Bitcoin ATMs Explained: How They Work and Where to Find Them

Bitcoin ATMs have emerged as an important bridge between traditional cash transactions and the digital world of cryptocurrency. For new investors, buying and selling Bitcoin can sometimes feel complex, requiring online exchanges, bank accounts, and identity verification. However, Bitcoin ATMs provide a fast and convenient way to purchase Bitcoin using cash or debit cards—just like withdrawing money from a regular ATM.

With the growing adoption of cryptocurrency, Bitcoin ATMs are becoming more common in public spaces such as shopping malls, convenience stores, and gas stations. But how do they work? What are the fees? And is using one the right choice for your crypto investment strategy? This guide will explain everything you need to know about Bitcoin ATMs.

What Is a Bitcoin ATM?

A Bitcoin ATM, or BTM, is a physical kiosk that allows users to buy and, in some cases, sell Bitcoin and other cryptocurrencies. Unlike traditional ATMs, which are connected to bank accounts, Bitcoin ATMs are linked to cryptocurrency networks and facilitate blockchain-based transactions.

Bitcoin ATMs generally fall into two categories:

• One-way (Unidirectional) ATMs – These machines allow users to only buy Bitcoin.

• Two-way (Bi-directional) ATMs – These allow both the buying and selling of Bitcoin.

These machines are operated by third-party companies and follow various regulatory guidelines, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, depending on the country or region.

How a Bitcoin ATM Works

Using a Bitcoin ATM is simple and fast, but it works a bit differently depending on whether you’re buying or selling.

How to Buy Bitcoin Using a Bitcoin ATM

If you’re ready to use a Bitcoin ATM, follow these steps:

1. Find a Bitcoin ATM near you – Use websites like CoinATMRadar to locate one.

2. Tap “Buy Bitcoin” on the screen.

3. Verify your identity – Some ATMs require a phone number or ID scan.

4. Scan your Bitcoin wallet QR code – This tells the ATM where to send your Bitcoin.
   Insert cash or pay with a debit card.

5. Confirm your purchase.

6. Receive Bitcoin in your wallet. (This can take a few minutes depending on network speed.)

Once the transaction is confirmed, your Bitcoin will show up in your wallet. Always double-check the amount before finalizing the transaction.

How to Sell Bitcoin Using a Bitcoin ATM

If you need cash in exchange for Bitcoin, here’s how to do it:

1. Find a two-way Bitcoin ATM. (Not all ATMs support selling!)

2. Select “Sell Bitcoin.”

3. Enter the amount you want to sell.

4. Scan the ATM’s QR code with your Bitcoin wallet.

5. Send the Bitcoin to the ATM’s wallet.

6. Wait for confirmation. (This can take 10-30 minutes.)

7. Withdraw cash once confirmed.

Some machines require you to come back later after the transaction is verified, so keep your receipt or redemption code.

What Was the First Bitcoin ATM?

Bitcoin ATMs didn’t always exist. The first-ever Bitcoin ATM was installed on October 29, 2013, in Vancouver, Canada, inside a coffee shop. The machine, operated by Robocoin, allowed people to buy Bitcoin with cash for the first time. It was a success, processing over $10,000 worth of Bitcoin transactions on its first day.

Since then, Bitcoin ATMs have exploded in popularity, especially in the U.S., Canada, and Europe. As of February 2025, there are over 38,000 Bitcoin ATMs worldwide, with more being installed every day.

Bitcoin ATM Fees: What You Need to Know

Now, let’s talk about the catch—Bitcoin ATMs are expensive compared to buying crypto online.

Common Fees at Bitcoin ATMs

• Transaction fees – Typically 4% to 25% per transaction.

• Exchange rate markup – Some machines charge more than the actual market price of Bitcoin.

• Network (miner) fees – Some ATMs charge extra to process the transaction on the blockchain.

For example, if Bitcoin’s market price is $100,000, a Bitcoin ATM might sell it to you at $102,000 and charge a 10% fee on top. That means you’re paying a lot more than what Bitcoin is actually worth.

Pro tip: If you’re buying a large amount of Bitcoin, check an online exchange first—you might save a lot in fees.

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Is a Bitcoin ATM Right for You?

Bitcoin ATMs are convenient and easy to use, especially if you want to buy Bitcoin with cash or don’t have a bank account. But they come with high fees, and you should always be cautious of scams.

Pros of Bitcoin ATMs

• Fast and simple transactions.

• No need for a bank account.

• Good for privacy (some don’t require full identity verification).

Cons of Bitcoin ATMs

• High fees (4-25% per transaction).

• Exchange rate markups.

• Some machines don’t allow selling Bitcoin.

If you just need a quick and easy way to buy Bitcoin, Bitcoin ATMs are a great option. But if you’re looking for lower fees, an online crypto exchange might be the better choice.

Before using a Bitcoin ATM, always check:

• The fees (they vary between machines).

• Whether the ATM supports buying or selling.

• That you’re using a trusted provider.

FAQs About Bitcoin ATMs

Q1: Are Bitcoin ATMs safe?

Yes, but you need to be careful. Use machines from trusted operators, double-check fees before confirming a transaction, and never send Bitcoin to someone you don’t know—scammers often target Bitcoin ATM users.

Q2: Which countries have Bitcoin ATMs?

Bitcoin ATMs are widely available in the United States, Canada, Spain, Germany, Switzerland, and Austria. Some countries have restricted or banned them. If you're unsure, check local regulations or use a Bitcoin ATM locator.

Q3: How much does a Bitcoin ATM charge for $100?

Fees vary depending on the machine, but they typically range from 4% to 25%. If the fee is 10%, you’ll pay $10 in fees and get $90 in Bitcoin. Always check the fee before confirming a transaction.

Q4: Can You Withdraw Cash from a Bitcoin ATM?

Yes, but only at two-way Bitcoin ATMs that support selling Bitcoin. You send Bitcoin to the machine, wait for confirmation, and then collect your cash. Not all ATMs have this option, so check before you go.

Q5: Are Bitcoin ATMs Legal?

Mostly, yes! They’re legal in the U.S., Canada, and most of Europe, but some countries have restrictions. China and the UK have banned them, and some places require ID verification for larger transactions.

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Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.