How to Use a Bitcoin ATM | The Ultimate 2023 Guide

Bitcoin ATMs are a subject of mystery to the uninitiated since online exchanges and apps are the more familiar options for most people. They’ve been around for a while, though, and offer you a different way to acquire crypto—including a route straight from cash to BTC.

If you’re wondering how to use a Bitcoin ATM should you spot one in the wild, you’ve come to the right place!

This article will tell you all about Bitcoin ATMs, their pros and cons, and provide you with a comprehensive step-by-step guide on how to use a Bitcoin ATM.

What is a Bitcoin ATM?

ATM stands for automated teller machine. While many major cities can be navigated in an entirely cashless manner, ATMs are how you can withdraw cold, hard cash in case you need it.

A Bitcoin ATM works slightly differently since Bitcoin is a purely electronic form of currency. The basic functionality of a Bitcoin ATM is to allow you to buy Bitcoin in exchange for cash.

Given that the usual way to buy BTC is to wire funds from your bank account to a centralized crypto exchange, going from cash to BTC via a Bitcoin ATM bypasses all centralized intermediaries.

How do Bitcoin ATMs Work?

Bitcoin ATMs look a lot like standard bank ATMs, but they function differently. Rather than requiring a bank card and a pin, all you need to use a Bitcoin ATM to buy BTC is cash.

The Bitcoin ATM accepts cash and generally also has some sort of scanning hardware so that you can input a recipient’s wallet address via a QR code rather than typing the whole thing out.

Various firms run Bitcoin ATMs, and these operators are responsible for sending the BTC you buy to your desired wallet address. Therefore, Bitcoin ATMs don’t necessarily connect directly to the blockchain itself. Still, the firms that operate them have wallets and are responsible for how quickly you receive your cash or BTC.

How to Find a Bitcoin ATM

It may not be very easy to find a Bitcoin ATM, even if you live in one of the most populated cities in the world. For this reason, it’s best to use a Bitcoin ATM map to search for the nearest one to where you are or may be traveling.

There are several websites that provide this sort of feature, including Bitcoin ATM Map and Coin ATM Radar. The latter will give you an idea of how popular Bitcoin ATMs are across the world and in the country where you live.

How to Use a Bitcoin ATM

Now that you’ve found a BTC ATM, hopefully near you, and can plan a visit, here’s what you need to do when the time comes to use it.

#1. Acquire a BTC Wallet

Before even setting foot out the door, though, don’t forget to sort out a Bitcoin wallet for yourself. Even if you already have one, ensure that all of the key phrases and such are where you want them.

If you don’t already have a wallet, you can decide what sort of Bitcoin wallet you would like to have. The easiest way to start is with a paper wallet, but remember to create this offline.

Printing out your private key using a networked printer is also an awful idea. Any time your private keys are exposed to any sort of network, you lose full control of them.

#2. Prep Your Wallet QR Code

Now that you have your wallet set up, check it to see if it has a QR code. These are handy because you can simply scan the code to input your public key at the ATM rather than type out the entire thing, risking mistakes.

#3. Find and Visit a Bitcoin ATM

With your wallet ready to go and some cash in hand, all that’s left is to physically visit the Bitcoin ATM location. You can find a Bitcoin ATM map or website quite easily and check out which location is most convenient for you.

#4. Verify Identity

Some Bitcoin ATMs will have an identity verification step. This is generally done via a phone number, since mobile phones tend to be linked to your identity in any case. In most countries, you need to provide some sort of identity for a phone subscription, so your details are generally tied to your phone number. Burner phones, by and large, are a thing of the past.

#5. Input Transaction Details

Once you’re verified and in the system, you can start sorting your transactions out. Some Bitcoin ATMs offer other cryptocurrencies, so you may have to choose what crypto you want to transact. Pick a coin and select how much (or for what amount of cash) you’re looking to buy.

#6. Input Recipient Details

This is where your wallet’s QR code helps. If you’ve got it handy, you can simply scan it in, although it’s a good idea to compare the codes once scanned to ensure that nothing went wrong. If you don’t have a QR code, go ahead and type in your wallet’s public key.

#7. Insert Cash and Confirm

Now all you need to do is insert the cash required to complete the transaction and enter your confirmation. Job done! You’ll even receive a transaction ID that you can look up on the Bitcoin blockchain explorer to check on the transaction’s progress.

How to Send BTC Using a Bitcoin ATM

Sending BTC to someone else is almost identical to buying BTC for yourself. All you need to do is use their wallet address instead of yours while following the same process. So, if you want to send BTC to someone else, just input their wallet address as the recipient. This ensures that the BTC you pay for is sent to them.

How to Withdraw Cash From a Bitcoin ATM

To withdraw cash from a Bitcoin ATM, you’ll need to check if the ATM supports this feature. Plenty of Bitcoin ATMs are two-way and can do this for you, but some still only allow you to buy BTC.

As long as the machine supports this, you can use it as normal. Simply choose “sell BTC” when configuring your transaction, and have your wallet at hand to sign the transaction when you’re ready. It’s worth mentioning here that you shouldn’t share or attempt to scan your wallet’s private key. If the machine asks you for it, walk away.

Cash withdrawals like this are often facilitated using withdrawal receipt tickets. You must enter a phone number and then sign the BTC transaction that you’re selling. Once the transaction has been confirmed, you’ll be sent a ticket.

With this ticket, you can go to the ATM again and enter your phone number and the ticket to be able to withdraw the cash. Remember that some tickets are only valid for a certain time, so don’t go too far from the ATM while you wait!

Bitcoin ATM Fees

The Bitcoin blockchain isn’t the cheapest to transact on, so you should expect to pay fees regardless of whether you’re making a BTC transaction. However, the exact fee charged by the Bitcoin ATM may differ based on which company operates it. You may find that fees differ from one operator to the next.

As such, it’s always a good idea to use a Bitcoin ATM finder or website that also gives you an idea of what sort of fee schedule you’re going to be dealing with.

Pros and Cons of Using Bitcoin ATMs

Now that you know how to use a Bitcoin ATM, here are some pros and cons you may notice:

Bitcoin ATMs Pros

• No custodians. Using a Bitcoin ATM means exchanging cash for BTC directly with the machine’s operator. You don’t need to use a bank account or even a centralized exchange that holds your funds.
• Cash transactions. Using bank accounts involves all sorts of complications. Even if your bank is one of the seemingly stable ones, banks can decline transactions for any reason, and funds sometimes can’t be used until they ‘settle.’
• More anonymity. You do have to verify your identity with a phone number at the Bitcoin ATM, but beyond that, using one is a fairly anonymous process. There’s certainly no need to provide ID documentation, which exchanges often require.

Bitcoin ATMs Cons

• Hard to find. Availability is one of the main problems, and you certainly can’t find Bitcoin ATMs with anything like the frequency with which you’ll find normal ATMs. This could still change, however.
• Privacy. Most crypto holders tend to keep to themselves, so not everyone wants to physically visit a spot that marks them as a crypto holder.

The Importance of Bitcoin ATMs

As the ever-frequent failures of banks (and rescues) start to pile up in 2023, Bitcoin is getting ever more relevant. After all, the OG cryptocurrency was created in direct response to the financial meltdown of 2008, when banks conspired to package junk bonds into higher-rated instruments and were shocked to see their houses of cards collapse.

This year, we’ve already seen Silicon Valley Bank go down in flames and get promptly bailed out thanks to having a high net worth client base. Charles Schwab and Deutsche Bank’s credit default swaps are spiking, flashing danger signs to all in the know.

Investment behemoth Credit Suisse also crashed, and Swiss lawmakers rushed through a deal to rescue it over a weekend so that they wouldn’t have to answer to constituents pointing out that Swiss law doesn’t actually allow bailouts.

Despite attempts to blame social media for their demise, Credit Suisse management was forced to admit to material weaknesses in financial reporting and that they were “overtaken by legacy situations by risks that materialized last year”.

So, it's no surprise if you want to hedge against what commentators are already calling the “Derivatives Crash” by picking up some Bitcoin. And to do it via a Bitcoin ATM, avoiding risky banks and centralized exchanges entirely? Even better.

The Future of Bitcoin ATMs

Bitcoin ATMs aren’t terribly common just yet, although if you take a walk through a big city in a traditionally crypto-friendly country, you may be able to lay eyes on a few. Mass adoption of cryptocurrency is the main determining factor in their future, although the role of Bitcoin itself is up for debate.

ATMs have traditionally been used for cash, not as a quick way to invest in a prime asset. So, if Bitcoin continues the trend of being regarded as a long-term hold rather than a spendable currency, it’s hard to argue that you’ll see more and more Bitcoin-specific ATMs when out and about.

Having said that, the world is currently poised on the brink of yet another derivatives-based banking crisis. If things descend into another financial crisis, it may well be that the new, more informed generation fully embraces the freedom of cryptocurrency.

Key Takeaways

Bitcoin ATMs are a rare sight in many countries, but they offer ordinary people a chance to convert cash into BTC without the need for a bank or even exchange accounts. Many Bitcoin ATMs do require verification and are run by a company, so it’s impossible to fully avoid corporate intermediaries, but it’s a very direct way to buy BTC.

Bitcoin ATMs can be found using a variety of online tools, and it’s a good idea to sort not just by location but by fees. Different operators may have different fee schedules, and the best Bitcoin ATM for you may not always be the closest one.

Bitcoin ATM FAQ

• Can I get cash from a Bitcoin ATM?

  Some Bitcoin ATMs offer a way to sell BTC and withdraw cash, but all may not necessarily do so. It’s a good idea to visit the operator’s website and check if their machines offer this option.

• Can I send BTC to a friend using a Bitcoin ATM?

  Yes. You can do this in the same way as buying BTC for yourself, but enter your friend’s wallet instead of yours in the recipient field.

• Are Bitcoin ATMs safe?

  Bitcoin ATMs are as safe as any normal ATM. Make sure to check for any devices or cameras that have been affixed to the ATM, though. Basically, all standard ATM safety rules apply.

• Can I use a debit or credit card at a Bitcoin ATM?

  Not always. Some Bitcoin ATMs only accept cash, so you’ll have to visit a normal ATM to draw cash first.

• Do Bitcoin ATMs have transaction limits?

  Yes. The limit may vary based on the operator, so it’s a good idea to check on that first if you intend to make a particularly large transaction.