It’s no secret that cryptocurrencies are taking over the world. More than 100 million people use cryptocurrency throughout the world. With that said, crypto users are now able to use a Bitcoin ATM to withdraw their money. 

A cryptocurrency ATM does hold some similarities to a standard ATM. Though, there are some notable differences. If you plan to invest or trade cryptocurrencies, it’s important that you know the difference. 

In this article, we’ll discuss all the ways a crypto ATM is different from a standard bank ATM. 

A Standard ATM Needs A Debit/Credit Card

Anyone that has used a standard ATM knows that it needs a debit or credit card to work. A user must present a card to the machine and enter their pin to access their account. 

Then, they can choose whether to view their account balance, deposit, or withdraw money from their account. Bitcoin ATMs are much different. If you own Bitcoin, you don’t need a debit or credit card.

Actually, you’ll need to store your Bitcoin coins in a secure wallet. This wallet has a PIN or passcode to access your coins. Bitcoin ATMs only need users to enter their wallet details.

You can even scan the QR code from your wallet to access your account. This is one way Bitcoin ATMs stand out from traditional bank ATMs. 

Bank ATMs Deal With Cash

The term “Bitcoin ATM” is actually a misnomer. Bitcoin ATMs don’t dispense cash. They actually make it possible for people to buy Bitcoin tokens. 

Banks’ ATMs deal strictly with cash. This means that if you enter your debit or credit card, you can withdraw the cash that’s in your account. 

On the other hand, a Bitcoin ATM is more like a kiosk. It’s designed to handle Bitcoin-related transactions when you enter your own cash into the machine. 

Bitcoin ATMs Don’t Need Banks

There are two types of bank ATMs that exist. The first type of ATM is sponsored by a particular bank. These ATMs have the logo of their sponsor and won’t charge you a fee if you’re a customer of the bank. 

Other ATMs are standard machines, usually found in gas stations and convenience stores. These ATMs almost always have fees since they don’t have a sponsor. 

Though, both ATMs will usually accept any type of debit and credit card. A Bitcoin ATM doesn’t need backing from a bank. It connects to a secure network created from your Bitcoin wallet when you check them out.

Bitcoin ATM Fees Are Different

Most standard ATMs charge a fee when someone uses it. This nominal fee will be charged against your bank account whether you make a deposit or withdrawal. 

Bitcoin ATMs work a bit differently. Instead of charging a dollar amount, these ATMs will charge you a percentage of your transaction. This usually leads to higher fees. 

In fact, the U.S. government has warned that Bitcoin ATM fees can be very high. This will depend on the amount of your transaction and other factors. 

Learn More About Bitcoin

As you can see, there are many ways a standard ATM differs from a Bitcoin ATM. Knowing the difference can help you use a Bitcoin ATM properly when the time comes. 

Do you want to learn more about Bitcoin? If so, check out more of our helpful articles.