What Are Bitcoin ATMs And How Do They Work?

As a bonus, the Bitcoin purchased will not have been attached to your personal identity through the use of bank transfers or credit cards. Most apps will display this information if you tap on a “Receive” button. If you are using a wallet that supports multiple cryptocurrencies, make sure you have the public address corresponding to the currency that you will purchase (in this guide, BTC). To use a Bitcoin ATM, customers can simply insert cash or a debit card to exchange their traditional currency for Bitcoin currency. While Bitcoin ATMs are generally accessible to everyone, they may require that the customer have an existing account with the Bitcoin ATM operator. Like standard ATMs, Bitcoin ATMs are a type of electronic kiosk where customers can make financial transactions, but they’re designed for cryptocurrency rather than cash.

However, there are levels of regulations on both the federal and state level for companies to operate legally in the United States. Our writers and editors used an in-house natural language generation platform to assist with portions of this article, allowing them to focus on adding information that is uniquely helpful. The article was reviewed, fact-checked and edited by our editorial staff prior to publication.

How We Make Money

We have a dedicated team of developers and engineers continually looking at all aspects of security, from the kiosk to your wallet, providing a safe and secure user experience for all of our customers. Our support team is also available everyday to provide assistance from 7 am to 6 pm PST. After you have finished purchasing your bitcoin at the kiosk, your crypto will be instantly available in your Coinme wallet. Once you have finished your purchase, the kiosk will print out your receipt. This is important to keep safe and secure until you verify your purchase in your transaction history.

When is my bitcoin purchase available?

When you spot a bitcoin ATM, you’ll often find it has a QR code plastered on it prompting you to download a particular crypto wallet that’s supported by the ATM machine. The purpose of this program is to help prevent money laundering and other financial crimes and it how to accelerate your learning curve to 10x your personal growth adds an extra layer of security by ensuring no one but you can gain access to your account. While this does vary based on the company operating the machine, customer safety is a primary area of focus for Coinme.

Bitcoin ATMs require users to verify their identity with cell phone numbers or the BTM provider’s account during each transaction. 9 years since Bitcoin’s inception, the regulations concerning its use are still quite vague and region-dependent. In the US, bitcoin ATMs are regulated on federal and state levels, aiming to prevent money laundering and other financial crimes. Describing regulatory aspects is worth another article, but they are important mostly to provisional Bitcoin ATM operators who want to incorporate them into their business.

What’s common to all Bitcoin ATMs is that you can use them to purchase Bitcoin by exchanging traditional currency for it. You’ll need a cryptocurrency wallet, which is where the Bitcoin is stored, since the digital currency isn’t tied to a bank account. Once the amount of cash you want to exchange for Bitcoin is inserted into the ATM, you can enter your wallet’s address or QR code into the machine. The cash will be exchanged for Bitcoin at the current market rate and sent to your digital wallet. Unlike cryptocurrency exchanges, bitcoin ATMs give users the option to custody their own purchased bitcoin by wiring the coins directly to a crypto wallet of their choice. Since $100 worth of Bitcoin is all I intended to purchase, I tapped the “Finish” button which completed my transaction.

Therefore, before you use any BTM, you must register and verify your identity with the provider. Bitcoin ATMs are connected to the internet to facilitate the exchange of crypto assets. Cryptocurrencies are moved to or from the BTM’s repository to owners’ wallets via their public key. Like cryptocurrencies, Bitcoin ATMs faced many regulatory challenges during their early days. In the end, an agreement was reached to allow BTMs to follow the same regulations as traditional ATMs. However, many people do not know how to use Bitcoin ATMs despite their popularity.

The Bankrate promise

Bitcoin ATMs aren’t like bank ATMs that allow customers to manage the funds in their accounts. Bitcoin ATMs are simply tools through which you can make bitcoin purchases – and sometimes sales – and do not require users to create any sort of account to do so. There are many ways to buy cryptocurrencies online, but what if you’re sitting on a pile of cash that you want to immediately convert? After you complete the important security steps, you will see on the screen the exchange rate for your bitcoin purchase.

How to Use a Bitcoin ATM? (5 Easy Steps)

Bitcoin ATMs are owned and operated by third-party companies — the two largest networks are Coinhub and Coinme. The value of bitcoin recently reached an all-time high, surpassing the cryptocurrency’s previous peak in November 2021. With the rally, many investors are taking their first dip into the crypto market. If you’re one of them, you may have noticed Bitcoin ATMs but wonder what they are. Only one of the crypto machines near me is a 2-way ATM, which means you can both purchase & withdraw your bitcoin (BTC) using cash. So off I went on a journey to find this ATM, located inside of a Chevron Gas Station on Melrose, in hopes of testing it out.

1. Click on the BTM to check its type, manufacturer, location, operating hour, supported transactions (buy or sell), supported cryptocurrencies, and fees.
2. Once the transaction is complete, you will receive a notification for a crypto deposit in your wallet.
3. Depending on your wallet app, you will see the deposit in your wallet balance after 5-15 confirmations.
4. That means that when currency is exchanged at a Bitcoin ATM, it does not appear in a bank account or as cash, but rather it is transferred into a separate, digital Bitcoin wallet.
5. After accepting the terms, the following page asked for my first and last name in order to complete my profile.

How we make money

The top operators of bitcoin ATMs are Bitcoin Depot (19.1% of the market share), CoinCloud (14.1%) and CoinFlip (9.7%). Using the touchscreen, select the “Buy” option (keep in mind that we want BTC and not altcoins) by tapping on the right-hand side (the Buy side) of the screen. Different models of ATMs will have a different method for selecting this option, but this is a fairly cosmetic difference, so the “Buy Bitcoin” option should be quite clear. Along the left-hand side are the slots for depositing and collecting fiat money, a receipt printer, and a QR reader for address input. Wouldn’t it be great if some magical vending machine existed that spat out Bitcoin in return for your filthy fiat bills? That machine is called a Bitcoin ATM and in this tutorial, we’re going to talk you through using one.

Another important factor contributing to the wider use of BTM is its privacy-enhancing feature. With these machines, users will not have to expose their financial details to compromisable centralized systems. Select the option for selling BTC and complete verification before proceeding. Afterward, the machine will calculate the equivalent value of the cryptocurrency that your cash can buy.

We take multiple steps to ensure the security of your account including Bitcoin ATM and kiosk locations and service and support from our team. After you review the terms and conditions, you are directed to enter your phone number. This part of the process ensures your security and links your phone number to the bitcoin purchase so no one else can gain access to your bitcoin. When using a bitcoin machine, like a Coinstar Bitcoin ATM for example, your crypto will automatically deposit bitcoin directly into your digital wallet. At a Coinstar Bitcoin ATM, you’ll be asked to provide your phone number before making a purchase.