Cryptocurrency ATMs are great technological advancements in the crypto industry. These intelligent electronic kiosks allow you to pay cash for cryptocurrency or either sell your coin on the spot. These are also called bitcoin ATMs, and luckily, they are popping up internationally and everywhere in the US states.
With 14,000 bitcoin ATMs established worldwide, they look like the most convenient way to buy crypto with cash and also the most secure and accessible solution for all.
But how do they operate? And how can you use them for your benefit?
Let’s find out everything in detail.
What are Cryptocurrency ATMs?
Cryptocurrency ATMs are basically efficient internet-connected kiosks. They enable investors to pay cash for Bitcoin and other cryptocurrencies.
These cryptocurrency ATMs appeal to investors who want to use cash, but fees, as well as other crypto options, are limits, they need to consider before choosing a cryptocurrency ATM.
Unlike your traditional bank ATMs, these cryptocurrency ATMs are not connected to your bank account. In fact, many of these crypto ATMs only allow you to withdraw cash. You can conveniently buy cryptocurrency with cash, but also follow some limitations that may leave people better off investing using an online exchange platform.
How to Use the Cryptocurrency ATMs?
Cryptocurrency ATMs are required to connect with a digital ledger and enable users to buy digital currencies as well as deposit them into their crypto wallets. The overall process of buying or selling crypto usually takes less than 10 minutes or sometimes could take longer, even more than an hour.
Using crypto ATMs may vary from one provider to another. Here is a general guide to buying crypto using ATMs:
- Set up Your Crypto Wallet:
First, it’s important to have a crypto wallet so you can easily buy or sell cryptocurrency using a specific ATM. If you don’t have a crypto wallet, you can easily set it up through an app or with specialized hardware.
Many ATM operators ask you to sign up for a specific wallet app before you start trading using their kiosks. This will be the wallet where the specific ATM will be sending your cryptocurrency.
- Find the Cryptocurrency ATM Near You:
After setting up the crypto wallet, you need to find the cryptocurrency ATMs near you. You can go online and search for the nearest ATMs. Bitcoin ATMs are usually found around gas stations, tuck shops, convenience stores, downtown hubs, and even at the airport terminals.
- Follow the Instructions Carefully:
Always follow the instructions very carefully to avoid any errors.
The kiosk screen will require you to verify your identity first. And this will be done by sending a text to your phone. After that, the ATM will automatically guide you throughout the process.
Whether you want to withdraw or deposit your cash, you will be required to link the cryptocurrency wallet while scanning a specific QR code in your wallet app or by using a special code.
- Wait for the Transactions:
Every cryptocurrency ATM transaction always follows the procedures of blockchain verification, and this takes anywhere from 10 minutes to even one hour.
Once you complete it, you can find funds in your cryptocurrency wallet and the sellers can receive the proceeds in form of cash.
Are There Any Pros and Cons of Crypto ATMs?
Yes, there are a few pros and cons of crypto ATMs:
- They are Decentralized:
Since the launch of bitcoin, the main objective of cryptocurrency is to facilitate peer-to-peer transactions without having to travel to any financial institution.
However, buying digital currencies with the help of a broker may require you to set up a whole bank account. But in the case of cryptocurrency ATMs, they are for everyone. It allows transactions for those who don’t even have a bank account to buy or sell cryptocurrency.
Cryptocurrency ATMs are designed to keep all transactions safe, private, and anonymous. Due to the advancement in blockchain technology that has already made cryptocurrency possible, users also feel much safer than the transaction is going to be processed securely.
- Accessible for All:
Cryptocurrency ATMs offer you an easy and reliable way to get started with cryptocurrency investing. You are required to set up your account and then link to the wallet app on the spot, which could be a very convenient entrance into crypto trading.
- High Fees:
One big drawback of cryptocurrency ATMs is, that they charge very high transaction fees, which range from 7% to 20%. So, it’s important to find the lowest cost ATMs near you so you don’t end up spending the whole amount you have.
- Scamming Risk:
Criminals also use cryptocurrency transactions so they can defraud victims as crypto provides an anonymous, impossible to track, and nonrefundable way for scammers to steal the hefty amount from users. When a person pressurizes you to pay them money while navigating to a crypto ATM and then sends cash to their wallet, it’s more like a scam.
- Come with Limitations:
Cryptocurrency ATMs lack some important features that are offered by online crypto exchanges. Online exchanges provide users with multiple perks that ATMs do not. For example, an extensive selection of altcoins, low transaction fees, and lots of other benefits and conveniences, such as not having to leave your house.
Cryptocurrency ATMs seem to be a very easy way to buy and sell your digital currencies. It lets you skip the hassles of using traditional banking which is a benefit for people who prefer decentralized technology.
However, cryptocurrency ATMs are still not much convenient as compared to trading crypto using an online exchange. This means they are not a great replacement for online cryptocurrency investment platforms.
But on the other side, with the continuous popularity of these ATMs, they are expected to grow more quickly and offer lots of benefits to the users. If you want to know more about them or are interested in exploring everything related to crypto, stay tuned with Promote Coin where we update our audiences every day with fresh news and information.