Crypto ATM – a beginner’s guide

Written by

Coinzix

Coinzix

Published on

Read time

Category

Written by

Coinzix

Coinzix

Published on

Read time

Sections

If you want to invest in cryptocurrencies without headaches and accounts on online platforms, then a crypto ATM is the simplest way. Although it does not involve advanced technical knowledge, you still need to understand some aspects regarding safety and legality.

This article will be your guide to understanding what a crypto ATM is. We will discuss how it works and how you can buy and sell cryptocurrencies. And most importantly, how to protect yourself from scams.

At the end of this article, you will have the knowledge you need to buy and sell cryptocurrencies safely from a crypto ATM.

What is a crypto ATM?

A crypto ATM is bridging the crypto ecosystem and the traditional monetary system. It is a more accessible and user-friendly alternative to crypto exchange platforms, which require digital knowledge to be accessed. 

These machines, the crypto ATMs, are very similar to the traditional ATMs used by banks. The difference is that they are programmed to work with cryptocurrencies. But unlike the traditional ones, not all crypto ATMs also have a cash withdrawal function, as most of them are used only to buy cryptocurrencies. 

These ATMs are often found in large shopping centers and operated by non-banking institutions. Most devices are part of the services offered by crypto exchange platforms to address a new segment of customers. 

COINZIX also offers such a service in six cities in Romania, such as Bucharest, Constanta, and Sibiu. You can buy and sell Bitcoin (BTC), and sell Elrond (EGLD) with our ATMs. Find the complete list of locations and real-time details about balances on our website.

How does a crypto ATM work? 

To understand how you can use such a device, firstly, we need to understand how cryptocurrencies are stored. And the most straightforward comparison is the one with a bank account. 

Just like you need a bank account to receive, store and transfer money digitally. Cryptocurrencies are also stored in an account called a crypto wallet, which you need access to use the ATM. 

One aspect that requires full attention is securing your wallet. Due to the decentralized nature of cryptocurrencies, losing access to the wallet means losing funds. Therefore, ensure you follow the instructions to secure access to your wallet when you create it. 

We recommend installing such a wallet on your mobile phone to work with a crypto ATM. That’s because you will use your phone’s camera to scan different codes that link the ATM to your wallet. 

Cryptocurrencies in the ATM are also stored in a crypto wallet. And the ATM mediates the link between the client’s wallet and the service company.

How do I buy or sell cryptocurrencies with a crypto ATM?

All ATMs have a similar process, but we will take as an example the process of buying and selling with COINZIX.    

Who to SELL cryptocurrencies AT COINZIX ATMs:    

  • Activate the ATM screen by touching the display.                                     
  • Select “Sell Bitcoin”.                                     
  • Select the amount you want to sell. 

For amounts over 5000 RON, you will need an identity card.                                     

  • Enter the phone number and select “SELL”.                                     
  • The ATM will issue a QR code containing all the necessary instructions to make the payment in the next 60 minutes.                                     
  • You will receive an SMS notification confirming the transaction, then select “Remittance Ticket”.                                     
  • Scan the QR code, and the ATM will make the payment.         

Who to BUY cryptocurrencies AT COINZIX ATMs:

To be able to buy BTC or EGLD, you will need a digital wallet.  

  • Activate the ATM screen by touching the display.                                     
  • Select “Buy Bitcoin” or “Buy Elrond”.                                     
  • Select the amount you want to buy. 

For amounts over 5000 RON, you will need an identity card.                                     

  • Scan the QR code of the crypto wallet with the address where you wish to receive the coins.                                     
  • Enter the banknotes in the ATM, press “Buy,” and you will receive the coins in your wallet.                                     
  • Select “Print receipt” for the receipt of the receipt by the ATM.                                     

Warning: Cryptocurrency transactions are not processed instantly! Factors like network speed and the degree of congestion should be taken into consideration. In extreme cases, transaction validation may take a few minutes to several hours.

If you want to become an investor in cryptocurrencies, a thorough study of the strategies and associated risks is required. We recommend starting with one of the most straightforward strategies, Dollar-cost averaging.

How to protect yourself from fraud with crypto ATMs?

Another critical aspect to understand in the crypto ecosystem is the permanence of transactions. Unlike the banking system, where banks can cancel transactions in the event of fraud, cryptocurrencies, once transferred, cannot be stopped.

We will discuss two main types of scams encountered with crypto ATMs.

Cybersecurity of ATMs.

If a crypto ATM is vulnerable and comes under the control of a hacker, it can change the wallet addresses to redirect funds to their wallet.

Companies and users often report several such problems, similar to those presented by Cointelegraph.

To reduce the chances of falling prey to such a scam, we recommend checking the transaction data several times. QR codes simplify the process but verifying that the wallet address on the phone matches the one displayed on the ATM screen is necessary.

Classic phone scams.

The second type is the classic telephone scam, such as these reported by CoinDesk. Scammers buy databases of personal information and initiate contact as a representative of a service used by the person targeted.

The scammers then convince the victim that money is owed and that payment needs to be made immediately. Under the pressure of an emergency, the scammer offers a way in which payment is quickly made and then directs the victim to a crypto ATM.

The victim is encouraged to take the cash out of their own account and then receive a QR code to use at the Crypto ATM. And once you deposit the money in the ATM, the cryptocurrency exchange is made, and no one can cancel the transaction.

Always verify when you receive a phone call or an email from a company stating you owe a sum of money to them, even if it seems legitimate. You should search for the official phone number on the company website and call directly. Avoid phone numbers in emails and operators that call you directly.

ATM network and the crypto law in Romania.

According to the CoinATMRadar website, there are 130 crypto ATMs in Romania. Most of them are in Bucharest, a total of 53 devices to date. In the second place we find Constanta, Cluj and Râmnicu Vâlcea, with 7 machines. And in third place, with 6 devices, is Timișoara.

Crypto ATMs are legal in Romania and comply with the law under which cryptocurrencies are categorized. For amounts over 5000 RON, you will need to present an ID to be scanned and attached to the transaction.
Investors must declare the proceeds of crypto transactions and pay the related fees. To ensure you are within legality, we recommend consulting this guide issued by the Romanian Financial Administration Agency.

Name Price
Bitcoin (BTC)
$19,086.60
Ethereum (ETH)
$1,337.89
BNB (BNB)
$279.99
XRP (XRP)
$0.478065
Cardano (ADA)
$0.461610
Solana (SOL)
$33.64
Polkadot (DOT)
$6.44
Coinzix Logo Black

Buy and Sell crypto in minutes

Create your account and start immediately

Sign up today and buy 30+ cryptocurrencies in minutes.

Do you need help? Contact us at [email protected]

check out our other blog posts

Coinzix

The Ethereum Merge

Understand why the Ethereum Merge is one of the most critical events in crypto history, in this accessible and nontechnical article.

MetaMask a beginner's guide
Coinzix

MetaMask – A Beginner’s Guide

The internet is evolving, and to keep up in this article, we will understand what a Metamask browser wallet is and how you can use it.

trade-using-candlesticks
Coinzix

How to trade using candlestick

Candlestick patterns, which are technical trading tools, have been used for centuries to predict price direction. Read more about it here.