Crypto ATMs (Automated Teller Machines) are kiosks that allow users to purchase Bitcoin and other cryptocurrencies by using cash or debit card. Some Bitcoin ATMs offer bi-directional functionality enabling both the purchase of Bitcoin as most Crypto ATMs only allow the withdrawal of crypto to cash. The world’s first crypto ATM was a Bitcoin Atm which was opened in Vancouver, Canada. The machine allows users to exchange their credits of the digital currency for cash and vice-versa, On October 29, 2013.
To process transactions, crypto ATMs connect to users’ digital wallets, unlike the normal ATMs that connect to a bank account. There are a lot of cryptos ATMs all over the world. Transactions are processed on the blockchain, which is a digital ledger of financial transactions for cryptocurrency. Using a crypto ATM involves connecting a user’s digital wallet (mainly via Scanning Users wallet QR Code ), depositing cash, and transferring the purchased cryptocurrency directly to the digital wallet.
what is the risk of using crypto ATMs
Crypto ATMs are good but they also come with a little risk. below are some risk:
1. Availability:
Crypto ATMs are limited in numbers and location which might require users to travel long distances to use one.
2.High charges rate:
Crypto ATMs Charges are high as most crypto ATMs collect more than 10℅ per transaction which is high compared to normal exchange fees, which are 1-4%. This simply means users would be charged more to use Crypto ATMs.
3.Transcription limit:
Most crypto ATMs are limited to carrying out transactions with a minimum of $10 and a maximum of $10,000.
How to use crypto ATMs?
Below are the steps required for users to take to use a crypto ATM.
1. Make sure you have a Crypto wallet:
To carry out transactions crypto ATMs connect to your digital wallet the transaction, so you will need to create a wallet to purchase crypto. There are many popular online wallets, and some crypto ATMs even offer their wallet software.
2.Identity verification:
Most crypto ATMs will request phone numbers (at a minimum) to verify your identity, but some may require further verification, such as scanning a photo ID or entering your Social Security number.
3.Scan your wallet:
To buy cryptocurrency, you will need to scan your wallet address. Most digital wallets have the option to display a QR code, which can be scanned into the crypto ATM.
4.Make a purchase:
Select the crypto that you would like to purchase, then input how much to pay, and complete the transaction. A cash deposit would be required or you pay with another accepted payment method.
5.Wait for the transaction to complete:
Crypto transactions take place on blockchain and can take a while to process. Once the funds have been deposited into your wallet and confirmed, the transaction is complete. You may get a receipt from the crypto ATM for the transaction as well.
How to find Crypto ATMs
Finding crypto ATMs has been made easy, You can find one using a service like Coin ATM Radar or Google search can help find the nearest ATMs close to you.
