Bitcoin ATM Explained: Step-by-Step to Buy or Cash Out (Plus Fees & ID Rules)

Most people walk up to a Bitcoin ATM for the first time and feel a little unsure.

The machine looks familiar, but the words on the screen are new.

You are not sure what to press first, whether you need to have set something up beforehand, or how much it is going to cost you. 

This guide answers all of that plainly, including the things most guides leave out, like what the screen will actually ask you, why the machine sometimes pauses, and what one wrong move can cost you.

What a Bitcoin ATM Does in 30 Seconds

What you can do:

• Buy Bitcoin with cash at any machine
• Sell Bitcoin and collect cash (two-way machines only)
• Send Bitcoin directly to someone else’s wallet anywhere in the world

What you cannot do:

• Reverse a transaction once it is confirmed, there is no undo and no bank to call

What you need:

• A Bitcoin wallet QR code or address on your phone
• Cash (most machines do not accept credit cards)
• A phone number for the verification text, and sometimes a government-issued ID depending on the amount

Choose Your Path

• Buy crypto with cash (first-timers, go here first)
• Sell Bitcoin and cash out (two-way machines only)
• Send Bitcoin to someone else’s wallet
• Fees, ID limits, and safety rules (read this before you press Confirm)

What Is a Bitcoin ATM?

A Bitcoin ATM is a machine that lets you buy Bitcoin with cash. 

Some machines also let you sell Bitcoin and collect cash in return. 

You feed in dollars, and the machine sends Bitcoin to a digital wallet on your phone.

It looks like a regular bank ATM, but there is no bank involved. 

It does not connect to your checking account. 

It connects to the Bitcoin network, which is a global system that records who owns what in cryptocurrency. 

Think of it the way you think of a currency exchange kiosk at an airport, except instead of swapping dollars for euros, you are swapping dollars for digital currency.

You will find them in convenience stores, gas stations, grocery stores, and pharmacies. 

Most are open 24 hours. 

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

As of 2026, there are more than 38,000 of them across roughly 80 countries, with the United States hosting the largest share.

How Does a Bitcoin ATM Work?

When you insert cash, the machine checks the live price of Bitcoin at that exact moment, subtracts its fee, and sends you the remaining value in Bitcoin to whatever wallet address you provide. 

The transaction is recorded permanently on the Bitcoin blockchain, a public ledger no one owns or controls. 

Once it goes through, it cannot be undone. 

There is no customer service line that can reverse it, no bank dispute process, and no refund button. 

That is the single most important thing to understand before using one of these machines.

The difference from a regular ATM is this: a bank ATM gives you money that was already yours. 

A Bitcoin ATM exchanges your cash for something new right on the spot, at whatever the going rate is at that exact minute.

One-Way Vs. Two-Way Machines

• A one-way machine only lets you buy. You put cash in, and Bitcoin comes out. Most machines are one-way.
• A two-way machine lets you do both. You can buy Bitcoin with cash, or you can send Bitcoin to the machine and collect cash in return. 

About a third of machines in the United States are two-way. 

If you want to sell and take cash home, confirm the machine is two-way before you make the trip. 

The CoinTime locator at cointimeatm.com shows which type each location has.

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

What You Need Before You Go

Showing up unprepared is the number one reason first-time users get stuck at the machine. 

The screen will ask you for things you need to have ready, and there is no way around them.

1. A Bitcoin wallet on your phone

This is where the machine sends your Bitcoin after you pay. 

A wallet is a free app. 

Think of it like a PayPal account but for Bitcoin. 

You do not store money in it ahead of time. 

You just use it as an address to receive what you buy. 

Free options that are easy to set up include Coinbase Wallet, Trust Wallet, and BlueWallet.

Once you install any of those apps and create an account, look for the option that says Receive or Receive Bitcoin. 

It will show you a QR code, which is the square barcode pattern you will scan at the machine. 

That QR code is your Bitcoin address. 

The machine reads it and knows exactly where to send your Bitcoin.

Set this up at home before you go. 

Trying to download and configure a new app while standing at a kiosk is stressful and increases the chance of making a mistake.

2. Your phone number

The machine will text you a one-time verification code, the same way a website sends you a code when you log in from a new device. 

You enter that code on the screen to continue. 

Make sure your phone has a signal at the machine’s location.

3. A government-issued photo ID (for larger amounts)

For smaller purchases, your phone number is usually enough. 

For anything above roughly $500, the machine will ask you to scan your driver’s license or passport. 

This is a federal legal requirement. 

The machine will tell you whether it needs ID before you insert any cash, so you will not be caught off guard partway through.

4. Cash

Almost every Bitcoin ATM is cash only. 

Most accept $20, $50, and $100 bills. 

Bills that are very worn or crumpled sometimes get rejected. 

Bring a little more than you plan to spend in case a bill does not feed cleanly.

How To Buy Bitcoin At a Bitcoin ATM (Step By Step)

These steps describe what you will actually see and do at the machine, in plain language.

Step 1: Tap the screen to start

Most machines sit on a welcome screen until you touch them. 

Tap anywhere to begin, then select Buy Bitcoin.

Step 2: Enter your phone number

The machine asks for your mobile number and sends a text with a short code. 

Type that code in when it arrives. 

This usually takes less than a minute.

Step 3: Show your ID if asked

If your transaction is above the machine’s basic limit, it will ask you to scan your ID. 

Hold your driver’s license or passport flat in front of the camera on the machine and follow the on-screen instructions. 

Some machines also take a quick photo of your face to match against the ID. 

This takes about 30 seconds.

Step 4: Scan your wallet QR code

Open your Bitcoin wallet app and go to Receive or Receive Bitcoin. 

A square barcode will appear on your phone screen. 

Hold your phone up to the scanner on the machine, usually located near the screen. 

The machine will beep or show a checkmark when it has read your address successfully. 

Take a moment to verify that the first and last few characters on the machine’s screen match what shows in your wallet app before moving on. 

Only use the QR code from your own wallet app. 

If you see a sticker with a QR code placed over any part of the machine, do not scan it. 

That is a known fraud method. 

Report it to CoinTime support immediately.

Step 5: Insert your cash

Feed your bills into the slot one at a time. 

The screen updates to show how much you have put in and how much Bitcoin that equals at the current rate after fees. 

Keep feeding bills until you reach the amount you want to spend.

Step 6: Review the amount and confirm

Before you press confirm, read the screen carefully. 

It shows you the dollar amount deposited, the fee being charged, and the Bitcoin amount being sent to your wallet. 

If those numbers look right, press confirm. 

If something looks off, press cancel. 

You can get your cash back at this point. 

Once you confirm, the transaction is final and cannot be reversed.

Step 7: Take your receipt

The machine prints a receipt with a transaction ID on it. 

Keep this.

It is your only proof the transaction happened. 

If your Bitcoin does not arrive within the hour, this receipt is what you need when you call CoinTime support.

How To Cash Out At a Bitcoin ATM (Step By Step)

This only works on two-way machines. 

Confirm the machine supports selling before making the trip.

Step 1: Select Sell Bitcoin

Tap the screen and choose the sell or cash out option.

Step 2: Complete verification

Selling requires more identity verification than buying in most cases. 

Have your ID ready. 

The machine will walk you through it on screen.

Step 3: Enter how much cash you want

Type in the dollar amount you want to receive. 

The machine calculates how much Bitcoin you need to send to get that amount after the fee.

Step 4: Send Bitcoin to the machine’s address

The machine generates a temporary receiving address and shows it as a QR code. 

Open your wallet app, go to Send, scan that code, and send exactly the amount the machine specified. 

Send the exact amount. 

Sending more or less than the machine asked for can cause the transaction to stall or fail.

Step 5: Wait for confirmation

The machine waits for the Bitcoin network to confirm your incoming transfer. 

This normally takes 10 to 30 minutes. 

When it clears, the machine dispenses your cash. 

Do not leave the machine while you are waiting.

Step 6: Collect your cash and receipt

Take the cash and the printed receipt. 

The receipt has the transaction ID, which is useful if there is ever a dispute.

Fees: What You Will Actually Pay

Bitcoin ATM fees are high compared to buying Bitcoin online. 

That is not a secret, and operators are required to show you the fee before you commit any cash. 

The issue is that new users often do not realize how much it adds up to until they are already at the machine.

Most machines charge between 8 and 20 percent of whatever you insert. 

That fee is a combination of two things: a markup on the Bitcoin price shown on screen, 

where the price is slightly higher than the real market price, plus sometimes an additional percentage fee on top. 

Both come out of your pocket.

You Insert	Fee at 10%	Fee at 15%	Bitcoin Value You Receive
$100	$10	$15	$85 to $90 worth
$300	$30	$45	$255 to $270 worth
$500	$50	$75	$425 to $450 worth
$1,000	$100	$150	$850 to $900 worth

The fee is always displayed on screen before the machine asks you to confirm. 

Never insert cash until you have read that screen. 

If the fee looks too high, cancel and look for another machine nearby. 

Coinatmradar.com lets you compare live rates across machines in your area before you leave the house.

The reason these fees exist is that physical machines cost money to operate. 

The operator pays for the hardware, the retail space, the cash handling, the compliance programs, and the maintenance. 

You are paying for the convenience of walking in with cash and walking out with Bitcoin in under ten minutes, without needing a bank account or an online account of any kind.

ID Requirements and Transaction Limits

Bitcoin ATM operators in the United States are legally required to verify who is using their machines.

This is the same kind of rule that banks follow, and the machine will not let you skip it once you reach the amount that triggers it.

The general structure at most machines works like this:

• Under roughly $500: Your phone number and the verification code texted to you is usually all that is needed.
• Between $500 and $2,000: Phone verification plus a scan of your driver’s license or passport.
• Above $2,000: Full verification including ID scan, a photo of your face, and sometimes proof of address.
• Above $10,000 in a single day: The operator is required by federal law to file a Currency Transaction Report with the government. At this level, full KYC is mandatory and the machine will ask for everything including ID, biometric verification, and sometimes proof of address.

Some operators also require a follow-up call from their compliance team before the transaction can complete.

These thresholds vary by operator.

However, the federal limit that applies everywhere is $10,000.

Any cash transaction above that amount in a single day requires the operator to file a report with the federal government. 

This is the same rule that applies when you deposit a large sum of cash at a bank.

Trying to get around it by making several smaller transactions on the same day is a federal crime called structuring, which carries a penalty of up to five years in prison.

State-by-State Daily Limits

The operator’s advertised limit is not always the real limit.

Several states have passed their own laws that cap how much you can transact per day, regardless of what the machine or operator allows.

If you are in one of these states, the lower state cap applies automatically.

State	Daily Limit	Notes
California	$1,000	State law, upheld in court. Applies to all users regardless of verification level.
Iowa	$1,000	Plus a $10,000 aggregate cap for the first 30 days of use.
Maine	$1,000	Also caps operator fees at 3%.
Vermont	$1,000	Operators must register with the state.
Wisconsin	$2,000	Mandatory fraud warnings required at every machine.
Rhode Island	$2,000 / $5,000	$2,000 for new customers, $5,000 for existing. 90-day fraud refund provision.
Minnesota	$2,000	New users only. Refund available if fraud is reported within 14 days.
North Dakota	$2,000	Applies to all deposits and withdrawals per day.
Oklahoma	$2,000	Applies to new customers only.
Connecticut	$2,500	Operators must hold a state license and post a surety bond.
Most other states	Up to $10,000	Operator sets the limit based on your verification level.

State laws in this area are changing quickly.

At least 24 states had passed or were actively debating Bitcoin ATM legislation as of early 2026.

Always check the machine screen and your state’s current regulations before planning a large transaction.

How Long Does It Take?

At the machine, the whole process from tapping the screen to collecting your receipt takes about three to five minutes for a standard purchase. 

If the machine asks for ID, add another minute or two for the scan.

After that, there is a waiting period on the Bitcoin network’s side. 

The network needs to confirm that your transaction is legitimate before the Bitcoin shows up as available in your wallet. 

For a purchase, this usually takes 10 to 60 minutes. 

For a cash-out where you are sending Bitcoin to the machine, the wait is similar before the machine dispenses cash.

Your receipt includes a transaction ID. 

If you go to mempool.space and type that ID into the search bar, you can see exactly where your transaction is in the process, similar to tracking a package.

You can see it moving even before it has arrived.

Pros and Cons

Why people use them

• No bank account needed. Cash is the only requirement for small purchases.
• No online account to set up, no waiting for a bank transfer to clear.
• Available 24 hours in most locations.
• Useful for sending money to family in another state or country. You deposit cash at a machine, the person on the other end receives Bitcoin in their wallet, and they can cash out at a machine near them.
• The entire transaction is visible on screen before you commit, so there are no hidden surprises at the end.

What to be aware of

• Fees are significantly higher than buying Bitcoin online, often 8 to 20 percent.
• Transactions cannot be reversed once confirmed. There is no undo.
• If you send Bitcoin to the wrong address, it is gone permanently. No one can retrieve it.
• Not all machines let you sell. Most are buy-only.
• Scammers specifically target people at Bitcoin ATMs, particularly those over 60.

Bitcoin ATM Scams: How to Spot and Avoid Them

Pay attention to this section in this article to avoid being scammed.

The FBI reported that Americans lost more than $333 million to Bitcoin ATM scams in 2025 alone. 

That number was $250 million in 2024 and $114 million the year before. 

It keeps rising every year. 

The people most targeted are adults aged 60 to 80. 

In a court case filed against a Bitcoin ATM operator in Washington, D.C., documents stated that 93 percent of transactions on those machines were linked to fraud, and that the average victim was 71 years old.

The scam almost always starts with a phone call. 

Someone calls pretending to be from your bank, the IRS, Social Security, Medicare, or a local police department. 

They tell you there is a problem with your account, that you owe money, that your identity was stolen, or that a family member is in trouble. 

The story is urgent and frightening. 

They stay on the phone with you the entire time and walk you step by step to a Bitcoin ATM, telling you to withdraw your cash and deposit it into the machine to protect it or pay the debt. 

They give you a QR code to scan. 

That QR code sends your money directly to them. 

Once you press confirm, the money is gone.

The script changes, but the outcome is always the same. 

The urgency is fake. 

The authority is fake. 

The QR code is real, and so is the loss.

No bank, no government agency, no police department, no court, no tech support line, and no Medicare or Social Security office will ever ask you to deposit money into a Bitcoin ATM. Not once, not for any reason. If someone on the phone tells you to go to a Bitcoin ATM, hang up immediately and call the number on the back of your bank card or a family member you trust.

How to recognize it before it goes too far

• The caller stays on the phone while you travel to the machine and while you are standing at it. A real bank or government agency does not do this.
• They tell you not to tell the store clerk, your family, or your bank what you are doing or why.
• They say things like this is the only way to secure your funds or the government-approved method.
• They give you a QR code to scan instead of letting you use your own wallet.
• They create pressure to act right now, saying you will be arrested or your account closed if you wait.

CoinTime machines display fraud warnings on screen before every transaction. 

If you are at a machine and something feels off, stop. 

Walk away from the machine and call CoinTime support. 

We would far rather interrupt a transaction and check than have you lose money you cannot get back.

If you believe you have already been scammed, report it to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov.

Are Bitcoin ATMs Legal?

Yes, they are legal in the United States. 

Operators must register with the federal Financial Crimes Enforcement Network as Money Services Businesses and follow the same Anti-Money Laundering rules that banks follow.

Individual states can add their own rules. 

New York has stricter licensing requirements that have limited the number of machines operating there. 

In 2025, St. Paul, Minnesota, voted to ban them outright. 

At least 24 states have passed legislation specifically addressing cryptocurrency kiosks. 

California is set to introduce new daily limit rules starting in mid-2026.

In the United Kingdom, Bitcoin ATMs are currently illegal. 

The Financial Conduct Authority ordered them shut down in 2022 because operators had not met the agency’s Know Your Customer requirements.

For users, the legal obligations are simple: verify your identity truthfully when asked, do not structure transactions to avoid the $10,000 reporting requirement, and report any gains from selling Bitcoin on your taxes. 

Buying is not a taxable event. 

Selling at a profit is.

How to Find a CoinTime Bitcoin ATM Near You

Visit cointimeatm.com and use the ATM locator.

Search by zip code or city. 

Each listing shows the address, hours, supported cryptocurrencies, whether the machine is one-way or two-way, and the current fee rate.

If you want to compare rates across multiple operators in your area, coinatmradar.com shows live rates from all operators near you. 

A short drive to a different machine can sometimes save you several percentage points on a larger transaction.

Common issues and what to do

Your transaction shows as “Pending,” and nothing has arrived

This is the most common concern, and it almost never means something went wrong.

When you press confirm at the machine, your Bitcoin does not travel instantly.

It enters a queue on the Bitcoin network and waits for miners to include it in a confirmed block.

During busy periods, that wait can stretch to an hour or longer.

The first thing to do is check your receipt.

At the bottom, you will find a string of letters and numbers labeled something like TXID or Transaction ID.

That is your transaction’s unique tracking code.

Go to mempool.space on your phone, paste that code into the search bar, and press enter.

The site will show you exactly where your transaction sits in the queue, how many confirmations it has received, and an estimated time to completion.

Think of it the way you track a package: the item has shipped, it is just in transit.

If the tracker shows your transaction as confirmed but the Bitcoin has not appeared in your wallet, check that you are looking at the correct wallet and the correct receive address.

If it is still missing after 2 hours and the tracker shows it as confirmed, call CoinTime support and have your receipt ready.

The TXID on that receipt is what the support team uses to locate your transaction in the system.

The machine rejected your bill

Bill rejectors on ATMs are sensitive.

A bill that is slightly torn, very worn, or folded at the corners will often get kicked back.

Try flattening the bill against a hard surface before inserting it again.

If it still does not take, swap it for a different bill of the same denomination.

Starting with smaller bills like $20s instead of $100s can also help if the machine is being particularly fussy, since the lower-denomination slots tend to have more tolerance.

Whatever you do, do not force a rejected bill back in repeatedly, as this can jam the acceptor and take the machine offline.

You are worried you scanned the wrong wallet address

Before you press confirm, the machine displays the wallet address it is about to send to.

Take five seconds to compare the first four characters and the last four characters on the machine’s screen against what your wallet app shows.

They should match exactly.

If they do not, press cancel immediately.

You can still get your cash back at this point.

If you already confirmed and are now worried, check your wallet’s transaction history.

If the transaction appears there as incoming, even as pending, the address was correct.

If nothing appears and the TXID tracker shows the transaction was sent to a different address than yours, there is unfortunately nothing that can be done.

Bitcoin transactions to the wrong address are permanent and irreversible.

This is why the character check before confirming matters so much.