A crypto ATM is an internet-based kiosk that allows you to buy cryptos in exchange for cash. Users can invest cash in these ATMs. In exchange crypto tokens are added to the wallet. The rising use of cryptocurrency users across the globe has given rise to crypto ATMs as well. As per recent studies, it is estimated that more than 5% of European users invest in cryptos. There are investments, shopping, and other gaming platforms. Additionally, cryptocurrencies are also accepted by e-commerce platforms. This is in exchange for their products and services like bitql.
How crypto ATM works?
All of us are aware of the functionalities of ATMs. IN most cases, these automated teller machines allow users to withdraw cash from these machines. Modern-day machines also allow users to deposit, and transfer funds from one account to another.
However, crypto ATM works differently. In the case of crypto ATMs, users can deposit cash in these machines and withdraw cryptos. These ATMs provide you with crypto coins or tokens of the same value as that of cash. Certain ATMs also allow users to transfer cryptos to another user. Additionally, these ATMs work to create blockchain-based transactions. These blocks allow users to transfer cryptocurrencies to the digital wallet of another user. There is a QR code used by these machines while initiating a transaction.
Let us understand key takeaways here
- Crypto ATM is a device that enables investors to buy and sell their existing cryptocurrencies
- These machines are internet-enabled and undertake transactions using QR code
- As of date, there are 14,000 crypto ATMs across the globe allowing the crypto transaction
There is growing popularity in crypto transactions. Before going ahead with other popular features of cryptos let us first understand how crypto ATMs work.
Unlike traditional ATMs, crypto ATMs do not dispense you with crypto coins. Instead, the blockchain technology deployed in these crypto token initiate transactions internally. Based on the cash deposit undertaken by you, users receive an equivalent crypto payment. This payment is added to the wallet. Each of these transactions is undertaken using a QR code.
So, now another important question here? What if there is no digital wallet? Crypto ATMs allow you to create a digital wallet using these automated machines. All transactions undertaken using these crypto ATMs are easy and fast. They appear on your wallet in less than a minute.
Another catchy situation while using crypto ATMs is its limit. There is a limit set on each of these ATMs. This means you are allowed to undertake a transaction with a minimum and maximum value.
Verifying user credentials
Every crypto ATM has a unique verification process to verify user identity. Few machines have advanced verification techniques which include even scanning your palm. Other options include verifying your mobile number to authenticate your transaction. In a few cases, there is also an option to upload your identity cards on these machines. Once your identity verification is completed transactions are undertaken.
Every crypto ATM charges a nominal fee for every transaction. There are no fixed ATM fees and every transaction is bound with transaction fees. These fees generally vary between each machine.
Locations and geographical supply
There is increasing popularity on crypto ATMs. It is estimated that as of date there are approximately 9000 ATMs installed in the US. The UK stands first in this count with more than 14,000 machines installed across. In most cases, these ATMs are operated by companies involved in the cryptocurrency business. Yet another case includes these ATMs operated by an exchange or another crypto trading agency.
Crypto ATM and its future
Over the years, we have come across many technological advances. One such advance is the online payment model. Having a crypto exchange that allows for online payments including crypto transfer is an added advantage. The time involved in undertaking a transaction is minimal and involves lesser transaction fees. All transactions undertaken through crypto ATMs are hassle-free. Yet another possibility attracting investors is the privacy in transactions. At any point in time, there is no exchange or sharing of your personal information.
With more than 15000 ATMs already installed, crypto ATMs shall indeed play important role in executing transactions.