Whenever a product takes off and creates a lot of demand and following, many other supporting industries pop up all around it. This happens in every industry and for almost every product.

For the cryptocurrency industry, Bitcoin ATMs are one such thing to have popped up. If you've never heard of them before, you might be wondering how an ATM can even deal in crypto and where you can see one. Focusing on the latter - where you can see one - the Paydepot ATMs location service should be very helpful in finding the nearest machine to you. However, if you want to know how this machine works, the answer will be a bit longer.

This article will tell you everything you need to know about crypto ATMs and how they work.

What Is a Bitcoin ATM?

A Bitcoin ATM functions like any other ATM. Normally, you do transactions in your traditional currencies. With a Bitcoin ATM, you will have the option of buying and selling Bitcoin with cash instead. 

If you gaze upon the machine, you will see a monitor, a currency acceptor and dispenser, and a QR scanner. All this held together by software that makes all your transactions secure and quick.

The other main difference from a traditional ATM is that they are not connected to a bank. This makes sense because cryptos don't have banks - they are decentralized. Instead, Bitcoin ATMs are connected to a crypto exchange on the internet. Using the ATM, you can connect directly to this exchange and do all your transactions.

The first of these ATMs were set up in Vancouver, Canada, all the way back in 2013. It could be found in the Waves coffee shop but is no longer there anymore. However, this one is the predecessor of all the Bitcoin ATMs in the world right now, making it a very important landmark in the realm of Bitcoin ATMs.

How Do Bitcoin ATMs Work?

If you want to use a Bitcoin ATM but have never done so before, don't worry. To take away your fear of breaking this sophisticated machine, we have presented you with three easy steps to follow if you want to use a Bitcoin ATM:

1. Firstly, you need to verify your identity. If you are using a particular machine for the first time, this is an absolute necessity. Now, different machines go about this in different ways. Some machines might require you to enter your mobile number or email address and then send you a verification code, which you must enter into the machine. This will verify who you are, and then you will be allowed to proceed with your transaction.

2. Once you are verified in the system, you can go ahead with your transaction. Now, if you choose to buy crypto, you will have to feed cash into the machine. This will generate a QR code from your e-wallet and then send it to your mobile phone. Once you scan this, the Bitcoin is transferred to your account.

3. If you want to sell Bitcoin instead, select the option to do so. The machine will generate a QR code, and you will have to send the crypto to the destination by scanning this code.  Depending on the machine, it will take a few seconds to a minute or two to send out the money for you to take. That will complete the transaction.

Now that you know how it works, you might be thinking about why you should be using this technology. We answer that question in the next section.

The Advantages of Using a Crypto ATM

There are many reasons for you to use a Bitcoin ATM, or BTM. Some of these are:

Convenience

The speed with which a BTM handles and completes your transactions is leagues above that of an internet-based exchange. Most transactions are completed instantly. This makes things far easier for you - the operation of the machine and the results thus achieved through it are extremely convenient and easy.

Support

Bitcoin is still a new-ish technology, with Bitcoin ATMs being even more so. In this instance, you are most likely to receive good quality and rapid support in case you run into any problems using the technology. The makers of it want it to work and grow, so you can be assured of always getting a helping hand.

Privacy

While a BTM requires you to verify your identity, you can be assured that your data will never be revealed. The entire industry of cryptocurrency is, was, and always has valued anonymity. This extends to the Bitcoin ATMs too.

Security

Bitcoin ATMs are designed to work with a wide variety of e-wallets. This means that the system is equipped to handle a lot of different kinds of security and work well with them. No matter what, your transactions and assets will always be protected.

Reputation

BTMs have been around for a few years, and they have been very popular and successful in that time. It is enough to build up a lot of trust among loyal and new customers and users, making it indispensable.

Conclusion

Now that you know everything there is to know about crypto ATMs, you should have no problems finding and using one. Enjoy the convenience and security they provide and get used to it - this is the future!