Happycoin.club – Beginners are unaware of what a Bitcoin ATM is and how to use it, so we answer these and other queries regarding cryptomats.
What is meant by a Bitcoin ATM? A Bitcoin ATM is a device that lets users sell and buy BTC and other digital assets using a bank card or physical cash. Crypto ATMs are similar to payment terminals and even look alike, but instead of paying for various services, they enable transactions with virtual currencies.
A Bitcoin ATM (orange) installed in Russia
In which nations are Bitcoin ATMs found? According to the Coin ATM Radar platform, Bitcoin terminals are present in 64 countries worldwide. The total number of operational units is estimated at 39,146, and they are most frequently encountered in the USA, Europe, and Australia. Nevertheless, the data shown on the Coin ATM Radar portal is sometimes outdated. For instance, the “Druzhba” bar in Voronezh, where a cryptomat used to be located, has long been closed, yet the service indicates it is open.
Bitcoin terminals on the world map
According to the Coin ATM Radar website, only 27 cryptomats operate in Russia, nine of which are set up in Moscow. However, at least some of these have already been removed from catering establishments and shopping centers. The reason Russia ranks among the lagging states in the count of Bitcoin ATMs is unfavorable legislation concerning digital assets. Specifically, virtual currency cannot be utilized as a means of payment, thereby limiting demand for these terminals.
Which cryptocurrencies can be bought and sold via a Bitcoin ATM? Bitcoin terminals support up to 11 digital assets:
Bitcoin;
Ethereum;
Bitcoin Cash (BCH);
Dash (DASH);
Litecoin (LTC);
Zcash (ZEC);
Monero (XMR);
Dogecoin (DOGE);
Tether (USDT);
XRP (XRP);
USDC (USDC).
Thus, stablecoins, privacy coins, and the most popular digital assets can be acquired and sold using cryptomats. In most cases, the software of the devices integrates several virtual currencies, but terminals dealing strictly in BTC also exist.
It is noteworthy that many terminals located outside Russia utilize the Lightning Network protocol, which allows for rapid Bitcoin transfers with a low fee, approximating $0.001, while the average charge for transaction confirmation on the BTC network reaches $0.57.
How to acquire digital assets via a Bitcoin terminal? To purchase virtual currency through a cryptomat, one must:
Click the option for buying digital assets and select one of the offered coins, for example, Bitcoin;
Confirm identity by entering personal details;
Scan the QR code of your crypto wallet or input its address manually;
Deposit physical cash or pay for the purchase with a bank card;
Confirm the transaction.
Cryptomat interface when buying digital assets
In Russia and other countries, anti-money laundering regulations are in effect, meaning digital assets cannot be purchased anonymously for fiat currency, and Bitcoin terminal clients must undergo identification and verify their identity via email or mobile number. Furthermore, the devices impose a high service charge for coin acquisition, generally amounting to 5-10% of the transaction sum.
How to sell cryptocurrency via a Bitcoin ATM? To sell digital assets through a terminal:
Press the function for selling coins and click on one of the presented virtual currencies;
Input the quantity of coins or tokens and your mobile number to receive an SMS;
Undergo identification if required;
Receive a receipt with payment details or scan the QR code of the crypto storage from the device screen;
Send the virtual currency to the specified address;
When an SMS confirming cryptocurrency deposit arrives, scan the QR code on the receipt and receive the cash.
Receipt with QR code and wallet address for BTC sending
As with purchasing cryptocurrencies, selling digital assets usually necessitates identity verification, as the transaction involves dealing with fiat currency. The rate for converting digital assets often hovers between 5% and 10%, and the transaction processing time depends on blockchain speed; thus, if using the BTC network, one must wait several minutes for coin crediting.
What are the pros and cons of Bitcoin terminals? Crypto ATMs have just one objective advantage: they allow for quick buying and selling of digital assets for cash. Transactions with physical money can also be done on peer-to-peer platforms and exchanges, but this necessitates arranging a face-to-face meeting with the counterparty or receiving funds via courier service.
The disadvantages of Bitcoin ATMs include:
A small number of supported cryptocurrencies;
High service fees;
Unfavorable exchange rates for buying and selling coins due to a substantial spread;
Absence of devices in the vast majority of localities, especially concerning post-Soviet states.
What dangers await users of cryptocurrency terminals? Clients of companies owning Bitcoin ATMs risk losing their savings if a device is compromised. If a hacker manages unauthorized entry to the terminal, they could alter crypto wallet addresses and claim the digital assets instead of the user or operator. Additionally, malicious actors have a chance to steal personal data by intercepting information transmitted from the cryptomat to the server. Nevertheless, hacking attempts on Bitcoin terminals rarely succeed, as evidenced by the infrequent reports of such incidents.
It is worth noting separately that recently abroad, scammers have increasingly been using cryptomats to perpetrate fraud. Scammers impersonate law enforcement officers, government officials, or online service support staff, and under various pretenses, ask potential victims to transfer digital assets via a Bitcoin terminal. Transferred coins cannot be recovered, and to cover their tracks, criminals launder them through mixers that offer anonymity services for virtual currency transactions.
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