What are Cryptocurrency ATMs, and Why Do We Need Them?

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    Apr 15, 2019, 1:29 am269 pts

    Cryptocurrency ATMs are a relatively new addition to the cryptocurrency world. These ATMs allow users to swap cash for various different cryptocurrencies, typically Bitcoin. Cryptocurrency ATMs are more similar to an exchange office than they are to a traditional ATM. Cash and various different kinds of credit cards are usually accepted at these ATMs.

    These ATMs are growing rapidly in both popularity and usage. In 2018, there were nearly 3500 of these ATMs across the world and that number is only increasing. Most of these ATMs are found in the North American continent. However, these ATMs are found in over 70 different countries across the world.

    Finding a cryptocurrency ATM is fairly easy for those that wish to use one. There are plenty of services for finding them. However, one is much more likely to find one in their area if they live in a North American city. When looking for one of these ATMs, it's important to consider the fees and limits unique to the ATM.

    Using one of these ATMs is relatively simple. The first thing that an individual needs to do in order to be able to use one of these ATMs is to have a wallet for storing the cryptocurrency. If an individual already has a wallet, they can simply select the amount of the cryptocurrency they want to buy on the ATM's interface. Most of these ATMs make a profit from either fees or favorable exchange rates. However, these fees typically only make the cryptocurrency cost slightly over the standard market price.

    While Bitcoin is the primary cryptocurrency that these ATMs dispense, other cryptocurrencies are also used in these ATMs. Ethereum is another popular cryptocurrency that these ATMs can dispense. Another cryptocurrency is Monero. Other cryptocurrencies may also be available at certain ATMs.

    There are two primary forms of these cryptocurrency ATMs. One type is called a one-way ATM. This type of cryptocurrency ATM can only be used to purchase cryptocurrencies. This means that if an individual wants to exchange their cryptocurrency back into cash they will either need to use an online exchange or find a two-way ATM. A two-way ATM allows users to exchange money between cash and cryptocurrency freely. Most cryptocurrency ATMs are one-way.

    One company that runs some of these ATMs is called CoinFlip. CoinFlip is the leading operator of Bitcoin ATMs in the United States. The company's ATMs offer seven different cryptocurrencies to choose from. Some of these include Bitcoin, Litecoin, and Dash. The company has ATMs across the entire United States. These ATMs are typically focused around major metropolitan areas such as Chicago and Los Angeles.

    CoinFlip was founded after its CEO Daniel Polotsky came up with the idea with a Bitcoin trading partner. The two decided that cryptocurrency ATMs were a great idea due to how scalable the entire process is. The pair felt like cryptocurrency ATMs would help those who are uncertain about the technology to embrace it. The company offers services for both buying and selling the seven cryptocurrencies they work with.

    Since its inception, CoinFlip has partnered with and collaborated with many big names in the cryptocurrency world. One of these companies that CoinFlip has partnered with is Binance. Binance is one of the leading online cryptocurrency exchanges. CoinFlip partnered with them in order to start offering Binance's native cryptocurrency.

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