ATMs have become increasingly popular as a convenient way to buy and sell bitcoin without the need for an exchange platform.
These machines are similar to traditional ATMs but instead of dispensing cash from your bank account, they allow you to purchase bitcoin using cash or a debit card, and in some cases, sell bitcoin for cash.
This guide will walk you through the process and explains how to use Bitcoin ATMs.
What is a Bitcoin ATM?
A Bitcoin ATM is a kiosk that allows users to buy bitcoin using cash or a debit card. Some of them also allow you to sell bitcoin for cash.
These machines are usually found in convenience stores, malls, or other public places, making them accessible for quick transactions. The main advantage of using this method is that it provides an easy way to get bitcoin without needing to sign up for an online exchange.
How to Use Bitcoin ATMs: Step-by-Step Guide
1. Locate One Near You
Before you can use a Bitcoin ATM, you’ll need to find one.
Websites like CoinATMRadar offer a map of Bitcoin ATMs worldwide. Simply enter your location, and you’ll see a list of nearby ATMs, along with details about the services they offer (buying or selling bitcoin) and their fees.
2. Prepare Your Bitcoin Wallet
A wallet is a software application that stores your bitcoin and allows you to send and receive it. There are many different types of Bitcoin wallets, including mobile wallets, desktop wallets, and hardware wallets.
If you don’t already have one, you can download a mobile wallet app. There are many Bitcoin Lightning wallets like Cashapp (US only), Wallet Of Satoshi, or Phoenix (Non-custodial).
There are also on-chain wallets like Blue Wallet and Electrum.
When you’re at the ATM, you’ll need to have your wallet’s QR code ready. This QR code represents your Bitcoin address, which is where the bitcoin you purchase will be sent.
Related: How to Send Bitcoin to Another Wallet | A Comprehensive Guide
3. Using the Bitcoin ATM to Buy Bitcoin
Once you’ve located a Bitcoin ATM and prepared your wallet, you’re ready to make a purchase.
- Enter the Amount You Want to Buy: You will be prompted to enter the amount of bitcoin you wish to purchase. This can usually be done in either bitcoin or your local currency. Keep in mind that these ATMs often have minimum and maximum transaction limits.
- Scan Your Wallet QR Code: The ATM will ask to scan your Bitcoin wallet’s QR code. This tells the machine where to send the bitcoin. Hold your phone’s screen up to the ATM’s scanner to do this.
- Insert Cash or Debit Card: Depending on the ATM, you will either insert cash or use a debit card to pay for your bitcoin. The machine will display the equivalent amount of bitcoin you will receive based on the current exchange rate.
- Confirm the Transaction: Review the details of your transaction on the screen.
If everything looks correct, confirm the transaction. It will process your purchase and send the bitcoin to your wallet. This usually happens within a few minutes, but it can take longer depending on network congestion. - Get Your Receipt: Some ATMs will offer a printed or digital receipt of your transaction. It’s a good idea to keep this as proof of purchase.
4. Selling Bitcoin at a Bitcoin ATM
Some ATMs will allow you to sell bitcoin as well as buy it. The process is similar, but there are a few additional steps:
- Select “Sell Bitcoin”: Start by selecting the option to “Sell Bitcoin” on the ATM’s interface.
- Enter the Amount You Want to Sell: You’ll be required to enter the amount of bitcoin you want to sell.
- Send Bitcoin to the ATM’s Address: The ATM will provide you with a QR code representing its Bitcoin address. You’ll need to send the specified amount of bitcoin from your wallet to this address. This can take a few minutes to process.
- Collect Your Cash: Once the transaction is confirmed on the blockchain, the ATM will dispense the cash equivalent of the bitcoin you sold. Some machines might require you to wait for several confirmations before dispensing cash.
5. Understanding Fees and Limits
Bitcoin ATMs typically charge a fee for their services, ranging from 3% to 12% depending on the machine and the location.
These fees are usually higher than what you’d pay on an online exchange, but they provide the convenience of instant transactions without needing to go through an exchange process.
It’s also important to be aware of the limits imposed by the ATM.
Many machines have minimum and maximum transaction amounts, so it’s a good idea to check this information before heading to the ATM, especially if you’re planning a large transaction.
Final Thoughts
Using a Bitcoin ATM is a straightforward process that offers a quick and easy way to buy or sell bitcoin.
While the fees might be higher than online exchanges, the convenience and accessibility make them a valuable tool for both new and experienced Bitcoin users.
Whether buying your first bitcoin or cashing out, following the steps outlined in this guide will help you navigate the process confidently.
