Why, How and Who Are Using Crypto ATMs?
By ROKKEX on Altcoin Academy
Cryptocurrency ATM count just surpassed 6,000. This comes up to a 50% rise in 2019. This growth might seem odd, knowing that fiat ATMs network expansion is slowing down due to more and more transactions become cashless. So why would an entirely digital currency need a physical ATM? Let’s break down everything there is to know about it.
How Does It Even Work?
It would be best to start by explaining what exactly do these ATMs do, and it is pretty simple. There are two types of crypto ATMs — two way and one way. One way ATMs allow you to exchange fiat currency for cryptocurrency. While two way ATMs allow you to exchange fiat and crypto both ways. Most crypto ATMs support Bitcoin, but the rising number brings more altcoin ATMs and ATMs that support more than one cryptocurrency.
The process itself is quite simple too (at least most of the time). The main things you would need for the transaction are the address of your wallet and fiat money you want to exchange. However, some ATMs might request some more information, such as your phone number or your ID for security reasons, especially if you go for a bigger transaction.
The usual transaction requests you to select the amount of cryptocurrency you would like to purchase and scan or type in your wallet’s address. The type of your wallet does not make a difference, so if you want to exchange your newly purchased cryptocurrency for another coin, you can deposit right into your exchange wallet.
Rapid Network Growth
And still, why is crypto ATMs network growing? There are over 6050 crypto ATMs in 75 countries, and these numbers are changing every day. First of all, it is an easy way of taking part in the cryptocurrency world even to those that are quite new or still a tad too skeptical about joining in. It offers an easy and convenient process.
Also, the convenience of being able to turn your money into crypto or vice versa is attractive while we still lack physical places that accept cryptocurrency. Lastly, ATMs make these transactions seem quicker and more secure. People are more likely to trust an ATM than a public hotspot if they decide to get Bitcoin for the current price while on the go.
Are There Any Cons?
We have to admit that there are some downsides to cryptocurrency ATMs, though. The very noticeable and first issue that came up for many traders is higher than usual fees. It is normal to pay for the convenience, speed, and anonymity, but it can make a person stop to think if it is worth to buy a coin just because the price has fallen when you will spend a fortune on fees.
Furthermore, quite a few ATMs (especially two way ATMs) have various limits. As the number of crypto ATM providers is still pretty small, some restrictions are there just for competition or security reasons. While approaching an ATM for the first time, you will not know what to expect. Some of the providers require you to have an account in their system. Some (mostly two ways) ATMs support all cold wallets but only some of the hot wallets. However, these limits might disappear or be reformed with further development.
And of course, there has to be someone that always ruins the fun — scammers. As ATMs are easy to use and blockchain still has its anonymity, this became a new way to scam unsuspecting victims. The most commonly reported issue is elderly who were tricked by a tax scam, or a loved one in the emergency scam, and transferred their savings to a wallet address given by the scammer. Hopefully, raising awareness will help people avoid these situations, but stress sometimes gets the better of us.
All in all, it is pretty understandable why we are seeing so many articles celebrating every thousand of cryptocurrency ATMs. It is another sign of blockchain development, and it is becoming more and more a part of our physical world. And if you are still waiting for one to appear in your neighborhood so you could trade fast and easy, we invite you to try ROKKEX exchange. Our transactions are swift, the interface is made to be easy-to-use, and there are no unreasonably blown up fees.
At ROKKEX, we take security extremely seriously, and our crypto exchange is built on ‘Security First’ principle. We want to share our expertise with the broader public for the world to become happy, safe, and wise :)
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