Bitcoin ATMs or exchange?

BTM, allows you to cash out bitcoins and buy cryptocurrency. Most ATMs have purchase restrictions, and some even require mandatory verification (KYC).

BTM work

Bitcoin ATM acts as a physical way to exchange the cache for Bitcoin or vice versa. The device includes a scanner, a cash dispenser, and a computer for managing transactions.
Digital money is withdrawn to a Bitcoin wallet or a paper wallet of a buyer, for this a special QR code is intended on a mobile device or on a paper wallet itself, generated during the operation and printed out in a separate check. This service is paid and additional commission is charged for it.

Most ATMs only work on the purchase of crypto.

All ATMs have a common purchase process:

• Verification phase (optional, may vary significantly depending on the type of ATM);
• Obtaining a bitcoin address for making a deposit (it can be generated and printed / sent by e-mail, but it is better to have it with you before using the device);
• Cash deposit to ATM;
• Confirmation of the operation (Bitcoin sent to your address).

This process may vary for each ATM.

Commission

The average commission at most ATMs is about 9%. It is worth noting that, while abroad, the buyer may encounter an increased commission due to the exchange from the country's currency to the dollar / euro, then to the local currency.

Advantages and disadvantages

Among the advantages of Bitcoin ATMs are the following:

• simple use;
• the opportunity to discover a completely new method of payment;
  speed of transactions.

However, BTM has a few more shortcomings, so the use of ATMs may not always be convenient for customers:

1. High commission. The difference in fees is due to the need to maintain physical devices, and it is also possible to levy additional fees.
2. The risk of ordinary wallets. These risks are associated with the insecurity of this method of withdrawing funds / buying Bitcoin, since you can lose access to the wallet simply by forgetting the mnemonic phrase.
3. Weak tech support. Failure to contact specialists in case of problems will be very difficult.
   Physical accessibility. Since Bitcoin ATMs are an innovation, far from every city they are present. Often finding such an ATM nearby is simply not possible.
4. Weak tech support. Failure to contact specialists in case of problems will be very difficult.

Often, the purchase and withdrawal of funds through exchanges is a priority option. The Bitniex exchange offers an incredibly simple, convenient and high-quality service, all you need to do is go through the easy registration process and start trading on the exchange now.