A few decades ago, if you wanted to withdraw money from your bank account, you had to visit the nearest branch of the bank. And even then, people had to stand in line for a long time and go through countless hassles to get their money.

The introduction of ATMs changed this. Now, you can get your hands on your money at any moment with a simple swipe of your card, thanks to the ATM. No more visiting banks or standing in a line for long just to withdraw some cash.

The Bitcoin ATMs also offer something similar. With the BMTs around, you can now buy BTC within minutes. 

No hassles. No lengthy verification process. No fuss.

So, what makes BTMs different from the regular ATMs?

Well, let’s find out.

How do Traditional ATMs Work?

For decades, traditional ATMs have been a key part of our banking system and our daily lives. They allow you to get access to your funds anytime within minutes without even visiting the bank.

You just need a debit or ATM card recognized by your bank to withdraw cold, hard cash from your bank account.

With traditional ATMs, you can:

  • Withdraw cash
  • Check your account balance
  • Transfer funds to a different account

Apart from the banks, many licensed ATM-specific businesses also allow you to withdraw cash from ATM-like machines for a small fee.

What about Bitcoin ATMs?

Now, how Bitcoin ATMs work is very different from the traditional ones. Instead of providing you with cash, they give you Bitcoins (BTC).

The process is very simple. Even if you don’t know anything about crypto, you can still buy BTC using these Bitcoin ATMs or BTMs. In most cases, you just need to follow the steps mentioned on the machine to exchange cash for BTC securely.

As of today, we have many BTC ATMs spread throughout the globe. According to CoinATMRader, the United States alone has the majority of the world’s BTMs and other cryptocurrency ATMs within its geographical boundary.

Traditional Vs. Bitcoin ATMs: What’s the Difference?

By now, you should have a basic idea about how the traditional ATMs are different from the BTMs. One lets you withdraw real cash. Meanwhile, the other one allows you to buy BTC in exchange for your local currency.

But that’s not the only thing that makes them different.

Here are a few more differences between the traditional and the BTC ATMs:

The Main Function

The traditional ATMs are linked to an individual’s bank account. They allow you to withdraw money from your savings or current account at any time you want within a few minutes.

However, the transactions have to follow rules and regulations set by the bank and the specific limits of an individual’s bank account.

Bitcoin ATMs, on the other hand, allow you to buy BTC by either:

  • Scanning encrypted QR codes to deposit the BTC.
  • Generating a special paper wallet to store the BTC.

Of course, the paper wallet feature isn’t available in all Bitcoin ATMs. So, most of them only allow you to make BTC purchases.

Types of Transaction

Transactions via traditional ATMs are always monetary in type, which falls under the coverage of conventional banking. On the other hand, the transactions on Bitcoin ATMs help the crypto market grow steadily every day.

In other words, the BTMs give you and other like-minded people a way to invest in Bitcoins with ease. Of course, a few operators may also allow you to purchase other crypto apart from BTC.

It’s just that, with BTMs, you’re exchanging your local currency for secure, digital crypto like Bitcoins. Every time you or others purchase BTMs, you contribute to making the crypto market grow.

And today, at least 40% of all U.S. adults own some form of cryptocurrency. 

Accessibility

Traditional ATMs are everywhere. You will find them in retail stores, banks, gas stations, near convenience stores, and in most public places. In some prosperous areas, you may even see one with every turn you take.

On the contrary, although BTMs are becoming more widespread, there aren’t as many of them as the traditional ones. You will usually find them in crypto-specific places, in popular retail stores, or in other places where people are interested in crypto.

Still, you will hardly find BTMs in small cities and rural places.

Fortunately, the situation is changing, and more and more BTMs are opening all across North America and Europe every day.

Regulatory Framework

Normal ATMs need to follow firm banking regulations and an already established economic procedure. Many of these rules are often set by the government of the country where you live.

However, the regulatory framework of BTMs is much more fluid than that of the traditional ATMs. Even the laws regarding the BTC circulation are evolving.

What’s more, different countries or even states within a country may have different crypto rules.

What are the Advantages of Bitcoin ATMs?

Fast and Convenient Transactions

With BTMs, you can easily convert your local currency into Bitcoins within minutes. You don’t have to go through a lengthy verification process or other complexities to buy BTC.

What’s more, Bitcoin ATMs allow you to buy or sell BTC with ease. You don’t have to worry about any risk of fraud or security issues. You can even use the BTMs to convert your existing Bitcoins into your local currencies when you need traditional money.

In short, BTMs will make these transactions fast and convenient.

Privacy and Decentralization

Although BTMs are public Bitcoin transaction spots, they still retain the core features of crypto—privacy and decentralization. Of course, your identity would never be 100% anonymous.

But Bitcoin ATMs still provide you with better confidentiality than traditional ATMs or other centralized BTC exchanges.

So, if you value your privacy and like decentralized financial deals, you should use the BTMs.

A Diversified Financial Portfolio

Are you looking to diversify your financial portfolio? In that case, then BTC can become a secure alternative asset for you. With BTMs, you can allocate a portion of your funds directly into digital assets like BTC.

Those who have already been fed up with stocks and real estate can use Bitcoin ATMs to diversify their financial portfolio.

Final Words

Bitcoin and regular ATMs are two different aspects of the financial world. Yet, due to the nature of their working process, they are also interconnected with each other.

Regular ATMs reign supreme in the traditional banking circle that mainly revolves around real money-based transactions. 

On the other hand, BTMs will help you dive into the thrilling world of digital currencies. After all, they offer more accessibility to you and other users who want to explore the ever-growing crypto market.

As technology evolves, interactions between regular and Bitcoin ATMs are also increasing. Perhaps, in the future, they will change the way we understand and use money and digital currencies for the better.