Bitcoin ATMs are becoming more and more popular, but many people are still unsure about how safe they are. In this blog post, we will give you tips to keep your money secure when using a bitcoin ATM!
Can Bitcoin ATM be hacked?
Bitcoin ATMs are generally very safe, but like any other technology, they can be hacked. It’s important to take precautions when using a Bitcoin ATM and to only use machines that you trust.
Here are some tips for keeping your money secure when using a bitcoin ATM:
- Make sure the ATM is in a public place and well-lit.
- Don’t share your PIN with anyone.
- Always make a copy of your receipt and keep it in a safe place.
- Check the balance of your bitcoin wallet regularly to make sure all transactions are correct.
- If anything seems suspicious, report it to the police.
- Never leave your money unattended.
- Be careful when typing your PIN. Someone standing close by could see it and steal your money.
- Keep your bitcoin wallet password safe and don’t tell anyone what it is.
- If you lose your phone, make sure to delete the bitcoin wallet from your device.
Are Bitcoin ATMs anonymous?
Bitcoin is a pseudonymous cryptocurrency, meaning that your Bitcoin addresses are not associated with any personal information like names or email addresses.
Bitcoin ATM operators are required to take basic information about their customers now. This helps prevent money laundering. The anti money laundering regulations put in place, will require an ID to buy Bitcoin.
Once you purchase cryptocurrency and have it in your possession, you can now do what you want with it, whether that’s transfer to a cryptocurrency exchange and sell Bitcoin or swap it for other virtual currencies.
So whilst your digital wallet won’t reveal your identity at a crypto ATM, your ID, phone number or other information you must provide can.
Do Bitcoin ATMs charge a fee?
Bitcoin ATM companies make their money by charging high fees on Bitcoin ATM transactions.
Whilst you might not see the fee directly on the Bitcoin ATM, they tend to offer awful exchange rates which are a disguised fee. If Bitcoin is trading at $40000 for 1 Bitcoin, you might be paying $45000 per Bitcoin or even more. This all varies depending on the Bitcoin ATM operator. Many Bitcoin ATMs allow you to exchange Bitcoin at a decent price, but the ATM industry is plagued with people trying to rip off their customers.
To make sure the Bitcoin ATM isn’t charging you too much, it’s very important that you check the online exchange rate, before you complete your crypto purchase. Unlike a traditional ATM, such as a bank ATM, you won’t be able to get a refund once you deposit cash.
Fiat currency is regulated and there is a chance to get it back if you have been scammed, but once you use Bitcoin ATMs and convert your money into Bitcoin, you won’t be eligible for a refund.
Why would someone use a Bitcoin ATM?
Most people use Bitcoin ATMs because they are convenient. They are usually used by new people to cryptocurrency. Whilst you pay higher fees, they are less regulated then exchanges.
You can turn your physical cash into Bitcoin or use a bank account to transfer. You receive a QR code to your paper wallet which then allows you to access your Bitcoin after purchase.
Bitcoin ATM installations have also popped up all over the country. This means its very easy to walk to the closest convenience store and buy or sell Bitcoins easily. Bitcoin ATMs offer reasonable rates, but they’re definitely not the cheapest you can find.
You can make use of Coin ATM radar to find the closest Bitcoin ATM to you. If you’re wondering are Bitcoin ATMs safe on this radar site, well anyone can submit an ATM there, so make sure you scope it out before going. Try to get one located in convenience stores or gas stations with other people around.