If you happen to see a strange looking ATM is shopping center, gas station or any other public place, it is highly likely that you are looking at a crypto ATM. A crypto ATM is operated as a conventional ATM for fiat currency, only that it can be used to make crypto transactions. Today, there about 4,000 crypto ATMs in the world. North America leads the regions where these ATMs have gained high acceptability. The United States have the highest number of crypto ATMs in the world. Different companies have invested in this field with the aim of capitalizing on the gains made by the cryptocurrencies in recent years.
Crypto ATMs offers customers a platform, to buy and sell cryptocurrencies. Anyone with cryptocurrencies can get an exchange for fiat currency. Since cryptocurrency transactions are supported by blockchain technology, it means that there is no intermediary involved such as a banking institution. The transaction is basically a peer-peer transaction and therefore a decentralized system that has its own security system. Even without a bank account, it is possible for a crypto holder to transact in both fiat currency and cryptocurrencies. The idea of crypto ATMs was made mainstream by the popularity of cryptocurrencies in recent years. Today, the rise of bitcoin and other cryptos is seen as an advancement in the cryptocurrency industry.
Crypto ATMs come as a way of addressing a common challenge that has been caused by the traditional banking industry. The banking barriers have made it difficult for some people to enjoy digital money transactions. It is estimated that over 59 percent of the world’s adult population do not have bank accounts. In some places, cash transitions are as high as 95 percent due to the banking barriers. Cryptocurrency is addressing these pertinent issues that have affected a significant proportion of the world’s population. Even without a bank account or a credit card, it is now possible for people in different parts of the world to transact through digital platforms. Crypto ATMs play a role in the decentralization of the financial system hence giving all people a chance to engage in economic developments. Cryptocurrencies can, therefore, be used as tools for fighting poverty.
For one to use the services of a crypto ATM, all they need is a smartphone that can store a bitcoin wallet. The bitcoin wallet will hold the cryptocurrencies.
CoinFlip as a bitcoin ATM operator in the United States. The company currently operates about 120 crypto ATMs in the United States and is a certified Money Services Business under FinCEN. Currently, the company has the rights to operate in all the states where they have installed crypto ATMs. CEO Daniel Polotsky created CoinFlip with the aim of making the cryptocurrency industry acceptable by the broader population. The first crypto ATM they created was installed in the State of Chicago but did not succeed since it was not user-friendly. They were forced to come up with a new idea that would integrate the needs of the customers. Through their initiative, crypto ATMs have attracted a high number of people into trading cryptocurrencies.
CoinFlip offers customers an opportunity to buy and sell six cryptocurrencies which are Komodo, Tron, Dash, Ethereum, Litecoin, and Bitcoin. According to CEO Polotsky, the main challenges facing the industry is maintaining the ATMs operational 95 percent of the time while at the same time meeting the demands of the ever-changing regulations in the cryptocurrency industry.