Cryptocurrency ATM facilities enable cryptocurrency users to either buy crypto coins or convert cryptocurrencies to fiat currency and withdraw the cash on the ATM. Unlike the normal bank ATMs which are connected to the bank network system, Cryptocurrency ATMs are not connected to a specific bank. Instead, they are connected to the internet through the cryptocurrency ATM providers’ network. These systems facilitate cryptocurrency transactions through the public keys provided by the Blockchain technology under use.
Use of the Cryptocurrency ATM Facilities
The procedure of purchasing crypto coins from the cryptocurrency ATM providers vary from one ATM provider to the other. However, there are certain essential stages which most of the providers will include in their ATM points.
- The verification stage: At this stage, the owner of the cryptocurrency wallet is verified. The requirements at this stage may include fingerprint scans, photo taking, and also sending verification codes to the mobile phone.
- Provision of the cryptocurrency wallet address: At this stage, the user may be prompted to scan a QR code displayed on the cryptocurrency machine to verify the wallet address or still enter the wallet address manually. Some ATM machines will provide an option for users to create a new cryptocurrency address in case they do not have their own.
- Insertion or collection of cash: Depending on the nature of the transaction, the user is prompted to insert cash on the ATM slot or collect money from the ATM. The insertion of money into the ATM is needed when one is buying cryptocurrencies while the collection of cash is done when the user has sold out their crypto coins and wants to collect an equivalent fiat currency through the ATM.
Cryptocurrency ATM Providers
The demand for cryptocurrency among the masses has prompted several companies in the field of cryptocurrency to develop cryptocurrency dispending points which are analogous to the traditional ATMs provided by the banks. Below are highlights of some of the brands which have emerged as leaders in the cryptocurrency ATM provision.
- Geneis1 machine: The machine has the capability to perform two-way transactions. It can dispense fiat currency and at the same time, it allows its users to buy a wide array of cryptocurrencies. The machine also incorporates other features such as magnetic card reader capabilities and an option to increase the user’s security with the use of the fingerprint scanner.
- Robocoin: This ATM machine can be used to purchase bitcoins and also convert bitcoins to fiat currency. Manufactured by a Las Vegas-based company, these machines are set to undergo significant improvements to enable bitcoin users to send and receive money from other users directly.
- General Bytes: This machine provides its users with three utility options. Users can choose to conduct cryptocurrency transactions anonymously, or they can as well chose to provide their fingerprint scans during the transaction. The third option is for registered users who choose to provide detailed personal information to the company. The higher the degree of verification, the higher the amount a user can transact using this ATM service. Although anonymous users are allowed to transact bitcoins, the amount of the transaction is usually capped. This is in a bid to avoid money laundering activities.
- Lamassu: Strictly speaking, Lamassu is not a typical ATM machine since it only allows users to purchase cryptocurrencies. This limitation has been compensated by other intuitive features such as the ability to accept over 200 different kinds of fiat currencies.
- Satoshi1 and Satoshi2: These two machines have a similar appearance but their functions are a little bit different. The satoshi1 machine is strictly a bitcoin dispensing machine and allows users to buy bitcoins using the fiat currency. The satoshi2 machine is an improvement of Satoshi1 and has two-way functions. Users can buy bitcoins and can as well convert the bitcoins available in their wallets to fiat currency.
- BitAccess: The Company operates cryptocurrency ATMs in Canada and some parts of the US. The machine allows its users to convert bitcoins to fiat currency and also has an interface for users to buy bitcoins using the fiat currency.
- PayMaq: This cryptocurrency ATM machine has been manufactured by Umbrellab and is used in the Spanish markets. PayMag has collaborated with Bbank to help them manage this bitcoin dispensing machine.
Cryptocurrency ATM providers have taken cryptocurrency technology to a higher notch. These providers have increased the convenience of transacting cryptocurrencies and also encouraged a higher uptake of cryptocurrency use among ordinary people. The increase of credible cryptocurrency ATM providers will catapult cryptocurrency related technologies and set a new stage for the adoption of cryptocurrency as an accepted mode of exchange.