What Is a Bitcoin ATM and How To Use It?

Key Takeaways

• Bitcoin ATMs debuted in 2013 and have grown to nearly 40,000 installations across 72 countries, making cryptocurrency more accessible globally.
• A digital wallet is necessary for Bitcoin ATM transactions, as the machines connect directly to the blockchain.
• Users should verify ATM legitimacy, avoid sharing private keys, and ensure transactions are conducted securely.
• Bitcoin ATMs remain significant in the cryptocurrency ecosystem, bridging the gap between traditional finance and blockchain technology.

Cryptocurrency thrives on innovation, constantly redefining how digital assets are used and understood. 

In 2013, the world’s first Bitcoin ATM debuted in a coffee shop in Vancouver, Canada. It allowed users to exchange Bitcoin and cash, bridging the digital and physical currency gap. Bitcoin (BTC) ATMs pioneered in bringing cryptocurrencies closer to everyday life.

More than a decade later, these machines continue to evolve, offering users an accessible way to buy and sell Bitcoin. Yet, despite their presence, many users are still navigating the learning curve to understand and utilize Bitcoin ATMs effectively and fully.

This article explains everything users need to know about Bitcoin ATMs—how they work, their differences from traditional ATMs, and the transactions they support. It also covers associated fees, security measures, and the important role of these machines in today’s financial landscape.

Bitcoin ATM Explained

Bitcoin ATMs allow users to buy Bitcoin using cash and, in some cases, sell Bitcoin for cash or purchase it with a card. 

Over the years, these machines have expanded in number and improved in functionality, making cryptocurrency transactions more accessible to people worldwide. Bitcoin ATMs are especially useful for those who prefer in-person transactions instead of relying on online platforms. 

They provide a physical option that appeals to individuals seeking direct exchanges.

However, Bitcoin ATMs often charge higher transaction fees compared to online exchanges. These fees cover the operational costs of maintaining these machines and their services.

Do Bitcoin ATMs Support Other Cryptocurrencies Besides Bitcoin?

Some machines also support cryptocurrencies like Ether (ETH) or Litecoin (LTC). It depends on the provider. 

Difference Between Bitcoin ATMs and Traditional ATMs

Bitcoin ATMs and traditional ATMs serve different purposes and operate differently.

Traditional ATMs connect to bank accounts, allowing users to withdraw, deposit, or transfer fiat currency. These machines work within a centralized banking system and require users to have an account with a financial institution.

Bitcoin ATMs focus on cryptocurrency transactions and do not need a bank account. Instead, they connect to digital wallets, enabling users to buy or sell Bitcoin using cash or other payment methods.

Traditional ATMs dispense cash linked to centralized systems, while Bitcoin ATMs interact with decentralized blockchain networks. This distinction highlights how Bitcoin ATMs align with the principles of cryptocurrency, offering independence from traditional banking systems. 

Bitcoin ATMs also tend to charge higher fees and have fewer transaction options than traditional ATMs, reflecting their unique role in the financial ecosystem.

It is important to note that ATM and BTM are both suitable for Bitcoin ATMs, but the industry typically uses Bitcoin ATM (ATM) as the standard. 

While some refer to them as BTMs (Bitcoin Teller Machines) to emphasize their specific focus on cryptocurrency, ‘ATM’ remains more widely recognized and understood.

How Bitcoin ATMs Work

These machines connect directly to the blockchain, enabling users to buy and sell Bitcoin physically.

When buying Bitcoin, users insert cash (or use a card at some machines), and the ATM generates a QR code representing a new wallet address. 

Users scan this QR code with their mobile wallet app to receive the Bitcoin they purchased. 

When selling Bitcoin, users scan a QR code displayed by the ATM with their existing wallet to send Bitcoin to the machine. Once confirmed, the ATM dispenses cash.

Types of Bitcoin ATMs

Bitcoin ATMs come in two main types, each catering to different transaction needs.

• One-way Bitcoin ATMs (Buy only): These machines allow users to purchase Bitcoin using cash or, in some cases, a card. They do not support selling Bitcoin for cash.
• Two-way Bitcoin ATMs (Buy and sell): These machines enable both buying and selling Bitcoin. Users can purchase Bitcoin or convert it into cash, offering more flexibility for transactions.

Step-By-Step Guide: How To Use a Bitcoin ATM

Before using a Bitcoin ATM, ensure your digital wallet and cryptocurrency are ready:

• Install a wallet app: If you don’t already have one, download a trusted cryptocurrency wallet app on your mobile device. Examples include Trust Wallet, Coinbase Wallet, and Exodus.
• Set up your wallet: Generate a wallet address and securely back up your recovery phrase.
• Check your balance: If you plan to sell Bitcoin, verify that your wallet contains enough funds or ensure you have cash ready if you’re buying.
• Get the wallet QR code: Locate your wallet’s QR code, as it will be scanned during the transaction.

With these preparations complete, individuals will be ready to use a Bitcoin ATM.

Buying Bitcoin Through a Bitcoin ATM

The following are a series of specific steps users can take to buy Bitcoin on a BTM using a card or cash:

• Start the transaction: Select the “Buy Bitcoin” option on the ATM screen.
• Enter amount: Specify the amount of fiat currency (e.g., USD, EUR) you want to spend, or in some cases, the amount of Bitcoin you want to buy. The ATM will calculate the corresponding amount based on the current exchange rate.
• Provide wallet details: The ATM generates a QR code. This QR code represents a new Bitcoin address created by the ATM for this transaction. You scan this QR code with your mobile wallet app. This tells your wallet app where to receive the Bitcoin.
• Make payment: Insert cash into the ATM or use a card if the machine allows it.
• Confirm and receive Bitcoin: Verify the transaction details on the ATM screen and confirm them. The ATM then broadcasts the transaction to the Bitcoin network.

After a few confirmations on the blockchain, the specific amount of Bitcoin will appear in your mobile wallet at the new address.

Selling Bitcoin via an ATM

Selling Bitcoin through an ATM is a straightforward way to convert digital assets into cash.

• Choose to sell Bitcoin: Select the “Sell Bitcoin” option (or similar wording) on the ATM screen. This initiates the process and is the correct starting point for selling Bitcoin.
• Enter sale amount: Specify the amount of Bitcoin to sell. Some ATMs may allow users to enter the desired cash amount instead, automatically calculating the corresponding Bitcoin value. This step defines the transaction amount.
• Send Bitcoin: Scan the QR code displayed on the ATM screen with your Bitcoin wallet app. The QR code represents the ATM’s Bitcoin address. By scanning it, users send the specified Bitcoin amount from their wallet to the ATM’s wallet, initiating the transaction.
• Collect cash: The blockchain confirms the transaction, and the ATM dispenses the cash equivalent to the Bitcoin sold. This confirmation ensures accuracy and security, preventing double-spending issues.

Can You Withdraw Cash From a Bitcoin ATM After Selling Bitcoin?

Bitcoin ATMs allow users to withdraw cash after selling Bitcoin, provided the machine supports this feature. The process typically involves these steps:

1. Initiate the transaction: Select the “Sell Bitcoin” option on the ATM screen.
2. Enter the amount: Specify the amount of Bitcoin to sell or the specific cash amount.
3. Send Bitcoin: Use your wallet app to send Bitcoin to the address displayed by the ATM.
4. Wait for confirmation: The ATM waits while the blockchain validates the transaction, which can take a few minutes to over an hour.
5. Withdraw cash: Once the transaction is confirmed, the ATM dispenses the cash equivalent of the Bitcoin sold.

Bitcoin ATMs ensure security by requiring blockchain confirmation before releasing cash. Users should check if the specific machine supports cash withdrawals and review any associated fees or limits before starting the transaction.

Additional Considerations

Most Bitcoin ATMs focus on Bitcoin transactions. However, many machines also support other cryptocurrencies, depending on the provider.

Can You Buy Bitcoin Anonymously Using a Bitcoin ATM?

Some Bitcoin ATMs allow small transactions without verification, enabling users to buy or sell Bitcoin anonymously. These limits vary by provider but are generally low.

Do All Bitcoin ATMs Require ID Verification?

Not all Bitcoin ATMs require ID verification. Bitcoin ATMs may allow small purchases without identity verification, depending on the machine, operator policies, and local regulations. These limits vary by provider but are generally low.

Users should check the ATM’s requirements before starting a transaction, as regulations and verification thresholds differ by location and operator.

For larger transactions, most ATMs require Know Your Customer (KYC) procedures, such as ID verification, government-issued ID, or even biometric data or phone number submission, to comply with anti-money laundering (AML) laws. Users should check the machine’s specific requirements before starting a transaction.

Transaction Limits

Transaction limits vary by machine, location, and jurisdiction and can go up to $50,000 so users should check before starting a transaction.

Transaction Fees 

• Buying Bitcoin: Fees range from 5% to 25% of the transaction amount, depending on the ATM provider and location.
• Selling Bitcoin: Similar fees apply, with some machines charging a slightly higher percentage for selling Bitcoin.
• Network fees: These fees are additional and deducted from the Bitcoin sent during transactions and go to the miners.
• Confirmation time: Transactions require blockchain confirmation, which can take a few minutes to over an hour. Network congestion can increase waiting times, so users should plan accordingly.

How To Find a Bitcoin ATM Near You

Finding a Bitcoin ATM near you in 2025 is straightforward, thanks to various online tools and resources.

Bitcoin ATM Locators in 2025

Several platforms offer up-to-date information on Bitcoin ATM locations such as the following:

• Coin ATM Radar: This platform provides a comprehensive map of Bitcoin ATMs worldwide, allowing users to search by location, filter by supported cryptocurrencies, and view details about each ATM’s services.
• Bitcoin.com ATM Finder: This site offers a user-friendly interface for locating Bitcoin ATMs, detailing machine types, supported cryptocurrencies, and transaction fees.
• Operator websites: Many Bitcoin ATM operators maintain updated lists of their machines. Some examples are Bitcoin Depot, CoinFlip, RockItCoin, Localcoin, and Bitstop. 

Users can visit these websites to search for ATMs based on location, transaction type, and supported cryptocurrencies. These platforms often provide real-time updates on machine availability, fees, and operating hours.

Are Bitcoin ATMs Connected To Specific Wallet Providers?

Bitcoin ATMs do not tie transactions to specific wallet providers. They use the blockchain, enabling users to transact with any compatible cryptocurrency wallet. This setup lets users choose their preferred wallet if it supports Bitcoin or the cryptocurrency involved. Users should secure their wallets and confirm their compatibility with the ATM before starting a transaction.

Can Bitcoin ATMs Be Used for International Transfers or Payments?

Bitcoin ATMs can facilitate international transfers or payments, but they require a few additional steps:

• Buy Bitcoin: Use a Bitcoin ATM to purchase Bitcoin with cash or a card. The purchased Bitcoin is sent to your digital wallet.
• Send Bitcoin internationally: Transfer Bitcoin from your wallet to the recipient’s wallet address using your wallet app, not the ATM itself.
• Recipient cashes out: The recipient can use a Bitcoin ATM in their country to sell it and withdraw cash, if available.

Bitcoin ATMs can contribute to the process by enabling local cash-to-Bitcoin and Bitcoin-to-cash exchanges. However, users should be aware of transaction fees, network fees, and potential delays due to blockchain confirmation times when using this method.

Avoiding Fake Bitcoin ATMs and Scams

Bitcoin ATMs offer a convenient way to buy and sell cryptocurrencies, but users should be cautious of fake machines and scams. Recognizing potential risks and verifying the legitimacy of an ATM are essential steps for safe transactions.

• How to spot fake Bitcoin ATMs: Machines without clear branding, located in insecure areas, or requiring unnecessary personal information should raise suspicion.
• Red flags: Excessive fees, lack of recognizable operator logos, and requests for sensitive wallet information like private keys are common warning signs.
• Verifying ATM legitimacy: Use trusted online resources or operator websites to confirm the machine’s authenticity before starting a transaction.

Are Bitcoin ATMs Still Relevant in 2025? 

Bitcoin ATMs are an important part of the cryptocurrency ecosystem in 2025, with increasing adoption and benefits that appeal to users globally.

Popularity and Adoption Trends

As of 2025, Bitcoin ATMs are installed in 72 countries, with nearly 40,000 machines globally. North America leads in adoption, hosting most installations, while Europe and Asia continue to expand their networks. These machines provide quick and direct access to cryptocurrencies, appealing to many users.

Benefits of Bitcoin ATMs

Bitcoin ATMs provide: 

• Accessibility: They enable cash-to-crypto transactions without requiring a bank account. 
• Privacy: They are suitable for smaller transactions, appealing to users valuing discretion.

Limitations of Bitcoin ATMs

However, Bitcoin ATMs often come with higher fees than online platforms and limited availability in some regions. 

These factors may deter certain users from adopting them.

Are Bitcoin ATM Transactions Taxable, and How To Report Them?

Bitcoin ATM transactions are taxable in most jurisdictions, as they involve activities like buying, selling, or exchanging cryptocurrency. The tax implications depend on the nature of the transaction and local regulations.

Taxable Events

• Selling Bitcoin for cash typically triggers capital gains or losses subject to taxation.
• Using Bitcoin for purchases is often treated as a sale and may incur taxes.

Reporting Transactions

• Users should keep accurate records of each transaction, including dates, amounts, and Bitcoin prices at the time of the transaction.
• Users must calculate gains or losses to determine tax liability.
• Users should report all relevant details to the appropriate tax authority in compliance with local laws.

Consulting a tax professional or using cryptocurrency tax software can help ensure proper reporting and compliance, avoiding potential penalties for errors or omissions.

Safety Tips for Using Bitcoin ATMs

Bitcoin ATMs provide a convenient way to buy and sell cryptocurrency, but safety precautions are essential to protect funds and personal information.

• Ensuring secure wallet transactions: Use a trusted and secure digital wallet to manage transactions. Avoid entering private keys or sensitive wallet details into the ATM. Always double-check the wallet address before confirming any transfer.
• Protecting personal information: Be cautious when using ATMs that require ID or phone verification. Use machines in well-lit, secure locations, and avoid sharing unnecessary personal details. Verify the legitimacy of the ATM through trusted sources before starting a transaction.

Common Bitcoin ATM Issues and Solutions

Bitcoin ATM transactions sometimes face issues, but knowing how to resolve them ensures smoother operations.

• Failed transactions and refunds: Network congestion, incorrect wallet addresses, or insufficient confirmations often cause failed transactions. Operators process refunds when Bitcoin is sent but not received. Users must keep transaction receipts and contact the provider immediately. Refunds take time, depending on blockchain confirmations.
• Customer support options: Operators provide support through hotlines, email, or live chat. Machines or operator websites display contact details. Providing the transaction ID and detailed information helps resolve issues quickly.

Addressing these issues promptly ensures a better experience with Bitcoin ATMs.

Conclusion

Bitcoin ATMs have become a key part of the cryptocurrency ecosystem, offering users a physical and convenient way to buy and sell Bitcoin. Since their debut in 2013, they have expanded to nearly 40,000 machines across 72 countries, enabling more people to engage with digital currencies.

These machines cater to users seeking direct, cash-based transactions without relying on traditional banks. They provide essential features like buying Bitcoin, selling Bitcoin for cash, and, in some cases, supporting additional cryptocurrencies like Ether and Litecoin. 

While Bitcoin ATMs are accessible, they come with higher fees and transaction limits that vary by machine and provider.

Understanding how to use Bitcoin ATMs effectively, including preparing wallets, spotting fake machines, and verifying transactions, is critical for a safe and seamless experience. 

Adopting safety measures, recognizing legal implications, and staying informed about tax obligations ensure users maximize the benefits while minimizing risks. 

Bitcoin ATMs are vital in bridging the gap between traditional finance and the blockchain economy.

FAQs

What is the typical fee for using a Bitcoin ATM?

Bitcoin ATMs charge fees ranging from 5% to 25% of the transaction amount. Fees vary by operator and location.

Can you use a Bitcoin ATM without a wallet?

A Bitcoin wallet is necessary to use a Bitcoin ATM. The wallet receives purchased Bitcoin or sends Bitcoin for cash transactions.

Are Bitcoin ATMs legal in all countries?

Bitcoin ATMs are not legal in all countries. Local regulations determine their legality, with some nations banning them entirely.

How do Bitcoin ATMs handle exchange rates for cryptocurrency?

Bitcoin ATMs display exchange rates during the transaction. Rates often include a markup set by the operator, which may differ from market rates.