Source: Medium.com

5 Mistakes to Avoid When Using a Bitcoin ATM

Cryptocurrency has been the most popular thing, thanks to Dogecoin and Bitcoin issues that have been raised over the past few months. This has gotten people very interested in Bitcoin and on digging deeper, you will find Bitcoin ATMs.

Bitcoin ATMs are not different from a normal ATM. They also release fiat currency just like a regular ATM but they are less commonly seen. This ATM allows you to convert your Bitcoin for fiat currency and the other way around. You would have to register for a Bitcoin wallet for this and you have many ways to pay for this too.

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A Bitcoin ATM is really useful. It gives anonymity to the users and bypasses all the KYC regulations that are required for any transaction. Many people often find KYC regulations a huge hassle and often feel that they violate their privacy. While KYC exists to avoid fraudulent transactions, some people tend to want to avoid all that documentation procedures.

These ATMs help you bypass all those legalities. However, some may ask you for identification if the transaction amounts are large, but they won’t be a hassle. Websites like sharecast.com give more information about Bitcoin transactions. The advantages of Bitcoin ATMs are many, provided you follow a few rules.

Bitcoin ATMs are convenient too because you don’t have to deal with any crypto exchanges. All you need is a bank account and an e-wallet like PayPal that allows you to store fiat money. Bitcoin ATMs also have hard cash accepting and dispensing options, so you can also handle cash directly. These ATMs also eliminate the need to be fluent in technology to deal in cryptocurrency.

However, there are some mistakes that can be easily made while using a Bitcoin ATM. These could be avoided, and it is important to keep them in mind when using such an ATM.

1.  Making irreversible and wrong transactions

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Dealing with cryptocurrency and making transactions can be irreversible. Hence, make sure that when you convert cash into crypto and initiate the transaction, you have verified details and you want the payment to happen.

Once Bitcoin is transferred, it is impossible to cancel the transaction. You can cancel if the transaction isn’t confirmed. So make sure your transaction is confirmed after you make one. One mistake in any of the transaction details that you had to input can make you lose your money. Hence, it is recommended for you to use QR codes.

2.  Running out of cash

This is an important step as Bitcoin ATMs charge a lot of fees. It can be upto 6 to 12 percent of the transaction amount, sometimes even going upto 15%! This is because anonymity is guaranteed so the ATM charges depend on the location and frequency of usage.

If you want to avoid this, you would have to use a Bitcoin exchange platform. It is easy to get stuck in a transaction just because you didn’t know about the fees, hence always keep a little extra.

3.  Getting stuck due to e-wallet issues

A good and stable wallet that can conduct seamless transactions is mandatory. Many people avail of e-wallets that may not process cryptocurrency transactions fast. This leads to a massive let-down while conducting Bitcoin transactions.

There is normally a QR code confirmation or registration involved when you avail of the ATM to transfer crypto seamlessly. Buying Bitcoin from the ATM allows you to transfer it from your phone e-wallet anytime you want.

4.  Going over the limit of Bitcoin ATMs

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While exchanging Bitcoin for fiat currency, keep in mind the limits of the transaction amounts. The limits are usually between $2,000 and $9,500 and this varies again. Only a limited amount is kept to prevent any thieves and this way the ATM falls out of KYC jurisdictions for conduction of large transactions.

This is often overlooked by people coming to carry out a transaction. Many people have tried to withdraw large amounts and failed. This leads to transactions getting stuck and causing hassles. Check the ATM balance before you conduct any important transactions.

5.  Finding a non-compatible Bitcoin ATM for your use

The ATMs vary a lot, as some allow only purchasing Bitcoin whereas some permit only selling and very few allow both. It is also easy to confuse the ATMs meant for Bitcoin only for other cryptocurrency ATMs that do not support Bitcoin.

This can massively waste time or create confusion, thus checking the services a particular ATM offers is very important. You can find out if a particular transaction can be performed in a Bitcoin ATM ahead of time. This can save you lots of time and you can conduct official Bitcoin transactions with no stress.

Availability of Bitcoin ATMs

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Bitcoin ATMs are very comfortable to use once you get the hang of them. You can sell or buy cryptocurrency with a lot of ease. The ATMs are still rare and found in very few places, but will increase in numbers once the demand rises. Cryptocurrency is a rising field, many people are purchasing it and soon it would be yet another effective way to conduct seamless transactions. They also offer a lot of privacy.

Right now, there are thousands of Bitcoin ATMs spread globally across more than 70 countries. These numbers will definitely see an increase over the next few years. There are efficient apps that allow you to find any Bitcoin ATMs in your radius. With the advent of many efficient wallet apps that help you conduct seamless Bitcoin transactions using ATMs, this just might be the next preferred way to deal in cryptocurrency.

Conclusion

Bitcoin ATMs have so many advantages. However, the drawbacks include high maintenance fees and limits to transaction amounts, but these make up for the ease of payments.

While Bitcoin’s popularity has gotten a bit down after Tesla’s statement about eliminating their Bitcoin transactions for the environment, it will still be strong. This cryptocurrency is the oldest and most stable crypto for ages and will remain steadfast in the near future.


Ricardo is a freelance writer specialized in politics. He is with foreignpolicyi.org from the beginning and helps it grow. Email: richardorland4[at]gmai.com