Bitcoin ATMs function just like regular ATMs but don’t deal with traditional cash but instead deal with virtual currencies or cryptocurrencies.
Bitcoin ATMs are growing in number as well as popularity at a rapid speed. With technology taking over all aspects of the world one step at a time, Bitcoin ATMs may even replace traditional ATMs sometime in the future.
On that note, a common question that may arise in the minds of most is whether these ATMs are actually safe or not. Let us dive into the various security aspects that come along with Bitcoin ATMs.
The digital wallet that the user owns is of highest stake whenever a transaction is being done. Any breach of this wallet could result in severe collateral damage.
The verification process that comes every time a transaction is made helps ensure the security of the transaction and that the currency is not falling into the hands of the wrong individual. The verification processes are usually skipped when the transaction to be made is small.
Now onto the anonymity that comes with cryptocurrency, the currency is decentralized and the same concept is applied when it comes to the bitcoin ATMs as well. The Bitcoin ATM is connected to the digital wallet through an encrypted connection via the internet backed up by passwords as well as identification details. In fact, many have even claimed Bitcoin ATMs to be even more secure than traditional ATMs.
As of now, no malware has ever been found that could cause any form of disruption to Bitcoin ATMs. The reason behind this is due to how technologically advanced the cryptocurrency web has been with a high level of security, multiple passwords as well as multiple encryptions.
At one point in time, there was a user who had posted of the existence of cyber malware on the dark web. This really gained the attention of a lot of cryptocurrency stakeholders. The same user who posted such a threat, later on, was willing to sell the malware for $25,000.
The value the user posted was enough to prove that such a threat did not exist. The news of this fake scam was out of the bag and the truth behind this scandal was out. The hacker behind this scam in fact wanted to hack into regular ATMs through this scandal.
Apart from Bitcoin ATMs having the advantage of processing currency transactions at a fast rate as well as being user-friendly, the security that comes along with these ATMs is like no other.
To break into the security system of the Bitcoin ATM is one that requires intense knowledge on how the cryptocurrency system works. Without that, hacking into such a highly secure system would never be possible. To make such payments click here to avail such a platform that provides insight on Bitcoin ATMs and ensures the safety that comes along with them.
Even if a professional hacker does try to break into the system, it would be impossible for him or her to do so considering the identity of the person being asked to be verified whenever any action takes place with the digital wallet. The transaction will further require a private key or a security key, without which no transaction can take place. On keying in the wrong key, the transaction would be an unauthorized one.
Disclosure of transaction fee
Bitcoin ATMs are known to disclose their transaction fee. This is another sign that they are serious about their security. An issue would only arise if the transaction fee being charged is a huge percentage.
Paying the transaction fee should not be considered as a red flag but one that makes sure that your transactions are being taken care of in the most secure way possible.
AML Compliance or an Anti Money Laundering Compliance program is a part of the registration procedure to be able to utilize a Bitcoin ATM. Details such as one’s ID and phone number are asked to verify that the individual is authentic and not a human operating on a fake idea. This also helps reduce the chance of allowing a terrorist or any sort of financial criminals to access such a system.
Apart from this, a KYC is also issued so as to collect data on the financial dealings of their clients. If anything goes haywire or any entry seems bizarre, the user can be questioned on the transactions that he or she has made.
Tips to make safe transactions
It is also important to make sure that your surroundings are clear before you type in any major details into the system. This also means that one must be aware of the person behind as he or she may be inquisitive and look over the ATM user’s shoulders to get some sensitive details.
Some people try to forcefully sell bitcoin to others. The majority of the time, this turns out to be a scam. On a side note, never count loose cash near an ATM or out in the public. This cash could be snatched away by criminals lurking around nearby.
Ensure the authenticity of the digital wallet that you are investing in. In the case of any issues, get in touch with customer service immediately.
Summing It Up
Many of us think twice or thrice before entering the world of cryptocurrency. The reason behind this is mostly due to the fact that many of us do not have a wide knowledge with regard to cryptocurrency as well as the various techniques and methods that drive it.
On viewing the number of cyber frauds happening in the world, we are often made to believe that indulging in cryptocurrency transactions is also going to put us in similar situations. The same is assumed about the Bitcoin ATMs as well and hence people second question themselves on this aspect.
Moreover, the above-mentioned reasons are good enough proof to back up the fact that Bitcoin ATMs are pretty safe and secure to use.