Bitcoin ATMs, or BTMs, are internet-connected kiosks where you can buy or sell cryptocurrency without having any extensive experience. You can find those kiosks in shopping malls, gas stations, and even in your office.
Although there are many different types of ATMs out there, in order to use them, in most cases you will need a Bitcoin wallet pre-installed on your phone.
Note that BTMs are not the same as the traditional ATMs you’re so used to.
Be prepared to pull out your ID if you transfer a huge amount of money. However, if the amount is small enough, your anonymity is guaranteed.
Table of Contents:
How do Bitcoin ATMs work?
The functionality of different Bitcoin ATMs or rather BTM (Bitcoin Teller Machines) is practically the same. Just like regular ATMs, they have a touch screen, a plate to scan a QR code (oops, not quite ordinary), an output device to print receipts, and an ATM to enter and receive invoices.
So, is there the best Bitcoin ATM? There are many BTM producers out there, such as GenesisCoin (3420 positions), General Bytes (2882 positions), BitAccess (920 positions) etc. Just Google the provider closest to you.
But let’s say you found one. How can you buy Bitcoin?
- Tap the screen and you’ll have a chance to buy
- Press the Buy button
- Choose how much you want to buy
- Press the lowest option if you don’t want to go through the KYC procedure
- Enter the destination address, which basically means taking your phone to a QR code scanner – yes, you’re right, you should have installed a Bitcoin wallet on your phone beforehand, and this app should have a built-in QR code scanner
- Now, the ATM allows you to enter a certain amount of money
- Put your money in a lighted vending machine
- Let the machine show the sum on the screen
- Finish by tapping on the “Buy Bitcoin” button
- Print receipt
- Take out your phone and see if the balance in your Bitcoin wallet has been topped-up
The advantage of buying Bitcoin through an ATM is that you remained anonymous and didn’t have to sign up with a crypto exchange – a great option for less tech-savvy people!
Can I sell my Bitcoins at an ATM?
Most ATMs only offer you
a purchase option, however, 30% of all ATMs out there offer two-way features that allow you to buy and sell Bitcoin. So, yes, sometimes you can sell your Bitcoins at an ATM and the machine will pull out cash for you.
The procedure is almost the same as buying Bitcoin, except that you will have to generate a paper ticket to send Bitcoin from your app directly to the ATM and, then, redeem this ticket at the ATM.
Are Bitcoin ATMs secure?
Not all ATMs are safe to use, however, some machines are very well maintained, always well financed and located in safe places, such as shopping malls. But on the other hand, there are poorly maintained machines out there that are often without Bitcoin or cash.
The safety of a cashier may depend on your location. For example, Canada was the first country to host a Bitcoin ATM. Canada regulates cryptocurrencies and has 861 machines. In Russia, on the contrary, there are only 53 machines and the law prohibits the use of cryptocurrencies as a means of payment, so they can simply arrest you for using a Bitcoin ATM, and this is not safe.
The best way to know if a Bitcoin ATM is safe is to read other users’ comments on the web and learn all about the ATM provider beforehand. How many machines does the company have behind the ATM? Is their website trustworthy? What is their physical address? You can also email them to see how quickly their technical team responds. These are all good litmus tests for determining whether the ATM you’re thinking of using is safe or not.
Do Bitcoin ATMs have high fees?
Yes. In general, Bitcoin ATMs have much higher fees than cryptocurrency exchanges or P2P exchanges because the ATM provider has to pay for the physical space. It’s generally not a great idea to buy huge amounts of cryptocurrency from Bitcoin ATMs, but they can be a good solution for people who need to get crypto quickly (or don’t have access to a computer).
Do I need an ID to use a Bitcoin ATM?
It depends on a machine and the amount of Bitcoin you are going to buy or sell. In fact, it’s a good thing if the car requires your driver’s license or ID to proceed because it means the ATM provider complies with local regulations. It is very likely that if something goes wrong with your transaction, you will be able to claim your funds in accordance with the law.
Are Bitcoin ATMs expensive to use?
Bitcoin ATMs sell at a 5-10% mark-up due to additional payments such as regulatory requirements, rent, machine maintenance, etc. But the most expensive piece of this puzzle is your privacy.
Are online crypto exchanges better than ARM Bitcoin?
The answer to this question depends on who you are and the amount of money you are going to transfer. What is your goal? If you only want to transfer a significant amount of money abroad once, you’ll still need to undergo KYC, so a crypto exchange with its much lower fees could do that. Because there, you will also have to verify yourself.
If you are going to become a trader, you will also need an account with a trade. However, some exchanges still allow you to preserve your anonymity, and ATMs are a good way not to touch debit and credit cards when transferring Bitcoin to a trading platform for the first time.
What cryptocurrencies are available at Bitcoin ATMs?
With different providers, different coins are available, but mostly these are Bitcoin, Ether, DASH, Bitcoin Cash, Monero, Zcash, Dogecoin, Tether, and Ripple.
Where can I find a Bitcoin ATM?
To find the nearest ATM, you can use several websites, such as Coin ATM Radar, Buy Bitcoin Worldwide, or some local platforms that you may want to search for in your native language.
Can a Bitcoin ATM be hacked?
Of course, it can be hacked. In 2018, a hacker ran an ad purporting to sell malware to hack Bitcoin ATMs. According to the announcement, the malware disconnects the machine from the network, shuts down alarm systems, and distributes much of the money across different addresses. There is still no trace of this malware in use.
Conclusion
Bitcoin ATMs help the unbanked and those who want to remain anonymous to have access to the financial markets of a new generation. Less tech-savvy people can buy and sell Bitcoin quite easily at ATMs if they research the nearest machines in advance. Some of these ATM services are quite expensive, and you may rather want to register with an exchange to regularly trade and comply with your country’s regulations.
