Crypto ATMs are automated teller machines that allow customers to buy and sell cryptocurrencies with cash or credit card. They operate just like the conventional ATMs only that they transact cryptocurrencies. When you deposit cash or insert your credit card, you can have cryptocurrencies added to your bitcoin wallet. Since the first crypto ATM was introduced in 2013, there has been a significant increase every year. Currently, there are about 4000 ATMs in the world with the highest number being in North America. It is expected that in the next five years, the enormous growth trend will be maintained. By 2023, the cryptocurrency industry is expected to have grown to $144 million.
Cryptocurrency ATMs offer various benefits. One of the main benefits is giving customers access to cryptos with convenience. They have also made it possible for people unfamiliar with the cryptocurrencies to familiarise themselves easily. Crypto ATMs are normally found in local shops, shopping markets, gas stations, and convenient stores. Due to the increasing number of crypto ATMs, there is increased awareness about cryptos in the world. Some of the common cryptocurrencies that can be accessed in a majority of ATMs include Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and others. With the crypto ATMs, people who possess cryptocurrencies will now be in a position to exchange, spend, and invest with ease. The growth of crypto ATMs has received a major boost from the Coin ATM Radar, a platform that allows customers to locate the nearest crypto ATM.
In 2018, the prices of cryptocurrencies fluctuated significantly, but that did not stop the growth of crypto ATMs. At the end of 2017, the price of one Bitcoin was equivalent to $20000, a factor that led to a high number of cryptocurrencies being established in the early months of 2018. Last year saw an average of six crypto ATMs installed every day. It is estimated that about 4000 crypto ATMs operate worldwide and over 2000 of them are found in North America. Bitcoin remains the most widely used and accepted cryptocurrency in all crypto ATMs.
CoinFlip is an American Bitcoin ATM company that operates about 120 crypto ATMs in the United States. It is headed by CEO Daniel Polotsky and offers six different cryptocurrencies. CoinFlip has made it possible for customers to buy and sell Tron, Komodo, Ethereum, Litecoin, and Bitcoin. With cash or credit card, one can buy or sell cryptocurrencies from any CoinFlip local bitcoin ATM. The first bitcoin ATM by CoinFip was installed in the State of Chicago. The team leading the CoinFlip project considered this to be an idea that would make the cryptocurrency industry more acceptable to many people due to the convenience that these machines would create.
CoinFlip believes that the crypto ATMs will automate the work of local cryptocurrency traders since they can sell and buy cryptos through these machines. Crypto ATM can process hundreds of transactions every month. To ensure that their customers enjoy better services, CoinFlip has established a system where customers can buy cryptocurrencies even without a bank account and the transaction processed in minutes. The company has also established a customer care service center where customers can receive support within 5 minutes.
According to Daniel Polotsky, the main three challenges that face the cryptocurrency ATM project are the rapid changes in the bitcoin regulations, the cost of maintaining the ATMs and ensuring that the ATMs are operational 95% of the time.