Key Points
Bitcoin ATMs, or BTMs, allow users to buy and sell Bitcoin (and sometimes other cryptocurrencies) using cash or a debit card.
If you are new to cryptocurrency, you will need to set up a cryptocurrency wallet before using a Bitcoin ATM.
Bitcoin ATMs are convenient and easy to use, but they come with high fees, often much more expensive than online options, sometimes as high as 20% of each transaction.
What is a Bitcoin ATM?
Have you ever thought that you could buy Bitcoin using traditional cash payments? That’s where Bitcoin ATMs come in!
As the name suggests, a Bitcoin ATM is an automated teller machine for Bitcoin (BTC). It is a physical machine usually placed in public locations, allowing users to buy and sell BTC using cash or a debit card (sometimes also offering other cryptocurrencies). It is similar to traditional bank ATMs, except that it provides access to the exciting world of cryptocurrencies, rather than regular banking services.
How does a Bitcoin ATM work?
Using a Bitcoin ATM is very simple. To buy Bitcoin, just insert cash into the machine and scan your wallet's QR code, and the ATM will automatically transfer BTC to your wallet address. We will outline the detailed steps below, but be sure to set up a cryptocurrency wallet first.
Depending on the location, Bitcoin ATMs may offer both buy and sell services or may only provide buy or sell services.
If the ATM supports selling Bitcoin, simply send the tokens from your wallet to the address provided by the machine. Once the transaction is confirmed on the blockchain (which may take some time), the ATM will dispense cash. Just make sure the ATM you are using supports selling.
What about fees?
Bitcoin ATMs are indeed very convenient, but this convenience does not come for free. Most cryptocurrency ATMs charge relatively high fees, which can range from 7% to 20% per transaction, much higher than online trading platforms.
In contrast, online cryptocurrency trading platforms usually charge only 1% to 4% in fees for bank deposits or credit card purchases. For example, Binance has deposit fees ranging from 0% to 2%, depending on the currency used, the user's region, and the payment method. If Binance C2C is available in your region, you can easily buy and sell cryptocurrencies online with relatively low fees.
Therefore, while using a Bitcoin ATM is quick and convenient, the costs are much higher. Some ATMs also have minimum and maximum transaction limits. For example, you may need to purchase at least $10 worth of Bitcoin, or each transaction may be limited to a few thousand dollars. Be sure to check these limits before making a transaction!
Users should also exercise caution when choosing an ATM, opting for those with good recent ratings and clear display of owner contact details, price sources, and explicit fee schedules. This information can help us identify the authenticity of the machine.
Where can I find Bitcoin ATMs?
As Bitcoin becomes more popular, the number of its ATMs is also increasing. Currently, there are tens of thousands of cryptocurrency ATMs worldwide, most of which are located in the United States, with others distributed in various countries.
They are usually located in gas stations, shopping malls, and airports. You can use online services like Coin ATM Radar to find nearby Bitcoin ATMs.
Pros and Cons of Bitcoin ATMs
Pros
User-friendly: Very suitable for beginners who want to get into the cryptocurrency space but do not want to use online trading platforms.
Supports cash: Allows easy purchase of Bitcoin using cash without the need for a bank account.
Faster: No need to wait days like some bank transfers.
Cons
High fees: Convenience comes at a price, and their fees are usually much higher than online options.
Limited availability: Although they are becoming more common, you may still not find an ATM nearby, depending on your location.
Security risks: Be sure to stay cautious. Like other cash-handling machines, Bitcoin ATMs can also be targets for theft or scams. There are also counterfeit machines on the market that could result in financial loss.
How to use a Bitcoin ATM?
Want to give it a try? Follow this Bitcoin ATM usage guide to get started quickly:
Get a cryptocurrency wallet: You need a wallet address to receive Bitcoin. Make sure you have a wallet that can generate QR codes (such as the Binance App or Trust Wallet).
Find a Bitcoin ATM: Use online locators like Coin ATM Radar to find nearby ATMs. Be cautious of counterfeit machines. Choose ATMs that have good recent ratings and clear information (such as owner contact details, price sources, fee structures, etc.).
Verify identity: Some ATMs may require a phone number or a photo ID. In some cases, this depends on the amount of Bitcoin being bought or sold.
Scan the wallet QR code: Once you're ready to make a purchase, scan the QR code of your wallet, and the ATM will send the purchased Bitcoin to your wallet.
Payment: Follow the on-screen instructions to insert cash or swipe your debit card to pay the corresponding amount.
Confirm transaction: After the blockchain confirms the transaction, the purchased Bitcoin will be credited. You may need to wait for a while, depending on network congestion.
Should I use a Bitcoin ATM?
It depends on the situation. If you want to easily purchase Bitcoin with cash, a Bitcoin ATM may be a good option. But remember, there are security risks, and high fees may increase the cost of purchasing.
For most people, the convenience offered by Bitcoin ATMs does not justify their high costs and potential risks. In fact, for first-time cryptocurrency purchases, using reputable trading platforms like Binance may be safer and more cost-effective, as these platforms offer various payment methods for different currencies.
Further reading
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