If you’re just dipping your toes into the cryptocurrency waters, you may have seen or heard about Bitcoin ATMs and are wondering what the hell they are. Well in this post, we’re going to break down what Bitcoins ATMs are, where you can find one near you (spoiler alert: it’s not just in dodgy alleys!), how to use them and finally, why you really might not want to.
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What Is A Bitcoin ATM?
A Bitcoin ATM is a real world physical device, usually similar in looks to traditional ATMs, that allows you to buy bitcoin using cash or other payment methods such as credit or debit cards. Most also allow you to buy crypto and others that are called two-way ATMs also allow you to sell bitcoin as well. You may also sometimes hear them referred to as Bitcoin Teller Machines or BTMs.
How Do Bitcoin ATMs Work?
Bitcoin machines allow the user to buy and sell crypto by going through the same process a typical exchange would. They connect to a digital wallet (usually via a QR code), accept your bitcoin or fiat and then exchange one for the other at set exchange rates.
This is all done via a touchscreen interface on the cryptocurrency ATM along with you setting up an account with the exchange beforehand. Some have their own separate kiosk area, while others are located inside businesses. It’s also common for Bitcoin ATMs to also be able to buy and sell other cryptocurrencies too.
Benefits Of Using A Bitcoin ATM
ATM Bitcoin machines can often be a quick and convenient way to buy and sell bitcoin, once you’ve setup an account with the provider. They usually have a number of flexible payment options and don’t require you to have or link it to your bank account.
Depending on what country you’re in, they can also have quite wide accessibility and are usually open 24/7. This can give you a quick, in real life way to go and exchange cash for Bitcoin, with the whole process being super fast.
If you want to buy non-KYC bitcoin (always one of our top recommendations) then you can do this as well, provided you’re within the usually smaller withdrawal limits. When you buy bitcoin using them, they will also usually send the funds to your wallet immediately, meaning you don’t have to take multiple transaction steps through an online exchange wallet.
How To Buy & Sell Bitcoin Using A Bitcoin ATM
Step 1: Sign Up & Find A Bitcoin ATM
First you’ll need to find and sign up to a licensed Bitcoin ATM operator. There are many Bitcoin ATMs globally, with many sites allowing you to search maps or huge databases with the exact locations. Some popular ones include CoinATMRadar, Coinflip, RockitCoin, Bitcoin Depot or ATHENA.
Most ATMs are located in public places such as private shops, shopping centers or large public areas. Read our tips section below before signing up as there can sometimes be a few tricks to watch out for.
Step 2: Insert Cash Or Card
Once you’ve arrived at your local Bitcoin automated teller machine, identify yourself using whatever process they require. This is usually done by scanning your ID, entering a phone number or performing a SMS 2FA.
Once authorized, click on the “buy bitcoin” button for your appropriate payment type and insert the amount you want to buy. The ATM will then calculate how much bitcoin this will buy at the exchange rate they give and display the amount on the screen for you. Be aware that many ATMs can have quite horrific exchange rates and fees!
Step 3: Enter In Your Bitcoin Wallet
Next you’ll need to tell the ATM where it needs to send your new bitcoin too. You can manually enter in your Bitcoin Address, but we’d heavily advise against this. Besides the fact that it’s super slow to do, you’re going to make mistakes.
Instead, only use machines that can scan a QR code address. This way it’s quick, simple and far more reliable. You will still want to double check that the address scanned matches your receive address. Don’t just check the start and end characters either! Check ALL of them start to finish, then finish to start again to be properly safe.
You’ll also want to make sure you’re using a fresh new bitcoin address each and every time so that you avoid reusing addresses. Address reuse harms your privacy and security.
Step 4: Confirm Your Transaction
Once you’ve confirmed your address, review the other transaction details such as a the amount, exchange rate, other fees and the total you’ll receive. If good, confirm the exchange and wait for your fresh new bitcoin to arrive!
Security & Risks When Using A Bitcoin ATM
One of the main risks with using bitcoin machines is simply the fact that you’re dealing with money in the real world, where any number of physical attacks can take place.
This is also true when using P2P Crypto Exchanges as although they are online, many still offer the ability to exchange the funds “in person”. In both cases, you’re in public places and criminals know that you’re carrying money on you, so there’s a higher chance of being targeted.
While the bitcoin machines themselves are usually quite secure, using both hardware and software measures to ensure a secure transaction, you can still get mugged just like someone might at a “regular” ATM.
As such, always ensure you’re using a reputable ATM provider and also always ensure you purchase bitcoin in a safe environment. Be aware of people behind you and just generally be more mindful of your surroundings.
Fees, Limits & Tips For Using Bitcoin ATMs
One of the main final things to be aware of when using Bitcoin ATMs are the fees and exchange rates that they charge. We’ve covered Bitcoin Transaction Fees before, so we’d highly recommend reading that piece first as it covers many scams exchanges try and pull.
For example, they might charge a really good exchange rate, but then whack you with a ridiculous “withdrawal fee” once you’ve already made the exchange and your funds are stuck in their wallet. For Bitcoin ATMs, the same tricks apply. Make sure both the exchange rate and withdrawal fees (if any) are acceptable.
When it comes to limits, many ATM providers won’t allow you to even sign up without requiring extremely privacy invasive KYC checks. Some will allow you to buy non-KYC bitcoin, but just with smaller limits. Most will also have daily limits as well, regardless of whether you use KYC or not.
We’d also recommend you do a reasonable amount of research regarding the Bitcoin ATM provider before signing up. This is because so many crypto exchanges are just terrible, whether it’s due to literally being a scam or being legitimate, but having huge fees or poor customer service.
If you’re wanting to make an investment in Bitcoin using a Bitcoin ATM near you that’s fine, but choose wisely and also consider if you might be better off using one of our top recommended exchanges below. Of special note is the fees Bitcoin ATM providers charge, which range from 5%-25%! Compare this to some of our top online exchanges that are less than 1%, or just $0.35 to buy $200 of BTC.
While none have physical ATMs, they’re highly rated for good reason. They have all shown that they are genuine and fully respect your security and privacy, plus you’ll totally avoid the exposure to physical attacks like being robbed at gun point.
FAQ
Can You Get Cash From A Bitcoin ATM?
Yes. Many Bitcoin ATMs now allow you to sell bitcoin as well as buy it. These are usually referred to “two-way” Bitcoin ATMs and there are tens of thousands of them all around the world, especially in the United States.
How Much Does Bitcoin ATM Charge Per $100?
This will differ depending on which provider you go with, but on average most Bitcoin ATMs will charge around 5-25% per transaction with about 10% being common. You’ll also have to pay the standard mining transaction fee to send the funds to your wallet, which is around $1-$3. On a $100 purchase this means the fees will be around $10, but could be as high as $25!
How Do I Find A Bitcoin ATM Machine?
There are many Bitcoin ATMs globally, with many sites allowing you to search maps or huge databases with the exact locations. Some popular ones include CoinATMRadar, Coinflip, RockitCoin, LocalBTM, Bitcoin Depot, ARS Capital, Coin Bank, ATHENA and many, many more.
Are There Still Bitcoin ATMs?
Yes! There are tens of thousands of Bitcoin ATMs all around the world. To find Bitcoin ATM locations you can simply search for ones in your local area as there’s many, many providers in almost every country.
Why Would Anyone Use A Bitcoin ATM?
Bitcoin ATMs can be a quick and simple way for customers to both buy bitcoin, as well as sell it in a local environment. You can easily make regular deposits or even receive crypto using them just like you might using a regular ATM with regular financial transactions. However do be aware they charge much higher exchange rates and fees than online exchanges.
