As more and more people get into crypto investing and learn about the benefit of coins like Bitcoin, they are starting to lose faith in fiat currency. After all, even strong currencies like the US dollar and the Euro are losing value every single year.
So holding onto your dollars, or sticking them into a savings account, is a surefire way to limit your wealth potential since you are essentially flushing 3% to 5% of your money down the drain each year. Thanks, inflation.
Smart investors are holding their wealth in assets like Bitcoin and using methods like Bitcoin ATMs to withdraw cash whenever they need it. That way, they get the benefit of an appreciating asset, yet the instantaneous flexibility of liquidity.
So how do these Bitcoin ATMs work, and how can you use them to get cash when you need it? Read on below to learn how to use Bitcoin ATM machines to only get fiat when you need it.
Why use Bitcoin ATMs?
Most people who buy and sell crypto do so online. They choose an online crypto exchange, link their bank, and despite cash that they can then purchase various coins.
It’s a convenient method of investing that gives you access to the widest range of coins. But the downside of using an online exchange is having to link your bank account.
Sharing banking credentials with other websites, regardless of how secure they are, isn’t the best thing to do. But when buying on an exchange, the only free way to deposit funds is by linking your account.
You can use a debit or credit card, but you’re going to rack up heavy fees pretty quick.
A better way to obtain Bitcoin for cheap is by visiting Bitcoin ATM locations. You can deposit cash and get Bitcoin immediately. No bank accounts are required.
There are also no transfer delays, as there often are when sending funds to an online exchange. Simply insert cash and get Bitcoin instantly. Then send it to your personal wallet.
Any way that you buy or sell cryptocurrency will incur fees. This is just the price to pay for recording transactions on the blockchain. So whether you use an online exchange or an ATM, you’ll pay a small fee either way. If there are multiple Bitcoin ATMs in your area, compare fees before visiting one.
Do Bitcoin ATMs provide cash?
So you can actually sell Bitcoin using an ATM, or is it just for purchasing?
If you choose the right Bitcoin ATM, you can purchase and sell Bitcoin with ease. Certain ATMs don’t allow you to sell, but many of the reliable ones will. And not only Bitcoin, but some ATMs let you buy and sell Ether, DogeCoin, Bitcoin Cash, and others.
Most ATMs have pretty high limits when it comes to how much you can deposit or withdraw on a given day. But most Bitcoin ATMs only deal with cash. That means no debit card or credit card purchases.
This makes the machines simple and safe to use, as there is less risk of fraud and no risk of chargebacks.
Finding a Bitcoin ATM near you
Wondering where the nearest Bitcoin ATM is? You can head over to https://www.bytefederal.com/ to find ATMs from the most reliable and expansive network of Bitcoin ATMs in the country.
With over 1,000 locations nationwide, there’s a good chance there is one by you. They are frequently located at gas stations, grocery stores, liquor stores, restaurants, and other places you probably visit multiple times per week. This makes it easy to stop by frequently, whenever you need to deposit or withdraw.
Byte Federal has a daily limit of $21,000 when it comes to buying crypto with cash and withdrawing cash for crypto. And if you run into any issues or have any questions, the Byte Federal Support team is easy to reach while using the machine.
And some Byte Federal ATMs even allow you to make a purchase using a debit or credit card, too.
What you need to use a Bitcoin ATM
Yes, you can sell Bitcoin for cash using an ATM even if you’ve never used an ATM to make a purchase. It doesn’t make a difference where you got your Bitcoin.
All you need to do is send the amount you want to cash out to the ATM in order to make a withdrawal. And while it’s a simple process, there are a few things you’re going to need to use an ATM.
Of course, you’ll need some Bitcoin sitting in a wallet that you own. And it’s easiest if you have a smartphone with you while using the ATM.
Bring your picture ID, as ATMs operate just like an online crypto exchange, where you’ll need to complete KYC (Know Your Customer) in order to create an account. This helps keep the crypto sphere safe and secure, helping to prevent theft and illicit activity with funds.
Yes, it’s a bit annoying, but it’s worth it in the end.
Bitcoin ATM: How to use it?
When you walk up to a Bitcoin ATM for the first time, you need to create an account. It’s easy and quick. Just follow the steps on the screen to get your account set up and verified right away.
You’ll need to provide your photo ID for verification purposes.
If you are buying Bitcoin, you’ll specify how much you want to buy and then insert your cash. You’ll want to have your receiving wallet address ready so you can send your newly purchased Bitcoin to your wallet.
This is easiest with a smartphone because you can display a QR code for your receiving wallet. You can also bring a paper wallet to scan.
Likewise, if you’re selling Bitcoin, you’ll want to have the address of your personal wallet ready to go so you can direct the funds to the ATM.
Buying Bitcoin is faster since the funds will be stored digitally once the network confirmations clear to finalize your transaction. You won’t need to wait around.
But when selling Bitcoin for cash, you won’t get the cash until the network confirmations are complete. This is unrelated to the ATM, as it’s the result of using a blockchain. Depending on the time of day, this can take up to 30 minutes.
It’s best to choose a location where you plan on doing some shopping, such as a grocery store.
Other features of Bitcoin ATMs
Buying and selling your own Bitcoin isn’t the only thing you can do with a crypto ATM. Of course, you can buy and sell a number of other cryptocurrencies, as well.
You can also buy crypto and send some of it to others. If you want a convenient, affordable way to send funds to friends and family, using an ATM to do it makes sense. It’s similar to using an app like Paypal or Venmo.
And if you need to get someone a gift at the last minute, you can use cash to buy digital gift cards at many crypto ATMs.
Slippage and Fees
When buying cryptocurrency online or offline, you need to be aware of slippage. Because the price is fluctuating constantly throughout the day, you’ll notice the price change from one minute to the next.
Most of the time, these jumps are small and unnoticeable for most people. But sometimes, jumps can be pretty big. When using an ATM to buy or sell Bitcoin, you’ll receive a quoted price.
If you finish your transaction within a set timeframe, you’ll get very close to this quoted price. But if you take too long, or have to start a new transaction, you may get a completely different price. This is just the nature of crypto. It’s highly volatile but can create many opportunities for buying and selling.
Along with slippage, your ATM should give you an exact cost of the fees you are going to pay, and what they are for. There is the transaction fee and the fees for using an ATM, just like any ATM would charge.
When viewing your quote, ensure the fees are reasonable. If not, visit a different brand’s ATM.
Staying Safe at a Bitcoin ATM
Using an ATM, whether crypto-based or bank-based, you need to be safe. If anyone approaches you while using a Bitcoin ATM and asks you to send them anything, do not do it.
Many cases of fraud and theft occur when strangers request funds for any reason, even if their story sounds legitimate. Kindly decline and finish your transaction, or leave and try again another time.
The last thing you want to do is risk your crypto wallet address, as this can put all of your investments at risk.
ATMs are Still Relevant
Even though Bitcoin and other cryptocurrencies are the ultimate digital currency, there is still a time and a place for something as old school as an ATM. Bitcoin ATMs allow those who receive cash on a regular basis, or who need cash for various reasons, to easily access it while investing in crypto.
Depositing and withdrawing cash is simple and easy to do. And once you have an account at your favorite ATM, it becomes even faster.
Looking for more crypto tips? Head over to our blog now to keep reading.
