You have probably seen them before. Bitcoin ATMs are increasing in popularity, making BTC purchases easier than ever. But are Bitcoin ATMs safe to use? Before we can answer that question, we first need to see how they work.
How do Bitcoin ATMs work?
Bitcoin ATMs allow users to buy and sell Bitcoin using cash or bank cards. The devices are linked with a specific cryptocurrency exchange, not only to adjust the rates in real-time but also to allow people to purchase Bitcoin off the exchange, instead of a specific individual.
In other words, Bitcoin ATMs work like brokers. They allow people to bypass the complexities and verification processes that are often seen when signing up at online exchange platforms and receive a (relatively high) commission for providing the service.
Are Bitcoin ATMs safe?
Yes. While ATMs may not be the most convenient method to buy or sell your coins, it is certainly safe to use. All you need to do is follow the instructions on the screen and make your payment.
In most cases, if any doubts or questions arise, there will be a phone number that you can call to ask for further assistance or information.
Are Bitcoin ATMs profitable as a business idea?
This will highly depend on the location of placement and fee structure.
Location: If you want to profit from a Bitcoin ATM, is it best to place it in a busy location, such as a busy mall or an airport. Of course, doing so will come at a high rent cost, but it would certainly attract more people than your local coffee shop.
Commission: Bitcoin ATMs charge more fees than a cryptocurrency exchange platform. In most cases, those fees will range between 6-8%, making each exchange very profitable for the ATM owner. You can check the fees of all Bitcoin ATMs in your area by clicking here.