What Is A Bitcoin ATM?
A Bitcoin ATM is a machine that buys or sells bitcoin for cash. These ATMs look like traditional ones, but they do not connect to a bank account. Instead, they connect the customer 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 so. Some Bitcoin ATMs even allow you to buy bitcoin with cash without requiring a bank account.
A Brief History Of Bitcoin ATMs
The first Bitcoin ATM was installed in October 2013 in Vancouver, Canada. The machine allowed people to exchange their Canadian dollars for bitcoin. Since then, the number of Bitcoin ATMs has exploded.
As of March 2022, there were over 8,000 Bitcoin ATMs around the world, with a majority of them being in North America (4,854), Europe (2,177), and Asia (587). Now, more recent numbers place the total over 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 in exchange for your bitcoin, or bitcoin in exchange for your cash. The exchange rate of bitcoin 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 bitcoin, while two-way machines let you buy and sell.
Advantages 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’re more private – you don’t always need to give much personal information to the machine. Some only require a mobile number to transact, allowing for the possibility of using a “burner” phone number.
- They’re 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 highest-population cities and locations.
- They’re 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 ATM Radar is a great resource. Just enter your location, showing you all the 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 cash into the machine (the amount will be converted to bitcoin at the current market rate).
- Enter your wallet address into the machine (this is where the bitcoin will be sent).
- Confirm the transaction.
- Collect your cash or bitcoin.
What Are The Steps To Send Cash To Someone Using A Bitcoin ATM?
If you want to send cash to someone using a Bitcoin ATM, follow these steps:
- Find a machine near you.
- Type the amount of cash 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 Cash From A Bitcoin ATM?
If you want to withdraw cash from a Bitcoin ATM, follow these steps:
- Find a machine near you.
- Enter the amount of bitcoin you want 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 cash from the machine.
What Are The Fees For Using A Bitcoin ATM?
Bitcoin ATM fees can vary depending on the machine and location, but they are typically around 5-8%. Some devices may also charge additional fees, such as the “network fee,” which goes 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 some reports of scams and thefts. It would help if you searched for the reviews and reputation of a machine before using it.
The Bottom Line
Bitcoin ATMs are a suitable way to buy and sell bitcoin, but they come with some risks. Be sure to use machines from reputable companies which avoid requiring you to send money to a third-party wallet.
This is a guest post by Alice Mackenzie. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.