How to use Bitcoin ATM?

Bitcoin ATMs allow you to buy and sell Bitcoin in a few simple steps.

Bitcoin ATMs are no longer a new concept in the cryptocurrency space. The demand and usage of such crypto ATMs is increasing over time.

According to Grand View Research, the global cryptocurrency ATM market size in 2021 was $75 million . Moreover, this market is expected to witness a compound annual growth rate (CAGR) of 61.7% between 2022 and 2030.

In January 2023, Bitshop’s founders acquired Genesis Coin Inc., the world’s largest Bitcoin ATM software platform. Also, this acquisition is one of the recent significant events related to the crypto ATM space.

As of this writing, there are over 38,000 cryptocurrency ATMs installed around the world. Additionally, there are more than 36,000 such ATMs in North America.

First, let’s understand Bitcoin ATMs.

What is a Bitcoin ATM?

As the name suggests, Bitcoin ATMs are similar to automated teller machines (ATMs) at banks. However, Bitcoin ATMs allow you to buy and sell Bitcoin and other cryptocurrencies.

With a Bitcoin ATM, the machine is not connected to your bank, but to your cryptocurrency wallet. As a result, you will be able to use your wallet to send and receive Bitcoin and other supported cryptocurrencies.

Bitcoin ATMs are available at gas stations, airports, cafes, and convenience stores. However, the minimum and maximum transaction limits vary depending on the company operating the cryptocurrency ATM.

Canada was reported to be the first country to open Bitcoin ATMs in October 2013. Cryptocurrency ATMs are now installed all over the world, with almost 94% of them located in North America . Additionally, approximately 87% of all cryptocurrency ATMs are located in the United States.

You probably know about Bitcoin ATMs, but let’s take a look at how they work!

How do Bitcoin ATMs work?

Bitcoin ATMs have almost the same physical functionality as traditional ATMs for the convenience of users. Once you have access to this electronic machine, you can buy and sell Bitcoin using your crypto wallet.

Prices for Bitcoin and other supported cryptocurrencies are updated regularly on your device. Moreover, this live price makes it clear how many cryptocurrencies you can purchase depending on your available funds.

Apart from Bitcoin, some Bitcoin ATMs also allow you to purchase major cryptocurrencies. Examples of such supported cryptos include Bitcoin Cash, Ethereum, and Litecoin.

In most cases, purchasing Bitcoin and other cryptocurrencies requires paying using fiat currency. On the other hand, you cannot perform transactions using your bank credit or debit card.

The features offered by Bitcoin ATMs vary depending on the company providing the service. Furthermore, these companies also determine the fees charged for virtual currency transactions.

Bitcoin ATMs charge fees based on a percentage of the total transaction amount. Therefore, choose a machine that has lower fees than others.

How to use Bitcoin ATM?

To use a Bitcoin ATM, please follow the steps below.

Step 1: Find your nearest Bitcoin ATM

The first step is to find a Bitcoin ATM in your area. For example, Coin ATM Radar allows you to quickly find a Bitcoin ATM near you.

You can enter your location in the Bitcoin ATM locator or search using an address. Additionally, you can also check the distance of different ATMs and choose the one that is convenient for you.

Additionally, you can filter Bitcoin ATMs based on their behavior. For example, you can choose an ATM that offers both buying and selling options.

Step 2: Prepare your cryptocurrency wallet

Once you find a Bitcoin ATM, you need to unlock your mobile device and set up your crypto wallet. You can use an existing wallet or create a new wallet for your transactions.

You can use a cryptocurrency wallet to store your purchased cryptocurrencies. Additionally, you can also sell the crypto assets available in your wallet.

Step 3: Set up your Bitcoin ATM account

Bitcoin ATMs will ask you to enter personal information. This step acts as a validation process.

You must enter your name, email address, and phone number. You will also need to verify your phone number using a verification code.

Step 4: Scan the QR code

Once the verification process is complete, you will need to open your cryptocurrency wallet. Next, select the QR code that represents your wallet address.

Bitcoin ATMs have built-in QR code scanners. Moreover, this scanner instantly detects the code and selects the wallet address to send Bitcoin and other cryptocurrencies.

Step 5: Insert fiat currency

Next, insert your fiat currency into the Bitcoin ATM’s cash deposit slot. Make sure the ATM supports your fiat currency.

Once the currency is accepted, the machine will display the value of the Bitcoins you can purchase. For example, let’s say you insert $100 while Bitcoin is trading at around $20,000. In this case, you will receive 0.005 Bitcoin (BTC).

Step 6: Confirm the transaction

Next, you will need to reconfirm your transaction details. Make sure your Bitcoin value and wallet address are accurate.

Finally, press the “Confirm” or “Purchase” option that appears on the screen. Bitcoin (BTC) will be delivered to your wallet. Simple process, right?

Now, let’s check the types of Bitcoin ATMs.

Types of Bitcoin ATMs

There are mainly two types of Bitcoin ATMs.

#1. bidirectional bitcoin atm

Bidirectional Bitcoin ATMs allow you to buy and sell Bitcoin. The majority of these available machines fall into this type.

All two-way Bitcoin ATMs have slots for depositing and withdrawing cash. Additionally, this machine also comes with a QR code scanner.

#2. One-way Bitcoin ATM

Unidirectional Bitcoin ATMs only support one form of transaction. You can use this machine to buy and sell Bitcoin.

For “purchase only” machines, you can insert fiat currency to buy Bitcoins in your wallet. On the other hand, “sale-only” machines allow you to convert the value of Bitcoins in your wallet into cash.

How to sell Bitcoin at Bitcoin ATM?

To sell Bitcoin using a Bitcoin ATM, follow these general steps.

1. Log in to the Bitcoin ATM using your user credentials. If you are a new user, please create a new account.
2. Most Bitcoin ATMs have two options: “Buy BTC” and “Sell BTC.” Select “Sell BTC”.
3. Enter the value of the Bitcoin you want to sell. Also, please check with the Bitcoin ATM operating company regarding withdrawal limits.
4. Next, scan the QR code representing your cryptocurrency wallet address. You can also use your mobile device or scan from a printout.
5. Verify your identity using mobile phone number verification. You will receive a verification code on your mobile device. Enter that code into your device.
6. Next, confirm the transaction details of the Bitcoin transaction and click “CONFIRM”.
7. Wait until the transaction completes. After paying the bill, you will receive the cash from the machine. Also, don’t forget to get a receipt for your transaction.

Note: After the transaction, the value of your Bitcoin (BTC) will be debited from your wallet. The withdrawal amount also includes Bitcoin ATM fees.

Advantages of Bitcoin ATM

The main benefits offered by Bitcoin ATMs are:

• User-friendly: You can buy and sell Bitcoin instantly using these machines.
• No cards required: You don’t need to carry a credit or debit card with you to buy or sell Bitcoin.

• High transaction speeds: Bitcoin ATMs allow you to perform faster transactions.
• Convenient: You can use Bitcoin ATMs at any time without worrying about market opening and closing timing.
• Security: Bitcoin transactions use blockchain technology, so your funds and cryptocurrencies are safe.

Now let’s take a look at the challenges faced by Bitcoin ATMs.

Bitcoin ATM issues

#1. high transaction fees

Most Bitcoin ATMs charge an average fee of around 8%. However, the charge can be up to 30%.

High fees for Bitcoin transactions have become a major concern among users. Lowering this transaction fee solves a major challenge for Bitcoin ATMs. Additionally, the low fees also encourage people to use this machine for cryptocurrency trading.

#2. Limited customer support

Bitcoin ATMs are in their infancy and customers need guidance on some of the machine’s features. However, machine operators take time to resolve user issues.

Additionally, software malfunctions and other issues with your machine usually take a few days to fix. Therefore, providing quick and efficient solutions to customer problems will be important in the deployment of Bitcoin ATMs.

#3. trading restrictions

Bitcoin ATMs have transaction limits. Therefore, these machines can only be used for transactions within the range of values ​​assigned by the operator. Additionally, Bitcoin ATM transaction limits may vary based on government regulations.

You can use Bitcoin ATMs to deposit and withdraw up to $10,000 worth of Bitcoin. Increasing transaction limits may also encourage greater adoption of Bitcoin ATMs.

#4. limited availability

There are thousands of Bitcoin ATMs, most of which are primarily concentrated in North America. This high geographic concentration restricts more people from accessing these machines.

Additionally, Bitcoin ATMs are not available in remote areas, so you may have to travel long distances to find a machine. Expanding the availability of Bitcoin ATMs could attract more participation in the global cryptocurrency.

last word

Bitcoin ATMs are easy and convenient for users. You can use a Bitcoin ATM by following the steps outlined in this article.

Bitcoin ATM availability depends on your location. Additionally, you can also use our crypto ATM tracker to find nearby machines.

Finally, be sure to check the fees charged by your cryptocurrency ATM operator.

Then check out the best crypto gift cards.