Browse Definitions :
Definition

Bitcoin ATM

A Bitcoin ATM is a kiosk that lets users buy the cryptocurrency, similarly to the way that ATMs (automated teller machines) provide financial services related to traditional fiat currencies. Some machines also enable transactions with other cryptocurrencies, such as Litecoin, and some allow users to sell as well as buy.

Bitcoin ATMs look a lot like conventional banking machines but they operate differently. For example, they do not dispense currency but enable the transfer of funds to or from a Bitcoin address. Bitcoin ATMs also vary but here's a quick and general explanation. After the machine connects the user to an exchange, they select the type of transaction they want to make, which is typically "Buy Bitcoins." Verification usually consists of a code sent to the user's mobile, after which they supply the Bitcoin address where the funds are to be sent. The user then puts cash into the machine. Once the transaction has been confirmed, the currency is delivered to the address the user supplied.

Although people can conduct Bitcoin transactions online, the ATMs make it simple for people without much technological knowledge to purchase and transfer cryptocurrency. Completed Bitcoin transactions are irreversible and that has made the cryptocurrency -- and Bitcoin ATMs in particular -- popular with scammers. 

Unfortunately, people without much tech savvy are also the most likely victims of scams. Measures suggested to prevent the use of Bitcoin ATMs for scamming include posting prominent messages about the dangers on or around the ATMs and requiring a waiting period for large transfers, especially for first-time users.

Watch a demonstration of using a Bitcoin ATM:

This was last updated in July 2018

Continue Reading About Bitcoin ATM

SearchCompliance
  • OPSEC (operations security)

    OPSEC (operations security) is a security and risk management process and strategy that classifies information, then determines ...

  • smart contract

    A smart contract is a decentralized application that executes business logic in response to events.

  • compliance risk

    Compliance risk is an organization's potential exposure to legal penalties, financial forfeiture and material loss, resulting ...

SearchSecurity
  • DOS (disk operating system)

    A DOS, or disk operating system, is an operating system that runs from a disk drive. The term can also refer to a particular ...

  • private key

    A private key, also known as a secret key, is a variable in cryptography that is used with an algorithm to encrypt and decrypt ...

  • security token

    A security token is a physical or digital device that provides two-factor authentication for a user to prove their identity in a ...

SearchHealthIT
SearchDisasterRecovery
  • What is risk mitigation?

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • change control

    Change control is a systematic approach to managing all changes made to a product or system.

  • disaster recovery (DR)

    Disaster recovery (DR) is an organization's ability to respond to and recover from an event that affects business operations.

SearchStorage
  • What is RAID 6?

    RAID 6, also known as double-parity RAID, uses two parity stripes on each disk. It allows for two disk failures within the RAID ...

  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

  • VRAM (video RAM)

    VRAM (video RAM) refers to any type of random access memory (RAM) specifically used to store image data for a computer display.

Close