Bitcoin ATMs have been growing at an astonishing rate. Bitcoin Depot is one ATM company that has contributed to this growth with 70 Bitcoin ATMs in 6 states, but why are bitcoin ATMs so popular? What makes them such a great outlet in comparison to bitcoin exchanges such as Coinbase, Bitfinex, Bitstamp, etc.? Take a look below at some of the reasons why people buying bitcoin are ecstatic about Bitcoin ATMs over other options.
Coinbase boasts that they are the best bitcoin exchange, but there’s a catch. Often times they can’t give you your bitcoin for 3 days or even up to a week! As if this wasn’t already a hassle, the price is locked in at the point of purchase. This means that for 3-7 days you will be receiving the same amount of bitcoin regardless of any change in price. Bitcoin trades 24/7 and is highly volatile. Tough luck if the price crashes! With bitcoin ATMs, your bitcoin is sent instantly! You don’t have to wait 3-7 days to receive your bitcoin. You are in control of your bitcoin immediately and can reduce your liability to drastic price fluctuations.
Exchanges claim to provide you bitcoin in a timely fashion, but try getting set up for one. Their set-up processes can require you to send a multitude of different documents and you may be waiting days for your account to be approved. At bitcoin ATMs the entire process can be completed in as little as 30 seconds!
Bank Account Required
Another requirement to use an exchange is a bank account. Have you ever dealt with a bank to try and send a wire transfer? The banks are extremely slow and inefficient. Just look at their wire transfer fees which can run anywhere from $30-$60 and can take hours if not days to complete for international wires. With over 60 million Americans without access to banking, it doesn’t make sense to require a bank account to purchase bitcoin. In fact all you need to make a purchase from a bitcoin ATM is a bitcoin wallet and cash. Simple!
Exchanges usually have poor customer support. In many cases, the only form of support they can provide is E-mail support and it can take anywhere from 7-14 days to receive a response! At Bitcoin Depot, we offer live phone, sms and email support during business hours and our helpful team will guide you with any situation you need on the spot!
Vulnerability To Hacks
Another thing about having an account with an exchange is trust. You have to trust that they will hold your bitcoin in a safe fashion. One specific thing regarding this fact is that they usually hold your private keys for you. A private key is what is used to send bitcoin out of your bitcoin wallet.Now I don’t want to get too technical, but if the exchange ever got hacked, it is possible the hacker could have access to your private key and drain all of your bitcoin out of your wallet. If the bitcoin is stolen from your exchange, you are at the institution’s mercy. In the case of the recent Yazipan hack, some people learned this lesson the hard way. Yazipan decided to follow the bail-in precedent introduced by Bitfinex stating that everyone with money on the exchange shared in the loss collectively even though it was their flaws or procedures that caused the loss. With bitcoin ATMs you have the opportunity to use your own wallet. One where you can control and send the bitcoin on your own without the need for trusting an exchange. Of course, these aren’t the only risks to holding your bitcoin on an exchange. You could have your services halted for something as simple as maintenance or security or a number of other countless reasons.
In conclusion, bitcoin ATMs have a number of advantages over other ways to purchase bitcoin such as from exchanges. The demand for buying bitcoin directly from bitcoin ATMs has increased as this awareness continues to spread.