Bitcoin ATM vs. Bitcoin Exchange
It can be confusing to navigate the bitcoin world without a map, akin to trying to swim in the ocean, right? Most likely, you’ve heard all the hype around bitcoin withdrawal, and you may even be excited to do the same. But how do you do that? Do you register with a bitcoin exchange or visit a bitcoin ATM?
Whether bitcoin exchange or bitcoin ATM, each withdrawal method has its upsides and downsides and choosing the wrong one could really cost you.
This article will help you make the right decision amid your concerns about hidden costs, security threats, or simply dreading a potential difficulty in withdrawing your bitcoins.
Besides enabling you to withdraw bitcoins from the digital wallet, bitcoin ATM lets you buy bitcoin and other cryptocurrencies using debit cards or cash.
On the other hand, bitcoin exchange allows you to buy or sell bitcoins using different Altcoins or Fiat currencies.
Should You Use a Bitcoin ATM or Bitcoin Exchange?
Let’s now dive in to have a deeper comparison of the two methods of bitcoin withdrawal to help you make an informed choice.
Functionality
Bitcoin ATMs are either unidirectional or bidirectional. With a bidirectional bitcoin ATM, you can buy or sell bitcoin for cash. In some instances, bitcoin providers may require you to have an active account so you can transact on the bitcoin ATM.
On the contrary, the bitcoin exchange doesn’t allow you to use cash.
Convenience
Bitcoin ATMs are reliable as they aren’t prone to the technical glitches associated with online exchanges.
Moreover, BTMs let you sell or purchase bitcoin using cash, unlike online exchanges. This provision ensures that your personal information remains a secret, as you need not link your banking details anymore.
Additionally, if you don’t have accounts with major banks, you can still sell and purchase bitcoin conveniently.
Conversely, bitcoin exchange requires you to provide accurate information about your banks. Furthermore, the information can take a lot of time to verify.
Efficiency and Speed
Bitcoin ATMs facilitate buying and selling of bitcoin and making withdrawals and deposits within a short time. Additionally, they allow you to convert bitcoin into fiat cash within seconds. Without BTMs, you’d have to transfer bitcoin from your digital wallet back to your bank account and vice versa.
On the other hand, online bitcoin exchanges take relatively longer to execute transactions. For example, to complete transactions and enable you to receive your coin, it can take almost a week based on how busy the bitcoin exchange is.
Security
To use a bitcoin ATM, verification of your identity is a must. You can therefore use your digital wallet securely to complete a transaction, as no one can access your bitcoin or execute a transaction without the key to your digital wallet.
On the contrary, online exchanges can be susceptible to hacking, increasing the risk of losing your cryptocurrency.
Comfortable
With a bitcoin ATM, you can evade lengthy procedures and comfortably make cash deposits and withdrawals unlike bitcoin exchange. You need not fear investing in cryptocurrency because of the rigorous process of cryptocurrency exchange. If you think you lack the technical knowledge to execute the validation steps the bitcoin exchange involves, a BTM makes it easy for you.
Availability
Bitcoin ATMs are readily available globally. Research shows that by the end of February 2021, the number of BTMs in the world had surpassed 49000. The rate of new installations continues to rise.
On the other hand, the transactional time of the online bitcoin exchange remains long, making the method somewhat unreliable.
Quick Money Accessibility
Bitcoin ATMs have made it quick to access currency exchanges in foreign countries without having to travel. Users can use these machines to exchange bitcoin for fiat currency with little effort.
Cons of Using Bitcoin ATMs
- While BTMs can be found in many countries worldwide, they may not be available in all locations.
- The machines may sometimes experience technical hitches and temporarily go out of service. The glitches hinder the user’s transactions.
- There are transaction fees involved when using the bitcoin ATMs. However, the charges are relatively lower than bank fees per transaction.
Final Verdict: Bitcoin ATM or Bitcoin Exchange?
Overall, Bitcoin ATMs offer several advantages over online exchanges, making them a highly convenient choice for depositing and withdrawing bitcoin. They provide an accessible, straightforward method for crypto transactions, without requiring an internet connection— you just head to the nearest ATM and you’re set to go.
The transactional speed and efficiency of Bitcoin ATMs are significant benefits, as they enable quick deposits and withdrawals. Additionally, their rigorous identity verification process enhances security, ensuring your personal data remains protected while you transact safely.
With both unidirectional and bidirectional options, Bitcoin ATMs allow users to buy or sell bitcoin for cash seamlessly. This flexibility, combined with ease of use, makes Bitcoin ATMs a compelling choice for those looking for fast and secure cryptocurrency transactions.
