Bitcoin News in Nigeria

What are Bitcoin ATMs? How Does It Work?

Bitcoin ATMs are one of the technological inventions that come with the creation of cryptocurrencies.

On October 29, 2013, the first Bitcoin ATM called ‘Robocoin machine’ was installed in Vancouver, Canada. Since then, many of these cryptocurrency machines have been installed and used in different parts of the world.

Recently, it was reported that Uruguay installed its first cryptocurrency ATM. This makes the South American nation one of the several countries where crypto ATMs can be found.

The Bitcoin ATM works like the traditional ATMs which allow users to make use of their debit/credit cards for transactions.

In this post, we’ll learn about the Bitcoin ATM and how it works.

Bitcoin ATMs
Bitcoin ATMs

What are Bitcoin ATMs?

Bitcoin ATMs (Automated Teller Machines) are kiosks that allow a person to purchase Bitcoin and other cryptocurrencies by using cash or debit card. The Bitcoin cash kiosk looks like traditional ATMs but do not connect to a bank account.

Some of these Bitcoin ATMs enable both the purchase of BTC as well as the sale of BTC for cash. These are known as ‘bi-directional BTC machine’ while some only enable one of the possible functions of the ATM and are called ‘uni-directional (one way) BTC machine.

How does the Bitcoin ATM work?

The Bitcoin ATM can be used only if you’ve an existing account to transact on the machine. The Bitcoin ATM providers such as Coinhub require users have an account.

The machine works by connecting to the internet, which allows for cash purchase and or sale of Bitcoin. Some of the ATM makes use of paper receipts while other move money to a public key on the blockchain.

The cryptocurrency ATM doesn’t connect to a bank account just as the case with traditional ATMs. It connects the user directly to a Bitcoin wallet or exchange.

The crypto ATM allows users to buy or sell cryptocurrencies only when you have an account with an exchange or with your digital wallet.

It is important to know that some Bitcoin ATMs are traditional ATMs with revamped software, they do not require a bank or debit card.

Also Read: What To Look Out For In Crypto Projects’ White Paper

Stay with Prestmit for the latest Bitcoin news, the ups and downs in the world of BTC, Bitcoin rates updates E.T.C. If you ever find yourself in a position to Sell BITCOINS in Nigeria or Ghana, Visit Prestmit, it’s the best platform for you.