The Ultimate Guide to using Cryptocurrency - ATMs in 2022

The crypto-sphere is taking on the real world outside of mainstream online sources. Did you know the current stock exchange market of cryptocurrencies is over $40,000, which is higher than your run of the mill fiat currency! So, what exactly makes cryptocurrency so unique? Kickstarting its online journey in 2009, cryptocurrencies originating pioneer was Bitcoin (BTC). The rise in the stock market for BTC has been staggeringly high, and if you are amongst the crypto-users of the world, then you need to know how to use Crypto-ATMs. The astounding pace of the digital world has led to a need for crypto users to indulge themselves in exchanging fiat currency for cryptos and vice versa. In this blog post, we will be analyzing an encompassing run-down for cryptocurrencies and crypto-ATMs and how to use them so that you do not encounter any form of difficulty in attaining the zenith of online marketing.

Cryptos - what's the hype about?

Suppose you have been paying attention to the financial market for the past few years. In that case, you may have stumbled upon terms like Bitcoin, Bitcoin Cash, Etherium, Cryptocurrency and Blockchain. So now you may start pondering what cryptocurrency and Blockchain are and why it is so controversial? To answer your curious mind, we’ll start off with blockchain technology.

Basics of Cryptocurrency

With the advancement in technology and the fast pace with which the world is developing, financial services providers opted for a novel way that is more secure, cost-effective and efficient. Enter, Blockchain! (Dramatic? Ok.) Moving on, blockchain technology’s origin is still a mystery to the world. Apparently, a person or maybe a group of people under the pseudo name Satoshi Nakomoto were the first to release blockchain technology in the world, way back in 2009. It was introduced as a method to exchange money digitally between two parties without the supervision/ interference of a third party. So, the money we are talking about here is not your traditional paper money. Rather, it’s digital money (you guessed it) cryptocurrency. These are based on cryptography and blockchain technology facilitating anonymous and secure transactions between individuals. The introduction of Bitcoin into the market thrust cryptocurrency way beyond than before, and Boom, the market is full with more iterations of cryptos. The downside to cryptos, of course, is that they were created to be anonymous and secure without a third party, meaning there is no central regulating authority around them. Much like paper money’s value is just the one which has been agreed upon by individuals worldwide.

Similarly, cryptos without regulation authority are a volatile source. To tackle this aspect came Blockchain, which is basically a ledger technology ensuring the safety of cryptos exchange. Blockchain thereon introduced their own application known as Blockchain Wallets. In the year 2022, so far, the users have increased by over 81 million! Other ledger technologies have revealed spectacular data related to the rise of cryptos. These include Coinbase, Crypto.com, BRD, Trust, Luno, Binance, Bitcoin Wallet, Bitcoin Wallet by Bitcoin.com, and Coinbase Wallet apps. All in all, the real MVP is Blockchain Wallets.com, with its striking features

Crypto ATMs VS Traditional ATMS – What's the difference?

The cryptocurrency ATM and Traditional ATM both perform a similar core function of financial transactions. The machines differ in their structure and function. A Crypto ATM (more commonly known as Bitcoin ATM) is a physical exchange point like a traditional ATM. The difference is that contrary to traditional ATMs allowing you to deposit and cash-out money, Bitcoin ATM allows you to exchange and buy Bitcoins. Meaning you can deposit fiat money into the ATM and receive bitcoins in your account. Some ATMs work vice versa, where you can deposit bitcoins and receive traditional paper money in return.

The first Bitcoin ATM of the world was opened on October 29, 2013, at Waves Coffee Shop, Canada. However, the device predominantly consists of a scanner, cash dispenser, and a computer to manage the transactions. Some companies are innovating now, like General Bytes, which has installed a 10" touch screen to its Bitcoin ATM. Now users can deposit fiat currency directly into the cash stand rather than the bill acceptor. Note that this upgrade in structure is more efficient, easy and secure.

How do Cryptocurrency ATMs works?

The cryptocurrency ATM transfers the cryptocurrency to either the Bitcoin wallet by scanning the QR code visible on the mobile, or it is dispensed to the paper wallet that the machine generates and prints during the time of purchase. The ATM retrieves the exchange rate of cryptocurrency in real-time and immediately, and the purchase price depends on that amount. However, you should remember that the ATM also charges a percentage fee for its services, and it is integrated into the price. An average rate is 8.93%, but that's a rough estimate, and ATM's fee varies.

If you are wondering if you can get cash in exchange for bitcoins, then yes. Some ATMs do have that option. You can receive cash in turn of giving in cryptocurrency. A point to remember is that MAJORITY of models only work in turn of buying Bitcoins. So be vigilant of your surrounding and read the instructions before proceeding.

How to use Cryptocurrency ATMs?

While the structure of each ATM is different, the buying process is essentially the same for each. So, if you are ready to move forward with using cryptocurrency ATMs, then let's walk you through the steps.

First and foremost, after locating a BTM near you, remember to have a digital wallet. There is an extensive range to choose from. One of those is Bitcoin Depot, which provides an enriching and easy to access option.

Once you reach the BTM, a prompt will appear on the screen, and you need to choose the tier which best describes the range of cash you are opting for the cryptocurrency.

As a first-time user, you will need to provide your phone number, first and last name and a valid email address.

Thereon, you will receive a verification code on your number.

Press the "continue transaction" option once you've entered the verification code; press the "continue transaction" option.

This will be followed by the option of creating a unique pin that you will be using the next time you use a BTM.

Next, you select the coin you want to buy. Bitcoin Depot allows you to choose between Bitcoin, Ethereum, Litecoin and Bitcoin Cash. (If you want to know more, check out Bitcoin VS Bitcoin Cash - which is better?)

Once you've selected the cryptocurrency, manually enter your wallet or scan a digital QR code.

Lastly, you will enter the cash in the machine.

Once the procedure is completed, cryptocurrency will be transferred to your wallet.

You can then choose if you want to have a receipt for record or not.