A Bitcoin ATM, also known as Bitcoin Teller Machine (BTM), makes exchanging fiat currency for Bitcoin absurdly easy.
In this article, I’m going to show you how to use a Bitcoin ATM to buy/sell Bitcoin, how it actually works and how to find a Bitcoin ATM near you.
Unlike the traditional ATMs where you can withdraw your country’s currency like USD, AUD, EUR etc with your debit card. Bitcoin ATM is rather a physical centre, allowing you to buy Bitcoins with fiat money and with some machines you can sell your Bitcoins too.
Related reading:
- How to Secure Your Cryptocurrency: Cold vs Hot Wallet
- Bitcoin Debit Card: What is it and How to use it?
Why Bitcoin ATMs are important?
So why do you need Bitcoin ATMs when you can easily buy Bitcoin on major exchanges such as CoinBase?
Unlike online crypto exchanges that require a lengthy sign-up and ID verification process, Bitcoin ATMs are a quick and convenient way to buy/sell bitcoin anonymously.
Whether you want to buy $100 or $1000 worth of Bitcoin, no KYC/AML (Know Your Customer/Anti-money laundering) is required during the transaction.
That said, it’s a great way to purchase Bitcoin while keeping your identity obscured.
*Governments have taken steps to tighten up regulations on cryptocurrency, now most ATMs would require ID verification.
Bitcoin ATMs are also meant to offer access to Bitcoins to those who are not so tech-savvy or don’t have access to a bank account.
For its extreme ease of use, high speed and extra privacy, having bitcoin ATMs accessible to everyone all over the world makes the barrier to entry extremely low for the masses. Directly or indirectly, this may lead to exponential growth of the crypto assets and eventually mass adoption of Bitcoin.
Major Pros
- It’s one of the fastest and easiest ways to buy/sell bitcoins.
For example, Lamassu Bitcoin ATMs support a 15-second operation, from scanning your Bitcoin QR code to clicking “send”.
- It doesn’t require bank accounts.
- Some machines don’t require any form of verification– meaning, you are completely anonymous.
Major Cons
- Transaction fees are high.
Considering the added expenses for machine maintenance, rent, regulatory measures, volatility and other costs. Typically, Bitcoin ATMs charge 7-12% for buying/selling bitcoins.
- It’s not suitable for large transactions.
Most ATM machines have deposit and withdrawal limits between $1000-$10,000.
- It’s still very few compared to over 3 million fiat ATMs dotted around the globe.
How To Find A Bitcoin ATM Near You
Supported by the coronavirus-induced shift toward contactless payments, Bitcoin ATM installations increased by +85% in 2020 to 11,798 terminals, outpacing the previous year’s near +50% rise by a significant margin, according to data source Coin ATM Radar.
And more than half of the ATMs are located in the United States.
Before you start buying your Bitcoin with ATM, you’ll need to find the closest machine near you.
Coin ATM Radar is the perfect tool for you. No matter where you are, it will show you all the closest machines to your location with the click of a button.
Aside from locating Bitcoin ATM near you, this tool will help you get useful information such as:
- Access to the Bitcoin ATM map
- Get all the important details specific to a Bitcoin ATM (Buy/Sell limits, BTC price, fees, Buy only, Sell only or Buy/Sell)
- Give you direction from your current location to the selected Bitcoin ATM
- See which machines available for exchanging other crypto coins like Ether, Litecoin, Zcash, and Dash
- Go to Coin Radar and you’ll see a live worldwide Bitcoin ATM map.
- Simply type in your city/address and press enter. As an example, I’ve entered “New York” in the search bar.
- Select a Bitcoin ATM near you and click to see the details.
- Click “Get Directions” to get the exact location and direction to your destination with Google maps.
- Optional: Click “View listing” to learn more about the Bitcoin ATM operator including user feedback, operating hours, business name etc.
Now you know how to find a Bitcoin ATM, let’s see how these Bitcoin ATMs work and how to use them to buy/sell bitcoin.
How Does A Bitcoin ATM Work?
Depending on the type of machine, some Bitcoin ATMs may support two-way operation which allow you to exchange fiat money for bitcoin and vice versa.
But most of the Bitcoin ATMs only support fiat to Bitcoin transactions.
Here’s a list of the most popular Bitcoin ATMs available in the market:
- Genesis1 Bitcoin ATM
- Satoshi1 Bitcoin ATM
- Satoshi2 Bitcoin ATM
- Lamassu Bitcoin ATM
- General Bytes BATM2 (one-way)
- General Bytes BATM3 (two-way)
- BitAccess
- Skyhook
- Robocoin
These Bitcoin kiosks are connected to the internet, linking you to an exchange where you can buy/sell bitcoins.
All you need to do is deposit your dollars, pounds, euros etc into the machine and scan your public address.
So remember to have your Bitcoin wallet ready on your handphone. This is where your bitcoin is sent in exchange for the amount of money you insert into the Bitcoin ATM.
In case you don’t have a public address, the machine will print a paper wallet for you.
You can also choose a reliable bitcoin wallet here to generate a public address and keep your Bitcoin safe.
Buying Bitcoin Using ATMs
The buying process may vary from Bitcoin ATM to ATM. Here’s the general process at most ATMs:
1. Verify your identity
- This ID verification step is optional depending on the machine type and operator.
- You might be required to provide your phone number for verification purposes. Don’t think you can outsmart the system by using a fake phone number. Because they’ll send you a One Time Password (OTP) code on your phone which you need to enter into the Bitcoin ATM in order to proceed.
- Some machines may even require you to scan your ID card such as passport, driver’s license etc.
- Though there’re very few ATMs that let you purchase Bitcoins without any ID details.
2. Provide your bitcoin address for deposit
- After you’ve registered and verified your identity, you need to provide your Bitcoin address so that the machine knows exactly where to send the BTC you’ve bought.
- I would recommend you get a bitcoin wallet on your mobile phone. Simply use the scanner to scan a QR code representing your wallet address. And the bitcoin will be transferred directly to your wallet.
- You can also choose to receive your bitcoin by email – a QR code is delivered to your inbox. There’s also an option to print out the QR code on a paper (a paper wallet).
- Once you get the QR code on your email or paper wallet, scan it to get the private key. With the private key, you can access the bitcoin you’ve purchased.
- A Bitcoin QR code looks like this:
3. Insert your fiat money into the Bitcoin ATM
Next, insert the amount of fiat money you want to exchange for bitcoin,
Most ATMs require you to slip the paper money one by one into the designated deposit area. Only few machines accept bulk insertion.
4.Confirm the amount and complete your transaction
After you’ve confirmed the amount, proceed to complete your transaction by tapping “BUY”, “FINISH” or “CONFIRM”.
The bitcoin will be sent to the bitcoin address provided.
Selling Bitcoin Using ATMs
Here is a general selling process at all bitcoin ATMs:
- Enter the amount of bitcoin you want to sell.
- Send the bitcoin to the address displayed on ATM machine screen.
- After the transaction is confirmed, cash will be dispensed right away!
That’s it. Now you know how to use a Bitcoin ATM to buy and sell bitcoin!
Conclusion
With Bitcoin ATMs, it’s super easy for anyone to exchange fiat currency into bitcoin and vice versa.
They’re especially beneficial for unbanked people to gain access to cryptocurrency and partake in global e-commerce.
For travelers who have to deal with the high fees at traditional currency exchanges, buying bitcoin before departure and selling it afterward using Bitcoin ATMs is another great alternative to convert into local currency.
Due to the huge volatility of cryptocurrency, it can be quite risky.
Despite the volatility and higher fees, Bitcoin ATMs play a vital role in increasing adoption and accessibility to digital currency.
Do you use a Bitcoin ATM? Why and why not?
If you have any experience using a Bitcoin ATM, do share with us in the comment below.
I’ve handpicked a few cryptocurrency guides for you to read next:
- Crypto Hardware Wallet: How to Setup a Ledger Nano S
- Crypto 101: The Ultimate List of Cryptocurrency Resource
- What is Bitcoin and why all the fuss with Cryptocurrency?
- 8 Legit Ways to Earn Free Bitcoin (#3 is My Favorite)
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