Living in Lagos, Nigeria? You may have heard about or even come across a Bitcoin ATM. There’s only one of these machines in the country.
Having a Bitcoin terminal is closely linked to crypto-friendliness. Nigeria is not at the top of this list worldwide. However, the country is surely doing well in Africa.
In this article, we explore Bitcoin ATMs (or BTMs) in Africa. We discuss what these terminals are. We also talk about how they work and where they are located.
What are Bitcoin ATMs (BTMs)?
Bitcoin ATMs (BTMs) are special machines for transacting in Bitcoin. They allow withdrawal and deposits of Bitcoin.
However, Bitcoin is a digital currency - and not some physical money. But users of a Bitcoin ATM are either buying the asset with fiat or selling theirs for some. This brings physical cash into the equation.
That explains why Bitcoin ATM transactions involve local fiat currencies and the Bitcoin asset.
How Bitcoin ATMs Work
Regular ATMs allow you to withdraw money from an account. Deposit ATMs do the opposite. They allow you put money into your account.
Some types of ATMs are hybrid. They have both the withdrawal and deposit features. A good example is the Bitcoin ATM.
Read on to find out how purchasing and withdrawing works on these machines.
Purchasing Bitcoin on a Bitcoin ATM
A Bitcoin ATM and a regular ATM works the same. That is in terms of purchasing.
Suppose you want to purchase airtime using a bank ATM. What do you do? You’d first of all have to authenticate yourself. This could be done either using your card pin or using your fingerprint.
Next, you will toggle the menu until you see the recharge airtime option. Select this. Input the phone number and recharge amount and you’re done.
It’s a closely similar process to a Bitcoin ATM.
Of course, you would be trying to purchase Bitcoin instead. You may deposit cash directly into the ATM. Alternatively, you can make use of your bank card.
You select the amount you want to deposit using your card. There’s no need to do so with the cash option. This is because all cash inserted into the machine is considered a deposit.
The deposit process gives way to the main transaction. This is when you input your Bitcoin wallet address. But, for the system to work, it needs some information.
Bitcoin price data is always required at the time of a transaction. A special service called an Oracle gathers this information. The Bitcoin ATM uses this info to calculate what exchange rate to apply.
In simple terms, the price of Bitcoin is compared to the value of the user’s currency.
So let’s assume that you insert a USD 100 bill. The Bitcoin ATM would determine the worth of your money in Bitcoin.
The conversion is done and the Bitcoin amount is displayed to the user. On confirming their action, the machine securely transfers Bitcoin to the inputted address.
Selling Bitcoin on a Bitcoin ATM
Bitcoin purchasing might sound cool. But it is the sell feature on Bitcoin ATMs that is techy.
Here’s how it works.
A Bitcoin ATM holds physical cash like any regular ATM. This money will always be in local currency. It will be the same as the fiat utilized in the machine’s location.
The user then simply selects the sell option. The machine will respond in one of two ways. It either displays a Bitcoin wallet address or puts up a QR code. Usually, both options are available for you to choose from.
If you decide to go with a QR code, you’d have to scan it. Most crypto wallet apps have a feature for that. You use it by pointing your phone’s camera to the QR code.
After scanning, you input the amount of Bitcoin you want to sell, confirm, and send.
Alternatively, you could use the ATM-generated address. This is more like the conventional way of sending crypto. However, you must be careful not to input a wrong address. Doing so would mean that you lose your Bitcoins forever.
Once you hit the send button, all you have to do next is wait. It typically takes a few seconds or minutes. Within this time, the machine will read your Bitcoin transfer.
It will then proceed to determine the cash equivalent and dispense your money.
What Do Bitcoin ATMs Charge?
We imagine that you have lots of questions about Bitcoin ATMs. One of them will surely be around fees/charges. Your regular ATMs charge small amounts of fees, right? So it is normal for Bitcoin ATMs to do the same.
The charge on a Bitcoin terminal transaction varies. It could be anywhere between 5% to 20% or more. It depends, primarily, on the transaction figure or value.
Basically, higher transactions will attract higher fees and vice versa. Other factors may also come into play in determining the fees charged. This could include the service provider, the ATM’s location, and the frequency in which the service is employed.
Whatever the case, the charge on Bitcoin ATMs should be fair enough for anyone.
Bitcoin ATMs in Africa: Countries Where They Can Be Found
Bitcoin ATMs are relatively new in most of Africa. Only six out of fifty-four countries have, at least, one of these machines.
- South Africa:
South Africa is home to 22 Bitcoin ATMs. This staggering achievement is only possible given the government’s stand. It is no news that the country is extensively bitcoin-friendly.
The Bitcoin ATMs in South Africa are in Johannesburg, Durban, Cape Town, Port Elizabeth, and Pretoria.
Both Durban and Johannesburg host 8 machines each. Cape Town hosts 4 machines. Lastly, Pretoria and Port Elizabeth house a single Bitcoin ATM each.
It is interesting to note that South Africa’s had a BTM as early as 2014.
- Nigeria:
Nigeria owns 2 Bitcoin ATMs. This is an insignificant number considering its population. But the number counts nonetheless.
Both Bitcoin machines in Nigeria are located in Lagos. One is at Dazey Lounge and Bar, Ajah. The second machine is located at CI Crypto Solutions in Ikeja.
The first of these two machines was installed on January 12, 2020.
- Zimbabwe:
Zimbabwe only owns a single Bitcoin ATM.
The machine is located at Batanai Gardens, Harare. It was reportedly installed in April, 2018.
- Botswana:
Botswana is home to one Bitcoin ATM. This machine can be found at Airport Junction Mall, Gaborone. It was reportedly installed on March 1, 2019.
- Djibouti:
Djibouti One and Strong(DOS), Djibouti hosts one Bitcoin ATM. It was reportedly installed on March 25, 2018.
- Kenya:
Kenya, like most others, hosts a single Bitcoin ATM. This machine is located at Kenrail Towers, Nairobi. It was reportedly installed on May 10, 2018.
Bitcoin ATM Tracker
Wouldn’t it be great to get Bitcoin ATM updates? Perhaps a new machine has been added in your country or specific region. If you’re interested, we definitely have good news.
There are a couple of helpful tracker websites. These platforms are constantly updated with Bitcoin ATM info. They provide data on new installations and the precise location of each one.
- CoinATMRadar:
This tool is unique for many reasons. It can display ATM maps for five different cryptocurrencies. They include Bitcoin, Ethereum, Bitcoin Cash, Dash, and Litecoin.
You can also select to see maps for six additional coins. You’d have to scroll down for this.
There are more options beyond checking out terminal locations. For example, users can submit a new ATM location. They may also become an ATM Host by following the appropriate button.
Further down the page, you’ll find Bitcoin ATM guides and a Bitcoin remittance service.
Where was the First Bitcoin ATM Located?
The first Bitcoin ATM was located in the US.
Indeed, the United States of America was the first country to have a Bitcoin machine. This ATM was installed in Vancouver, Canada, on October 29, 2013.
It became a historical mark for the popular coastal country. More importantly, it set the foundation for the use of crypto ATMs worldwide.
Conclusion
South Africa holds over 77% of all Bitcoin ATMs in Africa. As interest in blockchain and crypto grows, this will likely change. For now, over 45 African countries have no experience with these terminals.
Our advice to these nations is to foster the availability of Bitcoin ATMs. In the same vein, locals should show support and interest however possible.
