What Is a Cryptocurrency ATM And How Does It Work?

Cryptocurrency ATMs are the most convenient way to buy cryptocurrencies using payment cards

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By David Thorne Originally published

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One of the main products of Bratislava-based KELTA, a decentralized data center that enables cryptocurrency mining, is a platform in which you can rent computing power and receive passive income from mining up to four different cryptocurrencies at the same time.

Now, you can cash out your income using a cryptocurrency ATM, even in Bratislava.

What is a Crypto ATM?

A Cryptocurrency ATM is a terminal that allows you to buy Bitcoin, Ethereum and other cryptocurrencies using a bank credit card or cash. Visually, they can differ from each other, some look like a traditional ATM, and others are built into a stand or wall.

KELTA ATMs can be found in in the Slovak capital Bratislava, Šamorín and Liptovský Mikuláš.

If you haven't followed the cryptocurrency industry closely, you will be surprised to learn that over 38,000 bitcoin ATMs have already been installed worldwide as of August 2022, according to Coin ATM Radar. But, thanks to convenience, numbers continue to increase. To put the growth in perspective, until 2019 the number of ATMs was not more than 5,500 units.

Cryptocurrency ATMs are more popular in North America. More than 87 percent of these machines are located in the United States, with only 1,452 of them in Europe. This is surprising because European investors and traders show great interest in buying cryptocurrency assets and many European countries have already created transparent legislation in the field of cryptocurrency regulation.

But it is worth noting that this difference will pale over time and in European countries, including Switzerland, Austria, and the UK, as more and more cryptocurrency ATMs will be set up. In Central and Eastern Europe, cryptocurrency ATMs are popular in Bratislava, Budapest and Prague.

In the coming months, KELTA is looking to expand its crypto ATM network in European countries-both in Slovakia and beyond. All of them will support the withdrawal of profits from the KELTA mining platform.

How to Buy Cryptocurrency Using an ATM?

Let's consider the basic rules for using a crypto ATM, specifically on the KELTA model, which is installed in Bratislava.

First, install the BRD, Mycelium, Jaxx Liberty or Edge digital wallet on your smartphone. Decide which of the available assets you are going to buy/sell. Remember that most ATMs only offer the purchase of BTC, unlike KELTA, which allows you to buy and sell BTC, ETH, ZEC and LTC. The maximum amount of bitcoin transactions must not exceed EUR 5,000. Then, open the QR code of the required cryptocurrency on your crypto wallet and scan it with the scanner on your device. After that, insert the card into the terminal and print a receipt to complete the operation and receive the purchased coins to the wallet.

Moreover, even if you don't have a cryptocurrency wallet, you can still buy BTC from a cryptocurrency ATM. Many of them can create a new bitcoin wallet for you and print a receipt with a public and private key.

Advantages of KELTA ATMs

There are enough ways to buy cryptocurrencies in the market, but many of them have ample disadvantages:

-You can buy, but you can't sell: One-way exchangers are not suitable for everyone, unlike KELTA cryptocurrency ATMs, with which you can perform both operations.

-Lack of anonymity: Many crypto exchanges require their clients to go through the KYC procedure, as a result of which the client will have to disclose personal data and send photos of documents to a third party. Buying or selling coins at a cryptocurrency ATM is completely private.

-High commissions: One of the downsides of crypto ATMS are the fees. A bitcoin ATM fee could range from 6 to 20 percent, per Politico. Coinbase charges 3.99 percent on payment card transactions and on some online platforms, the commission is 5 percent or higher. In contrast, the KELTA crypto ATM charges only 2.1 percent.

In addition to all of the above, one should not forget about the main advantage of crypto ATMs - their convenience.

"Location is everything. A crypto ATM should be installed where a lot of potential investors pass. We chose the River Park multifunctional complex in Bratislava - it includes shops, restaurants, a 5-star hotel, and luxury apartments. At the same time, the spot offers complete privacy: nobody should be able to stand behind your shoulder and see what you're doing. With our upcoming ATMs, we'll pursue the same strategy, choosing locations that are both exclusive and intimate but at the same time offer easy access." said George Mac, CEO of KELTA.

Cryptocurrency ATMs save the user's time and protect their privacy. These make for compelling reasons to not ignore ATMs with a BTC icon the next time you see them. Most likely, after the first experience of buying coins through a cryptocurrency ATM, you will never return to the online exchange.

David Thorne
David Thorne is tech, blockchain journalist based in Hong Kong. He is passionate about new technologies, blockchain, crypto currencies, DeFi.

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