Key points
Bitcoin ATMs (or BTMs) allow you to buy or sell Bitcoin (and sometimes other cryptocurrencies) using cash or card payments.
Before using such an ATM, cryptocurrency newbies will need to first create a cryptocurrency wallet.
Bitcoin ATMs are easy to use, but they charge higher fees than online services (sometimes fees reach 20% per transaction).
What is a Bitcoin ATM
Have you ever wondered if you can buy Bitcoin with cash? With Bitcoin ATMs, it's possible!
The concept of a Bitcoin ATM is pretty simple: it’s a bitcoin (BTC) ATM. This physical device is found in public places. It allows you to buy or sell BTC (and sometimes other cryptocurrencies) using cash or a bank card. A Bitcoin ATM works like a regular ATM, but it connects you not to a bank, but to the exciting world of cryptocurrency.
How does a Bitcoin ATM work?
Bitcoin ATMs are pretty simple. To buy Bitcoin, you need to deposit cash into the ATM and scan the QR code in the wallet, after which the machine will automatically transfer the BTC to the wallet address. We will look at the steps of the operation in more detail below, but keep in mind that you must first create a crypto wallet.
Depending on the region, Bitcoin ATMs may offer both buying and selling of tokens. However, there are also machines that only allow buying or only selling.
If an ATM allows selling bitcoins, all a user needs to do is send coins from their wallet to the address specified on the ATM. Once the transaction is confirmed on the blockchain (this may take some time), the ATM will dispense cash. Just make sure that the ATM you are using supports selling tokens.
What's the catch? Commissions!
While Bitcoin ATMs are very convenient, there is a price to pay for convenience. Most cryptocurrency ATMs charge fairly high fees. These can range from 7% to 20% per transaction, which is much higher than online transactions.
In comparison, online exchanges typically charge between 1% and 4% for bank deposits or card purchases. On Binance, deposit fees can range from 0% to 2% depending on the currency, location, and payment method. If Binance P2P is available in your region, you can freely buy and sell cryptocurrency online with very low fees.
So, while Bitcoin ATMs are very convenient, they are also significantly more expensive to use. Some of them also have minimum and maximum transaction limits. For example, there may be a minimum limit of $10 to buy Bitcoin or a maximum limit of several thousand dollars per transaction. Always check these limits before making a transaction!
Choose ATMs with a good rating, contact details of the owner, as well as information about prices and fees. Do not forget about the existence of fake ATMs, and therefore choose only proven options.
Where to find Bitcoin ATMs
As Bitcoin's popularity has grown, so has the number of ATMs. There are now tens of thousands of cryptocurrency ATMs operating around the world, most of them in the United States, but some are found in other countries as well.
They can be found at gas stations, shopping malls, and airports. To find the nearest Bitcoin ATM, you can use special services like Coin ATM Radar.
Pros and Cons of Bitcoin ATMs
Advantages
Convenience: ATMs are great for beginners who are just starting to learn about cryptocurrencies and have not yet mastered online exchanges.
Cash payments: You can buy Bitcoins at an ATM with cash without a bank account.
Fast processing: no need to wait several days for the transaction to be completed, as is the case with bank transfers.
Flaws
High fees: Convenience comes at a cost, and fees are much higher than with online transfers.
Limited access: Despite its growing popularity, finding a Bitcoin ATM near you can be difficult, depending on where you live.
Security Risks: Be careful. Like any device that processes payments, some Bitcoin ATMs may be targeted for theft or fraud. There are also fake ATMs.
How to Use a Bitcoin ATM
Want to try a Bitcoin ATM? Here's a quick guide to using one:
Create a crypto wallet: To receive Bitcoin, you will need a wallet address. Install an app that can generate a QR code (such as the Binance app or the Trust Wallet).
Find a Bitcoin ATM: Use an online locator like Coin ATM Radar. Beware of counterfeit machines. Choose an ATM with a good rating and detailed information (including the owner’s contact information, prices, fees, etc.).
Get verified: Some ATMs may ask for a phone number or photo ID. Sometimes this depends on the amount of bitcoins in the transaction.
Scan the QR code in your wallet: When you are ready to buy, scan the QR code in your wallet to have the ATM send the bitcoins to that address.
Make a payment: Follow the on-screen instructions. Insert your bank card or cash into the receiver to spend the funds.
Confirm the transaction: Once the blockchain confirms the transaction, the bitcoins will be sent to your wallet. You may have to wait for a while, depending on the network load.
Should you use Bitcoin ATMs?
It depends on your personal preference. Bitcoin ATMs are great for those looking for an easy way to buy Bitcoin with cash. But it’s important to be aware of the security risks involved, as well as the high fees that can add up to a significant cost.
For most people, the convenience of Bitcoin ATMs doesn’t outweigh the high costs and potential risks. It’s still cheaper and safer to buy your first cryptocurrency through a trusted exchange like Binance, which offers multiple payment methods in a variety of currencies.
Recommended reading
Disclaimer: The following content is provided “as is” without warranties of any kind for general informational and educational purposes only. This information should not be considered as financial advice, legal advice, or a recommendation to purchase any specific product or service. You should seek advice from appropriate professional advisors. As the article is written by a third party, please note that the opinions expressed are those of the third party author and do not necessarily reflect the views of Binance Academy. For more information, please click the link. The price of digital assets may be volatile. The value of invested funds may go up and down. You may not get your invested funds back. You are solely responsible for your investment decisions. Binance Academy will not be liable for any losses you may suffer. This information does not constitute financial, legal, or professional advice. To learn more, please read our Terms of Use and Risk Warning.
