As the popularity of Bitcoin grows, so do the number of ways to trade it. While registering with a cryptocurrency exchange is still the most common way for people to trade Bitcoin, the use of Bitcoin ATMs is quickly gaining popularity due to their simplicity and convenience. Since the world’s first Bitcoin ATM opened in Vancouver in 2013, the market has evolved into a large sector, prompting a surge of ATM installations around the world. There are currently 6,588 Bitcoin ATMs across the globe, according to CoinATMRadar. Crypto ATMs can be located in over 70 countries worldwide, although North America has the most (77.9 percent ).
A Bitcoin ATM resembles a typical fiat ATM in appearance and operation. The two devices, however, have some significant differences. The first is in the method of disbursement of funds. To get money from a typical ATM, you simply need to insert a debit or credit card into the machine. The transaction is complete after the ATM disburses your cash. It’s not the same as a Bitcoin ATM. The Bitcoin ATM operates by depositing cash and supplying a wallet address for receiving the purchased digital assets, rather than accessing an account and completing trades with a Debit card. At their most basic level, Bitcoin ATMs connect consumers to a cryptocurrency exchange, allowing them to place a purchase or sell order. Some ATM operators pre-load their cryptocurrency holdings and sell them to end-users in some situations. For the time being, most ATMs are owned by private corporations with a vested interest in the cryptocurrency field. These machines are easily accessible in exchange for a service fee. In some circumstances, Bitcoin ATMs are run by a company that provides a digital wallet and trading platform. Customers must have accounts with such companies to carry out transactions on any of their machines.
Due to the decentralized nature of cryptocurrencies, almost any business can install an ATM on their premises. Many business owners do this to enhance foot traffic or improve their brand image. This is why Bitcoin ATMs are most likely to be found in shopping malls, convenience stores, and coffee shops; places people would want to visit regularly. Additionally, while there may be a concern for the security of crypto ATMs because of their decentralized nature, ATM operators take measures to protect the ATMs against cyber-attacks. Bitcoin ATMs use several security protocols to keep customer IDs and digital assets safe from fraudulent actors. The two-factor authentication model is the earliest and most widely used. Before a transaction is initiated, the machine sends a verification code to the customer’s phone. The transaction will proceed to the second security tier once the user has presented this code. The submission of a government-issued identification card, such as an international passport or driver’s license, is the second security measure. You can only complete your transaction after scanning this ID into the ATM. On the other hand, know Your Customer (KYC) requirements differ depending on the operator and the quantity involved. Some ATM providers may request phone numbers, while others may be strict about providing identification.
In addition to heightened security, there are many other advantages to using Bitcoin ATMs. First of all, users can benefit from increased speed. Purchasing Bitcoin from cryptocurrency exchanges or hardware wallet providers is neither quick nor straightforward. You must first check-in, validate your email address, run more KYC, enter your credit card information, send funds, and then make a transaction. Buying cryptocurrency on an exchange can take hours on rare occasions, especially if the platform is overburdened. A Bitcoin ATM is the way to go for cryptocurrency investors who wish to bypass the time-consuming complications of exchanging cash for Bitcoin or vice versa.
Bitcoin ATMs also offer usability. You can instantly convert cash into Bitcoin by pressing a few buttons on a Bitcoin ATM. You don’t have to go through the hassle of filling out documents or standing in long lines to get your hands on Bitcoin you desire. This ease of usage contributes significantly to Bitcoin’s widespread popularity.
These ATMs also offer transaction privacy and information protection. The operators of bitcoin exchanges aim to collect as much information about a person as possible. For instance, they request credit card information for purchases, government identification, and, in some cases, bank account information for withdrawals. With Bitcoin ATMs, you don’t need to provide all this information every time. While certain Bitcoin ATMs are required by law to ask for a user IDs, many others do not.
Finally, Bitcoin ATMs offer familiarity. If you want to buy Bitcoin first, ATMs are a wonderful place to start. Most people are already familiar with the way traditional ATMs work; therefore, they can operate a Bitcoin ATM with ease. While Bitcoin machines are fundamentally different from typical ATMs, their user interface is very similar.
While there are many positives to using a crypto ATM, there are situations where it is not necessary or cost-effective. A cryptocurrency ATM prioritizes convenience above everything else. Unfortunately, this comes at a high cost. Bitcoin ATMs, in general, will often charge a transaction fee of 7-20 percent of the total amount. Lower fees are almost unheard of, and there is no actual upper limit. Even though some of this cost goes to the ATM operator, most of it is utilized to offset Bitcoin’s network fees. Unlike online cryptocurrency exchanges, which provide you with a wallet, these ATMs require you to make an on-chain transaction every time you use one. However, when the network is overburdened, costs can increase as everyone strives for the quickest transaction settlement times. Furthermore, at the moment, there is uneven geographical availability for Bitcoin machines. They’re generally concentrated in a few countries because of the economic power and popularity of cryptocurrency in those countries. Moreover, the cost of buying and installing a basic Bitcoin ATM is around $10,000. For this reason, companies that are just starting out may not have the budget to install one.
San Diego-based company, Bitcoin ATM Pros (BAP), has an understanding of the gaps that need to be filled in the crypto ATM sector. With this knowledge, BAP has created a multi-utility token that pays out a quarterly dividend to holders based on 10% of the fees generated by their crypto ATMs. They are attempting to expand their ATM reach worldwide to serve people who are underserved in the category of digital asset availability. Their ATMs have a buy and sell option thanks to their MSB licensing through FinCEN. A percentage of every investment goes directly into additional ATM placements around the world, thus helping them expand rapidly. Ultimately, BAP is determined to provide the financially underprivileged with easily accessible money transmitting services.
For more information about BAP, click here.
Alternatively, you can get updates from BAP below: