Cryptocurrency exchanges served an important role in the early days of Bitcoin , and continue to be widely used for buying and selling to this day. However, they are not without their drawbacks, and some users seek alternative methods of obtaining BitcoinCT r: 8 . Users seek to avoid exchanges for two primary reasons: Privacy
Centralized exchanges require users to disclose their identity and submit additional personal information. According to Josh Harvey, co-founder of Lamassu , this is enough to dissuade some users from trusting an exchange. “Online exchanges are regulated and require a lengthy registration process involving lots of paperwork and the submission of sensitive private documents. Anybody using those services is trusting both the service and the government to keep that information safe.” Instant transactions Transactions through online exchanges are not instant. In addition to the initial setup process, transactions take an additional amount of time to process. According to Eric Grill of CoinOutlet , an example of this can be “5-7 business days to wire to Bitstamp , plus the initial setup (AML/KYC).” BTM operator Luca Dordolo says this initial setup can be lengthy. “Assuming that you are already registered and verified AML/KYC with an exchanger, which means at least a week/10 days to be operative with an exchanger.” Three alternative methods of obtaining Bitcoin without the drawbacks of centralized exchanges: BTMs
According to Dordolo, using BTMs enables “the possibility of buying Bitcoins anonymously and in the fastest and safe way.” Grill considers the greatest draw of the BTM to be the instant nature of transactions. “You don’t have to wire money overseas or attach your bank account to an exchange, you simply put in cash and get your Bitcoins instantly.” According to Grill, the major barrier to BTM use, locating a machine nearby, is quickly […]
