The Bitcoin Automated Teller Machine or Bitcoin ATM refers to an internet-enabled kiosk through which you can purchase bitcoin by depositing cash. Similarly, you can also exchange bitcoin with traditional cash through Bitcoin ATM. A Bitcoin ATM is not the usual ATMs which is backed by a traditional bank and through which you withdraw cash. Get into Equibytes in order to purchase your Bitcoin.
However, until the 1970s, there were no ATM and all money transactions including withdraw and deposit of money were done in the banks or branches of a bank. The ATMs enormously benefited the customers or people as well as the banks by way of reducing considerable time and energy of the people on bank transactions and reducing numerous responsibilities of the bank workers. But each ATM is backed by a bank or branch of a bank in terms of money transaction, record keeping and documentation, and regular updating of the transactions. Eventually, the introduction of the internet and mobile banking has reduced the importance of traditional ATMs and most people prefer online money transactions and online marketing than getting cash from ATMs and keep cash in hand and deal with cash.
The Bitcoin ATM is though as a traditional ATM, but it functions more as an internet-connected or internet-enabled machine. The basic function of a Bitcoin ATM or kiosk is to connect its customers to a specific exchange where Bitcoin transaction can be done. The details of the transactions are provided as usual through the receipts of the kiosk.
The Bitcoin ATMs do not dispense notes or coins. The bitcoin customers are required to connect with their Bitcoin e-wallet to carry out and complete the Bitcoin transactions. As Bitcoin ATMs are not connected with any bank or branches of banks, the Bitcoin ATMs do not connect the customers to their bank account. On the other hand, the customers deposit cash in the Bitcoin ATM to purchase Bitcoin cryptocurrency.
Generally, a Bitcoin ATM sets an upper and lower level of cash deposits to purchase the Bitcoin. If the cash you deposited is lower than the value of a Bitcoin token, you will have to purchase fractions of Bitcoin or a portion of the Bitcoin. Once this transaction is completed, a record appears in the e-wallet of the customer after several minutes of the transaction.
Some Bitcoin ATM asks to pass through security check in order to complete the transaction. This security check may involve providing a phone number to receive a verification code which should be typed into the ATM machine. In some cases, The ATM also ask government-issued identifications like driving license etc.