How Do Crypto ATMs Work? Everything You Need to KnowJune 6, 2022
Despite some recent setbacks, the global crypto market is still valued at around $1.4 trillion. Just as importantly, most of the people who invested in crypto still own their cryptocurrency. They’ll still need ways that they can buy or sell crypto.
While marketplaces exist, they often involve a level of trust between buyers and sellers that many investors find unacceptable. In many cases, you must transfer your cryptocurrency and trust that the other person will pay and pay in full.
For anyone who doesn’t like that arrangement, they can turn to crypto ATMs. Are you asking, “How do crypto ATMs work?” If so, keep reading for a quick primer on how these devices operate.
What Is a Crypto ATM?
The term ATM is somewhat misapplied here. While crypto ATMs resemble the traditional ATM kiosk, they are not connected to a bank. Instead, they connect with the Internet.
Independent companies set up and operate the crypto ATMs and make their money off of the transaction fees. Some of the ATMs let you buy and sell multiple cryptocurrencies, while others may only let you handle one cryptocurrency like Bitcoin ATMs.
Most crypto ATMs will assign maximum and minimum purchase amounts.
How Do Crypto ATMs Work?
Before you can interact with a crypto ATM, you’ll need a crypto wallet. You can find ones that support multiple cryptocurrencies or a single cryptocurrency. Most wallets operate as apps on your phone for ease of use.
After that, you must find a crypto ATM. If you need help, you can click here to find some near you.
You’ll usually need to set up an account with the Bitcoin ATM company. In most cases, you’ll need a QR code for your wallet that you can scan into the machine.
Once you do that, you can feed cash into the ATM. You select the cryptocurrency you want and the ATM issues a receipt to your wallet.
If you want to sell off some of your cryptocurrency, the process is similar. The difference is that you tell the machine how much you want to sell.
The sale happens out on the crypto network, so verification can take a while. After verification, you can withdraw your funds.
Selecting a Crypto ATM
While you can’t necessarily identify the best crypto ATM, you should take care about where you conduct your purchases and sales. Look for ATMs in public places with good foot traffic.
Preferably, look for one near your home. That improves the odds that you’ll spot trouble when you see it.
Crypto ATMs and You
With the crypto market still worth so much and with so many investors, crypto purchases and sales won’t disappear anytime soon. For those uncomfortable with the online marketplaces, crypto ATMs are the most viable option.
With the question of how do crypto ATMs work out of the way, it mostly boils down to picking one. Take sensible precautions about which one you use.
Looking for more crypto info? Check out the posts over in our Crypto category.