A bitcoin ATM is a kiosk that allows users to buy and occasionally, sell bitcoins for cash. These ATMs are not the same as the ones that receive support from banks or other traditional financial institutions. These Bitcoin ATMs are often more expensive than trading online as the infrastructure is costlier.
— Dustin M. Jackson (@CaymanPirate) October 12, 2018
One thing to keep in mind when using ATM is bitcoin price! First, the user would need to scan their identification in order for the ATM to validate it. The user will then feed the machine some cash, and generate a QR code from their wallet. Next, the user will send their amount of bitcoins to the presented address. ATMs will either generate a paper wallet or a digital one.
Essentially, a Bitcoin ATM is a tool that transmits money. As such, any businesses that come under FinCEN rulings will have to comply with Know Your Client (KYC) and Anti Money Laundering (AML) procedures. In order to register for the money transmitter status, Bitcoin ATM owners will have to pay large amounts, meaning they will have to knock up the fees to compensate.
This process can take seconds to process, making Bitcoin ATMs of the fastest platforms to transact in bitcoin.
Continue reading to understand the price of bitcoin when using an ATM. Transaction fees are commonly in the range of around 5% with highs of 7%. Bitcoin ATMs generate price quotes live from large cryptocurrency exchanges worldwide. Bitcoin ATM owners will often manage their cash and Bitcoin exposure by maintaining a balance between the inputs and outputs through live trading with an exchange. As a result, holding too much bitcoin without hedging can open them up to the possibility of large losses.
Bitcoin ATMs commonly set upper and lower limits to the number of funds you are able to deposit. As the upper limit may be lower than the price of a single bitcoin, customers are given the option to purchase a fraction of a bitcoin. Once a purchase is made, the bitcoin will appear in the customer’s e-wallet. Also, this process can take seconds to process, making this one of the fastest ways to transact in bitcoin.
Even though many Bitcoin users are enthusiasts and even aficionados, there are practical uses that may have helped in the global spread of Bitcoin ATMs. A well-known use is for any travellers facing high fees at traditional bureau de changes is to buy bitcoin before the flight, and sell it after. Despite this, with fees ranging from 5 – 7 % this can be a risky decision when the market is volatile.
If you are not convinced and prefer an ATM to bitcoin exchanges, you can read our article about Buy Bitcoin with Paypal for another way to get bitcoin for Rand.
There have been many reports and we have been around long enough to remember the first bitcoin ATM in South Africa
The way we exchange and transact bitcoins changed once Bitcoin ATM’s surfaced. This is because it compliments the decentralized nature of cryptocurrencies. Now, anyone is able to visit their local Bitcoin ATM and buy or sell bitcoins with ease. These machines are secure and very user-friendly, coming with a screen that clearly instructs users on how to operate it. It may be important to note that most Bitcoin ATMs only run during business hours. So unless you have a 24hr store near you operating one, it may be wise to plan your day and make sure your nearest Bitcoin ATM is operating when you need it.
What is the best way for you to exchange your bitcoins? Have to tried a bitcoin ATM? Would you try if you have a chance? Leave us your comments about bitcoin ATMs below!
This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.