Bitomat – what it is and how it works?
The popularity of cryptocurrencies continues to grow, especially bitcoin, so it should come as no surprise that devices have been developed to exchange them. Unfortunately, in Poland there are not many of these yet, but certainly the number will increase significantly if the interest in virtual money remains at least at the current level. What is a bitomat and how does it work?
Bitomat – what is it?
A bitomat is a device which works on the principle of a classic ATM, allowing one to exchange bitcoin for real money and vice versa. Although we can also find some that only allow purchases, but definitely more popular are those that allow two-way transactions.
How a bitomat works
A bitomat is an ATM which handles cryptocurrencies, so it works on a similar principle. The main difference is that to be able to make operations in ATMs we need to have a bank account. Each such transaction is recorded, regardless of whether we do it using a payment card or BLIK. Bitcoins, unlike ATMs, are completely anonymous and the deposit/withdrawal process looks a bit different.
Of course, the most common bit machines are those that only support bitcoin, but some of them also allow transactions with other popular altcoins.
How to deposit and withdraw cash from bitcoin
Exchanging bitcoin for cash (or vice versa) is relatively simple. In both cases you will need bitcoin, your bitcoin wallet address and cash if you make a deposit. There are many such wallets on the Internet, although the most convenient option in this situation would be an application for a phone.
How to buy bitcoins
- select option Buy bitcoin (or buy bitcoin if bitomat is in Polish),
- provide address of the wallet (usually in the form of QR code to scan),
- insert the desired amount into the bitcoin machine,
- approve the transaction if everything is correct.
How to withdraw money
- you choose the option Sell bitcoin,
- enter the amount for which you want to sell your bitcoins. Their number should update as the amount changes,
- we approve the amount and choose the authentication method (e-mail or sms),
- you enter a code, which should be sent to a given phone number or e-mail address,
- after verification bitcoin will display the address of the wallet to which you need to transfer the traded bitcoins. The easiest option, as in the case of deposits, is to scan the QR code and confirm the operation in the app,
- after confirming the operation, once again select Sell bitcoin and make the withdrawal using the code you will receive on the phone number or email address you specified earlier.
Bitcoins and commissions
Bitmates have their advantages, such as anonymity of transactions and their speed, but unfortunately the exchange of cryptocurrencies using them is also associated with a large commission charged by operators. This is usually a few percent of each transaction, so in this regard, exchanging in another way may simply be more beneficial.
How to find a bitomat in Poland
Unfortunately at the moment the number of available bitmeters in Poland is rather small, but it will probably increase with time. Currently you can find them only in major cities, most obviously in Warsaw. Interestingly, the location of such bitomats can be checked at Google Maps by typing „bitcoin”, although unfortunately not all are listed there. Depending on where you live, it is best to simply use a search engine and type „bitomat + name of a major city nearby”. There is a good chance there is at least 1 bitomat.
Regulations for cryptocurrencies in Poland are quite clear, although they have not always been so. On all income related to cryptocurrency trading we should pay tax, and so on from those made using bitmachines. Although transactions of this type are fully anonymous and virtually untraceable, the tax office may at any time become interested in the origin of our money and initiate an inspection.
Where to get cryptocurrencies
The easiest way to come into possession of your chosen cryptocurrency is, of course, to buy it. Interestingly, this is not the only option, as we can get them in many other ways. Examples include cryptocurrency taps, where you get them for free, or even digging them.
Let’s not fool ourselves, exchanging cryptocurrencies in a bitomat is not the most advantageous solution, although it has its advantages. The biggest of them is of course full anonymity of the transaction and its execution time. The disadvantages, in turn, may include quite a large commission, which can be avoided by deciding on the exchange via the Internet, for example. on a cryptocurrency exchange. It is worth to know about this possibility, because e-commerce is not always possible e.g. In case of problems with identity verification.
What do you think about bitomats? There should be more of them in Poland? Share your opinion in the comments.