Can US Citizens Buy Bitcoin From An ATM?

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Bitcoins are most often purchased from a bitcoin exchange. You may also purchase bitcoins from other sources. The exchange method is often the preferred method for buying and selling bitcoins, as it is easy to do so. You can also buy bitcoin with debit card

If using an exchange is not your cup of tea, you can buy bitcoins from an ATM. 

Despite their increasing usage, the concept of bitcoin ATMs is still viewed by many as an oxymoron.

Can an ATM print bitcoin when it normally processes physical coins? Your question is legitimate. Find out what you need to know.

What is a bitcoin ATM?

People can buy bitcoins and other cryptocurrencies using cash or a debit card at bitcoin ATMs. But unfortunately, the term ATM isn't the best description.

Unlike bank ATMs, bitcoin ATMs do not allow customers to manage their money. Instead, Bitcoin ATMs are tools that allow you to purchase or sell cryptocurrencies without registering an account.

Unlike cryptocurrency exchanges, bitcoin ATMs let users store their acquired bitcoins by wiring them directly to their favorite wallet. You can let your exchange have custody of your assets if you use centralized exchanges such as Binance.

How can I purchase bitcoins from a bitcoin ATM?

Bitcoin ATMs typically have QR codes that direct you to download a specific crypto wallet that the machine supports.

You can choose from many other wallets, including the Coinbase crypto wallet, a popular option.

The first step is to download the wallet. If you haven’t already, then set up your wallet as instructed.

After the transaction is verified and completed, the ATM will send your purchased coins to the address you generate in your newly created wallet.

All you'll have to do to use a Bitcoin ATM is follow the instructions on the screen if you've used an ATM before.

You may need to complete know-your-customer (KYC) steps based on your country and the machine's location. A maximum and minimum purchase amount may also apply.

Once you have configured the wallet and located your inbound address, you will enter the address and amount you wish to purchase. Then, instead of typing it in manually, you can scan the QR code on your phone's screen and make the payment automatically without worrying about making a mistake.

Transactions usually take about ten minutes to complete, though some can take an hour or more.

Benefits and drawbacks of Bitcoin ATMs

Bitcoin ATMs are a convenient way for people who are not tech-savvy to gain access to cryptocurrency. In addition, most ATMs do not store customers' KYC information, bank information, or private keys, which means their security is not at risk.

The system, however, is not without its drawbacks. The fees charged by Bitcoin ATMs may be very high - between 7 and 20 percent - and the requirements are stricter than cryptocurrency exchanges. Customer support is also limited or nonexistent.

Watch out for bitcoin ATM scams

Bitcoin ATMs are associated with two types of scams.

Scammers frequently use marketplaces such as eBay, Craigslist, and Gumtree for advertising goods. Typically, these items are offered at a substantial discount to market value to attract purchasers.

To secure those prices, victims are instructed to make purchases using digital currencies, usually by depositing funds at bitcoin ATMs and sending crypto to the scammers' wallet addresses. Upon completion of the transaction, the scammers disappear.

Scammers have taken advantage of the irreversible and unregulated nature of blockchain-based payments. A transaction cannot be reversed once it has been finalized.

This scam is more elaborate and sinister than the one described above.

Scammers often target job seekers with offers of trial work in search of employment. The scammers send funds to the victims' bank accounts and instruct them to withdraw the funds and then convert them into bitcoin at a bitcoin ATM, after which the scammers receive the cryptocurrency.

Several days later, the victim discovers that the funds credited to her account have been reversed as they came from a fraudulent account. As a consequence, the victim's account has a negative balance. 

Generally, if you are interested in purchasing a sizable amount of bitcoin in a relatively private manner without having to pay hefty fees, then a bitcoin ATM could be a suitable option - provided there are machines in your area. Otherwise, using an exchange or purchasing bitcoin through apps you most likely already have on your smartphone are also good options.

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