What is a crypto ATM and how to use it?

Similar to conventional ATMs, a crypto ATM is a portal through which clients are able to exchange money for cryptocurrencies and vice versa. The contrast here is that conventional ATMs permit clients to pull back and store cash while crypto ATMs permit clients to purchase and offer crypto utilizing cash. The machines are comprised of a screen, QR scanner, charge acceptor and allocator. On the backend, these components are tied together through computer program to create the buying and offering of cryptocurrencies speedy, simple and secure. However, crypto ATMs are different from conventional ATMs in one more way – they are not associated to a bank account. Instead, they are connected to cryptocurrency exchanges through the Internet. These exchanges are what permits clients to purchase and offer crypto instantly.

How does a crypto ATM work?

Buying and/or selling cryptocurrencies using a crypto ATM can be broken down into two basic steps:

Step 1: Confirm your identity. When a client comes up to a machine, he or she must verify themselves. This may be done through various ways depending on the machine. Once affirmed, clients can continue with the transaction.

Step 2: Choose to Purchase or Sell. Once a client is logged into the ATM, he or she must choose whether or not they need to buy or sell crypto. To buy crypto, a user inserts cash into the machine, then it generates a QR code from their cryptocurrency wallet on their mobile device, which is scanned to receive their purchase. To sell crypto, a user sends cryptocurrencies from their digital wallet to the QR code provided by the Bitcoin ATM. Depending on the machine, some ATMs will dispense cash to the user immediately, while others may take a bit of time to process the transaction.

Learn more about crypto ATMs in our Crypto Courses