Bitcoin ATMs (BTMs) are digital kiosks whereby customers make cryptocurrency transactions. To access and use certain Bitcoin ATMs, you may need to have an active account. If you’re interested in using Bitcoin ATMs, you’ll need to get acquainted with common terms that apply to the experience and that are associated with digital exchanges and transfers.
Starting with the most basic, beginner terms, you must know that BTMs use blockchain technology. Blockchain technology refers to when currency exchanges are made at BTMs but do not show up in bank accounts or as cash. Instead, the currency transfers over to a digital wallet.
By familiarizing yourself with basic Bitcoin ATM terminology, you’ll better grasp how to utilize BTMs. Additionally, you’ll understand what they can provide for you as a crypto investor. To help you learn the terminology, here’s an inside look at standard terms of Bitcoin ATMs you’ll want to know when you search “bitcoin ATM near me“.
Searching “bitcoin atm near me” And Encountering Terms Like Cryptocurrency Wallets
Your currency exchanges are transferred into digital wallets, also known as cryptocurrency wallets. A cryptocurrency wallet is where your Bitcoin is placed; this is the alternative to storing money in a bank account. After you’ve inserted the cash amount you want to exchange as Bitcoin, you’re prompted to enter your wallet address into the ATM. Once you do, cash is exchanged for Bitcoin based on the current market rate. The Bitcoin is then sent over to your cryptocurrency wallet.
Understanding Accessibility: Seed Phrases
Another term you may encounter when searching “bitcoin ATM near me” is “seed phrase.” Your seed phrase is a series of twelve words your wallet generates, giving you access to whatever crypto is linked with that digital wallet. You can consider seed phrases as a master password that allows access to cold wallets. Cold wallets are wallets that store your digital assets.
Protecting Your Finances: Bitcoin Miners
Before you search “bitcoin ATM near me” and start using a Bitcoin ATM, research which fees apply to the ATM and compare your options to find those with the lowest fees. In addition to protecting your finances this way, you should also know what miner fees are. When you browse under search results for “bitcoin ATM near me,” you may encounter applicable miner fees for certain Bitcoin ATMs.
The BTM operators apply miner fees to pay Bitcoin miners, users who place Bitcoin transactions toward the blockchain to validate them. Mining in crypto refers to the process of adding blocks to a blockchain. Mining also verifies transactions and influences how altcoins and new bitcoins are made.
Putting These Essential Terms Into Practice And Making Sense Of BTMs
By familiarizing yourself with fundamental terms, you’ll learn what you need to know to advance your understanding of more complex crypto terms, including those that apply to Bitcoin ATMs. Put what you learn into practice and search “bitcoin ATM near me.” Before you know it, you’ll be well-versed in all you need to know about Bitcoin ATMs.