Bitcoin is a cryptocurrency meaning that it performs all the functions of a legal currency like a pound, a yen, or a dollar, yet it is different from the currency that the central bank of a country issues. These currencies are released by private players and are based on blockchains.
Usually, very powerful computers are required to generate these currencies. Since these currencies are not issued by Government agencies, they provide a great deal of anonymity. Also, the compliance burden is much less while using these currencies when compared with regular currencies like the dollar and pound.
Bitcoins can be exchanged for regular currencies in specialized Automated Teller Machines known as bitcoin ATMs. However, not many people are aware of the existence and the advantages and disadvantages of such ATMs. If you want to learn more about bitcoins ATMs and how they operate, you can go to creativepixelmag.com.
7 Mistakes To Avoid When You Are Using a Bitcoin ATM
Since Bitcoins and Bitcoin ATMs are relatively new, few people are proficient at using them. Hence there are some common mistakes that you must watch out for before you start using a Bitcoin ATM.
Do Not Be Confused While Operating a Bitcoin ATM
The specialty of Bitcoin ATMs is that once you feed in money and proceed towards a transaction, you cannot cancel it midway. While using such ATMs, you have to feed in several details like your bitcoin address or your mobile phone number, etc. If you fill in any of these details wrong, you might end up losing money.
Hence when you are operating such ATMs, you should be calm and composed. Also, you should double-check before confirming each step in the transaction process.
Be Aware Of The High Transaction Cost
Every bank or ATM machine deducts a certain amount of money for the convenience and the service they provide to their customers. Bitcoin ATMs have a lot of advantages like they are anonymous, they are free of many legal formalities, etc. Hence these ATMs charge a very high amount as transaction charges.
You should not be baffled even if the transaction charge is as high as 15% of the entire transaction amount. Thus, you should only go into a Bitcoin ATM if you are willing to pay high transaction charges.
Be Aware Of The Problems Associated With Payment Wallets
You will need a payment wallet to complete a transaction involving Bitcoin exchange. However, there are some payment wallets that can cause difficulties while using ATMs.
At times some wallets might take a long time to generate the QR code. Some wallets might have glitches while generating a one-time password or a PIN number. All these can significantly hinder a smooth transaction in a Bitcoin ATM.
Hence, you should be very careful which payment wallet you want to use while using these ATM machines.
Find The Right Kind Of Machine
You will have to find the suitable machine depending on the type of transaction you want to undertake. Some ATMs only exchange currency for bitcoins, other machines only exchange bitcoins for currency. At the same time, there is a third type of machine which can carry out both these transactions.
So depending upon the kind of transaction that you want to undertake, you will have to go to a machine that will serve your purpose.
Learn How To Use The Machine
Although using Bitcoin ATMs is quite simple. You have to simply read the instructions on the screen and follow those steps correctly. However, there are some things that you need to keep in mind.
You need to have a Bitcoin wallet to use such ATMs; secondly, despite these transactions being free of legal hassle, you still have to provide some details like your active mobile number. Also, the transaction can take a significant amount of time; hence you will have to wait patiently for the entire process to be completed before you can get your cryptocurrency.
In fact, at some machines, you might have to wait for as long as twenty minutes to get the cryptocurrency. Thus, you should be in a rush to conclude that the long wait means that the transaction has failed.
It would help if you were very careful while entering your Bitcoin address. This is because these addresses can be very long and complex. Thus, you can easily feed in the address incorrectly. However, most machines use a QR code scan to feed in the address automatically to avoid errors.
Be Aware Of Scams
Cryptocurrencies are free of legal hassles; they are anonymous; however, they are also great to escape the legal authorities. Hence most scamsters make use of such currencies. Many machines provide add-on services that allow you to make payments for other utilities using Bitcoins through these machines.
Scamsters usually give huge discounts and ask you to make small payments via Bitcoin ATMs. However, you should steer clear of such lucrative offers that seem too good to be true.
Limited Availability Of Machines
Cryptocurrencies are gaining popularity every single day, yet their spread is very restricted as compared to other currencies like the pound or dollar. Hence, finding a machine that allows cryptocurrency transactions is difficult. It may be quite challenging to find these machines in small cities and towns.
Also, the rules, policies, and the transaction fee that is levied on such transactions vary depending upon the location. Hence, you should inquire about these details and check out the availability of such machines in a location before you go out to use these machines.
The use of Bitcoin ATMs is rapidly picking up, and many countries around the world have allowed the use of such machines. Although using a new machine and a new currency might seem daunting at first yet, the enormous advantages offered by these currencies make them the first choice of most people.
Using these machines is not technically challenging, and once people get used to using them, they might give tough competition to traditional teller machines as well.