Crypto automated teller machines (ATMs) represent stand-alone electronic kiosks from where individuals can sell and buy digital currencies with a debit card or in exchange for cash. The majority of ATMs sell only Bitcoin, while some offer other cryptocurrencies as well. Bitcoin is the first cryptocurrency ever created, which opened the doors to excellent opportunities for people worldwide to use something other than fiat money. Ethereum is the second largest cryptocurrency by market cap, which was launched in 2015 after Vitalik Buterin and the co-founders succeeded in raising the funds for the project. Ethereum has become recognized worldwide, and investors have become more and more interested in the best way to buy Ethereum as it offers more capabilities than Bitcoin.
Crypto ATMs function differently than traditional options, as they don’t connect to a bank account but to a user’s digital wallet. In this way, the transaction is processed, and the digital currencies are sent to the customer. Around the world, there are plenty of crypto ATMs, but the majority of them are located in the United States. Want to find out more about crypto ATMs? Keep on reading.
How do crypto ATMs function?
How do crypto ATMs function?
How do crypto ATMs function?
Crypto ATMs work by connecting to a crypto exchange and converting the deposited cash into digital coins. Crypto transactions are processed on blockchains, a technology that has revolutionized the financial landscape. To use a crypto ATM, an individual needs to connect to their digital wallet, which is typically sent via a QR code. Then, the user needs to deposit the cash, and the purchased cryptocurrency will be sent directly to the digital wallet.
The majority of crypto ATMs allow just a one-way transaction, where the digital coins can be purchased rather than sold. However, some ATMs allow two-way transactions, and in this way, individuals can sell and buy virtual coins in exchange for cash. The selling part in the ATMs is similar to the buying process: the users will scan the QR code of their digital wallet and then choose how much crypto they would like to sell. After this, they will receive cash from the crypto ATM at the moment that the transaction will be processed. Usually, the types of ATMs that allow the selling of crypto, will also require an ID verification.
What are the countries with the highest number of crypto ATMs?
United States
The United States is the country with the highest number of crypto ATMs, having over 31,000 ATMs that are scattered around the nation. However, this is not quite a surprising fact, as the USA is known for a large number of crypto enthusiasts and embracing a high level of tech innovations.
Canada
The first Bitcoin ATM was set up on 29 October 2013 in Vancouver, Canada, which makes Canada the pioneer country of crypto ATMs. The machine was placed in a coffee shop and had more than 348 transactions, which were worth somewhere around $100,000 just in the first week from the moment it was set up. Even though Robocoin, the company that operated the first crypto ATM, has shut down, the number of crypto ATMs in Canada has increased, and the country is the second one regarding the highest number of crypto ATMs.
Spain
Surprisingly, Spain is also on the list of the countries with the most ATMs. This happened mainly because Spain wants to become a leader in the adoption of cryptocurrencies, across Europe and the entire world. Cryptocurrencies are very popular in Spain, as various young and tech-savvy citizens have embraced them, which has also led to the expansion of crypto ATMs.
El Salvador
El Salvador was the first country to adopt Bitcoin as a legal tender. The president of the country, Nayib Bukele, has always been a Bitcoin enthusiast, and this is why he took important steps to make El Salvador a crypto-friendly nation. He wanted Bitcoin to become a legal tender to offer something to people who were struggling with the economic problems of the country, and he made the necessary changes to this, as he even used geothermal energy from the country’s volcano to power the Bitcoin mining processes.
Because of his dream to make Bitcoin a legal tender, he needed to consider Bitcoin ATMs, and at the moment, El Salvador is among the countries with the highest number of crypto ATMs.
What are the risks of crypto ATMs?
Crypto ATMs have numerous advantages as they make cryptocurrencies more accessible, but they also present some significant disadvantages. For example, crypto ATMs can charge high fees, and some of them can charge more than 10% of the entire transaction. Compared with the fees of a traditional crypto exchange, which range between 1% to 4%, individuals could pay more if they choose to use a crypto ATM. Additionally, crypto ATMs will not offer insurance for funds, and although self-custody is a good way to store the crypto holdings, it doesn’t offer something in case of loss and theft.
Transaction limit is another disadvantage of crypto ATMs, as users will experience a minimum and maximum limit set by the ATM company, which generally varies between $10 and $10,000. Furthermore, as not every city around the world benefits from crypto ATMs, people may need to travel a longer distance to have access to these types of ATMs. And maybe the most notable disadvantage of crypto ATMs is security, as there have been cases of ATM-related theft. This is why individuals must pay attention to their surroundings so that they will reduce the chances that something bad will happen while using them.
Wrapping up
The world is becoming more attracted to cryptocurrencies, as individuals see them as an asset that can provide numerous opportunities. Nowadays, people can buy cryptocurrencies in multiple ways, like using a credit card, bank transfer, or a crypto ATM. Crypto ATMs are a popular alternative worldwide, and they help cryptocurrencies be more accessible.
