Bitcoin ATMs are nothing new. Recently, we’ve been seeing a spike in cryptocurrency ATMs. We took a quick look at the most supported cryptocurrencies by Crypto ATMs.
Let’s not get confused
Bitcoin ATMs, also called Bitcoin Teller Machines (BTMs), aren’t really ATMs in the true sense of the term. Rather, these are physical centres where you can buy Bitcoins with fiat money and with some machines, sell Bitcoins too. Bitcoin ATMs are meant to offer access to Bitcoins to those who are not a part of the banking system.
Bitcoin ATMs also cater to the underbanked and the less tech-savvy people. Some just prefer the extra privacy that some BTMs offer when it comes to buying Bitcoin.
Ranking the most supported crypto assets
According to data from Coin ATM Radar, the top crypto assets supported by the ATMs are bitcoin, litecoin, ether, bitcoin cash, dash, and Monero.
Over the past 12 months, the number of global crypto ATMs grew 360%+ from ~860 in November 2017 to over 3,900 in November 2018.
The Bitcoin/Cryptocurrency ATM system is still a complicated process because it involves a lot of identity verification to prevent money laundering. Depending on the manufacturer, the machine may support two-way transactions between Bitcoin and fiat money, that is, it allows you to buy as well as sell Bitcoin.
Most machines only support fiat to Bitcoin transactions, that is, you can only buy Bitcoin with fiat money. Fiat money is nothing but legal tender issued by a government. It’s your basic currency of the country: rupees, dollars, roubles etc.
Very few machines allow you to buy Bitcoins without any ID, as most require your phone number or some other ID detail for access. Depending on the machine and the operator, you may have to divulge personal information to varying degrees. This is to meet compliance requirements and to keep your Bitcoins secure.
A BTM looks more or less like an ATM. You might be required to key in your phone number. After verification with a One Time Password (OTP), you are good to go and can buy Bitcoin now using the BTM. Some BTMs might require you to use the BTM scanner to provide an ID card such as a driver’s license, passport etc.
It’ll be good to see how the future turns out with more people being able to purchase cryptocurrency through Bitcoin ATMs.
Have any of you guys tried using a cryptocurrency ATM? How was your experience?