Bitcoin ATM Guide 2024: What They Are, How to Use Them, Fees, and Where to Find One
What is a Bitcoin ATM?
A Bitcoin ATM is an internet-connected kiosk that allows users to buy and sell bitcoins or other cryptocurrencies using cash in 2024. Unlike traditional ATMs, Bitcoin ATMs do not facilitate withdrawals, deposits, or transfers from bank accounts. Instead, they create blockchain-based transactions that transfer cryptocurrency to the user’s digital wallet via a QR code. The first Bitcoin ATM was installed by Robocoin in Vancouver, Canada, in October 2013, marking a significant milestone in the accessibility of digital currency.
How to Use a Bitcoin ATM
Overview of Using Bitcoin ATMs
Bitcoin ATMs provide a convenient way to buy and sell cryptocurrencies. These kiosks connect to the Bitcoin network, allowing users to purchase or sell crypto tokens. Major financial institutions rarely operate these machines, and they are not linked to bank accounts.
Steps to Use a Bitcoin ATM
- Start the Transaction: Select the “Buy Range” on the ATM.
- Scan Your Wallet’s QR Code: Use your digital wallet to scan the QR code displayed.
- Insert Cash or Card: Deposit the amount you wish to spend using cash, debit, or credit card.
- Confirm the Transaction: After processing, the purchased cryptocurrency will appear in your wallet, which may take a few minutes due to blockchain processing.
Rules and Regulations for Bitcoin ATMs
In the United States, all Bitcoin ATM operators must register with the Financial Crimes Enforcement Network (FinCEN) and comply with the anti-money laundering provisions of the Bank Secrecy Act. Users may need to verify their identity by providing a phone number for SMS verification, scanning a government-issued ID, or even creating an account.
How to Locate a Bitcoin ATM
Finding a Bitcoin ATM is straightforward with these methods:
- Online Maps and Directories: Websites like CoinATMRadar and CoinFlip provide maps of Bitcoin ATM locations.
- Mobile Apps: Use apps like Bitcoin ATM Map to find nearby kiosks.
- Cryptocurrency Exchanges: Some exchanges list Bitcoin ATM locations.
- Search Engines and Local Listings: Look up Bitcoin ATMs in local business directories or search engines.
- Online Communities: Forums and social media groups often share Bitcoin ATM locations and experiences.
How to Buy Bitcoin Using a Bitcoin ATM
- Receive Bitcoin: Ensure you have a Bitcoin wallet. If not, create one using a software wallet or a cryptocurrency exchange.
- Verification Process:
- Phone Verification: Enter your phone number and verify using the code sent via SMS.
- ID Verification: Scan your government-issued ID using the ATM’s camera.
- Provide Wallet Address: Open your Bitcoin wallet app and scan the QR code for your wallet address.
- Enter Purchase Details: Specify the amount of Bitcoin you wish to buy and insert the corresponding cash amount.
- Confirm and Complete the Transaction: Review the transaction details on the ATM screen and confirm.
How to Sell Bitcoin Using a Bitcoin ATM
- Get an SMS Code: Start by entering your phone number to receive a verification code.
- Enter Transaction Amount: Select “Sell” on the ATM screen and enter the Bitcoin amount you want to sell.
- Send Bitcoin: Use your wallet to scan the QR code displayed on the screen and transfer the Bitcoin.
- Collect Cash: Once the transaction is confirmed, the ATM will dispense cash. Some machines may require pressing a “Redeem” button.
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Bitcoin ATM Fees
Bitcoin ATM transactions typically involve service fees, which are usually a percentage of the transaction amount. These fees can be high, with some operators charging between 4.99% and 21.90%. For comparison, traditional financial platforms like PayPal may charge lower fees.
Bitcoin ATM Locations
As of July 2024, there are over 31,000 Bitcoin ATMs in the United States alone. These ATMs are generally operated by companies specializing in cryptocurrency rather than traditional banks, which may require users to have an account for transactions.
Avoiding Bitcoin ATM Scams
Be cautious of scams involving Bitcoin ATMs. Fraudsters may send emails, texts, or social media messages instructing you to use a Bitcoin ATM to make payments. Legitimate businesses will not ask for cryptocurrency payments via ATMs, so be wary of such requests.
Common Bitcoin ATM FAQs
How Do Bitcoin ATMs Work?
Bitcoin ATMs function similarly to traditional ATMs but use your digital wallet and the blockchain to initiate transactions. These ATMs enable both the purchase and sale of Bitcoin.
Do Bitcoin ATMs Dispense Cash?
Some Bitcoin ATMs do allow for cash withdrawals, but this feature depends on the operator’s setup.
How Much Does a Bitcoin ATM Charge for $1,000?
Fees vary by operator. For instance, Byte Federal charges between 10% and 25%, while CoinFlip charges between 4.99% and 21.90% of the transaction value.
Conclusion
Bitcoin ATMs offer a convenient method for buying and selling cryptocurrencies. With over 38,000 Bitcoin ATMs globally, primarily in the United States, these machines provide accessible entry points into the world of digital currencies. However, this convenience comes at a cost, with transaction fees ranging from 4% to 25%. As always, exercise caution and ensure you are using legitimate and regulated Bitcoin ATMs to avoid scams.