Cryptocurrency ATM networks growing fast

Cryptocurrency ATM networks growing fast

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With the installation of 20 ATM machines in Washington DC last week, Dallas-Fort Worth-headquartered Coinsource now has 182 cryptocurrency ATM machines installed in 19 states across the US.


Coinsource bitcoin ATMThat makes Coinsource one of the largest independent bitcoin ATM networks in the world and the largest with its own proprietary software installed on its own ATMs. The new DC installations are also a sign of how quickly the global bitcoin ATM market is growing.


CMO and co-founder of Coinsource, Bobby Sharp, said, “We are expanding the bitcoin ATM market further than it’s ever been, offering the lowest rates, exclusive remote enrollment and allowing for at-home account registration.”


Why use a cryptocurrency ATM?


With desktop and mobile app access to cryptocurrency exchanges, it’s logical to ask why would you use a cryptocurrency ATM?


Sharp says bitcoin ATMs have several advantages:


“Bitcoin ATM allow quick access to buy/sell quickly. If someone does not want to be exposed to cryptocurrency volatility on an exchange, Bitcoin ATMs provide consumers with an opportunity to convert to cash immediately. Also, for people who are underbanked, underserved, or do not have access to traditional banking, this method would be the only way for them to diversify their cash,” he says.


Coinsource Bitcoin ATMsSharp says it’s important for consumers to know the cost of transactions in advance. Fees can vary widely with some research showing ATM machines with between 15% and 25% transaction fees, a cost many consumers would find exorbitant.


Coinsource offers lower than industry-average fee rates, with a transaction fee of 8% for buying and 4% for selling.


Global view of cryptocurrency ATMs


Bitcoin Cash popularity upThe world’s first bitcoin ATM was installed on October 29, 2013 by Robocoin in a downtown Vancouver coffee shop. The ATM did 81 transactions on its first day, exchainnging $10,000 worth of currency, $30,000 on its second day and a total of $100,000 after eight days.


The first US bitcoin ATM was installed in a cigar bar in Albuquerque New Mexico on February 18, 2014 but removed within seven days for unknown reasons. Installations soon followed in Austin, Texas and Seattle and there are now 1,643 bitcoin ATMs installed in the US and 2,766 worldwide as of April 15, 2017 according to Coin ATM Radar.


Coinsource bitcoin ATMsThe number of cryptocurrency ATMs installed worldwide is accelerating quickly from 307 in 2014 to 503 (2015), 951 (2016) and 2,047 (2017). An average of six or seven are installed daily. Two-thirds of bitcoin ATMs are one-way or buy-only machines and one-third allow two-way transactions.


Coin ATM Radar says the average buy fee of installed cryptocurrency ATMs is 8.64% while the average sell fee is 7.61%. 99.8% of digital currency ATMs support bitcoin, 49.4% altcoins, 46.6% Litecoin, 26.3% Ether and 15.8% Bitcoin Cash.


Top five locations for ATMs?


bitcoin ATMs in pizzeriaThe top five locations for ATMs are restaurant/pizzeria (12%), cafe/coffee shop/gelateria (9%), BTC embassy / company office (7%), shopping mall (7%) and supermarket / food store / Deli (6%).


While it may vary, the average volume for installed bitcoin machines is an estimated $30,000 monthly.


With the growth of the cryptocurrency market and the number of bitcoin ATMs installed around the world, consumers can expect to find many more choices and much easier access to their funds and the market.