What Are Bitcoin ATMs?, How Do They Work? & How To Use Them? – Benefits & risks

A Bitcoin ATM is like a regular ATM, but instead of handling cash from your bank account, it lets you buy or sell Bitcoin directly using cash or a debit card.

These machines connect to your digital wallet, making it easy to exchange Bitcoin quickly and securely.

These Bitcoin ATMs are owned and operated by third-party organizations.

However, some also support other cryptocurrencies, while others are limited to purchase only.

Some even enable you to sell Bitcoin for cash!

If you are wondering about “What is a Bitcoin ATM?, How does it work?, How to use it? And why should you use one?,” keep reading to explore all the ins and outs in our full guide for 2024-2025.

You might just find it’s easier than you think.

Key Takeaways

• There are currently over 34,000 BTMs across the globe in 150+ countries.
• Some Bitcoin ATMs support other cryptocurrencies besides Bitcoin, while others are limited to Bitcoin transactions.
• All Bitcoin ATMs are suited to allow crypto transactions. Some are one-way, and others are bi-directional.
• You need to provide a phone number for verification and, in some cases, a government-issued identification card to transact using a Bitcoin ATM.
• Transaction fees for Bitcoin ATMs can range from 5% to 25%, depending on the operator and transaction amount.
• Operators like Us stand out based on the advantages offered over other companies such as low fees, 24/7 availability, user-friendly interface, and security.

What Are Bitcoin ATMs?

A Bitcoin ATM (Automated Teller Machine) is a physical kiosk that allows people to buy and sometimes sell Bitcoin (and other cryptocurrencies) using cash or a debit/credit card.

Unlike traditional bank ATMs, Bitcoin ATMs connect to a cryptocurrency exchange or wallet service instead of a bank account.

Bitcoin ATMs Pivotal Components

To facilitate transactions, Bitcoin ATMs are equipped with several essential components you should be aware of:

• User Interface: You can activate the machine via the touchscreen or keypad to select the mode and consider the specific details.
• Cash Dispenser/Receiver: ATMs allow users to buy Bitcoin only with the cash invested. In reverse, ATM transactions that involve selling Bitcoin are accomplished by giving cash to users.
• QR Code Scanner: Bitcoin ATMs QR code scanners facilitate access to cryptocurrency wallets. Buyers and sellers can exchange BTC in their wallets by scanning their wallet addresses or providing a QR code for anyone to send them BTC.
• Cryptocurrency Wallet: Bitcoin ATMs are connected to a secure wallet that holds the Bitcoin being sold and from which the purchased Bitcoin is transferred.
• Connectivity: The Bitcoin ATM needs to be online to get the latest exchange rates and process transactions. This connectivity can be established via Ethernet, Wi-Fi, or cellular networks.

How Do Bitcoin ATMs Work?

Bitcoin ATMs work just like traditional ATMs, but users use cash or a debit card to exchange fiat for Bitcoin or vice versa.

Despite their global reach, customers must have an account with the third-party operator to use these Bitcoin ATMs.

These Bitcoin ATMs use blockchain. They are part of the benefits and features of decentralized finance.

This means that transactions are not in bank statements.

They are in the public ledger and sent to digital wallets, which can be cold or hot crypto wallets.

Some BTMs use cryptocurrency exchange applications that facilitate voucher redemption for cash purchases.

Simply put, users can deposit funds and choose which digital asset to purchase.

Afterward, they can print a voucher containing a QR code.

The code is scanned using mobile apps that allow voucher redemption and direct fund deposits to the user’s digital wallet.

History of BTMs (The Origins)

Bitcoin ATMs have been around for over a decade, with the first appearance debuting on October 29, 2013, in Vancouver, Canada.

As the first Bitcoin ATM was established, it marked a new age of financial flexibility brought by crypto.

BTMs have bridged the gap between the physical and digital spaces.

They achieve this by mimicking traditional ATMs with user-friendly features.

As such, any beginner or expert in crypto can purchase or sell BTC.

All you need is a few things, such as an ID, and you are good to go.

In 2019, the number of Bitcoin ATMs was as low as 5,000. However, this number now stands at over 38,400 BTMs following major events and digitalization awakening.

These machines are distributed across over 100+ countries worldwide as of January 29, 2024.

Line Graph Showing the Number of Bitcoin ATMs Over Time in the United States

As of now, the United States hosts 31,415 BTMs, while Canada has 3017 machines, according to CoinATMRadar.

Pros

• Convenience: Bitcoin ATMs offer significant convenience, making it easier for users.
• Privacy (For low transactions): Unlike online exchanges, which often require account registration and lengthy identity verification, Bitcoin ATMs allow for quick and relatively straightforward transactions.
• No bank account needed: Additionally, Bitcoin ATMs are ideal for people who may lack access to traditional banking services or are concerned about online security. With Bitcoin ATMs, there is no need to link bank accounts or credit cards, offering a greater level of privacy.
• Buying and selling options: Users can deposit cash directly into the machine to purchase Bitcoin or withdraw cash in exchange for Bitcoin, making the process more accessible to those who prefer or need to use physical currency.

Cons/ Risks

Despite the convenience, Bitcoin ATMs come with some notable drawbacks:

• High transaction fees: are one of the biggest concerns, as they tend to charge significantly more compared to online exchanges. These fees can range anywhere from 7% to 20%, which can eat into the value of your Bitcoin transactions. This makes them less cost-effective for regular users.
• Target for scams: Another major risk is the potential for fraud or scams. While Bitcoin ATMs don’t require a bank account, this anonymity also makes them more attractive to illicit activities.
• Theft: Additionally, the machines themselves may not always be located in secure areas, which could expose users to theft or other safety issues when withdrawing large amounts of cash.

Associated Fees in Bitcoin ATM Transactions

Depending on the transaction amount and operator, Bitcoin ATM service fees can range from 5% to 25%.

Considering a 10% transaction fee, $500 will give you an equivalent $450 worth in BTC.

Additionally, these fees vary depending on the crypto you are transacting.

For example, Bitcoin transactions will cost more than Litecoin transactions.

Transaction Types Supported by Crypto ATMs

There are two types of Bitcoin ATMs:

• Unidirectional (One-Way).
• Bi-directional (Two-Way)

Pie Chart Showing the Percentage of Crypto ATMs that Support Buy or Sell Transactions in the United States

The machines supporting one-way transactions are called unidirectional and are limited to buying or selling BTC.

However, those supporting two-way transactions (bi-directional) allow both the purchase and selling of crypto.

Depending on the transaction amount, some Bitcoin ATMs require users to provide a phone number reference to send verification messages.

Additionally, a government-issued identification card is used in the verification process.

Incorporating these regulations is essential for ensuring security.

Top Reasons to Use a Bitcoin ATM in 2025

1. Fast Access: Buy or sell Bitcoin instantly with cash or debit cards, no bank account needed.
2. Beginner-Friendly: Simple interfaces and wallet integration make them easy for newcomers.
3. High Accessibility: Over 40,000 machines in 70+ countries, with strong presence in North America.
4. Security: Transactions are protected by blockchain encryption and digital wallet safeguards.
5. Instant Processing: Eliminates delays and reduces exposure to price volatility.
6. Privacy for Small Transactions: Many BTMs allow limited purchases without full KYC verification.
7. Cash-to-Crypto Bridge: Convenient for the unbanked or those preferring cash transactions.
8. Growing Adoption: Expanding worldwide as crypto use in payments and remittances rises.
9. Regulatory Compliance: Licensed operators in many regions provide safer, more transparent services.
10. Important Caveats: Fees remain high (5–25%) and scams are increasing, so users should choose reputable machines.

How To Use A Bitcoin ATM To Buy Bitcoin? – General Process

To use a Bitcoin ATM you should start with locating the nearest Bitcoin ATM to your location through our CoinTime ATM website, here are the next steps you should follow to transact

1. Identification

Before making a transaction, many Crypto ATMs require you to verify your identity.

This may involve scanning your ID or entering a phone number, for SMS verification.

These checks are part of KYC (Know Your Customer) requirements, ensuring compliance with local regulations and enhancing security.

2. Select the Buy Option

On the ATM screen, simply tap the “Buy Bitcoin” option to start the purchasing process.

This option will guide you through the next steps,

allowing you to enter the amount of cash you want to convert into Bitcoin and proceed with the transaction.

3. Insert Cash

After selecting the “Buy Bitcoin with cash” option, insert the amount of cash you wish to exchange for Bitcoin into the ATM.

The machine will calculate the Bitcoin equivalent based on the current exchange rate and display the amount of Bitcoin you’ll receive.

Note: the majority of Bitcoin ATM operators incure exchange rates higher than the market rate. Fortunately; This is not the case with CoinTime.

4. Enter Your Bitcoin Wallet Address

Next, you scan the QR code of your Bitcoin wallet using the ATM’s scanner.

If you don’t have the QR code, you can manually enter your wallet address.

This ensures the purchased Bitcoin will be sent directly to your wallet.

5. Confirm the Transaction

Before finalizing, carefully review the transaction details, including the amount of Bitcoin, any applicable fees, and the total you’ll receive.

Once everything looks correct, confirm the transaction.

The purchased Bitcoin will be transferred to your wallet, completing the process.

How To Use A Bitcoin ATM Machine To Sell Bitcoin? – General Process

Assuming that you have already located the nearest Crypto ATM, the general process of selling Bitcoin through BTMs typically involves the following:

1. Locate a Two-way Bitcoin ATM

To sell Bitcoin, you’ll need to find a two-way Crypto ATM that supports both buying and selling.

Use online locators like CoinTime or Coin ATM Radar to search for machines that allow you to exchange Bitcoin for cash in your area.

2. Select the Sell Option

On the ATM screen, choose the “Sell Bitcoin” option to begin the process of exchanging your Bitcoin for cash.

This will guide you through the next steps,

where you’ll specify the amount of Bitcoin you want to sell and complete the transaction.

3. Send Bitcoin to the ATM Address

At this point, a Bitcoin address or QR code will be displayed on the machine.

Open your Bitcoin wallet, scan the QR code, or manually enter the ATM’s address.

Then, send the specified amount of Bitcoin from your wallet to complete the transaction.

4. Collect Your Cash

After the Bitcoin transaction is confirmed, the ATM will notify you that it’s ready to dispense cash.

Simply follow the prompts and withdraw the amount of cash corresponding to your Bitcoin sale.

The process usually takes a few minutes for confirmation.

How To Use CoinTime Bitcoin ATM?

Various steps must be followed when using a CoinTime Crypto ATM, and it is important to follow these steps to ensure successful transactions.

Step 1: Finding a CoinTime ATM

To locate a CoinTime Crypto ATMs near you, follow these simple steps:

1. Visit the CoinTime BTMs locataions page: You can access our services through mobile devices, the Google Play Store, or the Apple Store app.
2. Use the BTM finder feature on the website or app to search for nearby CoinTime ATMs.
3. Type in your current location or provide access to your device’s location to get an assisted automated search of the nearest ATMs.
4. Once you’ve located a nearby ATM, note its address or navigate to it using GPS directions.

Step 2: What to Bring

Before going to the CoinTime ATM, make sure you have these items with you:

1. Valid ID: State Identification such as a license and passport will be helpful for verification.
2. Cash: Make sure you have enough BTC to buy what you want. Get fully stocked with BTC before you start the exchange.
3. Smartphone with Bitcoin Wallet App: Download a Bitcoin wallet app on your phone. Set it up with a passphrase, address, and other details. You should also see that your mobile app wallet has the QR code scanning functionality.

Step 3: The Buying Process

Once you’ve found a CoinTime Crypto ATM and gathered what you need.

Follow these steps to buy Bitcoin:

i) Welcome Screen

When you approach the ATM, you’ll see a warm welcome message.

The screen then shows some options, including “Buy Bitcoin,” “Support,” and more.

ii) Identity Verification

Select the “Buy Bitcoin” option.

Follow the instructions to proceed with your identity verification.

This could mean entering your details or confirming your identity by recording your ID with a camera inside the ATM.

CoinTime ATMs follow regulations for user identification and AML to prevent unauthorized transactions.

Hence, you must present valid identification to facilitate the process.

iii) Scan Your Wallet

After confirming your identity, the ATM will prompt you to scan your smartphone wallet’s QR code.

You will do this using your phone wallet app.

Then, it will convert your fiat currency to digital currency.

Go to your BTC wallet apps on your smartphone and click on the option to receive BTC.

Next, choose the “Display Wallet QR Code” option on your phone screen.

After that, scan the code while keeping your smartphone close to the ATM scanner.

iv) Enter Amount

After scanning, you will be prompted to enter the Bitcoin you want to purchase.

Whether the ATM’s touchscreen or keypad is used, insert your chosen amount in Bitcoin or another currency you plan to use with it.

v) Review and Confirm

Before, study the transaction details on the screen.

This includes the Bitcoin you will buy and any fees.

Assure that what is provided is in line with your expectations, as transactions on the blockchain are irreversible.

vi) Cash Deposit

Now, review the transaction and approve it using the option given on the ATM.

You may insert the cash into the designated slot for further processing.

The ATM will calculate the Bitcoin amount in BTC.

It will use the current exchange rate and the deposited cash.

vii) Transaction

Next, the ATM will check and authorize the money load.

Then, it will process the transaction and transfer the Bitcoin to your wallet.

Wait for the transaction to be confirmed on a blockchain, which can take up to a few minutes, considering network traffic.

viii) Transaction Complete

If this transaction is validated, the ATM screen will display the message “The operation was completed successfully.”

Access your smartphone app to ensure that the Bitcoin you bought has been stored in your Bitcoin wallet.

Or Step 4: The Selling Process

Once you’ve located a CoinTime Bitcoin ATM and gathered the necessary items, follow these steps to sell your Bitcoin:

i) Welcome Screen

The first screen at the CoinTime ATM guides you through some choices.

You can buy or sell cryptocurrency, make an account, or get support.

Click the “Sell Bitcoin” button.

ii) Identity Verification

Next, fill in the details and wait for verification.

This might mean confirming your phone number by calling or scanning your ID.

It may also require entering your phone number for verification or scanning your ID using the ATM’s camera.

iii) Scan Your Wallet

After that, the ATM will prompt you to scan the machine’s QR code using your smartphone wallet’s app.

Then, you will select the wallet for the Bitcoin.

Get into your Bitcoin wallet app before selecting the menu allowing you to transfer Bitcoin.

Tap the scan QR code option, then hold your phone next to the ATM’s scanner to scan your wallet’s QR code.

iv) Enter Amount

You will be prompted to input the amount of Bitcoin you intend to sell.

You can use the ATM’s touchscreen or keypad to show the amount of Bitcoin in your funds that you want to sell.

v) Review and Confirm

At this point, you should pay attention to the information displayed on the screen before proceeding.

Be sure this information is thoroughly examined, as transactions in the blockchain cannot be reversed.

vi) Bitcoin Transfer

After you confirm the transaction, the ATM will make a new Bitcoin address.

You must send the Bitcoin you are selling to this address.

Pay your account from your smartphone.

Then, start the transaction of the amount you want in seconds until you provide the ATM with your specified Bitcoin address.

vii) Transaction Complete:

Once the Bitcoin transfer is initiated, wait for it to be confirmed on the blockchain.

Based on the network congestion, this could take some minutes.

After confirming the transaction, the ATM will dispense the corresponding cash amount.

Collect the cash from the ATM and ensure the transaction is complete before leaving the ATM.

There you have it! You’ve successfully completed a Bitcoin buy-and-sell transaction using a CoinTime Crypto ATM.

How to Use Bitcoin ATMs with Debit or Credit Cards?

Using a Bitcoin ATM with a debit or credit card is straightforward.

1. First, select the “Buy Bitcoin” option on the ATM screen.
2. Then, choose the payment method as debit or credit card.
3. Insert your card into the machine, just like at a regular ATM.
4. Follow the prompts to enter the amount of Bitcoin you wish to buy.
5. Finally, provide your Bitcoin wallet address by scanning the QR code or entering it manually.
6. After confirming the transaction, the Bitcoin will be sent to your wallet, and the payment will be deducted from your card.

How to Use a Bitcoin ATM to Send Money?

To send Bitcoin to another wallet using a BTM:

1. start by selecting the “Send Bitcoin” option on the ATM screen.
2. Enter the amount of Bitcoin you wish to send.
3. Then, scan the recipient’s Bitcoin wallet QR code or manually enter their wallet address.
4. Insert cash or use your debit card to fund the transaction.
5. After verifying the transaction details, confirm the transfer.
6. The Bitcoin will be sent directly to the recipient’s wallet, usually within minutes.

This is a simple and secure way to send Bitcoin.

What To Avoid When Using BTMs

Buying or selling Bitcoin via a crypto ATM is convenient. However, you must be careful when making any digital currency transactions. Here are some tips and best practices to keep in mind:

1. Choose reputable Bitcoin ATM operators: Try to find operators with smooth and secure performance records. Remember to check out online reviews and user feedback before using a novel Bitcoin ATM.
2. Check fees and rates: Before using an ATM, it’s important to check the operator’s fee and exchange rate. This will help you avoid an uneconomical trap. Some ATMs have higher fees than others, and ATM operators also have very different currency exchange rates.
3. Protect your wallet and personal information: Do not share your Bitcoin wallet or sensitive details. Use strong passwords and two-factor authentication to prevent unauthorized access to your crypto wallet.
4. Be aware of  Bitcoin ATM scams: Some scammers may ask you to send them Bitcoin or cash. They may also collect your details or key information. Every time, confirm the transaction details and the receipts to be sure you are sending the coins correctly to the right receiver.

Where To Find A Crypto ATM?

Finding a crypto ATM is relatively easy with the help of online tools and locator websites.

One of the most popular resources are CoinTime, Coin ATM Radar, which offers a comprehensive global map of Bitcoin and crypto ATMs.

These site allows users to search for nearby ATMs by location, view transaction fees, supported cryptocurrencies and operating hours.

Additionally, the CoinTime ATM locator provides similar functionality, listing crypto ATMs by city or region and offering user-friendly filters to find machines that support specific services like Bitcoin purchases or withdrawals.

You can also check major retail chains, convenience stores, and gas stations, as crypto ATMs are increasingly installed in these locations.

Always verify the fees and limits before using the machine, as they can vary widely from one ATM to another.

Can I Buy Other Cryptocurrencies Through Bitcoin ATMs?

The short answer to this question is yes, but at their core, Bitcoin ATMs are primarily designed to facilitate Bitcoin transactions.

While some BTMs might allow you to buy a few other major cryptocurrencies, such as Litecoin or Bitcoin Cash, the focus is predominantly on Bitcoin itself.

The availability of additional coins typically depends on the specific software and policies of the ATM operators like CoinTime.

So, if you’re hoping to diversify your crypto portfolio using a BTM, it’s essential to check the machine’s supported coins beforehand.

When it comes to tokens, the situation gets a bit trickier.

Many tokens exist on specific blockchain platforms, like Ethereum’s ERC-20 tokens, which adds complexity to their transactions at Bitcoin ATMs.

For an ATM to handle token transactions, operators would need to integrate with these blockchain platforms, which can pose significant technical challenges.

As a result, most Bitcoin ATMs do not support token purchases.

Trusted Bitcoin ATM Services Providers

When choosing the right Bitcoin ATM service provider from ATM locations, customer care, and OTC transactions, among others, you have to choose one that is reliable, has good credibility, and is secure.

The top options include CoinTime, CoinFlip, Genius Coin, Coin Cloud, BitAccess, and General Bytes.

1. CoinTime:

With availability in 150+ locations, CoinTime is one of the market’s most reputable cryptocurrency ATM service providers.

The organization has transparency, security, and customer satisfaction characteristics, distinguishing it from others in this sector.

Key Features of CoinTime Bitcoin ATM include:

• User-Friendly Interface: CoinTime ATM interface has been specially designed to walk users, whether beginners or advanced, through the buying and selling process from beginning to end. This makes it straightforward to navigate.
• Diverse Range of Cryptocurrencies: Furthermore, we offer Bitcoin ATM fiat money exchanges and accept a wide range of other cryptocurrencies, including, but not limited to, Ethereum and Litecoin. This diversity of options allows users to explore various assets and invest in digital assets that they consider more interesting.
• 24/7 Availability: Whether during the day, in the evening, or at night, our Bitcoin ATMs are designed to be always open. Thus, users can buy or sell cryptocurrency anytime that suits them.
• Suitable Fees: Our Bitcoin ATMs have market-beating and low fees. The fees ensure that you get a great deal when using our services.
• High Service Availability: Our Bitcoin ATMs are plenty and easy to locate near you. You’ll have easy access to funds anytime.
• High Security: Our Bitcoin ATMs are convenient and secure. They are designed to protect your transactions and personal details from any vulnerabilities.
• Ease of Access: Our Bitcoin ATMs are self-serving and straightforward to use to the point that anyone navigating buying and selling bitcoins becomes a no-brainer.
• Privacy: Shield your personal information and stay anonymous when doing cryptocurrency transactions at our ATMs, which will keep your information secret and safe.
• Ability to Sell Bitcoin: You don’t just need to buy Bitcoin from our ATMs; you can also sell Bitcoin for cash to meet whatever financial needs you may have, making it convenient and flexible.
• Customer Support: Our customer care, operated by specialists, is there to help you with any questions or problems arising during the purchase. This provides a smooth experience.
• Fast Transactions: Service instant buying or selling Bitcoins through our Bitcoin ATMs eliminates the need to wait late in the queue of other banks.
• Same-Day Execution: Take advantage of the instant Bitcoin transactions and immediately access funds and liquidity.
  

2. CoinFlip:

One of CoinFlip’s best features is its nationwide network of Bitcoin ATMs, the largest in the US.

This makes it easy for clients to find machines with the best rates and a user-friendly interface.

It also supports cryptos, including ETH, USDC, LTC, and USDT.

CoinFlip chargers are 15.99% for buying crypto and 4.99% for selling.

3. Genesis Coin:

Genius Coin is a reliable Bitcoin ATM provider in terms of international service provision.

It’s also a two-way (bi-directional) ATM that allows both the buying and selling of crypto. 

Genius1 ATMs only support three cryptocurrencies: Bitcoin, Litecoin, and Dogecoin.

It also has a billing capacity of 2,200 notes for international bill acceptors.

4. Coin Cloud:

Coin Cloud crypto ATMs have been installed in over 4,500 locations and are considered among the fastest machines that deal with BTC and fiat currency exchange.

It offers financial services to the underbanked and the unbanked.

It offers financial solutions to a wide audience, regardless of financial position.

It’s also a two-way BTM that supports over 30+ cryptos.

5. BitAccess:

BitAccess was founded in 2013 as a Bitcoin ATM hardware and software provider.

It currently records over 7,000 kiosks worldwide and charges a 20% fee on their transactions.

BitAccess fully commits to security and data privacy and provides one-on-one operator support.

This provides the busiest Bitcoin ATM experience to users in many regions.

They offer instant wallets when you use their services.

6. General Bytes:

General Bytes has a total of 10,844 machines all over the globe, accounting for the largest share of BTMs in the market. 

General Bytes BTMs are equipped with a QR-code reader and a fingerprint scanner.

It also has a reach of over 120 countries worldwide.

Additionally, both software and hardware resources accommodate AML/KYC regulations.

Conclusion

Bitcoin ATMs overcome limitations experienced in online crypto exchanges.

They come with many benefits, including eliminating long transaction periods.

However, being cautious when transacting digital assets is vital to avoid scamming incidents.

If you need to buy or sell crypto, Bitcoin ATMs are the solution.

They are located worldwide and are fitted to serve both experienced and novice enthusiasts.

At CoinTime, we offer the best Bitcoin ATM services with low fees and 24-hour access to our services and support team.

We offer hassle-free services for transacting cryptocurrencies.

Methodology

We conducted extensive research using Bitcoin ATM resources from reputable websites and crypto websites to answer the following questions (e.g., what are Bitcoin ATM machines ?, What are the fees for Bitcoin ATMs?, How to use Bitcoin ATMs, and related questions).

We gathered information from credible sources such as CoinATMRadar and company websites like CoinTime, CoinFlip, CoinCloud, BitAccess, and General Bytes.

Furthermore, we analyzed user reviews and feedback on many services and websites.

We also compared Bitcoin ATM providers, assessing factors such as fees, availability, user interface, and support for multiple cryptocurrencies to highlight the best options for users.