The world of blockchain and cryptocurrency is a diverse environment, with a wide array of digital assets serving various purposes and functions. Two separate categories within this realm are crypto coins and tokens. While they share similar features, they possess core differences that play a role in their interactions, especially in the context of Bitcoin ATMs. So keep reading as we answer the question, 'What types of crypto can you get at Bitcoin ATMs?'
Crypto Coins: Coins like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are native digital currencies, each operating on their own separate blockchains. Many within the industry view these as the backbone of the crypto market where they exist as a medium of exchange or a store of value.
Tokens: Tokens, on the other hand, are digital assets that reside on an existing blockchain platform, commonly as part of smart contracts. They represent a wide range of assets, including real-world assets, digital items, and access rights. Tokens use the security and infrastructure of the underlying blockchain.
Crypto Coins: Coins have their own dedicated blockchains and networks. For instance, Bitcoin operates on the Bitcoin blockchain, Ethereum on the Ethereum blockchain, and so forth. These blockchains typically have their own consensus mechanisms and transaction confirmation processes.
Tokens: Developers create and manage tokens within existing blockchain ecosystems. For example, Ethereum-based tokens reside on the Ethereum blockchain and adhere to its rules and protocols. This association means that the security and functionality of tokens are dependent on the host blockchain.
Crypto Coins: Coins like Bitcoin and Litecoin primarily function as mediums of exchange, allowing users to conduct transactions, store value, and potentially act as a hedge against traditional financial systems.
Tokens: Tokens have a broader range of use cases. They can represent who owns certain assets, provide access to sites or services, or even offer voting within governance systems.
Bitcoin ATMs, or BTMs, have gained popularity as physical touchpoints for buying and selling Bitcoin using traditional fiat currencies. Of course, the impact of crypto coins and tokens on Bitcoin ATMs varies based on several factors:
Bitcoin ATMs exist to oversee Bitcoin transactions. While some ATMs may support a limited number of other major coins such as Litecoin or Bitcoin Cash, their core focus remains on Bitcoin. The compatibility of more coins depends on the software and policies of the ATM operators.
Token Integration Challenges
Supporting tokens at Bitcoin ATMs is more complex. Tokens often exist on specific blockchain platforms, such as Ethereum's ERC-20 tokens. However, to work with token transactions, ATM operators would need to integrate with these platforms, which presents technical challenges. As a result, most Bitcoin ATMs don't handle tokens.
Cryptocurrency coins and tokens are key to the blockchain environment, each with its unique features and use cases. When it comes to what types of crypto you can get at Bitcoin ATMs, the answer is simple: Bitcoin. At Bitcoin Depot, you can purchase Bitcoin from Bitcoin ATMs spread across the United States and Canada. So get out there and add some Bitcoin to your wallet today!