A Bitcoin ATM is a physical device where you can exchange Bitcoin and fiat currency quickly and easily, just like you would at any conventional ATM.
Like Telegram-based exchanges , BTC points of sale , and P2P trading offered by the best exchanges, Bitcoin ATMs are just another innovation that has been implemented to meet demand and make Bitcoin a cryptocurrency accessible to everyone.
Currently, there is a worldwide network of more than 35,000 ATMs . The vast majority can be found in shopping malls and physical kiosks. You can use Google or one of the many online tools to find Bitcoin ATMs.
Plus, one of its great advantages is that you don’t need to provide personal information or go through verification protocols to complete the transaction. Here, we’ll explain how to use them and whether they’re really worth it.
How to Use a Bitcoin ATM
Before using any Bitcoin ATM, it’s important to keep in mind that it doesn’t work the same as traditional ATMs. First, the funds you deposit or withdraw don’t go through any bank account. Furthermore, the only exchanges you can make are from cash to Bitcoin and vice versa.
Now, if you want to buy BTC , you must enter the amount into the machine. Next, you must access your wallet and generate a receiving address and a QR code. After scanning the address, the ATM will ask you to enter the cash. Finally, you will receive the Bitcoin equivalent of the indicated amount, taking into account the current exchange rate.
On the other hand, selling your BTC at an ATM is quite similar. In this case, the machine will prompt you to deposit Bitcoin funds. Once the transaction is complete, the ATM will release the equivalent amount in cash.
Advantages of using Bitcoin ATMs
If your goal is to exchange Bitcoin for cash and vice versa without having to provide any additional information, then ATMs are a more than convenient solution.
However, you should know that this type of transaction, like purchasing crypto with a credit card , has several limitations. For example, to make a withdrawal of more than $150, the ATM will ask you to complete an identification process that involves verifying your phone number.
In addition to the above, please note that no BTC ATM will dispense cash amounts exceeding $3,000 if you are located in the United States or Europe. In Canada, the withdrawal limit is $10,000.
Finally, transaction fees at these types of ATMs are typically high—between 5% and 20%, to be precise.
Note: A notable exception in Spain is Bitomat’s Bitcoin ATMs , which offer average fees of 4% and also respect user privacy, allowing anonymous transactions of up to €990 per day without the need for personal information.
