Bitcoin ATMs have made buying and transacting cryptocurrencies easier. What was once considered complicated for the “technologically challenged” or “technologically inexperienced” has been transformed into an intuitive and convenient process, thanks to Bitcoin ATMs. However, it still requires some basic understanding of cryptocurrencies, digital wallets, and cybersecurity.
Below is a step-by-step guide on how to use a digital wallet at an ATM, along with some important tips.
Step 1: Choose the Right Digital Wallet
Unlike cash, which you can physically carry, cryptocurrencies must be stored digitally. The choice of the digital wallet is essential as it determines the security, convenience, and accessibility of the assets. Popular options include:
- Online wallets: These are hosted on a third-party server, so they are vulnerable to cyberattacks. The upside is that online wallets are user-friendly and accessible from any connected device.
- Desktop wallets: These wallets are downloadable and can then be installed on a computer. They offer higher levels of control and security but require regular backups and updates.
- Hardware wallets: These physical devices store cryptocurrency offline. They provide the most robust level of security but can be costly.
Step 2: Locate a Bitcoin ATM near You
There are still fewer Bitcoin ATMs than traditional ATMs, primarily due to licensing and regulatory issues. However, they’re still available in most major cities and continue to pop up as cryptocurrencies become popular.
Bitcoin ATM providers offer different features and fees. Some may only support Bitcoin, while others can be used for a wider variety of cryptocurrencies. They also have varying fees and limits on transactions without Know Your Customer (KYC) verification.
Transactions with Bitcoin ATM providers are registered with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and compliant with all regulations, including KYC and Anti-Money Laundering (AML). In addition, Bitcoin ATM providers should offer:
- Competitive fees
- A seamless user experience
- Round-the-clock service and customer support
- Adequate security measures
- A high buying limit without an ID
Step 3: Initiating the Transaction
With your digital wallet and cash or credit/debit card, head to the Bitcoin ATM of your choice to exchange your money for digital assets or vice versa. The process entails the following steps:
- Pick the transaction type: buy or sell.
- Specify the amount of Bitcoin you wish to transact. Some providers offer preset denominations, such as $20, $50, or $100. Others, such as CoinMover, are more flexible as they allow users to enter the exact amount.
- The ATM will prompt you to enter the address where you want to receive the purchased Bitcoin. You can do this manually or by opening your wallet app on your smartphone and scanning the QR code displayed on the Bitcoin ATMs screen.
- Once the ATM verifies your address, it will prompt you to insert the cash or card.
Step 4: Confirming the Transaction
If the wallet address entry was via QR code scanning, the machine displays the address as extracted. Verify it is correct by checking against the one in your wallet. This step is important as there’s no central authority to reverse or cancel transactions once they are broadcast to the Bitcoin network.
Providing the wrong address can lead to validation failure in a benign case where the address is non-existent, or you may lose your funds if the address belongs to someone else. You’ll also have a chance to review the transaction details — amount and fees — before proceeding to confirmation.
Step 5: Completing the Transaction
Depending on the transaction amount, ATM provider, and local regulations, users may be required to verify their identities before completing the transaction. This usually varies, depending on the provider or local regulations, but may involve:
- Providing a phone number for receiving a verification code
- Scanning a government-issued ID
- Providing biometric data
Upon confirming the wallet address and transaction details, the ATM will finalize the transaction. The digital assets will be deposited in the provided wallet, and you’ll get a confirmation receipt. You can also check the confirmation status on the Bitcoin network using the transaction ID on the receipt.
Tips on How to Use a Digital Wallet at a Bitcoin ATM
Below are additional tips to keep in mind when using a digital wallet at a Bitcoin ATM as well as for general use:
- Be aware of the current exchange rate, as cryptocurrencies are highly volatile and can fluctuate significantly within a short period.
- Only use a trusted and secure digital wallet.
- Keep your private keys secure using cold storage, multi-factor authentication, or encrypted storage devices.
- Always keep your software up-to-date.
- Heed to basic cybersecurity practices, such as avoiding public Wi-Fi networks, not sharing your private keys with anyone, and using strong passwords.
Use CoinMover’s ATMs to Buy and Sell Bitcoin Conveniently
CoinMover has a network of secure and reliable Bitcoin ATMs across the United States. Its ATMs are registered with FinCEN, and its services comply with KYC and AML regulations.
CoinMover offers 24/7 customer service and support, competitive fees, and the largest buying limits without ID verification. Find a CoinMover Bitcoin ATM near you to join the digital currency revolution.