The first Bitcoin ATM opened in Canada in 2013, and the concept soon spread to the United States and throughout the world. Today, the United States is home to over 63,000 Bitcoin ATM machines, with most located in and around large cities. The fast growth is attributed to the widespread adoption by both new and seasoned investors who prefer these machines over cryptocurrency exchanges.
Learn more about the reasons to buy Bitcoin from an ATM and find out how to locate a machine near you.
1. Enhanced Privacy
Privacy-conscious individuals who want to invest in cryptocurrency are turned off by the “know your customer” (KYC) verification process most Bitcoin exchanges use to prevent money laundering. Exchanges require a wealth of personal information, including the user’s full name, date of birth, and driver’s license or passport. Exchanges use official databases to verify the identity and information provided and assess the person’s risk. If approved, the investor can purchase Bitcoin, but the exchange holds on to the personal data.
Individuals maintain privacy when buying cryptocurrency from Bitcoin ATM machines. Some companies that operate these machines only require limited personal information when purchasing less than $3,000 worth of Bitcoin. For small purchases, customers can expect to provide their names, email addresses, and phone numbers. However, consumers who wish to buy more Bitcoin must provide additional information, such as their social security numbers and government IDs.
By providing different options, consumers are able to maintain their desired privacy levels when making investments. This puts the customer in control when investing in Bitcoin.
2. Invest Safely Without Threats From Hackers
Cryptocurrency exchanges are shockingly vulnerable to cyberattacks. In fact, cybercriminals stole more than $15.6 billion from cryptocurrency exchanges between 2011 and 2020. Many of the stolen funds were removed directly from investors’ digital wallets. This creates a significant security concern for investors who want to grow their Bitcoin wallets. Since Bitcoin ATM machines do not operate on the exchange, they offer a safe, secure way to purchase cryptocurrency.
3. Receive Bitcoin Immediately
Investors cannot purchase Bitcoin on cryptocurrency exchanges until the company completes the KYC verification process. Some investors are verified within hours, while others must wait two or more business days. Once approved, they can order Bitcoin but must wait again for it to appear in their digital wallets. Bitcoin bought on an exchange usually takes an hour to appear in the wallet, but it can take several hours or a day to credit, depending on the circumstances.
Network congestion is one factor that slows down transaction speeds. Requests placed on the exchange go to the mempool with the other pending transactions. Since Bitcoin only processes a maximum of seven transactions per second, orders can remain in the mempool for hours.
The transaction or network fees paid during the purchase also impact the delivery speed. Bitcoin miners receive network fees for mining and delivering cryptocurrency, and many prioritize orders with high fees attached. Investors can increase their fees when using exchanges to ensure timely processing, but that reduces the amount they can invest.
People can avoid these problems by using Bitcoin ATM machines. These machines are able to process transactions and deliver Bitcoin to digital wallets within minutes. With almost instant access to cryptocurrency, investors do not have to worry if their Bitcoin has been stolen.
4. Accessible For The Banked & Unbanked Alike
Approximately 5.9 million U.S. households were unbanked in 2021, often due to distrust of financial institutions. Those who do not have faith in banks are attracted to Bitcoin because it is not backed by a central bank, but Bitcoin exchanges turn them away. Unlike exchanges, investors do not need bank accounts to use Bitcoin ATMs. Instead, consumers use cash to complete transactions, allowing everyone to grow their investment portfolios without relying on banks.
5. Easy To Use
Bitcoin exchanges operate much like the stock market and are just as confusing for inexperienced investors. Options such as stop-loss and limit orders overwhelm many customers, as they are unsure of how to proceed. New investors often close out of the exchange before purchasing cryptocurrency due to the confusion.
Fortunately, Bitcoin ATM machines are much easier to use. They are similar to traditional ATMs, but only consumers use them to buy Bitcoin. People unfamiliar with trading or prefer a streamlined purchasing process find what they’re looking for when using ATMs to invest in Bitcoin.
Find a CoinMover Bitcoin ATM Near You
CoinMover operates over 200 Bitcoin ATMs on the West Coast and in New England. These machines are fast and easy to use, with customers receiving cryptocurrency in as little as 90 seconds. With CoinMover, a transaction under $3000 can be done with as little as a name, phone number, and email address. Find a CoinMover ATM to start investing in Bitcoin today. After locating an ATM, use the code WEB20 to save on your first investment through CoinMover.