Although many cryptocurrency users believe in a cashless and fiat-free world, it hasn’t arrived yet. Most of us still have to perform numerous operations using good old cash, including buying BTC and other cryptocurrencies.
Whether you need to buy coffee or simply top up your crypto wallet without interacting with centralized banks, cryptocurrency ATMs can be of great help to anyone who wants to convert their cryptocurrencies into cash and vice versa.
What is a Cryptocurrency ATM (Bitcoin ATM)?
A Bitcoin ATM does exactly what its name suggests – it’s simply an ATM that accepts BTC and other crypto coins and tokens instead of fiat currencies and cash. Buying Bitcoin this way is just as simple as depositing cash into your bank card using traditional ATMs.
Most crypto ATMs allow users to both buy and sell Bitcoin, but not all of them do: be sure to check if the ATM you’re planning to use offers the functions you need. You can also use crypto ATMs to send BTC to another user’s Bitcoin wallet – just enter their address in the recipient field.
Although these ATMs are designed to ensure the safety and security of your funds, there are still some risks associated with using them to buy and sell Bitcoin.
Bitcoin transactions are irreversible by nature of blockchain technology, so you need to be very careful when entering all your personal information, such as your Bitcoin wallet address.
There are many different operators of Bitcoin ATMs, and some of them may be less… reputable than others. Do not pay for additional goods or services offered by the ATM operator, and try to check reviews of the specific ATM if it belongs to a company you’ve never heard of before.
As with using fiat ATMs, be mindful of your surroundings: while there is no card in the ATM that a thief could try to snatch from your hands, criminals can still use them to steal your money, personal information, and so on.
How Bitcoin ATMs Work?
Bitcoin ATMs do not look much different from regular ones. However, they work completely differently: instead of being connected to a bank, they interact directly with the Bitcoin blockchain.
To buy and sell Bitcoin using a crypto ATM, you will need only two things: a digital and a traditional wallet. Just insеrt some bills into the machine and then scan the QR code of your digital wallet or enter its address manually – that’s all you need to buy Bitcoin using a Bitcoin ATM.
The cryptocurrency you receive through the Bitcoin ATM is sent from the operator company’s wallet.
How to Use a Bitcoin ATM
Although Bitcoin ATMs may seem a bit unusual at first, they are easy to use and similar to other types of machines — such as those intended for topping up QIWI wallets.
Different manufacturers’ crypto ATMs work differently. This guide is intended for general acquaintance — if you have any additional questions about using a specific crypto ATM, please contact its support service.
Step 1: Get a Crypto Wallet
The first step to making any cryptocurrency transaction is to get a wallet that supports the coin or token you want to buy. This can be a paper, digital, or hardware wallet — the type doesn’t matter as long as it can send and receive digital money and is secure.
Step 2: Prepare Your Bitcoin Wallet
Most Bitcoin ATMs allow the use of QR codes for transactions. Check if your digital wallet has this capability.
Step 3: Find the Nearest Bitcoin ATM
Cryptocurrencies have not yet become widely accepted, so the likelihood of encountering a Bitcoin ATM on the street is quite low, especially if you do not live in a big city. The easiest way to find the nearest Bitcoin ATMs is to use special maps, such as Coin ATM Radar, Bitcoin ATM Map, and others.
Step 4: Set Up the Transaction
Many crypto ATMs may ask you to verify your identity before you can complete a transaction. Very often, identity verification involves only simple phone number confirmation.
Once you’ve completed all necessary steps, choose the cryptocurrency you want to receive (if the ATM offers several cryptocurrencies) and enter the amount you want to purchase.
Step 5: Enter Your Wallet Information
After you’ve set up the transaction, you will need to enter the address of your crypto wallet. Most ATMs allow the use of QR codes to minimize the risk of sending your new cryptocurrency to the wrong wallet address. If you choose not to use a QR code, be sure to double-check the entered address.
Step 6: insеrt Cash
Double-check all the transaction information and insеrt the necessary amount of cash into the ATM.
Step 7: Confirm the Purchase
That’s it! Confirm the purchase and wait for the new cryptocurrency to arrive in your wallet. Delivery time depends on the cryptocurrency being purchased but usually ranges from 10 to 15 minutes.
The Future of Bitcoin ATMs
The future of Bitcoin ATMs largely depends on the further development of the crypto industry. The more popular cryptocurrencies become, the more places will accept them for payment, and accordingly, the more ATMs there will be.
There is always the possibility that ATMs as a whole may become obsolete in the future, but we consider this an unlikely scenario — at least for the next 5-10 years.
Various researchers have studied the cryptocurrency ATM market and concluded that significant growth is expected in the coming years. Experts from Allied Market Research, for example, predict that from 2021 to 2030, the growth rate of this industry is likely to be 58.5% per year (compound annual growth rate).
If you can’t wait for Bitcoin ATMs to become a common phenomenon and enjoy all the benefits that come with widespread popularity, you can always buy, exchange, and sell Bitcoin and other cryptocurrencies on our instant exchange.
Advantages of Bitcoin ATMs
As cryptocurrencies become more widespread, the number of active Bitcoin ATMs will increase, and fees will likely decrease. Until then, we recommend using ATM search engines that allow sorting ATMs by fee size.
If there are no good Bitcoin ATMs nearby, you can always buy crypto on Changelly — we have over 400 coins and tokens available. You can pay for your purchase using any method convenient for you – credit or debit card (Visa, Mastercard), Apple Pay, or bank transfer.
Frequently Asked Questions (FAQ)
How to send money to a Bitcoin ATM?
If you are buying BTC, you can use cash. If you are selling BTC, you can use your Bitcoin wallet by entering its address manually or scanning the QR code.
Do I need to register to use crypto ATMs?
Although some Bitcoin ATMs may ask you to create an account, this is often not necessary. Most ATMs can be used simply by entering a text verification code.
Can I use cash in Bitcoin ATMs?
Yes, you can use cash to sell and buy Bitcoin at crypto ATMs.
How safe are crypto ATMs?
Bitcoin ATMs are just as safe as traditional ATMs and any other exchange points. The main danger in their use is scammers who can rеplace the terminal or wait for you around the corner. Be careful and vigilant, and also check reviews in advance for the crypto ATM you plan to use.
How to use bank cards in crypto ATMs?
Most crypto ATMs only accept cash. If you can’t find a Bitcoin ATM that accepts your card, you can use a traditional fiat ATM to first withdraw cash from your bank account and then use it to buy Bitcoins at a BTC ATM.
Disclaimer: Please note that the content of this article is not intended to provide investment or financial advice. The information presented in this article is solely the opinion of the author and should not be considered as a recommendation for trading or investing. We make no guarantees regarding the completeness, reliability, and accuracy of this information. The cryptocurrency market is subject to high volatility and occasional arbitrary actions. Any investor, trader, or regular user of cryptocurrencies should research multiple viewpoints and be aware of all local regulations before committing to an investment.