Through these strategic partnerships, individuals will be able to buy and sell cryptocurrencies using cash, while store owners can receive monthly rent payments from Coinhub. Store owners who want to host a bitcoin ATM can get in touch with Coinhub by filling out a form on Coinhub’s website. The partnerships come in the context of Coinhub’s expansion efforts, and the aim is to collaborate with store owners and gas stations in order to place Bitcoin ATMs in easily accessible locations throughout the country.
Since Bitcoin ATMs allow users to purchase cryptocurrencies with cash, they represent a viable alternative to online crypto purchases that require bank accounts or credit cards. In order to complete the transaction, users can follow the step-by-step instructions shown on the screen. The ATMs were designed to be user-friendly and easy to use even by those who are new to crypto. Since these ATMs are placed in high-traffic locations across the country, customers can buy and sell Bitcoin at any time of day.
According to bankrate.com, Bitcoin ATMs, sometimes referred to as BTMs, are kiosks where customers can buy and sometimes also sell Bitcoin. While there are several providers for these kinds of kiosks in the US, they all have one thing in common: users can purchase Bitcoin by exchanging traditional currency for it.
These ATMs can also be used to send bitcoin to another person. For instance, instead of entering their crypto wallet address, users can enter the wallet address of a person they’d like to transfer the bitcoin to. In some cases, users might need to provide a picture or a scan of their ID to complete a transaction.
Some of the main benefits of Bitcoin ATMs include ease of access, privacy, and the ability to sell cryptocurrency. The downsides involve high transaction fees, as these can range between 5% and 20%. Moreover, Bitcoin ATMs typically only allow users to trade cash for bitcoin without providing support for any other type of cryptocurrency.
Lastly, Bitcoin ATMs are sometimes targeted by scammers and fraudsters. In November 2022, the FBI warned the public of fraudulent schemes involving cryptocurrency ATMs and Quick Response (QR) codes to facilitate payment. The FBI has seen an increase in scammers directing victims to use physical cryptocurrency ATMs and digital QR codes to complete payment transactions.
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