Once that first ATM was unveiled inside a New York bank in 1969, the convenience of accessing your personal finances instantly secured it as a staple in our lives. Then in 2013, the latest iteration of the ATM was created – the Bitcoin ATM. But are Bitcoin ATMs safe to use?
Bitcoin has proven to be secure and trustworthy. Can we expect that same level of security from the machines we use to access it? The short answer, yes but with limitations. As Bitcoin and other cryptos continue their meteoric rise in popularity, it is important to pay attention to the ways we interact with and access these thriving currencies.
How Do Bitcoin ATMs Work?
Bitcoin ATMs work in a similar way to traditional ATMs: Put cash in and instantly see it in your account. Bitcoin ATMs are not tied to any financial institution and instead connect to the Bitcoin network. This creates greater financial inclusion for the unbanked.
Bitcoin ATMs – and other crypto ATMs – use an internet-based cryptocurrency portal to manage the transaction. With a Bitcoin ATM, you deposit your cash and the machine then converts the cash to crypto and sends the funds to your wallet. Your Bitcoin wallet is where you will send and receive all Bitcoin or crypto funds. You can invest in multiple cryptocurrencies, and all funds can be held and secured within the same wallet. Traditional banking requires separate cards and accounts for each company.
How Safe Are Bitcoin ATMs?
Whenever you’re dealing with your own finances, it is good to be cautious. Bitcoin ATMs may seem like a new, risky method of purchasing Bitcoin. However, they’ve been around for almost 10 years, and have done Billions of dollars worth of transactions already.
Bitcoin ATMs are one of the safest ways to buy, send or sell Bitcoin. First, instant transactions protect you from Bitcoin’s volatility. Secondly, passwords and 2-factor authentication protect your account from others. Here are the safety measures operators and users go through to keep the finances secure.
Safety At The Machine
Bitcoin ATMs, like traditional ATMs, cut out the human interaction when it comes to transferring money from one space or currency to another. Just like a traditional ATM, your account is accessed through identity verification. Passwords, Face ID, 2-factor authentication or additional forms of security are common to complete transactions.
Bitcoin ATMs do not utilize any third party. Your funds go in and straight to the blockchain. The operators simply provide the machines and software to facilitate the transactions. Bitcoin ATMs were designed around security and anonymity, making it easier for you to know you can trust those new machines you keep seeing in your local convenience stores.
Safety Before The Machine
The greatest security threat to your finances are often scammers. The good news? You have all the power to stop them. Here’s how.
When using a Bitcoin ATM, do not send funds to a person you don’t know. The blockchain cannot be altered, so be 100% confident that the wallet you entered is correct. In addition, ensure you trust the person you are sending the funds to. Funds that have been sent cannot be changed or stopped.
Coinsource will never reach out to you requesting Bitcoin. If you are contacted by someone saying they are Coinsource and they are requesting payment, it is a scam. Lastly, make sure you are aware of the typical scams in the crypto industry. When in doubt, get in touch with our 7-day support team!
How Do You Find the Right Bitcoin ATM?
No two crypto ATM manufacturers utilize the same safety and security protocols. That’s why it is important to take time to choose which ATMs to connect to your wallet based on more than just convenience. As with traditional ATMs, choosing the right Bitcoin or crypto ATM is about finding a machine you can trust to keep your funds and information completely secure.
Like any industry, there are rebels who forgo compliance, tarnishing the industry reputation, and making it harder for other companies to be trusted as well. The best way to avoid a scam is to do research. It doesn’t take much to discover the Bitcoin ATM providers who are known for their compliance and security in order to keep your information and money safe.
Built Upon Safety & Security
Coinsource is the leader in Bitcoin ATMs for one simple reason – security. We founded our company by using our own capital, so we understand how important your trust in our machines is. Like many other Bitcoin wallets and ATMs, we require two-factor authentication to even begin to access your account. We work throughout your transaction to verify your identity and keep bad actors away.
Bitcoin ATMs break down barriers and give people a simpler way to enter and access the world of crypto. Just like traditional ATMs, Bitcoin ATMs are easy to use, and give people another way to feel in control of their finances. Similarly, just as the creation of Bitcoin focused on security, so do most Bitcoin ATM providers. A little research into the industry leaders, and it is easy to find a Bitcoin ATM you can trust for any and all your crypto banking needs.
At Coinsource, compliance is our number one priority. As you look to enter the wild world of crypto, trust the experts at Coinsource to keep your finances secure, safe, and convenient to access. Ready to make your first transaction? Here are instructions on how to use Bitcoin ATMs. But first, create your Coinsource account to securely buy Bitcoin with cash today!
Coinsource is the world leader in Bitcoin ATMs. With a focus on compliance and ease of use, Coinsource is aiming to bring Bitcoin to the masses. Follow for blogs about Bitcoin, finance, company updates and Bitcoin ATM information!
