During the past couple of years, the demand for Bitcoin has continuously skyrocketed while other cryptocurrencies are growing.
With demands just like these, innovations are being made every day to make trading cryptocurrencies easier.
There are currently more than 18,000 cryptocurrency ATMs all over the globe, and these can be used to buy and sell digital currencies at each kiosk physically.
How does a Bitcoin ATM even work?
Bitcoin ATMs work similar to traditional ATMs but are not the same at all. Traditional ATMs are mostly owned by bank corporations that have been around for decades. The money traded within Bitcoin ATMs doesn't go through any bank systems. They instead allow you to exchange digital currencies such as Ether for cash or either way.
The process: Once you have located a crypto ATM, you will be presented with on-screen instructions to approach your desired use. If you are looking for a specific Crypto like Dodge Coin, you will input the amount of Dodge Coin you would like, then open your cryptocurrency wallet to generate a new address and QR code. Then you will be able to proceed with the trade and receive your Dodge Coin or another cryptocurrency you are looking for.
Should You use a Crypto ATM?
Crypto ATMs started to become famous as people were in demand to convert their cash into cryptocurrency in a moth and simple manner. Years ago, companies like Kraken and Coinbase didn't exist in the current market as they were the only way to trade physical cash into cryptocurrency directly. A key benefit of a crypto ATM is they don't rely on a slow bank transfer process or verification process that may take time to verify and impact your trading process.
This is mostly ideal for a specific individual who wants to keep their digital trail clean and maintain a strong sense of security. There are money countries like the United States who have a strict identity process when using bank accounts while the cryptocurrency has almost zero.
While most ATMs have very low transaction limits, mainly caused by the lack of a full-fledged identification process. The government will not have any ability to track your tax liability with cryptocurrencies unless you complete the KYC process with the ATM operator.
Bitcoin ATM fees & more
Network transfer fees only appear within tractions that are related you are withdrawing your balance for a specific wallet of your choice.
This leads to ATMs not changing an extreme transaction fee as a small per cent they offer a continuously evolving sell & buy price compared to differentiating exchange rate. If a certain ATM that you arte using is selling Bitcoin for the price of $55,000 instead of a current $50,000 you would have to pay the price on the exchange. Therefore, a transaction of $100 in this example will only pay 0.001818 BTC instead of 0.002 BTC.
The main reason you would consider not using a Bitcoin ATM is due to expensive transaction fees and large premiums on exchange rates. This should mainly be used for ease of access while exchanging larger and more frequent transactions using a crypto currency exchange website will save you more money in the long term.