In Southeast Europe, there are currently over 200 crypto ATMs, with most located in EU countries, particularly in Greece and Bulgaria. As the value and popularity of cryptocurrencies rise, so does the need for infrastructure to facilitate transactions and the number of crypto ATMs.
What are Crypto ATMs?
Crypto ATMs are machines that allow people to buy or sell cryptocurrencies using cash or debit cards. They look and operate similarly to traditional ATMs but connect to cryptocurrency exchanges instead of bank accounts to execute transactions directly on the blockchain.
How do they work?
For purchasing cryptocurrencies:
- Verification: Most crypto ATMs require user identification (KYC), which may include scanning an ID or entering a phone number.
- Wallet address: Users must provide a digital wallet address where the purchased cryptocurrency will be sent. They can either manually enter it or scan a QR code.
- Payment with cash or card: Users insert cash into the ATM or use a card to purchase cryptocurrency, which is then transferred to their digital wallet. The ATM connects with an exchange to complete the purchase process, and fees can range from 5% to 15% of the transaction value.
- Transfer of cryptocurrency: After the transaction is confirmed on the blockchain, the ATM sends the purchased cryptocurrency to the user’s wallet address.
For selling cryptocurrencies:
- Verification and wallet address: Similar to purchasing, the user provides a wallet address to receive fiat currency or sends cryptocurrency to the ATM’s wallet.
- Sending cryptocurrency: The user sends a specified amount of cryptocurrency from their wallet to the ATM’s wallet address.
- Receiving cash: After the transaction is confirmed, the ATM dispenses the appropriate amount of cash to the user.
Advantages of Crypto ATMs
- Convenience: Allows easy conversion of Bitcoin to cash and vice versa.
- Speed: Transactions are fast, often completed within seconds.
- Increased Acceptance: Easy usage contributes to the growing popularity of Bitcoin.
- Easy Access to Money Abroad: Enables travelers to easily exchange cryptocurrencies for local currency.
- Security: Reduced risk of fraud since transactions are done directly with the ATM.
Disadvantages of Crypto ATMs
- High fees: Transaction costs can be high, averaging 5.1%, and sometimes up to 15%.
- Limited availability: Crypto ATMs are not yet widely available.
- Service reliability: Often out of service due to cash shortages.
Crypto ATMs are still developing but are becoming increasingly popular and widespread. Despite current drawbacks like high costs and limited availability, these issues are expected to improve over time.
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