Did you know that there are more than 14,000 crypto ATMs in operation globally at the time of writing?
The number is growing at speed. Most of these ATMs exist outside of traditional banking institutions. Many people have been using them for years.
So how do you use crypto ATM machines? Suppose you’re familiar with crypto. Chances are, you’re aware of how important it is to do due diligence with any transaction.
Let’s take a closer look at these machines and how to use them to make sure your “funds are SAFU!”.
What Are Crypto ATM Machines?
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A crypto ATM, also known as an “ATM” or automated teller machine, allows crypto exchanges to use cash. Unlike a traditional ATM that talks to your bank, these machines talk with the blockchain.
The machines allow for instant transactions without having to wait on hold. They are often also connected to exchanges like Binance. So you can use them to withdraw fiat currency too!
How To Use A Crypto ATM Machine
Getting started using a crypto ATM all depends on which machine you use. Whether you’re buying or selling, a crypto ATM requires different steps as well. Let’s take a closer look at each type of transaction.
How To Sell Crypto
If you already have a crypto wallet, that’s great news! To sell your crypto using a crypto ATM, open your wallet on your mobile device and select “send.” Then enter the amount of cryptocurrency you want to send and choose where you’d like to receive the funds.
The ATM will either provide you with a QR code of where to send the crypto or an address you can type in. One typo and your money is gone forever! But it would help if you were extra careful whenever you aren’t using a QR code. You’ll then need to confirm the transaction by entering your PIN code.
Suppose you don’t see any change after confirming the transaction. In that case, check if sending the payment was a problem. It may take up to 10 minutes before the transfer goes through.
You can sell your crypto for another crypto. But if you’re withdrawing cash, the ATM will dispense funds in the same way as a traditional ATM at this point. In which case, you’ll need to open your wallet and repeat the process for receiving crypto as below.
How To Buy Crypto
Again, if you already have a wallet installed to send crypto, the process is as above. But instead of sending, you need to tell your app wallet to receive crypto.
Again, use the QR code that appears on the screen on the ATM. The ATM will make sure you send the right amount of crypto coins to the right address.
In this instance, if you’re depositing cash funds into the ATM, that step comes first. But what happens if you don’t have a wallet already?
Well, the good news is that many crypto ATMs will create a Bitcoin wallet for you with a public and private key. They will print this onto a piece of paper for you. You mustn’t lose this paper. Otherwise, you’ll never get your funds back!
You can use your public and private keys to set up a wallet elsewhere when you get home. But make sure you keep that information safe, or even better, shredded once you’re all set up. Do your research before making any decisions about how to use your paper wallet, though.
What Crypto Coins Can I Exchange?
There are currently over 5,000 different cryptocurrencies available today. Some people might think that only certain types of currencies work well together.
Yet others believe that no two coins are compatible. So it does depend on who you ask.
But here, we’ve listed our top picks based on their popularity. We also looked at liquidity, ease-of-use, and compatibility with these ATMs. We hope this helps you find the best coin for your needs.
Bitcoin
Bitcoin is the original cryptocurrency and still king of them all. Its decentralized nature, low fees, fast transactions, and security make it a must-have.
Ethereum
Ethereum is a newer alternative to Bitcoin. Ethereum offers smart contracts. These contracts allow transactions to have conditions without reliance on third parties.
Litecoin
Another younger brother to Bitcoin is Litecoin. Litecoin uses Scrypt proofing rather than SHA256 hashing algorithms.
Where Litecoin excels is its rapid speed and “almost-free” fees. That makes it a fantastic choice for getting the most for your money.
Is There A Limit To Exchange?
Most machines have a cap on how much crypto you can exchange in one go. Much of this is due to liquidity, so there is enough to go around. But it’s also partly down to anti-money laundering (AML) regulations as well.
All crypto ATMs in the USA are on a database at FinCEN, aka the Financial Crimes Enforcement Network. That means if any suspicious activity occurs, authorities request data about that transaction.
Thus, most of these machines ask for identification, whether a mobile phone number or ID.
Is A Crypto ATM Anonymous?
As mentioned above, they aren’t as anonymous as people first think. But even if a crypto ATM didn’t have any way to confirm your identity. There are many other ways your identity can leak to those who wish to find out who you are.
Chances are, the phone your crypto cash is on collects data about your whereabouts. So suppose you’re looking to use an ATM for crypto for nefarious purposes.
The simple answer is don’t engage in those activities! And no blockchain is anonymous, contrary to claims for this reason.
Crypto ATMs Are Convenient
Crypto ATM machines are brilliant for anyone who transacts in cash a lot. Without the need for a bank, depositing funds into your crypto wallet is easy. You’ll never be stuck waiting at a teller window again.
And because banks do not regulate them, you won’t ever run into issues. No overdraft charges or high-interest rates, and no reliance on banks. You could save hundreds of dollars per year from switching to cryptocurrency.
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