By 2019, there were more than 5000 cryptocurrency ATMs worldwide based on coinATMradar.com. A few years ago, the idea of withdrawing or depositing cryptocurrencies from an ATM sounded like a dream. Today, these ATMs are real, and their number continues to increase with each passing day. In the past, to buy crypto, people would transfer paper currency from their banks into the account of a cryptocurrency exchange. The other option would be finding someone willing to trade their cryptocurrency with fiat currency. However, ATMs are transforming this trade. They are quite convenient and facilitate instant transfer of funds.
Procedure for Buying Coins From An ATM
Purchasing coins from an ATM is straightforward. You need to follow the instructions found in the machines strictly. You will need a virtual wallet or paper to keep your crypto after completing the transaction.
Choose the number of coins you wish to buy, enter the address of your wallet, then pay the amount either with your credit/debit card or cash and finally confirm the transaction. You will receive your coins on your wallet when the transaction is validated. Some ATMs will request you to scan your ID and your telephone number.
Types of ATMs for Cryptocurrencies
Most of the ATMs that are available today deal in Bitcoin. However, some allow for the purchase of other cryptocurrencies such as Monero and Ethereum. Most of the ATMs are also one-way, but some are Two-way. In one-way ATMs, users can only buy crypto while in a two-way ATMs, users can buy and sell crypto.
The cost of buying and selling cryptocurrencies from an ATM is slightly higher than the market price. This is because of the anonymity and convenience that it offers. On average, the buying fee is 9.46%, and the selling crypto using an ATM will cost you 8.06% above market price.
The ATM rates for Coinflip are 3.99% and 6.99% higher than the index spot of trade block XBX for buys and sells, respectively. These rates can be lower in some areas depending on their operational expenses. Coinflip charges 0.99 for mining expenses. However, this fee changes depending on the demand of the user.
Locating an ATM
There are tools you can use to find an ATM at your location. Coin ATM Radar is one of the most suitable tools. It is available on both the iOS and Android devices. The tool allows you to see all the ATMs globally and provide the address for an ATM-based on your location.
The other tools you can use include Bitnovo, Coindesk, and Bitcoin depot. With these tools and the increasing number of ATMs, locating one will not be a problem. For instance, the 160 bitcoin ATMs for coinflip are evenly distributed in the US. The terminal locator will help you to find one, and the map indicates the type of crypto that each machine operates.
Manufacturers of Cryptocurrency ATMs
As the popularity of crypto ATMs increases, the competition among the providers intensifies. This competition is good for the industry as different providers will strive to install more features in the machines, and transaction fees will also be lowered. Some of the leading providers include BitAccess, General Coin, Lamassu, and General Byte.
The installation of crypto ATMs has been on a steady rise. 2019, saw a 50% growth. This growth is expected to keep rising as the use of cryptocurrencies increases.