Nov 122017
 

This is a Sponsored Post

Bitcoin has recently surpassed the value of Goldman Sachs Group Inc. and hovers above $100 billion. However, the wider public is yet to be introduced to Bitcoin and cryptocurrencies.

Even so, on October 2013, Bitcoin ATMs made their debut at the Bitcoiniac`s kiosk in one of Vancouver’s coffee shops. Today, just four years later, there’s more than 8 million Google search results for “Bitcoin ATM near me’’.

But how does a Bitcoin ATM work?

In this guide, we present you with the most important things to know before using a Bitcoin ATM.

There’s more than one type of ATM

There are two varieties of Bitcoin ATMs, depending on the operations they allow for: One-way or two-way transactions.

Around 70% of the ATMs worldwide only support the depositing of fiat money into the wallet and buying bitcoins. These are called vending machines. There’s less legal scrutiny around them, that’s why they’re more popular.

The other 30% are two-way ATMs. They have more KYC/AML requirements like ID or palm scanning. This helps preventing illegal traders (such as weapons’ dealers), cash in on their Bitcoin.

The future will see ATMs that support bank-like features, like providing users with different types of accounts – savings, deposits and payments. However, there is still no company that offers those services

Know the manufacturers

There are three leading producers of Bitcoin ATMs: Genesis Coin (with around 44% market share), followed by General bytes – with almost 26%, and Lamassu, with 16%.

BrandGenesis CoinGeneral BytesLamassu
One-way Price$6 800$2 999$6 000
Two-way Price$14 500/$8 900$6 999$11 000/$5 000
Fee1% of volumeOptionalOptional
Unique featureSupports Litecoin and DogecoinPOS functionalityMore compact

 

Genesis Coin ATMs are pricier, but offer increased functionality. Lamassu position themselves as the cost-efficient choice, and General Bytes as value for money. This holds true for both one-way and two-way ATMs.

The only difference is that Lamassu offers their two-way model as an extension to the one-way model. So, existing clients have to pay only 5000 USD for a two-way ATM, the best price on the market. For new clients looking for a two-way machine, however, General Bytes are more cost-efficient, and offer a good functionality-price ratio.

Genesis Coin is the best choice for those who want increased functionality, as they offer the only ATM that supports three digital currencies.

Lamassu is in a rather weird spot: they market themselves as being the cheapest – however, their price for a two-way machine does not reflect that. Our suggestion: if you already use a one-way Lamassu ATM, upgrading it is a good call. Otherwise, go for the alternatives.

Providers are the key

What matters most for individuals is the Bitcoin ATM provider rather than the manufacturer. Providers determine the location of the machines and the bulk of the transaction fee.

According to CoinATMRadar, buying fees for Bitcoin are 9.67% and, selling costs around 6.23%.

There are 7 Bitcoin providers with more than 50 operating ATMs, and only two with around 100 devices. Yet, their main interest is not market share or sheer number of machines. For them, the game is mostly about location and functionality.

Consider the top four countries in terms of number of Bitcoin ATMs (presented by CoinATMRadar): there are 1000 devices in the US, and 433 in the next three countries (Canada, the UK and Austria). This saturation in the US means that, in this case, market share numbers should always be taken with a grain of salt.

Our suggestions for providers are based on number of locations and new locations added in 2017 as reported by CoinATMRadar.

CoinSource seems to be the leading provider in the US – with 127 ATMs (104 one-way, 23 two-way). In 2017 alone they added 9 new locations, ranking them second in growth. Their buying fee is 8% and their selling fee is 4%.

Although there are many providers, Bitcoin ATMs are clustered in the states of Pennsylvania, California and Illinois. In the states Wyoming, the Dakotas and Montana there are almost no Bitcoin ATMs.

In Canada, there’s less variety. InstaCoin is the main provider of Bitcoin ATMs, with around 55 locations, and ranks 4th in terms of growth, with 7 new locations this year. However, they only have a few buy-sell ATMs and do not support other digital currencies. Unlike most Bitcoin ATM providers, InstaCoin calculates its fees in the same way traditional Forex exchanges do – they quote a selling price and a buying price and the spread in between makes up the fee.

In terms of newly added machines in 2017, the Austrian provider Cointed topped the chart with 11 new locations. This reflects a significant growth of 64.7% and translates to 53 locations.

What’s impressive about them is that they not only provide digital currency ATMs, but also manufacture them, have a digital exchange and offer mining services. This makes them the only full-fletched service provider for obtaining and selling digital currencies.

Having everything under one roof makes Cointed quite competitive compared to other companies in the industry. They are the only major Bitcoin ATM provider that supports 5 different digital currencies – Bitcoin, Litecoin, Ethereum, Zcash and Dash.

Their complementing businesses allow them to have the most competitive rates, ranging from 1% to 3.5%. Compare that to the 4% of the second cheapest provider on this list.

Also, their exchange business allows them to process transactions of all sizes. Other ATM providers can’t handle transactions in the ranges of tens of thousands of dollars or above.

Being both a provider and manufacturer allows Cointed to have better synergy between software and hardware. They also serve as a one-stop customer support as all issues are handled by one company. Other providers must investigate whether any problem is in their software or in the manufacturer’s hardware.

Can I pay for pizza with Bitcoin?

At the moment, probably your local pizza restaurant has not heard of Bitcoin. Yet, the popularity of digital currency is rising and it is getting more widely accepted. Using ATMs is certainly the most user-friendly way to purchase digital currencies. However, it’s still limited. The fees are still rather high and there is not much variety in the digital currencies offered.

By combining complementing businesses like mining, digital exchange, in-house manufacturing as well as other payment solutions, Cointed exploits the benefits of economies of scale and scope.  That’s why they can afford to give their customers the lowest fees (compared to their only ATM provider competitors). Offering many ways to acquire and trade digital currencies is the way to go as it allows for better pricing, a more versatile service and more complete customer support.

A pending issue remains geographic saturation. Even in the US where there are 1108 Bitcoin ATMs, in many states there are none. In Europe and Canada the situation is quite similar.There are two main reasons for this saturation: legislation getting in the way and, mainly, low interest in Bitcoin in general

Nevertheless, more and more countries are making room for Bitcoin and other digital currency to shine. Despite some of the issues Bitcoin ATMs are the quickest most convenient way for buying and selling digital currency.

 

May 112013
 

This is a sponsored press release

Flyp.me implements Monero’s sub-addresses in crypto to crypto exchange 

Flyp.me, the leading crypto to crypto exchange without the need to register an account was first launched in 2017. The Flyp.me exchange has focused on privacy, simplicity and speed on a constant basis. It has a catalogue of more than 30 cryptocurrencies and tokens. Today, Flyp.me adds the latest implementations of monero’s sub-addresses. This constitutes another layer of privacy when it comes to observers trying to associate transfers from Monero to and from Flyp.me. Let’s go in depth.

Flyp.me was launched under the premise of respecting the transactional privacy of users and maintaining an exchange without accounts. Monero’s recently implemented sub-addresses allow the use of the exchange with fewer parameters to be introduced; significantly reducing the possible irreversible mistakes of an unskilled user. At the same time, the new compatibility implements an additional layer of “anonymity” to the transactions with Monero. Monero is characterized by offering one of the best privacy options in the market for transactions. However, some of the features had made adoption difficult for inexperienced users. At the same time, they offered a surveillance vector through Payment IDs.

The Monero’s active development community proposed change for the entire ecosystem

The Monero’s community proposed to remove support for sending independent payment ID transactions in the majority of the wallets by April 2019. It also proposed eliminating support for sending payment ID transactions (including integrated addresses) in the consensus layer by October 2019. Exchanges, payment processors and other services should be updated to support Monero’s sub-addresses as soon as possible. Therefore, Flyp.me announces its implementation offering all the advantages to the customers and the community.

This utility allows users to discard creating more than one wallet to receive funds in multiple directions without being linked. It also allows the user to corroborate transactions that enter their portfolio and associated sub-addresses. This can be used to verify if there are internal movements within their subaddress scheme without it being observable by third parties. The objective is clear: to ensure that any Monero’s wallets cannot be linked by observing transactions. This strengthens Flyp.me’s usage model by taking care of the transactional privacy of users who operate with Monero.

Monero leaves payment IDs offering a stronger privacy layer to services like Flyp.me

Removing the Payment ID makes it difficult to associate different transactions between two parties that usually operate together. At the same time, it also makes it difficult to mass associate multiple payments from multiple users made to the same recipient because the previous payment IDs are not included. The Flyp.me exchange was created with a solid set of values by a team working on Bitcoin since 2012. To date, it has fulfilled its promise to be the fastest, safest and most private way to exchange cryptocurrencies & tokens directly into the wallet.

The 2019 design went a step further by making the process of buying and selling crypto very easy. With the new implementation of Monero, a bottleneck in the adoption of cryptocurrencies is removed. It is true that Monero has been one of the cryptocurrencies with the most complicated process to use all its privacy features. The new implementation simplifies the use and adoption of the entire Monero’s network and its applications. However, it also simplifies the use of merchant platforms such as Flyp.me that promote the decentralization and application of privacy to services in a secure manner. The Monero’s community made clear their desire to move forward with their recommended timeline; and now, Flyp.me incorporates the implementation for decentralized Monero exchanges from wallet to wallet.

To date, Monero has been developed by the community; among them there are few “visible leaders”. Behind the scenes, however, it is a very active community with collaborators from all areas of the sector. The philosophy of privacy as a fundamental human right is the hallmark of Monero, and its group of seven main developers.

The essential of adoption is the necessity and ease-of-use

We have witnessed in recent years a slow and progressive growth of use cases for cryptocurrencies and tokens. Applications, uses and developments have diversified, including value storage, hundreds of services/utilities, and micropayments. However, developments that facilitate the inclusion of less specialized users have accelerated the process. Flyp.me offers a service as powerful as it is user-friendly. Management does not require knowledge in cryptography, programming or other specialties, offering a complete service of exchange without account or records.

In terms of adoption, this Monero’s consensus step facilitates operations for all parties. Improving the experience of users and traders who use Flyp.me in their operations. Sometimes these parties want an extra layer of privacy compared to operating with bitcoin. Monero offers this layer and it is now both easier to use and harder to track.

Flyp.me web & Links:


Telegram –
Flyp.me – https://t.me/flypme
Twitter –
https://twitter.com/flyp_me
Facebook –
https://facebook.com/flypme
Reddit –
https://www.reddit.com/r/flypme
web –
https://flyp.me/