” – unidirectional Bitcoin ATMs handle either the selling or buying of Bitcoin, while bidirectional machines support both buying and selling.

Whether bidirectional or unidirectional, these machines require an active internet connection for them to successfully facilitate transactions as they need to send BTC to the provided Bitcoin wallet. 

Since Bitcoin wallet addresses are made up of a complex alphanumeric phrase, Bitcoin machines prompt a user to enter their wallet address through a QR code tied to their wallet address. 

A successful transaction registers on a user’s wallet almost immediately. Oh, and if you haven’t done it yet, you should also learn how to create a crypto wallet – it will certainly come in handy when you’re ready to start punting for payouts in our top crypto games at Punt.

How to use a Bitcoin ATM

Below we will look at the typical steps needed to buy and sell Bitcoin using a Bitcoin ATM. Pay attention now, it might just change your life – or change your cash into crypto – whichever comes first.

How to buy Bitcoin with cash using a BTC machine

Before you buy bitcoin on a Bitcoin ATM, you will need to have a Bitcoin wallet on your phone to receive the coins (we’ve already helped with that part). The first thing you need is to select the ‘Buy Bitcoin’ option and agree to the terms of service – the usual stuff.

Then, provide your mobile phone number, which is required for identity verification purposes. The ATM will then send a verification code to the mobile number provided. Successfully re-entering the code takes you on to the next step.

You will then be asked to scan your wallet QR code. The current breed of Bitcoin ATMs supports a wide range of crypto wallets, so any popular wallet should do just fine. After scanning your BTC wallet’s QR code, it’s time to insert your cash into the designated slot – “bye-bye paper, hello crypto!”

The machine will count your cash (accurately, we might add) and let you know how much BTC you’ll be getting based on the fiat inserted. But make sure you know the transaction and processing fees before you accept, just to be safe.

If you are happy with what is indicated, hit the confirm option to close the transaction. You’ll need to select the “Done” option for the machine to print a receipt. The purchased Bitcoin is then delivered to the BTC wallet address provided – voila. 

Please note that the time it takes for the new BTC to land in your wallet depends on the amount of traffic on the Bitcoin blockchain. Increased traffic can lead to congestion, meaning that you’ll wait longer for your coins to arrive in your wallet. 

Usually, it takes less than an hour for the coins to arrive, but don’t panic if it’s not there within the first five minutes – as long as you’ve scanned the QR code to your Bitcoin wallet, they will get there.

How to use a Bitcoin machine to sell bitcoin

The process of converting your BTC to fiat starts with selecting the ‘Sell’ option on the machine. This allows you to connect your wallet by, again, scanning its QR code. There’s also the option to manually input the address, but this is inadvisable due to the danger of getting it wrong when typing it in. 

Next, verify your identity. This can be done by providing a mobile number, taking a photo, registering your fingerprint, or scanning a government-issued document such as a driver’s license.

You will then need to select the amount of BTC you wish to sell before the machine dispenses an equivalent amount in cash. Note that some ATMs dispense the amount immediately while others wait for the BTC transaction to be confirmed on the blockchain before you can receive your fiat. So again, don’t panic. The final step is for you to print a receipt, and you’re done.

Risks of using a Bitcoin ATM

Whether you are reading this because you want to know how to use a Bitcoin ATM with cash, how to buy Bitcoin from an ATM, or just how to use a Bitcoin machine, it’s important to be aware of the risks.

👆No, not this time. Bitcoin ATMs are fairly easy to use once you know the basics, but, as we mentioned earlier, there are transaction fees and processing fees to think about. This might mean that converting small amounts of cash into BTC may not be worth it.

Also, Bitcoin cash machines have in the past been subjected to hacks, with criminals compromising both the software and the hardware to steal the bitcoin bought. However, this very rarely happens nowadays, but if anything looks fishy, don’t use that machine.

Conclusion

Given that there are different makes and models of Bitcoin machines, some of the steps when buying or selling bitcoin using a Bitcoin ATM may differ, depending on the machine you are using. 

However, the concept of how to use a Bitcoin machine is straightforward – just remember that Bitcoin transactions are irreversible, so double-check your wallet details before you commit. We hope you found this guide on how to use a Bitcoin ATM useful, and don’t forget to check out our other articles about using BTC and other cryptos on our blog – it’s there for YOU.

Jordan Huxley

Born on a blockchain with “HODL” as a middle name, the crypto-savvy Jordan Huxley guides our readers through the digital world of crypto with insightful guides and informative content, unveiling the power of crypto in his own, unique way. Get the latest updates on blockchain-related tech, advancements, news, and events with Jordan and our team of crypto gambling gurus on the Punt Casino Blog.