While many crypto users believe in a cashless and fiatless world, it is yet to come. Most of us still have to perform a lot of transactions using good ol’ cash, including BTC and other crypto purchases.
No matter whether you need a fiver for a cup of coffee or want to top up your Bitcoin wallet without having to go through a centralized bank, crypto ATMs can be of great help to anyone looking to convert their crypto to cash and vice versa.
Key Takeaways: BTC ATMs
- Bitcoin ATMs allow users to buy, sell, and transfer cryptocurrency using cash or digital wallets, operating directly with blockchain networks rather than traditional banking systems.
- Transactions involve scanning a wallet QR code, inserting cash, and confirming details, with cryptocurrency sent from the operator’s wallet to the user’s wallet.
- Crypto ATMs offer convenience, privacy, and accessibility without requiring a bank account for smaller transactions.
- Use mapping services like Coin ATM Radar to locate nearby Bitcoin ATMs and compare fees and services.
What Is a Bitcoin ATM?
A Bitcoin ATM does exactly what its name suggests — it is a traditional ATM that accepts BTC and other crypto coins and tokens instead of fiat currencies and cash. It is also sometimes called a Bitcoin Teller Machine, or BTM. Buying Bitcoin this way is as easy as depositing cash to your bank card using traditional ATMs.
Most Bitcoin ATMs allow users to both sell and buy Bitcoin, but not all of them: don’t forget to check whether the ATM you’re planning to use offers your desired functionality. You can also use crypto ATMs to send BTC to another user’s Bitcoin wallet — just enter their address in the recipient field.
How Do Bitcoin ATMs Work?
Bitcoin ATMs don’t look all that different from fiat ones. However, they operate in a completely different way: instead of being connected to a bank, they communicate directly with the Bitcoin blockchain.
In order to buy and sell Bitcoin using a crypto ATM, you will only need two things: a digital wallet and a traditional one. Just insert some bills into the machine and then scan the QR code for your digital wallet or enter its address manually — this is all you need to buy Bitcoin using a Bitcoin ATM.
The cryptocurrency you get from a Bitcoin ATM is sent from the wallet of its operator company.
Bitcoin ATMs vs. Traditional ATMs
Bitcoin ATMs (BTMs) and traditional ATMs serve similar purposes — facilitating financial transactions — but they operate within vastly different systems. While traditional ATMs connect to banking networks to handle fiat currency transactions, most crypto ATMs interact directly with blockchain networks to enable users to buy, sell cryptocurrency, or transfer digital assets.
Bitcoin ATM fees range significantly, often from 10% to 23%, compared to minimal or no fees for most traditional ATMs. Additionally, Bitcoin ATMs require a cryptocurrency wallet for transactions, whereas traditional ATMs rely on physical bank cards. Despite these differences, both types of automated teller machines offer users a quick and convenient way to access their funds.
How to Use a Bitcoin ATM
Although Bitcoin ATMs may seem a bit unusual at first, they are easy to use.
Step 1 – Get a Crypto Wallet
The first step to performing any crypto transaction is getting a wallet that supports the coin or token you want to buy. It can be a paper wallet, a digital wallet, or a hardware one — its type doesn’t matter as long as it can send and receive digital money and is secure.
Step 2 – Prepare Your Bitcoin Wallet
Most Bitcoin ATMs (Bitcoin Teller Machines) allow you to use QR codes to make Bitcoin transactions. Check whether your digital wallet offers that feature — after all, it can reduce one’s stress by eliminating the need to enter a long and non-human-readable wallet address.
Step 3 – Find a Bitcoin ATM Near You
Cryptocurrencies are not widely accepted yet, so the chances of you running into a Bitcoin ATM out in the wild are rather slim, especially if you don’t live in a big city like London or NYC. The easiest way to find Bitcoin ATMs located near you is to use live maps like Coin ATM Radar, Bitcoin ATM Map, and others.
Most of these websites, such as Coin ATM Radar, allow you to look for ATMs by proximity, operator, fee, and other parameters.
Step 4 – Set Up Your Transaction
To use a Bitcoin ATM, you will first need to verify your identity.
Once that’s done, you’ll need to enter your PIN.
Next, choose the cryptocurrency you would like to get (if the ATM offers more than one) and enter the amount you’d like to purchase.
Step 5 – Enter Your Wallet Information
Once you’ve set up your transaction, you will need to enter your Bitcoin wallet address. Most ATMs allow you to use QR codes to minimize the risk of sending your new crypto to the wrong wallet address. If you choose not to go with the QR code option, please remember to double-check the address you entered.
Step 6 – Insert Cash
Double-check all transaction info and insert the required amount of cash into the ATM.
Step 7 – Confirm the Purchase
That’s it! Confirm the purchase and wait for your new cryptocurrency to arrive in your wallet. Delivery times depend on the cryptocurrency you’re purchasing but usually range from 10 to 15 minutes.
Bitcoin ATM Fees
Bitcoin ATM operators have different policies for transaction fees. Typically, there is a flat fee for each transaction and a percentage fee based on the amount sent or received. These fees can vary depending on the provider and your location, generally ranging from 10% to 23%. Some fees can be quite high, so it might be worthwhile to travel a bit further to find an ATM with lower fees.
As cryptocurrencies become more widely accepted, the number of active Bitcoin ATMs is likely to increase, and the fees will probably go down. Until then, we recommend using ATM finders that sort ATMs by fees.
Benefits of Using a Bitcoin ATM
Why do people opt for crypto ATMs? Here are the benefits BTC ATMs offer over traditional cryptocurrency exchanges.
Convenience
Bitcoin ATMs offer immediate access to cash, making them highly convenient for users. They allow instant conversion of digital currencies to cash, unlike traditional exchanges that might require linking bank accounts and waiting for fund transfers.
Additionally, their growing ubiquity means you can find these ATMs in various convenient locations like shopping centers, gas stations, and airports. Operating 24/7, they cater to users at any time, mirroring the always-available nature of auto-teller machines.
Quick Transactions
One of the standout features of Bitcoin ATMs is the ability to reserve cash in advance for withdrawals, ensuring quick access when users arrive. Transactions are almost instantaneous, significantly reducing wait times compared to traditional banking methods. With their increasing number worldwide, Bitcoin ATMs are becoming more accessible, offering a swift means for cash transactions and withdrawals.
No Bank Account or Identification Required
For smaller transactions, many Bitcoin ATMs don’t require identification, making them accessible even without a bank account. This feature is particularly useful for low-risk transactions. However, for larger transactions, identification may be required to comply with AML and KYC regulations. Users typically verify their identity through a phone number, which is confirmed via SMS.
Familiar Process
The familiar format of traditional ATMs is leveraged in Bitcoin ATMs, making them more approachable for users. Placed in strategic, high-traffic locations, they offer a simple and straightforward way for people to buy Bitcoin. This familiar setup can help attract new crypto investors, offering a convenient entry point into the crypto market without the complexities of traditional exchanges.
Privacy
Privacy is a key aspect of Bitcoin ATMs, appealing to those who value financial discretion. Users can enhance privacy by choosing ATMs that don’t require identity verification and using Bitcoin wallets with privacy features. While they offer more anonymity than online exchanges, complete privacy isn’t always guaranteed due to potential security measures like cameras or mobile phone number verification.
Risks of Crypto ATMs
While crypto ATMs provide convenience and accessibility, they are not without risks.
High Fees
Bitcoin ATMs often have higher fees compared to other financial services. These fees cover the costs of operating physical machines, including hardware maintenance, renting space, and providing customer support. Traditional banks, benefiting from more established infrastructures and a broader range of services, can keep their fees relatively lower. Similarly, online crypto exchanges typically have lower fees than Bitcoin ATMs, as they avoid the overheads associated with physical machines and benefit from larger scale operations. They also tend to have lower blockchain transaction (or gas) fees.
Funds Not Insured
Another significant risk with cryptocurrency ATMs is the lack of insurance for funds. Unlike traditional banks where deposits are insured, cryptocurrencies in ATMs don’t enjoy this protection. This leaves users exposed to losses from security breaches or technical failures. Additionally, many cryptocurrency ATMs lack anti-theft measures found in traditional ATMs, such as surveillance cameras, which increases the risk of theft. The absence of dedicated customer support can also be challenging, leaving users to deal with issues like transaction errors on their own.
Transaction Limits
Transaction limits at Bitcoin ATMs vary. Operators may set predefined limits or adjust them based on customer needs. Larger transactions usually require Know Your Customer (KYC) verification to comply with anti-money laundering regulations. Some ATMs offer tiered verification levels, allowing users to increase their transaction limits by providing more information, like linking a bank account.
Availability
Bitcoin ATMs, though growing in number, are less widespread than online exchanges. As of November 2023, there are around 39,000 Bitcoin ATMs globally, a small figure considering the global population. In contrast, online exchanges are accessible to anyone with an internet connection, offering a more extensive range of options and faster setup for trading Bitcoin.
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FAQ
What is the best Bitcoin ATM to use?
Choosing the best Bitcoin ATM largely depends on your location and specific needs. To find a Bitcoin ATM near you, the most effective method is to use live mapping services like Coin ATM Radar or Bitcoin ATM Map. These platforms are incredibly user-friendly and allow you to search for ATMs based on various criteria such as proximity, operator, fees, and more.
Among the top crypto ATM operators, you might come across names like Coinstar Bitcoin Machines, known for their widespread presence. Coin Cloud Bitcoin ATM, despite recent financial troubles, is still operational and popular for its user-friendly interface. RockitCoin is another reliable option. For those seeking convenience, Just Cash ATM and LibertyX ATM are standout choices. Additionally, Pelicoin ATM offers reliable services in many locations.
Remember, when choosing an ATM, consider not just the location but also factors like transaction fees, limits, and user reviews to ensure you get the best possible experience.
How do I send money to a Bitcoin ATM?
If you are buying BTC, then you can use cash. If you’re selling Bitcoin, you can use your Bitcoin wallet by either manually entering its address or scanning a QR code.
Do I need an account to use a Bitcoin ATM?
While some Bitcoin ATMs may ask you to create an account, not all of them do so. Most ATMs allow you to start buying Bitcoin after simply entering a text verification code.
Can you put cash in a Bitcoin ATM?
Yes, you can use cash to purchase Bitcoins in your nearest Bitcoin ATM.
How much does a Bitcoin ATM charge for $500?
The amount of Bitcoin you get from converting $500 at a Bitcoin ATM depends on the operator’s fee, which generally ranges from 10% to 23%. With a 10% fee, you would end up with $450 in Bitcoin after the fee is taken out.
Can you withdraw from a Bitcoin ATM?
Absolutely! Bitcoin ATMs provide a convenient way to convert your Bitcoin into cash quickly. For more details, check out our dedicated article on cashing out your BTC here.
Can I send $10,000 through a Bitcoin ATM?
Whether you can send $10,000 through a Bitcoin ATM depends on the limits set by the operator, which usually range from $10 to $10,000. Always check with the specific ATM provider for their exact limits.
Do Bitcoin ATMs require ID?
It depends. Some Bitcoin ATMs may not require ID for smaller transactions, but larger transactions or certain regulations might make identification obligatory. Often, ID is needed when you set up your account or if you exceed an established transaction limit.
Are Bitcoin ATMs safe?
Yes, they are as safe as traditional ATMs and any exchange. This is one of the most frequently asked Bitcoin ATM questions since both crypto and traditional banking ATMs can sometimes be seen as less reliable. However, as long as you look out for things like terminals on top of existing ones or cameras, it should generally be fine. Bitcoin ATMs are designed to be secure and protect your funds, but please always remember to be cautious when using them.
How do I use a Bitcoin ATM with a debit card?
In general, the majority of Bitcoin ATM machines accept cash only. If you can’t find one that lets you purchase Bitcoin with your card, you can use a fiat currency ATM to withdraw cash from your bank account first and use it to buy Bitcoins in a BTC ATM.
How much Bitcoin can you send in a single transaction via a crypto ATM?
Each Bitcoin ATM operator (Bitcoin Depot, Coin Cloud, etc.) has their own limits that you can look up on their websites.
They also usually publish instructions on how to send money through their particular Bitcoin ATM machine.
How are crypto ATMs regulated?
Cryptocurrency ATMs are regulated through a mix of international, federal, and state laws. In the U.S., operators must register with FinCEN, comply with the Bank Secrecy Act (BSA), and implement Anti-Money Laundering (AML) and Know Your Customer (KYC) measures. State-level regulations often require money transmitter licenses and transparent fee disclosures. Internationally, countries like the U.K. have tightened oversight, requiring registration with financial authorities to combat money laundering and ensure consumer protection.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
