Frequently Asked Questions – Bitcoin ATM

WHAT IS CRYPTOCURRENCY?

Cryptocurrency, also referred to as Digital Currency, is a relatively new form of technology which is being used to exchange agreed-upon values to goods and services. It’s just like regular, traditional currency; however, it uses cryptography to secure transactions and control the creation of its native currency.

WHAT IS BITCOIN?

Bitcoin is a form of digital currency. This means that if you have bitcoins you can use them as cash instead of handing bills and physical coins to the merchant. Currently, bitcoins are primarily used for online purchases and transfers as they are more liquid than physical currency (with lower transaction costs). There are thousands of online retailers that accept bitcoin with the number growing daily. Bitcoin is “The Internet of Money.”

WHAT IS BLOCKCHAIN?

All cryptocurrency transactions are stored in a public ledger called the blockchain. It’s not maintained by any singular authority, but rather by a network of communicating nodes and miners running open-source software. Transactions are sent to this network using readily available software applications, such as wallet apps, and nodes validate those transactions, add them to their copy of the blockchain, their ledger, and then forward these additions to other nodes. The blockchain is a distributed database, meaning each network node verifies and stores its own copy of the blockchain.

HOW DO I ENROLL WITH COINSOURCE?

In order to enroll, you’ll simply need your cell phone and your government-issued State ID or Driver License. (We do not accept foreign ID’s, City ID’s or Passports at this time.)

To begin, simply fill out our enrollment form starting with your phone number, you will receive a six-digit confirmation code via text message, this just confirms that the phone number you entered is yours and that you have access to the confirmation code to proceed.

Next, we will ask for a few photos to confirm your identity in order to comply with all state and federal banking regulations which are required for all operators by law. Don’t worry, all of your information is 100% private and will never be shared or sold to any third-parties, ever.

The first photo we will need is of the front of your State ID card. Please make sure there aren’t any glares or obstructions like thumb or finger in the photo. This makes it easier for photos to be accepted. Simply tap the ‘Take a Photo’ tab and your phone’s camera will prompt you to take a picture. Once you have a clear, glare and obstruction-free photo, tap ‘Next’.

The second photo we need will be of the back of your ID.

The third and final photo for the Enrollment Form is a self-portrait, or “selfie”. Please do not use any filters as they will not be accepted.

And that’s it! In just a short time you will receive a confirmation text message telling you your account has been processed and approved and that you are able to proceed with transacting at any Coinsource Bitcoin ATM in the country.

CAN I PURCHASE BITCOIN OR OTHER CRYPTOCURRENCY THROUGH COINSOURCE WITH A DEBIT CARD OR CREDIT CARD?

No. Coinsource machines only accept U.S. cash to complete a transaction. The smallest denomination Coinsource machines accept is a $5 bill.

HOW MUCH BITCOIN CAN I BUY/SELL FROM COINSOURCE?

You can transact as little as $5 and as much as $3,000 per day from a Coinsource ATM.

DO I HAVE TO ENROLL WITH COINSOURCE BEFORE USING A COINSOURCE BITCOIN ATM?

Yes. As the world’s largest Bitcoin ATM operator, Coinsource is nationally licensed and federally regulated which requires proper ID verification of our customers. Coinsource does not share or sell any information whatsoever to 3rd parties.

WHAT DOES "DECENTRALIZED" MEAN?

With centralized financial systems, such as the United States Federal Reserve, governments and banks control the supply of currency and oftentimes can become inflationary. With cryptocurrencies being built on peer-to-peer, being an open source and being a decentralized network, currency isn’t controlled by any one person or organization nor can it be artificially inflated.

DOES CRYPTOCURRENCY HELP PREVENT IDENTITY THEFT?

Absolutely! The great thing about cryptocurrencies is that you can send as well as receive money from anywhere in the world at any given time without having the need to worry about banking hours, formal permissions or any other limitations that you would have with standard fiat. You can make and complete payments in Bitcoin and other cryptocurrencies without anyone’s personal information being tied to the transactions, therefore protecting you against identity theft.

HOW LONG HAS BITCOIN BEEN AROUND?

Bitcoin was first introduced to the public back in 2009 and pioneered the field as the very first decentralized cryptocurrency and the decentralized control is by use of Bitcoin’s distributed ledger, called the blockchain. Bitcoin is the most popular digital currency and was the first digital currency to implement the blockchain as a core component.

HOW CAN I STORE MY BITCOIN?

To begin using Bitcoin, you’ll need to use a Bitcoin wallet. A wallet stores the necessary information needed to handle your Bitcoin. Often described as a place to hold or store digital currency, Bitcoin wallets are essentially a means to store your digital credentials for your Bitcoin and allows you access to them. To download the Coinsource Bitcoin Wallet app >>CLICK HERE FOR IOS APP STORE<<, >>CLICK HERE FOR GOOGLE PLAY<<.

WHAT DOES DOUBLE SPENDING MEAN?

Double-Spending is the act of using the same bitcoin twice. There is only a 21 million set cap on the protocol and no more can be produced. The network protects against double spend by the verification of each recorded transaction. The blockchain ledger ensures that the transactions are finalized by its inputs confirmed by miners. The confirmations make each unique Bitcoin and its subsequent transactions legitimate. If one tried to duplicate a transaction the original blocks deterministic functions would change showing the network that it is counterfeit and would not to be accepted.

WHAT IS BITCOIN MINING?

Bitcoin mining is comparable to the mining of gold, but its digital form. The process involves specialized computers solving algorithmic equations or hash functions. These problems help miners to confirm blocks of transactions held within the network. Bitcoin mining provides a reward for miners by paying out in Bitcoin in turn the miners confirm transactions on the blockchain. Miners introduce new Bitcoin into the network and also secure the system with transaction confirmation. They are also rewarded network fees for when they harvest new coin and a time when the last bitcoin is found mining will continue.

SHOULD I SEND BITCOIN, OR ANY FORM OF CURRENCY, TO A STRANGER ASKING FOR IT?

No. Unfortunately, there will always be examples of bad people taking advantage of good things. Given the nature of privacy that comes along with cryptocurrencies, scammers will do whatever it takes to trick people into sending funds to them, and with cryptocurrencies, it’s nearly impossible to identify someone solely from the wallet address they provided you to send funds to.

When sending funds to anyone, always use your best judgment and never forget that if something sounds “too good to be true”, it most likely is.

If you wouldn’t feel comfortable sending an envelope of cash to a complete stranger’s P.O. Box, do NOT send Bitcoin or any other cryptocurrency to them either. Once a you send cryptocurrency, you cannot stop, cancel, or reverse the transaction. Please have 100% confidence in the identity of any recipient you intend to transfer funds to.