How we think about digital assets is shifting, and cryptocurrencies are at the center of this exciting transformation. Just a few years ago, Bitcoin seemed like a bad idea that only tech freaks would dare to invest in.
Now, it has become a popular topic among many Millennials and Gen Zs at dinner tables, coffee shops, and around family gatherings.
But even with the worldwide popularity and momentum Bitcoin has gained, not many people know how to buy or invest in it because the process can be very technical.
Fortunately, Bitcoin ATMs have bridged that gap, and buying Bitcoin isn’t as complicated as it used to be. Even digital asset experts like Gabriella Kusz believe that Bitcoin ATMs are becoming a popular investing avenue for consumers because they offer accessibility in an industry that otherwise still has many technicalities.
So, if you’re looking to buy your first Bitcoin with a Bitcoin ATM but want to understand how these machines work and if it’s safe, then read till the end as we discuss:
- What a Bitcoin ATM is
- How it works
- What to expect
And other tips to keep you safe.
Bitcoin ATMs (BTMs) are machines that let you sell or buy Bitcoin using cash or a debit card. They look like the cash ATMs you see at banks but work differently.
Instead of giving you cash from your bank account, these machines help you exchange your regular money for Bitcoin or get cash by selling your Bitcoin.
Are Bitcoin ATMs Safe?
They are very safe to use. The machines themselves have security systems to protect your money and information. They use special codes (encryption) to keep your details private when sending them over the Internet.
How to Find a Bitcoin ATM Close to You
The simplest way is to either search for “Bitcoin ATM near me” on Google or use a Bitcoin ATM finder website or app.
Websites like Coin ATM Radar or Bitcoin ATM Map let you search for machines in your area. You type in your location, and they show you all the nearby ATMs on a map.
These finder tools also show you
- The exact address of each ATM
- What hours the ATM is available
- What company runs the ATM
- If you can buy only, sell only, or both
- What fees the machine charge
Some ATM companies, like BITSTOP, also have apps and website finders. You can check if they have a kiosk in your neighborhood and use it.
What Fees Should You Expect?
Most Bitcoin ATMs charge between 15% and 30% in total fees. This means if you put in $100 to buy Bitcoin, you might only get $70 to $85 worth after all costs are taken out.
These higher fees pay for the costs of running the physical machine, keeping cash inside it, placing it in a good location, and providing customer service.
Two Types of ATM Fees
Transaction Fee
This is the direct fee the ATM company charges for using their machine. It’s usually shown as a percentage and ranges from 15% to 30%.
Network Fee
The network fee pays for processing your transaction on the Bitcoin blockchain. Every Bitcoin transaction needs to be added to the blockchain by computers around the world, and this fee pays those computers for their work.
Can You Withdraw Cash from The ATM?
Yes, many Bitcoin ATMs allow you to sell your Bitcoin and receive cash, but not all of them. Bitcoin ATMs come in two main types:
One-way Bitcoin ATMs only let you buy Bitcoin by putting cash in. You cannot get cash out of these machines. They’re more common because they’re simpler and cheaper for companies to operate.
Two-way Bitcoin ATMs allow both buying and selling Bitcoin. These machines let you sell your Bitcoin and withdraw cash.
What to Do If a Bitcoin ATM Transaction Fails
Look for the customer service information on the Bitcoin ATM. All legitimate machines have a phone number, email address, or support website. Take a picture of this information if you need to contact them later.
Always get a receipt if the machine offers one. This receipt has essential information, like a transaction number, that will help customer service fix your problem.
Take pictures or notes about what happened, including any error messages on the screen. Also, note the exact time, date, and location of the machine you used.
Contact customer support as soon as possible. Most ATM companies have teams ready to help with problems.
Benefits of Using Bitcoin ATMs
Privacy is a big advantage. While ATMs do require ID for larger amounts, they often need less personal information than online exchanges. You don’t need to link your bank account or provide as many details.
Another benefit is “speed.” You can get Bitcoin in minutes instead of waiting days for bank transfers to clear on online exchanges.
ATMs are also great for people who prefer using cash or don’t have bank accounts. Not everyone is comfortable with or has access to online banking, so these machines provide an important service.
Finally, the machines are simple to use, with touch screens and clear instructions. This makes Bitcoin accessible to people who aren’t tech experts but still want to invest in digital assets.
Wrapping Up
As Bitcoin grows in popularity, these machines will become even more common in stores, malls, and other public places. So, getting used to them now will surely bring its rewards when more businesses start accepting Bitcoin payments in the future.
