Key Takeaways
Bitcoin ATMs (or BTMs) allow users to buy and sell bitcoin (and sometimes other cryptocurrencies) by using either cash or debit cards.
If you are new to crypto, you will need to set up a crypto wallet before using a Bitcoin ATM.
Bitcoin ATMs are easy to use but charge high fees, typically much more than online alternatives, with costs sometimes reaching up to 20% per transaction.
What Is a Bitcoin ATM?
Ever wonder how you can buy bitcoin using good old-fashioned cash? That’s where Bitcoin ATMs come into play!
A Bitcoin ATM is exactly what it sounds like—an automated teller machine for bitcoin (BTC). It’s a physical machine, usually found in public places, that lets you buy or sell BTC (and sometimes other cryptocurrencies) in exchange for cash or a debit card payment. It’s like your traditional bank ATM, except it connects you to the exciting world of crypto instead of your regular bank.
How Do Bitcoin ATMs Work?
Bitcoin ATMs are pretty straightforward. To buy bitcoin, you insert cash into the machine, scan your wallet QR code, and the ATM will automatically transfer the BTC to your wallet address. We will cover the steps in more detail below, but keep in mind that you will need to set up a crypto wallet if you haven’t already.
Depending on the location, Bitcoin ATMs may offer both buying and selling services. However, some Bitcoin ATMs will only allow you to buy, and others will only allow you to sell.
If the ATM allows you to sell bitcoin, you can do it by sending the coins from your wallet to the address provided by the machine. Once the transaction is confirmed on the blockchain (which might take a while), the ATM will release the cash. Just make sure you know whether the ATM you’re using supports selling.
What’s the Catch? Fees!
While Bitcoin ATMs can be handy, such convenience doesn’t come for free. Most crypto ATMs come with pretty high fees. They can charge between 7% and 20% per transaction, which is way more than what you’d pay on an online exchange.
For comparison, online crypto exchanges usually charge between 1% and 4% for bank deposits or credit card purchases. On Binance, deposit fees can vary from 0% to 2%, depending on your currency, location, and payment method. If Binance P2P is available in your region, you can easily buy and sell crypto online with very low fees.
So, while using a Bitcoin ATM is quick and easy, it’s significantly more expensive. Some machines also have minimum and maximum transaction limits. For example, you might need to buy at least $10 worth of bitcoin or be limited to a maximum purchase of a few thousand dollars per transaction. Always check those limits before you get started!
You should also be careful to pick an ATM with good recent ratings, that displays owner contact details, provides a price feed, and a clear fee schedule. There are fake machines out there, so this data can help evaluate their authenticity.
Where Can You Find Bitcoin ATMs?
As Bitcoin has grown in popularity, so has the number of ATMs. Right now, there are tens of thousands of crypto ATMs worldwide, with the majority located in the US, but they’re spreading across other countries too.
You’ll often find them in places like gas stations, shopping malls, and airports. If you’re hunting for one, you can use online services like Coin ATM Radar to help you locate a Bitcoin ATM near you.
Pros and Cons of Bitcoin ATMs
Pros
Easy to use: Great for beginners who want to dip their toes into crypto without dealing with online exchanges.
Cash-friendly: You can easily buy bitcoin with cash without using a bank account.
Relatively quick: No need to wait for days like with some bank transfers.
Cons
High fees: The convenience comes at a price, and it’s often much higher than online alternatives.
Limited availability: While they’re becoming more common, you might still have trouble finding one nearby, depending on where you live.
Security risks: Be cautious. Like any machine that handles money, Bitcoin ATMs could be targeted for theft or fraud. There are also fake machines out there.
How to Use a Bitcoin ATM?
Want to give it a try? Here’s a quick guide on how to use a Bitcoin ATM:
Get a crypto wallet: You’ll need a wallet address to receive your bitcoin. Make sure you have one that can generate a QR code (e.g., Binance App or Trust Wallet).
Find a Bitcoin ATM: Use an online locator like Coin ATM Radar to find the nearest machine. Be careful with fake machines. Pick an ATM with good recent ratings and clear information (owner contact details, price feed, fees, etc.).
Verify your identity: Some machines might ask for your phone number or a photo ID. In some cases, this depends on how much bitcoin you’re buying or selling.
Scan your wallet QR Code: When you’re ready to buy, scan your wallet’s QR code so the machine knows where to send your bitcoin.
Make the payment: Follow the on-screen instructions to insert your cash or swipe your debit card for the amount you want to spend.
Confirm the transaction: Once the blockchain confirms the transaction, your bitcoin will appear in your wallet. You might have to wait for a while, depending on how busy the network is.
Should I Use a Bitcoin ATM?
It depends. Bitcoin ATMs might be a good choice for those who want a simple way to buy bitcoin with cash. But remember, there are security risks, and the high fees can make your purchase way more expensive.
For most people, the convenience provided by Bitcoin ATMs is not worth the significantly higher costs and potential risks. The reality is that it’s cheaper and safer to buy your first crypto through reputable exchanges like Binance, which offers multiple payment methods in a variety of different currencies.
Further Reading
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
