Can You Buy Ethereum From A Bitcoin ATM?
ETH is on a bull run to see it clear the previous all-time high from May this year. So, there has never been a better time to buy ETH.
Nevertheless, those new to cryptocurrency investing may wonder, “How can I buy Ethereum?” The best way to purchase and sell this cryptocurrency is to use a Bitcoin ATM but read ahead for the full rundown on purchasing ETH.
What Is a Bitcoin ATM?
A Bitcoin Automated Teller Machine (ATM) allows cryptocurrency investors to purchase and sell digital coins. In the US, Bitcoin ATMs come in two flavors:
- Unidirectional ATMs, where users can buy cryptocurrencies with cash
- Bidirectional ATMs, where users can buy and sell cryptocurrencies for cash
Bitcoin ATMs only work with cash. That means users cannot use debit or credit cards to purchase cryptocurrencies from one of these machines.
The History of Bitcoin ATMs
The first-ever Bitcoin ATM opened in Canada in 2013. Europe’s first Bitcoin ATM opened a few months later in Slovakia. However, it was not until two years later that the US got its first Bitcoin ATM in Albuquerque, New Mexico.
Today, it is estimated that the US has over 40,000 Bitcoin ATMs across the country. That is over double the number of these ATMs that were in the US this time last year.
Are Bitcoin ATMs Legal?
This is one of the most common questions we get about our Bitcoin ATMs, but the good news is, yes, Bitcoin ATMs are a legal way to trade cryptocurrencies.
Are Bitcoin ATMs Safe?
Bitcoin ATMs must adhere to anti-money laundering (AML) and know your customer (KYC) protocols in the US, protecting consumers from potential financial fraud.
Furthermore, Bitcoin ATMs are arguably safer than using exchanges because a personal bank account is not required. Instead, users only need a secure wallet to buy and sell cryptocurrency at a Bitcoin ATM.
Can You Buy Ethereum at a Bitcoin ATM?
Of course, users can buy Bitcoin at a Bitcoin ATM, but that is not all these machines offer. BTC ATMs offer options to buy and sell other cryptocurrencies, including Ether.
As we mentioned above, one Ether coin costs over $3,000 right now. What we did not discuss is that interested parties do not need thousands of dollars to purchase ETH. Buying a portion of ETH from a Bitcoin ATM is always an option for as little as $25.
A Bitcoin ATM: How to Use One Explained
Bitcoin ATMs work similarly to traditional ATMs. However, Bitcoin ATMs do not connect to a personal bank account, unlike traditional ATMs. Moreover, a credit or debit card is not necessary to use them.
Here is how to get started with a Byte Federal Bitcoin ATM.
First, locate the nearest Bitcoin ATM kiosk. For example, Byte Federal has over 1,000 locations, Nationwide.
Make sure to bring a smartphone and a photo ID. Moreover, do not forget enough cash to pay for the cryptocurrency purchase.
Sign up for a secure account upon arrival at the Byte Federal kiosk. Byte Federal will never ask for any bank information; signing up is always free.
Users will need a valid ID such as a driver’s license, passport, or other government-issued ID photo identification.
Due to KYC regulation mandates, all financial institutions must verify customers’ identities before enabling their transactions. Without a photo ID, interested parties will be unable to buy or sell cryptocurrency at a Bitcoin ATM.
Get Verified Instantly
Investors must first have a digital wallet to receive the ETH from a Bitcoin ATM. (Paper Wallets are available, although not necessarily recommended for everyone.) We recommend using our ByteWallet, which offers additional features like locating the “closest ByteFederal ATM near you” and even keeping users up-to-date on the latest cryptocurrency news.
Blockchain, Mycelium, and Jaxx are also excellent free cryptocurrency wallet choices. These wallets work seamlessly with our Bitcoin ATMs.
Users must ensure they access their preferred digital wallet’s QR code or be prepared to use a paper wallet.
Once ready, hold the code up to the Byte Federal ATM barcode reader to get instantly verified for Ethereum purchases.
Buy Ether With Cash
After scanning the wallet’s QR code, the Bitcoin ATM will prepare to receive cash in exchange for cryptocurrencies. Byte Federal only accepts US dollars.
The Bitcoin ATM will process the cash and convert it to ETH or whatever cryptocurrency investors purchase. The machine will then send purchased coins to the appropriate wallet.
How does that work? Well, a wallet’s QR code serves as its unique address. Once scanned, the ATM knows precisely where to send the cryptocurrency.
Remember that most Bitcoin ATMs have daily limits to comply with AML standards. For example, Byte Federal allows registered users to buy up to $29,500 worth of ETH or another cryptocurrency per day.
Where Else Can You Buy Cryptocurrency in 2021?
ATMs may be the only place to get cryptocurrency in person. Nevertheless, they are not the only means of buying and selling digital coins. Crypto collectors can also buy ETH and other virtual currencies on exchanges via brokers and wallets.
Like stock trading platforms, Cryptocurrency exchanges offer users a place to buy ETH or other cryptocurrencies (e.g., Bitcoin) with US dollars. Here, investors can even sell ETH for US dollars or other cryptocurrencies.
Before signing up for an exchange, it is vital to make sure it is legal to use in the US. Also, keep in mind that not all exchanges sell ETH, so it will be vital to choose an Ether-friendly provider.
The only other thing curious investors need to worry about with cryptocurrency exchanges is which one to choose. There are two types of cryptocurrency exchanges:
- Centralized exchanges
- Decentralized exchanges (DEXs)
Here is how a centralized exchange works. First, users have to register with the platform. The required materials to register vary by the exchange but generally include a photo ID and bank account information.
Next, users will need to connect their accounts to a personal wallet. Alternatively, a wallet the exchange hosts can also be used. Doing the former allows investors ultimate control over their crypto. At the same time, the latter will protect investors if they lose or misplace their key.
DEXs are different. There is no go-between with whom investors need to register. Users can deposit money into personal wallets and purchase directly from ETH sellers.
Using a DEX allows cash trades for other cryptocurrencies. The benefits include fewer fees and total control over wallets.
Plus, unlike centralized exchanges, DEXs do not have to adhere to KYC and AML regulations, meaning personal information to buy Ether.
As cryptocurrency has become more mainstream, traditional investment vehicles have started offering digital coins for clients. However, since it has been around for so long and performs well, most brokers offer Ether products.
For example, interested investors could purchase ETH from an online stock broker offering ETH. These brokers will host a wallet and place trades on others’ behalf.
The benefit of online stock brokers is that investors do not have to worry about losing a wallet’s key. Nevertheless, the downside is that those same investors will not have full access to their Ethereum wallets.
To avoid this issue, it is essential to choose a broker who promises complete access to wallets. So often, brokers like these advertise their services as “unhosted” or “non-custodial.”
Benefits of Bitcoin ATMs Over Exchanges and Wallets
By now, it is natural to wonder: why choose a Bitcoin ATM over exchanges and cryptocurrency brokers? ATMs provide the following benefits that users will not get with an exchange or a broker;
Exchanges and brokers require much personal information to register. In addition, sharing documents back and forth makes registering more time-consuming.
With a Bitcoin ATM, though, it is quick and easy to register. All that is needed is a photo ID and a cryptocurrency wallet to buy ETH.
Security and Privacy
Exchanges are known for being hacked. For example, Reuters recently reported hacking a cryptocurrency platform called Poly Network, which resulted in $613 million of lost investor funds.
Because ATMs do not store cryptocurrency, users never have to worry about losing hard-earned coins. Moreover, since ATMs only collect a minimal amount of personal information, there is no risk of exposing personal financial data.
Cryptocurrency brokers and exchanges are notoriously tricky to get ahold of. For example, trades can only be placed on weekdays during trading hours with brokers. Moreover, good luck trying to reach a broker outside of these times.
Exchanges are even more tricky for those who have questions or concerns. For example, many exchanges make it difficult to locate customer support information. In addition, most exchanges only have representatives available at certain times.
Byte Federal has improved upon all of that. Buyers and sellers can contact our US-based customer support representatives 24/7. In addition, users can contact support via phone, online chat, or email anytime a question may arise, no matter how insignificant it may seem.
Buying Ether through brokers and centralized exchanges can get expensive. That is because these middlemen take a cut for themselves. So often, users wind up paying high fees that may not be worth it in the long run.
Instead, choose a fully transparent Bitcoin ATM, like Byte Federal. At Byte Federal, users can enjoy zero hidden fees. The price buyers pay for Ether includes fees, broken down on a detailed receipt as a record for every transaction.
Why Buy ETH in 2021?
Now, those who may feel ready to see all a Bitcoin ATM offers yet are still unsure which cryptocurrency to choose. We will make a case for ETH below.
Keep reading to find out why Ether is the best cryptocurrency to buy in 2021.
ETH Is Valuable
To understand the value of ETH, it is essential first to know why the Ethereum platform is so important.
The Ethereum platform is also known as the Ethereum blockchain. Developers can also create new applications on the Ethereum platform, which require ETH.
So, what exactly is the purpose of ETH? Ether is essentially the currency used to pay Ethereum platform fees. So, the more investors buy ETH and the more developers use the Ethereum platform, the higher the value of Ether.
The Enterprise Ethereum Alliance (EEA)
The Enterprise Ethereum Alliance (EEA) is an association of over 500 major companies interested in the Ethereum blockchain. JP Morgan, BP, and Microsoft are just a few of the many big-name companies in the EEA.
These companies plan to use Ethereum technology within their businesses. However, as mentioned above, using the Ethereum platform requires ETH as a fee.
Consequently, the more companies that use the platform, the more Ether that is needed. Moreover, as the demand for Ether increases, its price will also rise.
ETH Is Transactable
Ether is not just valuable as an investment. Nowadays, many companies accept cryptocurrency as a form of payment (e.g., AMC Theaters). Companies that allow purchases with ETH include:
What does that mean for holders of ETH? Simply put, users can purchase goods and services with Ether. Some states even accept ETH for tax payments in countries like Switzerland, where the cryptocurrency industry is even more advanced.
Looking for a Bitcoin ATM Machine Near Me?
Cryptocurrency is going mainstream, so it has never been a better time to buy Ethereum. Byte Federal wants to make buying cryptocurrency more accessible and more secure than ever with our Bitcoin ATMs.
Are you searching for a Bitcoin ATM where you can buy Ether? Byte Federal has locations across the country. Find a location near you today!