What is a Crypto ATM? Find out here!
A crypto ATM is an internet-based kiosk that lets you buy crypto in exchange for cash. Users can invest money in these ATMs. In exchange, crypto tokens are added to the wallet. The growing use of cryptocurrency users across the globe has also given rise to crypto ATMs. According to recent studies, it is estimated that more than 5% of European users invest in cryptos. There are investments, purchases and other gaming platforms. Moreover, cryptocurrencies are also accepted by e-commerce platforms. It is in exchange for their products and services as bitql.
How does crypto ATM work?
We all know the features of ATMs. In most cases, these ATMs allow users to withdraw cash from these ATMs. Modern 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 money into these machines and withdraw cryptos. These ATMs provide you with cryptocurrencies or tokens of the same value as cash. Some 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 another user’s digital wallet. There is a QR code used by these machines when initiating a transaction.
Let’s understand here the main points to remember
- Crypto ATM is a device that allows investors to buy and sell their existing cryptocurrencies
- These machines are connected to the internet and perform transactions using a QR code
- As of today, there are 14,000 crypto ATMs around the world allowing crypto transaction
There is a growing popularity in crypto transactions. Before moving forward with other popular crypto features, let’s 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 tokens initiates transactions internally. Based on the cash deposit you made, users receive an equivalent crypto payment. This payment is added to the wallet. Each of these transactions is carried out 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 made using these crypto ATMs are simple and fast. They appear on your wallet in less than a minute.
Another catchy situation when using crypto ATMs is its limitation. There is a limit set on each of these ATMs. This means that you are allowed to undertake a transaction with a minimum and maximum value.
Verifying User Credentials
Each ATM crypto has a unique verification process to verify the user’s identity. Few machines have advanced verification techniques that even include 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 ID cards to these machines. Once your identity verification is complete, transactions are initiated.
Each crypto ATM charges a nominal fee for each transaction. There are no fixed fees for ATMs and each transaction is linked to a transaction fee. These fees generally vary between each machine.
Locations and geographical offer
There is a growing popularity on crypto ATMs. It is estimated that to date, approximately 9,000 ATMs are installed in the United States. The UK ranks first in this tally with more than 14,000 machines installed. In most cases, these ATMs are operated by companies involved in the cryptocurrency industry. Yet another case includes those ATMs operated by an exchange or other crypto trading agency.
Crypto ATM and its future
Over the years, we have come across many technological advancements. One such advancement is the online payment model. Having a crypto exchange that allows online payments, including crypto transfer, is an added advantage. The time required to initiate a transaction is minimal and involves lower transaction fees. All transactions made through crypto ATMs are hassle-free. Another possibility that attracts investors is the confidentiality of transactions. At no time is there any exchange or sharing of your personal information.
With over 15,000 ATMs already installed, crypto ATMs will indeed play an important role in transaction execution.