When looking at purchasing Bitcoin (or other crypto-currency) there are a few beneﬁts purchasing from an exchange over using a Bitcoin ATM. Mainly that there are tighter spreads, or lesser commissions on purchases. This is deﬁnitely a factor, but what isn’t often discussed is the advantages of using a Bitcoin ATM.
The advantages of using a Bitcoin ATM
- It’s faster – your purchase is made at the point of sale and is in many cases instant. Meaning that you can immediately use your new crypto-currency. Often with crypto exchanges, when depositing FIAT (GBP, USD etc) there are processing times and it can usually take 3 working days or more. The price of crypto can change dramatically in this time, and there can also be associated processing fees on your deposit.
- It’s safer – when using a Bitcoin ATM you can send your Bitcoin directly to your own wallet. When you use an exchange, your crypto-currency is in their wallets, and they are acting as a custodian of your funds. As we’ve seen in the past, exchanges get hacked and can go bankrupt (or sometimes they’re just bad actors). Why risk it?
- It respects your privacy – it’s becoming more apparent that exchanges are getting aggressive on your data. First, to verify your account you’re going to need to send your ID, a selﬁe picture and proof of address. Then there are requirements on “proving” source of funds, where exchanges want you to provide a complete transcript of your trading history. This is an incredibly invasive move and to top it off, looking at their privacy policies, you can be sure they’re sharing your data with other parties.
This is just a few prominent examples of the beneﬁts of a Bitcoin ATM over an exchange. If you want to learn more about our company you can view and message us on Facebook. If you want to use one of our Bitcoin ATM’s you can ﬁnd us at various sites listed here.