Bitcoin ATMs have emerged as a tangible bridge between cash and cryptocurrency. For many, these machines represent the first touchpoint with the crypto ecosystem, offering a familiar interface for what can otherwise feel like a daunting and unfamiliar transaction.
The world’s first bitcoin ATM made its debut in a coffee shop in Vancouver, Canada, in 2013. More than years later, there are over 38,000 bitcoin ATMs globally, meeting a growing demand for easy, physical access to cryptocurrency, even as online exchanges have gained users at a rapid clip.
Coinme, a crypto exchange co-founded by Neil Bergquist, has been at the forefront of this expansion of cash-to-crypto kiosks. What started as an experiment with three bitcoin ATMs has grown into a network that puts a location within roughly 5 miles of 90% of the American population, a reach that surpasses many of the largest private bank ATM networks. Read on to learn how to use this wide network of bitcoin ATMs.
Trust, Accessibility, and Simplicity
The world of cryptocurrency can seem overwhelming, filled with technical jargon and perceived risks. Coinme built its service around addressing these concerns through three core pillars: trust, accessibility, and simplicity.
One of the primary concerns for newcomers to cryptocurrency is the issue of trust. How can you keep your money as safe as possible when dealing with digital assets? Coinme tackles this head-on by operating as a fully licensed and regulated financial institution.
“We run KYC [Know Your Customer] checks. We have anti-money laundering safeguards. We have controls and transaction monitoring in place to help make crypto safe,” says Bergquist.
The second pillar of the company’s approach is accessibility. Partnering with major retailers and ATM providers has enabled Coinme to make buying and selling bitcoin as convenient as picking up groceries or withdrawing cash from an ATM. It’s established a physical presence that serves as both a point of transaction and a visible reminder of cryptocurrency’s growing mainstream acceptance.
“People can purchase crypto and make crypto payments while filling a gas tank or shopping for food,” writes Bergquist in a recent article. “The sign ‘Bitcoin Sold Here’ invites curiosity about this new asset class and elicits interest in learning more about crypto.”
Perhaps the most crucial aspect of the experience is its simplicity. Recognizing that many users might be intimidated by the technical aspects of cryptocurrency, Coinme has streamlined the process of buying and storing bitcoin.
When using a bitcoin ATM, customers don’t need to worry about setting up a separate wallet or dealing with complex addresses. Instead, the process mimics a traditional bank deposit. Users enter their phone number, deposit cash, and the equivalent amount of bitcoin is instantly credited to their Coinme wallet.
“We just want to make it user-friendly, simple,” Bergquist emphasizes. “In two clicks, you can buy bitcoin.”
What To Expect When Using Coinme
So, what exactly can a first-time user expect when approaching a Coinme bitcoin ATM? Let’s walk through the process.
First, find a Coinme-enabled location near you. These are often in grocery stores or shopping centers. Coinme partnered with Coinstar in 2019 and has since added bitcoin ATM services to thousands of accessible Coinstar locations across the U.S. There are over 9,500 locations across 48 U.S. states.
If you’re a new user, you begin by creating an account. This can be done through the Coinme mobile app. You’ll need to provide some basic information, including your name, phone number, and email address.
Once your account is set up, you can insert cash into the machine. The minimum purchase amount may vary, but it’s often quite low to accommodate first-time buyers. The machine will calculate the amount of bitcoin you’ll receive based on the current exchange rate. You’ll have a chance to review and confirm the transaction.
After confirming, you’ll receive a receipt for your purchase. The bitcoin will be instantly credited to your Coinme wallet. You can then manage your bitcoin through the Coinme mobile app or website, where you can view your balance, send bitcoin to others, or even sell it back for cash at participating locations.
Use Cases and Benefits
While buying bitcoin might be the primary use case for many, Coinme’s services extend beyond simple purchases.
For individuals with international connections, Coinme can offer a faster and often cheaper way to send money abroad. By converting cash to bitcoin and then sending it to recipients who can convert it back to their local currency, users can bypass traditional remittance services and their associated fees, and can also avoid dealing in currencies that are subject to sudden inflation.
Some users leverage Coinme for making payments to merchants who accept cryptocurrency or for participating in blockchain-based applications and games. Paying with crypto can often result in a discount, as the merchant doesn’t need to charge the processing fee associated with traditional cards.
Finally, many simply view bitcoin as a long-term investment or a hedge against inflation, using Coinme’s services to gradually build their digital asset holdings.
The journey from curious onlooker to cryptocurrency user can be intimidating, but services like Coinme are working to smooth that transition. Whether you’re looking to dip your toes into the world of bitcoin investment, seeking more efficient ways to send money internationally, or simply curious about what all the cryptocurrency buzz is about, a Coinme bitcoin ATM might just be your first step into this new financial frontier.
