how to use btc atm

While many people know that Bitcoin ATMs exist, still not many are aware of what can be done with them. A Bitcoin ATM allows you to:

  • Buy Bitcoin with cash
  • Sell Bitcoin and get cash
  • Send Bitcoin to somebody by paying for it in cash.

What Is a Bitcoin ATM?

A Bitcoin ATM is a standalone machine or a kiosk. It allows you to sell, buy, or send Bitcoins. Along with BTC ATMs, there are ATMs that support other major cryptocurrencies. So, Ethereum ATMs are becoming increasingly popular.

Now, there are more than 34,000 BTC ATMs in the world, and their number is increasing rapidly. Bitcoin ATMs offer users a fast and easy way to buy BTC with cash and vice versa. Otherwise, users would need to deposit cash into their bank account, then, to move it to an exchange, and to purchase crypto there.


However, before you use the BTC ATM, you need to make some preparations.

Get a BTC wallet

You need a wallet to keep your crypto there. There are different wallet types. But for your needs, a web-based or a mobile app is the most suitable option because to use a crypto ATM, you need to have quick and easy access to your wallet.

Prepare the wallet

Note the alphanumeric code of the wallet (the wallet address) or download a QR code.

Find a Bitcoin ATM location

To find the closest crypto ATM, use coinatmradar or a similar service. Just provide the required information, and the service will display you the nearest ATM location.

Set up an account

Set up an account with the ATM operator. To do so, you might need to provide some personal data (While your phone number is enough for some operators, the majority of operators will ask for an ID scanned copy).

Types of Bitcoin ATM

There are two types of Bitcoin ATMs:

  • Bidirectional – they enable clients to both buy and sell BTC for cash.
  • Unidirectional – they allow purchasing BTC with cash.

Just 30% of ATMs in the world are bidirectional, and 23% of them are located in the USA.

Benefits of Using a Bitcoin ATM

Bitcoin ATMs offer a number of benefits to crypto-users. The main ones are:

  • Users can purchase BTC fast and easily.
  • No bank account is needed.
  • Some machines do not require you to verify an account. Therefore, users can count on complete anonymity.

Drawbacks of Using a Bitcoin ATM

Even though using crypto ATMs is convenient, these machines have some drawbacks, too. The most significant to consider are the following:

  • High fees: BTC ATMs charge approx 6.5-10% for one transaction. Additionally, blockchain fees are also paid by a user.
  • Deposit and withdrawal limits are from approx. 1,000 to 10,000 USD.
  • There are not many ATMs of such kind.

How Does a Bitcoin ATM Work?

Now, when all the preparations are made, and the right ATM is found, you can buy or sell your crypto.

How to buy BTC at a BTC ATM

The purchase process is simple. Once you have opened a wallet and registered an account with the ATM operator, all you need to do is to follow these instructions:

  • Insert cash in the ATM.
  • Provide the wallet address to which you want to receive your BTC.
  • The ATM withdraws the transaction fee, in some cases, a blockchain fee will be also withdrawn.
  • Your crypto is credited to the wallet address you have provided.

How to sell BTC at a BTC ATM

If you have BTC, it means that you have a wallet where you keep your coins. After you have registered with the ATM operator, you can sell BTC. Follow the instructions to do so:

  • Log in to your account that you have created with the ATM operator.
  • Provide how many coins you want to sell.
  • Indicate the wallet address from which you want to sell the coins.
  • Wait until the transaction is verified on the blockchain and receive your cash (the transaction and blockchain fees will be discounted from the sum you receive).

Note: selling Bitcoin might take longer than buying it because you need to wait until the transaction is verified on the blockchain. Some operators take more time than others. Also, customer support works differently by different operators. Therefore, it is important to research the market and find the best ATM providers.

How to send money via a BTC ATM

Some ATMs allow not only buying and selling Bitcoins but sending them to other users. To do so, you need to have an account with the ATM operator. Further, you proceed with the following steps:

  • Log in to your ATM account.
  • Indicate how much you want to send to another user.
  • Provide the wallet of the recipient (the person you want to send the money, not your wallet).
  • Insert cash.
  • BTC equivalent will be deposited to the recipient’s BTC wallet.

FAQ

How do I withdraw cash from a Bitcoin ATM?

To withdraw cash, you need to register an account with the ATM provider. After that, you log into your account and indicate how many coins you want to exchange for cash. Provide the wallet address from which your coins will be sold. Then, the ATM will perform the transaction, and you can receive cash.

How do I deposit cash into a Bitcoin ATM?

To deposit cash, you need to log in to your account with the ATM provider. Then, you provide the wallet address to which you want your BTC to be credited. You insert cash, and BTC is credited to your wallet.

Do Bitcoin ATMs require an ID?

Some ATMs require only your phone number to verify your account. They send a One Time Password to your mobile. You type it into the ATM window, and your account is verified.

The majority of ATMs will require your ID to verify your account.

Stay tuned for further updates, crypto guides, and market insights from LetsExchange. You can also follow us on Twitter, Facebook, Reddit, Instagram, LinkedIn, Medium, Quora, Telegram, Steemit, and Bitcointalk for first-hand information from our team.

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