Currently, the global crypto acceptance rate records an increase of 880% since 2020. What’s more, people worldwide are getting more exposed to crypto-related services such as ATMs every day.
Point in case, crypto ATMs are somehow physically similar to the devices used in traditional banking systems. However, these ATMs operate differently. Here is an overview of how crypto ATMs work.
How Crypto ATMs Operate
Crypto ATMs are devices that allow users to buy or sell digital currencies. The machine commonly accepts cash, debit, or credit cards as modes of payment. While performing transactions, users do not need to go through any KYC processes.
Instead, all transactions take place anonymously without disclosing personal information. Anonymous transactions guarantee users’ privacy and security from identity theft cases. The only downside crypto ATMs have is the amount of charges users incur.
Transactional services in a crypto ATM cost a fee of almost 10%. The charges align with the machine’s ability to offer privacy. In most cases, crypto trading platforms usually own ATM devices. Thus, the platforms may require traders to register with them to use the crypto ATMs.
When buying Bitcoin, for instance, users need to deposit fiat currency in an electronic device. Afterward, indicate the number of coins to purchase and the wallet address receiving the assets. The machine then finishes by sending the coins to the address given.
Selling crypto on an ATM is also a straightforward process. It begins when the machine sends a verification message to the trader’s phone. After receiving the message, users send their BTCs to the ATM’s address. The ATM then concludes by paying out cash equivalent to the digital currency amount.
How to Find the ATMs
Locating a crypto ATM is another challenge users might encounter. The first digital asset, ATM, made its way into the market in 2013. At the time of writing, the number of ATMs has risen to over 26,000 devices worldwide.
Several websites enable traders to locate crypto ATMs that are closer to them. One good example is the Coin ATM Radar platform which gives users the exact location of an ATM. On Coin ATM Radar, users start by clicking on the “Bitcoin ATM Near Me” function.
It then takes users to the buy or sells operation with a list of ATMs nearby. Moreover, the platform supports various types of cryptocurrencies such as ETH, LTC, and USDT. Coin ATM Radar also gives information on the machine manufacturers, addresses, and operators.
Coin ATM Radar points out that the U.S has the highest number of crypto ATMs. The U.S is home to more than 23,000 ATMs, closely followed by Canada.
CoinMap.org is another alternative platform that finds ATMs on behalf of users. Asides from locating the machines, CoinMap displays merchants who accept crypto payments. Hence, it makes it convenient for consumers who would wish to receive goods using crypto.
Several entities take part in building ATM devices.
Lamassu operates as a Switzerland-based company developing crypto ATMs. The company has four types of ATMs, including Sintra Forte, Gaia, Sintra, and Duoro. Between the four devices, Gaia presents users with the most flexibility. The device weighs about 25kgs, and its design can fit in almost any location. Lamassu ATMs support coins such as Bitcoin, Ethereum, Dash, and Litecoin.
General Bytes is a Czech Republic entity offering Bitcoin and blockchain services. It also takes part in designing modernized crypto ATMs. The company sold over 9,000 machines which are responsible for processing more than 19 million transactions.
General Bytes currently has four ATMs, namely BATMTwo, BATMTwoPro, BATMThree, and BATMFour. The BAMTwo model was their first machine launched in February 2014.
Seven years later, BAMTwo has seen a continuous upgrade on its system. Some of the improvements added to the device include a point-of-sale feature and a fingerprint reader. Today, General Bytes has ATMs in over 60 countries providing access to more than 60 cryptocurrencies.
Genesis Coin is yet another crypto ATM manufacturer based in San Diego. The platform has three vending solutions, including Finney3, Satoshi1, and Genesis1.
Genesis 1 contains features such as a thermal printer, cash dispenser, and barcode scanner. On the other hand, Satoshi1 supports an in-class validator, an EMV reader, and a locking system. Finney3 is the latest ATM model from Genesis Coin. Its features are almost similar to the Satoshi1 version.
Crypto ATMs provide easier access to digital currencies. Despite being costly, it enables users to send or receive cryptocurrencies quickly. The devices also guarantee privacy as it only requires a wallet address to transact.
The presence of crypto ATMs shows the growing level of adoption across various countries. Through the machines, unbanked individuals can receive financial services without the authority’s intervention. More importantly, crypto ATMs prioritize the trader’s security.
Using a small capital, individuals can acquire their favorite crypto asset. In the end, making it easier to access cryptocurrencies solves the issue of financial exclusions.