What is a Bitcoin ATM?
A bitcoin ATM is a machine that buys or sells bitcoins for cash. These ATMs look like traditional ATMs, but they don’t connect to a bank account. Instead, they connect the client with a Bitcoin exchange.
Bitcoin ATMs can be a quick and easy way to buy bitcoin, and they’re also one of the most private ways to do it. Some bitcoin ATMs even allow you to buy bitcoins in cash without needing a bank account.
A Brief History of Bitcoin ATMs
The first one Bitcoin ATM was installed in October 2013 in Vancouver, Canada. The machine allowed people to exchange their Canadian dollars for bitcoins. Since then, the number of Bitcoin ATMs has exploded.
In March 2022, there were over 8,000 Bitcoin ATMs worldwide, with the majority in North America (4,854), Europe (2,177) and Asia (587). Now more recent issues place the total at 35,000 worldwide.
How Do Bitcoin ATMs Work?
Bitcoin ATMs work by connecting to a Bitcoin exchange. When you use a bitcoin ATM, the machine will give you cash for your bitcoin, or bitcoin for your cash. The bitcoin exchange rate will depend on the current market rate at the time of the transaction.
What are the types of Bitcoin ATMs?
Generally, there are two main types of Bitcoin ATMs: one-way and two-way. One-way bitcoin ATMs only allow you to buy bitcoins, while two-way ATMs allow you to buy and sell.
Benefits of Using a Bitcoin ATM?
Bitcoin ATMs offer several advantages:
- They’re quick and easy to use – you can be up and running in minutes.
- They are more private – you don’t always have to give the machine a lot of personal information. Some only need a cell phone number to make transactions, which makes it possible to use a “burner” phone number.
- They are convenient – you can use them anytime, day or night.
What are the disadvantages of using a Bitcoin ATM?
Bitcoin ATMs also have some disadvantages:
- They can be expensive – some machines charge high fees (up to 20%) for each transaction.
- They may not be in your area – machines tend to be concentrated in cities and more populated places.
- They are not always reliable – some machines have been known to malfunction or even disappear.
Where and how to find a Bitcoin ATM?
If you want to find a Bitcoin ATM near you, Coin Operated ATM Radar is a great resource. Simply enter your location, showing you all nearby machines.
How to Use a Bitcoin ATM?
Using a Bitcoin ATM is relatively simple. Just follow these steps:
- Find a machine near you.
- Insert money into the machine (the amount will be converted into bitcoin at the current market rate).
- Enter your wallet address into the machine (this is where the bitcoin will be sent).
- Confirm the transaction.
- Get your money or bitcoins back.
What are the steps to send money to someone using a bitcoin ATM?
If you want to send money to someone using a Bitcoin ATM, follow these steps:
- Find a machine near you.
- Type in the amount of money you want to send (the amount will be converted to bitcoin at the current market rate).
- Enter the recipient’s wallet address into the machine.
- Confirm the transaction.
- The recipient will receive the bitcoin in their wallet.
How to withdraw money from a bitcoin ATM?
If you want to withdraw money from a Bitcoin ATM, follow these steps:
- Find a machine near you.
- Enter the amount of bitcoin you wish to sell (the amount will be converted to cash at the current market rate).
- Enter your wallet address into the machine.
- Confirm the transaction.
- Collect your money at the machine.
What are the fees for using a Bitcoin ATM?
Bitcoin ATM fees may vary by machine and location, but they are usually around 5-8%. Some devices may also charge additional fees, such as “network fees”, which accrue to the operators of the Bitcoin network itself, not the exchange.
Are Bitcoin ATMs safe?
Bitcoin ATMs are generally safe to use, but there have been reports of scams and thefts. It would be helpful to research a machine’s reviews and reputation before using it.
The essential
Bitcoin ATMs are a good way to buy and sell bitcoins, but they come with some risk. Make sure to use machines from reputable companies that save you from having to send money to a third-party wallet.
This is a guest post by Alice Mackenzie. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.