The Supreme Court of India ordered the RBI to lift the ban on cryptocurrencies. With that, there is renewed interest in digital currencies like Bitcoin. If you are new to this world of virtual money and are interested to know how to invest in it, there are many things to know, and Bitcoin ATM is one of them. Read below to get to know more about it:
What is a Bitcoin ATM?
The Bitcoin ATM is similar to the ATMs that you often use to withdraw cash and is called BATM.
Though the BATM operates like an ATM there are a few differences. The major difference between BATM and ATM is that there is no debit card used to access the account.
In a traditional ATM, a debit card is used to withdraw or deposit cash. In a BATM, instead of a debit card, a government-issued ID card has to be scanned, and your valid phone number has to be provided to make transactions. After the Bitcoin ATM scans and verifies it, the funds can be transferred to/from the Bitcoin address. Buy Bitcoin in India at the best rate.
When the government ID is scanned, the kiosk connects the user to the exchange through which the account is created and then buy/sell can be executed.
A text is sent to the verified phone number, and the Bitcoin address is provided where the user can deposit the funds. Like the traditional ATM, you can insert cash bills into the kiosk. This money will then get converted to an equivalent value of Bitcoins and added to the digital wallet.
To buy Bitcoins, the user has to deposit the FIAT money into the Kiosk, and once the transaction is confirmed, the BTC gets transferred to the address provided.
Types of Bitcoin ATMs
There are many types of Bitcoin ATMs, but the common ones are the ones that have both buy and sell options and the one with only buy function.
The usage of the ATM to buy or sell ATM varies according to the exchange you use. Some providers only have Bitcoins stock supply, while others can connect to an online exchange. The transaction time needed will depend on the method used to provide funds.
BATM providers insist that the KYC (Know your customer) is completed before they allow you to make transactions. There are very few providers who allow withdrawals or deposits anonymously. A fingerprint scan or an ID may be required by the provider.
How to Find a BATM?
Bitcoin ATMs have become extremely popular, and hence it is available in many locations. There are a few ways using which you can find a Bitcoin kiosk. You can use websites that show Bitcoin ATMs based on your current location, or you can use the search bar in coin exchange sites to find the closest location and even get directions through Google Maps.
Is Bitcoins ATM legal?
The use of Bitcoins ATM in India is legal after the RBI lifted the ban on cryptocurrency. But there are many regulations like one can only buy/sell them, but the machines cannot give out FIAT currencies. The other regulations are that the KYC has to be done and the customer has to provide a government ID, the operators have to register as a money service business.
That helps in preventing financial crimes like money laundering and also provides extra security so that there is no unauthorized access to your account.
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How to ensure Bitcoin ATM safety?
The safety of the ATM varies based on the provider that is operating the kiosks. Look for companies that prioritize the safety of the customer. The provider has to take appropriate steps to ensure the account remains safe. The machines have to be safe and secure and provide users with a good experience. The support and service team have to be readily available in case of any issues, and the kiosk locations have to be safe too.
Bitcoin ATM Fees and Limit
Bitcoin ATMs are a great way to buy/sell BTC quickly and effectively. But it comes with a cost which varies between 7 and 15%. Some ATM also has imposed a limit on the deposit. Check before you make any transactions.
Now that you know what a Bitcoin ATM is and everything related to it. Using this, you are now ready to make your first transaction!
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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