Everything You Need to Know About Bitcoin ATMs
Bitcoin ATMs offer a fast and easy way to convert cryptocurrency to cash and vice versa. In this post, we’re breaking down everything you need to know about Bitcoin ATMs. Keep reading to learn more!
What is a Bitcoin ATM?
If you’ve never heard of Bitcoin ATMs, learning what they are is a great place to start! Bitcoin ATMs — often called BTMs — are kiosks that allow you to purchase and sell cryptocurrency for cash. They are fast, easy, and accessible, making them popular among both beginners and experts. Bitcoin ATMs are often found in convenient locations like grocery stores, shopping malls, gas stations, and coffee shops.
Bitcoin ATMs work similarly to an average bank ATM that you use to withdraw and deposit cash. The only difference here is that instead of selling or buying USD for USD, you’re going from USD to the cryptocurrency of your choice.
Why are Bitcoin ATMs important?
“Bitcoin ATMs provide a valuable option for people looking to buy crypto with cash and for people interested in sending crypto to friends and family,” explains Neil Bergquist, CEO and Co-Founder of Coinme. “With cash still representing about 20% of all payments in the United States its important for the crypto ecosystem to have user friendly and ubiquitous cash on and off ramps.”
Where to Find a Bitcoin ATM
Did you know North America has the highest concentration of Bitcoin ATMs in the world? There are tens of thousands in the United States alone, meaning there’s bound to be one near you. But how can you find a Bitcoin ATM?
The easiest way to find a Bitcoin ATM is by using a Bitcoin ATM locator. All you have to do is plug in your location or zip code, and you’ll see a map of Bitcoin ATMs in your area. Here are some other things to keep in mind when you’re using a Bitcoin ATM locator:
● Cryptocurrency: Are you hoping to purchase Bitcoin or Ethereum? Or perhaps you’re interested in Litecoin? Depending on the cryptocurrency you hope to buy or sell, you’ll need to make sure the Bitcoin ATM you use works with that crypto.
● Type of Transaction: Some Bitcoin ATMs only allow you to sell crypto, while others only allow you to buy. There are also Bitcoin ATMs where you can make both transactions, but these are the minority. When searching for a Bitcoin ATM, make sure it has the capabilities to perform your transaction of choice.
● Security: You can find plenty of Bitcoin ATM locators on the Internet. But it’s always best to use one that is provided by a reputable and trustworthy source, such as the Bitcoin ATM provider of the ATM you plan to visit. You should also make sure your Bitcoin ATM provider is registered and licensed.
● Hours of Operation: As we mentioned earlier, Bitcoin ATMs are typically located in places like supermarkets and shopping centers. All these locations have their own hours of operation, so you need to make sure they’re open so you can access the Bitcoin ATM inside.
How to Use a Bitcoin ATM
Using a Bitcoin ATM is simple and fast. But the steps differ depending on whether you’re buying or selling crypto. Keep reading to learn more.
Buy Crypto with Cash
- Make sure you have an account with the Bitcoin ATM you plan to use
- Visit the Bitcoin ATM
- Select the cryptocurrency you want to purchase
- Verify your identity using two-factor authentication
- View the exchange rate for your selected cryptocurrency based on current market prices, plus any additional fees
- Insert cash
- Access your crypto via your crypto wallet in seconds
Sell Crypto for Cash
- Ensure there is crypto in your account
- Verify your identity using two-factor authentication
- Initiate the sale within your operator’s mobile app
- Choose the amount of crypto you want to sell
- Confirm details like the sale price and any fees
- Receive a unique access code
- Visit a participating ATM that allows cash pickup
- Verify your identity using your code
- Instantly withdraw your cash
Bitcoin ATM History and Trends
The first Bitcoin ATM was launched in 2013 from a coffee shop in Vancouver, Canada. This monumental moment brought the crypto world into the mainstream, making it more accessible and tangible by allowing for cash-to-crypto transactions.
Since 2013, Bitcoin ATMs have been on the rise, with the number of kiosks across the world steadily increasing for almost a decade. While Bitcoin ATM numbers stumbled a bit in the United States in 2022, they kept increasing in other countries. However, Bitcoin ATMs are back on the rise again in the United States.
Frequently Asked Questions
We’re covering everything you need to know about Bitcoin ATMs, which means answering some of the most common questions we get about our digital kiosks.
Are Bitcoin ATMs safe?
Bitcoin ATMs are safe to use as long as their operator is registered and licensed by the federal government. The Financial Crimes Enforcement Network (FinCEN) is the main body in charge of preventing money laundering. They implement regulations for registered Bitcoin ATMs that make using them safe and secure.
Fun fact: Coinme was the first licensed Bitcoin ATM company in the United States! We are proud of this distinction and always work hard to ensure our customers experience the highest safety standards when using our Bitcoin ATMs.
What kind of cryptocurrencies can I buy/sell at a Bitcoin ATM?
The cryptocurrency you can buy or sell at a Bitcoin ATM depends on the Bitcoin ATM operator. At Coinme, our Bitcoin ATMs feature seven cryptocurrencies: Bitcoin, Ethereum, Litecoin, Polygon, Chainlink, Dogecoin, and Stellar Lumens.
Do Bitcoin ATMs charge fees?
Bitcoin ATMs typically charge fees, but the exact amount varies by Bitcoin ATM operator. Keep in mind that any reputable Bitcoin ATM operator will be transparent and upfront about their fees. Bitcoin ATM fees typically cover things like compliance, maintenance, and customer service. They range from 10% to 25% per transaction plus any additional network fees.
Coinme offers a flat fee of 15%, so you’ll never have to do guesswork on your fee amount.
Are Bitcoin ATMs hard to use?
Bitcoin ATMs are known for their ease of use. They’re the perfect entry point for beginners as they allow for cash transactions, are easy to locate, and don’t require in-depth crypto knowledge. If you’re thinking of dipping your toes into the crypto world, Bitcoin ATMs are a great option.
Do Bitcoin ATMs have limits?
Most Bitcoin ATMs set a limit on the amount you can transact, usually on a daily basis. Limits range from $1,000 to $25,000 and depend on the Bitcoin ATM operator and State or local laws. At Coinme, our Bitcoin ATMs allow you to purchase up to $9,500 worth of crypto each day unless local laws mandate a lower limit.
Buy and Sell Crypto for Cash with Coinme
Bitcoin ATMs are easy to use, fast, and convenient. At Coinme, we strive to make cryptocurrency more accessible to everyone. We have over 40,000 Bitcoin and participating ATMs across the United States, making us the largest cryptocurrency cash network in the world. We’re also continuing to expand!
Coinme was also the first licensed Bitcoin ATM in the United States. We are dedicated to delivering the best services to the most people. We also offer competitive fees, an easy user experience, robust security standards, and top-level customer service.
If you’re ready to start buying and selling crypto for cash, create your free account now.
