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What You Need to Know About Cryptocurrency ATM Companies
May 5, 2022
If you’ve finally decided to take the plunge and invest in Bitcoin and other cryptocurrencies, you’ve likely been confused as to where to start buying.
Many beginner investors will turn to their closest web exchange. If you’ve got more technical expertise, you’re likely wondering which is the best hardware wallet.
But have you thought about those Bitcoin ATMs you see popping up all over your city? These are some of the best ways to get started with cryptocurrency today.
Here’s what you need to know about cryptocurrency ATM companies:
Why Buy Crypto
Crypto is the perfect alternative to gold bullion for the digital age. You can use crypto as an asset to sell for a high profit. Or, you can use it as a form of currency.
Many companies and even countries are allowing consumers to use crypto for purchases in the same way as they would with fiat currency. While crypto was denounced as a fad by many naysayers, it’s clear that it has its place and it won’t go anywhere soon.
Because of this, now’s the time for the average person to start buying crypto while they can. But you don’t want to rush into buying crypto and prepare a great long-term strategy.
In this guide, we’ll make the case as to why Bitcoin ATMs are the ideal solution to start buying crypto. It’s also the best solution for protecting your crypto as taxes and confiscation have become a reality.
Why Choose Bitcoin ATMs?
Before we get into the advantages of cryptocurrency ATM companies, let’s look into how each of the options works. You’ll see how Bitcoin ATMs offer a much better solution for most investors.
Let’s start with looking at online web exchanges:
Crypto Web Exchanges
The easiest method for buying Bitcoin and other cryptocurrencies is to buy them from crypto web exchanges. You can create an account on a web exchange and connect your bank account.
Using bank transfers you can buy as much Bitcoin and other cryptocurrencies as you choose. You can also use the web exchange to sell and trade your cryptocurrencies.
At any given time, you can also convert your crypto into fiat money and transfer it back to your bank account.
The major issue with crypto web exchanges is that they are beholden to a jurisdiction’s laws. These laws can always change in your favor. Your Bitcoin and other cryptocurrencies can get taxed heavily or even confiscated on a whim.
These web exchanges will always oblige the government’s rules without concerns about your investment. Web exchanges also have stringent KYC regulations so you won’t be able to maintain your privacy when buying crypto through them.
For more technical investors, you might prefer using hardware wallets. This type of wallet requires you to understand how to access your cryptocurrency using a PIN code and recovery phrase.
As this requires more technical expertise, it’s often thought of as the best way to hold cryptocurrencies. It’s much harder to hack into a hardware wallet and it’s harder for tyrannical governments to confiscate.
But this doesn’t mean that hardware wallets are the perfect solution — which is what many seasoned investors will proclaim.
In extreme scenarios, you can also expect physical confiscation of hardware wallets just as gold bullion was confiscated in the United States almost 90 years ago!
Now we come to the least popular but arguably best option. Paper wallets are issued by cryptocurrency ATM companies when you buy crypto through their ATMs.
When you go to a Bitcoin ATM, you deposit cash for a specified number of Bitcoin or other cryptocurrency tokens. After you make your payment, the ATM will dispense a small receipt. You’ll also pay Bitcoin ATM fees which are much lower compared to web exchanges.
This receipt is the paper wallet. It’ll state how much cryptocurrency you hold. It’ll also show your Public Key and Private Key address. Many paper wallets will also have a QR Code that lets you transact with your wallet much faster.
This is the best way to hold and use your cryptocurrency. It’s more secure than web exchanges and hardware wallets as a paper wallet can’t get hacked. It’s also much easier to protect a paper wallet than a hardware wallet.
How a Bitcoin ATM Works
Now let’s look a bit deeper at how to use a Bitcoin ATM. You’ll likely first have to register with the Bitcoin ATM provider.
While cryptocurrency ATM companies value your privacy, they do require a few KYC rules to remain compliant within their local jurisdiction. You might have to create an online account before you can use a Bitcoin ATM.
Once you’ve created an account, you’ll confirm your login details at the Bitcoin ATM before you make a purchase. You’ll then place cash into the ATM to exchange for your desired amount of crypto.
In some cases, you might have to scan a copy of a government-issued ID for additional verification. It’s always best to keep your Driver’s License, Passport, or National ID with you at all times.
After the Bitcoin ATM collects your cash, it’ll dispense the paper wallet. Make sure you keep this safe with you. The cryptocurrency ATM companies can’t recover your cryptocurrency if it gets lost.
Once you’ve received your paper wallet, you can use this information each time you wish to buy more cryptocurrency. You can use a Bitcoin ATM to add more cryptocurrency to your paper wallet rather than having it dispense a new wallet with each transaction.
Each Bitcoin ATM won’t hold any information about your paper wallet or your personal details. The cryptocurrency is stored on a master wallet owned by the company.
As a result, if the Bitcoin ATM gets damaged you can always go to another location to buy or use your cryptocurrency.
The Future of Cryptocurrency
Earlier in 2022, Bitcoin ATMs were declared illegal in the United Kingdom. The fact that cryptocurrency ATM companies were under threat in a supposed free Western democracy sent shocks to the crypto community.
While some investors might wish to forgo investing in crypto altogether, others might be even more tempted to buy crypto! As restrictions on the crypto increase, we might see the price of Bitcoin and other tokens rise!
But any crypto investor also sees this as an opportunity, even while traditional investors have based this new asset class. However, you need to find a defense mechanism when you start investing in cryptocurrency.
Any wise investor will tell you that you’ll need to set up safeguards as you’re building your net worth. As Bitcoin and other cryptocurrencies face attacks from governments and the populace alike, you need to find a way to protect your crypto.
Let’s look at how you can defend your cryptocurrency and how cryptocurrency ATM companies can play a role in creating your defense strategy.
Let’s start with taxes and laws regarding cryptocurrency ownership:
As you start buying cryptocurrency you have to keep an eye on your jurisdiction’s tax laws. Many countries are levying taxes on owning, buying, selling, and trading crypto.
While some countries levy low taxes, others are aiming to confiscate as much of your crypto as they can. Many countries will require you to pay your tax in fiat, so you might even have to sell your crypto just to fulfill your obligations.
So what do you do to protect your growing fortune with cryptocurrency? You know that major tax burdens will slow you down as your crypto accumulation increases.
You might want to consider holding your crypto assets offshore to escape a tyrannical tax system. Make sure to follow the law and always pay the taxes you owe. However, if taxes are too burdensome you should consider moving to more favorable locations.
You might feel disheartened if your jurisdiction is levying high taxes on your cryptocurrency. But remember, many other jurisdictions are more welcoming to cryptocurrency.
While many major economies turn away from the free market and make it harder for their populace to gain wealth, others want you to live like a king! These are the jurisdictions of the future and will welcome your cryptocurrency investments.
Laws Regarding Cryptocurrency
Next, let’s look at some of the laws surrounding cryptocurrency. Just as there are initiatives to tax your cryptocurrency, there are also initiatives to criminalize crypto ownership.
Once again, this shouldn’t discourage you from investing in cryptocurrency. But this is another reminder that you have to find a method to protect your crypto holdings.
As of 2022, there have been countries that have banned holding cryptocurrency or have proposed criminalizing crypto ownership. These countries include South Korea, India, and Nigeria, among others. Other countries such as Canada and Ukraine have frozen crypto assets or made it difficult for citizens to access their wallets.
However, we also know that El Salvador and the Central African Republic have made Bitcoin into a legal tender.
As a result, you might have to find new jurisdictions to store your crypto. It’s unlikely, at present, that El Salvador will want to confiscate crypto from its’ residents and citizens.
Canada, on the other hand, might make it even harder for investors to accumulate crypto.
You want to keep an eye on the laws in your jurisdiction at all times. If they become unfavorable for crypto investments, it might be time to move your crypto assets elsewhere.
How to Predict Your Jurisdiction’s Direction
Wherever you live, you’re likely wondering whether your jurisdiction will be favorable toward crypto ownership or if you’ll have to pack your bags.
While none of us can predict the future, you want to consider the following factors. These are all reasons why a government will impose taxes or even confiscation of crypto:
High levels of inflation or even hyperinflation
Your country is moving toward a cashless society
Taxation is generally high
The overall culture of society is against wealth
If this applies to your jurisdiction, now’s the time to try to protect your crypto.
Why Cryptocurrency ATM Companies Matter
So now let’s look at the role that cryptocurrency ATM companies will play as more investors are aware of the value of digital money.
As some countries open up to crypto and others close, it’s clear that paper wallets are the best option.
Today, you might hold your crypto in an online web exchange. Tomorrow, your government might freeze your access to your online wallet. The day after, they’ll threaten to close the online web exchange altogether.
But what about hardware wallets? These do offer better protection as your crypto assets can’t get frozen. However, the proprietor that builds crypto wallets can get shut down. Any retailer that sells hardware wallets can face severe fines.
While you’ll still have your crypto stored on your hardware wallet, one shouldn’t rule out the possibility of confiscation. If you travel out of your jurisdiction, there’s the likelihood of confiscation as well. You might expect border guards or airport security to check your luggage for hardware wallets.
The only way to truly protect your crypto in such a scenario is with a paper wallet. Your only way to hold your crypto is to depend on a cryptocurrency ATM.
Cryptocurrency ATMs are available in several locations across major cities and towns all over the world.
While some Bitcoin ATMs can get destroyed, there are still going to be several others standing. Just as it’s unlikely for regular fiat ATMs to all get shut, it’s difficult for tyrants to destroy all Bitcoin ATMs.
Build Your Fortune
Now you know the importance of cryptocurrency ATM companies as crypto becomes more popular and more of a target.
Bitcoin ATMs offer paper wallets which are the most secure method of holding your crypto. It’s also the easiest to carry around and the least prone to confiscation.
Make sure you keep track of your jurisdiction’s taxes and laws regarding crypto. Bitcoin ATMs can offer an escape route if you need to protect your crypto from tyranny.
Check out the business section of our blog to keep up with the latest crypto information!