You may have never heard of a cryptocurrency ATM, but they are starting to pop up in crypto hotspots all over the world. Despite its name, a cryptocurrency ATM is not the same as a regular automated teller machine (ATM). What is the same, however, is the concept of a kiosk hardware machine. Here, we will explain the basics of cryptocurrency ATMs to use them to your advantage better.
According to Investopedia, there are over 14,000 bitcoin ATMs worldwide, and the number is only growing. Coin ATM Radar estimates that there are over 12,000 cryptocurrency ATMs in the United States. This is compared to the previous year when there were only 6,700 in the US. This trend exemplifies the increased usability of cryptocurrency.
Basic Functions
These “ATMs” primary function is to allow public users to buy or sell cryptocurrencies for a terminal. The cryptocurrency ATMs are connected to the internet to execute the process.
The vast majority of these machines allow users to use cash or debit cards to buy cryptocurrency. Some will even give you cash if you sell your coin using the device. Because financial institutions do not operate cryptocurrency ATMs, they do not connect with users’ bank accounts.
How it works
The kiosks are all connected to the bitcoin network. A typical transaction will go as follows:
- Buyers scan a QR code that is connected to their e-wallet address.
- Purchased coins are transferred to the e-wallet.
- The record of the purchase will appear in the wallet a few minutes after purchase.
It’s that simple!
Like a regular ATM, cryptocurrency ATMs charge a service fee for each transaction—most of the time, the ATM charges by percentage. Because of the service fee, buyers often receive a better value for their money when using regular trade sites like Coinbase.
Using these sites is most often recommended, but the ATMs’ existence increases the accessibility of cryptocurrency tokens. In turn, this could increase the utility and value of the coin.
New pieces of technology are being developed every day to capitalize on or increase the incredible usability of cryptocurrency. JIFU wants you to be educated and up-to-date, so be sure to check back frequently for more information!
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