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What is a Bitcoin ATM?

What is a Bitcoin ATM?

Bitcoin ATMs are a popular way to buy or cash out Bitcoin (BTC) and other cryptocurrencies, bypassing the traditional banking system. The sector is growing rapidly and is not going to stop. As the popularity of cryptocurrencies increases and the level of trust in them increases, there are more and more Bitcoin ATMs.

Bitcoin ATM is a device that allows you to buy or cash out Bitcoin (BTC). It is important to note that there are other ATMs that enable you to buy or sell cryptocurrencies like Bitcoin Cash (BCH), Ether (ETH), Dash (DASH), Litecoin (LTC), and others.

Instead of a bank card, it uses a crypto wallet, from which coins are debited or sent to. Basically, you buy Ethereum, Bitcoin, and other cryptocurrencies online via a real physical device.

Due to their anonymous nature, most ATMs have strict purchase limits, but still, some of them require a verification process (KYC). A Bitcoin ATM acts as a physical bitcoin exchange where you can buy and sell BTC for cash.

What commission do ATMs charge?

The price of coins and the commission fees depend on the machine and its provider. If the device does not identify the user, the exchange rate difference can be up to 10% and even up to 20%. The total cost, including the commission, is on average 5-10%.

How to use Bitcoin ATM (BTM)?

Buying or cashing out cryptocurrency via a BTM is like withdrawing cash from a regular card. In most BTMs, you can only buy cryptocurrency, in some – only sell and thereby cash out, but there are also multifunctional ones where you can do both.

The specific procedure depends on the BTM, but the general principle is the same. Let’s say you want to buy or cash out Bitcoin (BTC):

Click “Buy BTC” or “Sell BTC” (cash out).Scan the QR code of your wallet from the mobile app or print it out in advance. You can also enter the address manually, but it is important not to make a mistake in any sign – it will be impossible to cancel the transaction. If you don’t have a wallet, the BTM will create a new one.Go through identification, if necessary. In countries where cryptocurrencies are regulated by law, in order to use the BTM, you may have to pass identification: take a photo, enter an identifier, such as a phone number, scan your passport or even your fingerprints. Such checks are usually carried out if you buy or cash out a large amount. The larger the amount, the more information you will have to report about yourself.Conducting user identification is a requirement of anti-money laundering legislation. Thanks to such verification, it is more difficult for fraudsters to whiten their criminal income.Learn the course and the commission.Deposit cash – in the case of buying cryptocurrency, or send cryptocurrency to the specified address (usually scanning the QR code is enough) – in the case of cashing out. In some models, cash is issued immediately, in others it is necessary to wait for the transaction confirmation.Confirm the operation and wait for the device to complete the transaction. In the case of a purchase, the cryptocurrency is landed in your wallet, in the case of a sale, you get money in your hands.Save the receipt just in case. It may be necessary if one day the authorities suddenly ask where you got the cryptocurrency or cash from its sale.

Please, pay attention, that the purchased cryptocurrency will not appear immediately in your wallet – it first requires 6 network confirmations.

The process of selling BTC is much more diverse and depends on the specific BTM, however, these machines are quite intuitive to use, so just follow the instructions on the screen.

Where can I find a Bitcoin ATM?

Finding a Bitcoin ATM is not so difficult. There are special services for this: for example, Coin ATM Radar, Bitcoin ATM Map, Buy Bitcoin Worldwide. On them, you can see the nearest Bitcoin ATM right on the map, and at the same time specify its functionality, manufacturer, purchase/sale limits, and with which cryptocurrencies it works.

Each ATM takes a certain commission from the transaction, which varies from one device to another. Make sure you are aware of the terms of the transaction that are usually indicated on the machine.

Conclusion

Bitcoin ATM is a very convenient way to buy and even sell BTC very quickly, and sometimes even anonymously. While most BTMs work more or less the same, it’s always a good idea to check the board of the BTM you plan to use.

You can also purchase Bitcoin on the instant cryptocurrency exchanger Changelly. The platform provides its customers with the most competitive rates on the market and more than 200 cryptocurrencies to exchange.

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date of publication icon 22 Sep 2021 icon of time needed to read the article 4 min read
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