The modern world tends to move away from cash in favor of online payments. Despite this, many of us still have to use cash. And even cryptocurrencies such as bitcoin offer the option to withdraw and top up via familiar ATMs. Bitcoin ATMs are suitable for exchanging cryptocurrency for cash and vice versa.

What is a crypto ATM?

A crypto ATM allows you to buy and sell cryptocurrency using cash or a card. It works by connecting users to cryptocurrency exchanges and their wallets, making it easy to transfer funds. These ATMs are popular and are installed in shopping malls, airports, and stores, but their availability can vary from country to country and region to region.

A bitcoin ATM, or BTM, accepts BTC and other cryptocurrencies instead of cash. You can use the device to sell and buy bitcoin and send funds to other wallets by entering the recipient’s address. BTMs are secure, but it’s important to be careful when entering data due to the irreversibility of transactions. It’s also worth checking the reputation of ATM operators and being vigilant when using the device.

How do Bitcoin ATMs work?

Bitcoin ATMs function differently than fiat ATMs by directly interacting with the blockchain. To use a cryptocurrency ATM, you need a digital wallet and a traditional wallet. The process is simple:  

• insert cash into the machine;
• scan the QR code of your digital wallet or enter its address manually to buy bitcoins; 
• the received cryptocurrency is sent from the ATM operator’s wallet;
• funds are credited to the address you specify after approval from the network.

Commissions for using BTM

Bitcoin ATM operators have different policies on fees, which typically include a flat fee and a percentage fee on the transfer amount. Commissions can range from 10% to 23% and depend on the provider and location. Because of the high fees, it is worth choosing ATMs with lower rates.

It is believed that the growing popularity of cryptocurrencies will provoke an increase in the number of BTMs, which will reduce commissions. There are also service sites available online for finding ATMs with low fees.

Pros and cons of BTM

Why do some users choose to deposit or withdraw funds through cryptocurrency exchanges? Here are their main advantages over traditional exchanges:

1. Bitcoin ATMs provide instant access to cash and allow you to convert digital currency into money immediately. They are located in convenient locations and are open 24 hours a day.
2. BTMs allow you to reserve cash in advance for fast service. Transactions are almost instantaneous, greatly reducing wait times.
3. For small transactions, many ATMs do not require identification, making them accessible even without a bank account. 
4. Bitcoin ATMs use the familiar format of traditional ATMs, making them easy to understand for users.
5. Privacy is an important aspect of cryptocurrency procedures. Users can choose ATMs that do not require identification. Complete anonymity is not always guaranteed due to possible security measures such as cameras or phone number verification.

In general, cryptocurrency ATMs provide convenience and accessibility, but, like any ATM, come with certain risks:

1. Bitcoin ATM fees are often higher than other financial services. This is due to the cost of operating the equipment, rent, and support. 
2. Cryptocurrency ATMs do not provide insurance for funds as traditional banks do. This increases the risk of losses due to technical failures or security breaches. 
3. BTMs have different transaction limits. Larger transactions require KYC verification to comply with AML rules
4. Although the number of Bitcoin BTMs is growing, there are still fewer than online exchanges. Nevertheless, this area has shown a chorus of growth since the beginning of the year, with 1,469 new ATMs installed in the first three months of 2024.

Conclusion

The future popularity of BTM depends on the development of the crypto industry. With the growing popularity and widespread acceptance of cryptocurrencies as a payment method, the number of such ATMs may also increase. While there is a possibility that ATMs may become obsolete, this is unlikely in the next 5-7 years.

To exchange or buy cryptocurrency without BTM, use Quickex service. Fast online exchange of BTC and other tokens is available without registration and KYC directly on the site. 

FAQ

What is a cryptocurrency ATM?

Similar to familiar ATMs, cryptocurrency ATMs allow you to buy cryptocurrency with cash or card. The most common are BTMs, which allow you to buy bitcoin for fiat right at the terminal. 

How do bitcoin ATMs work?

You need to insert cash into the ATM, scan the wallet address by QR code or manually. Wait for the network to approve it and check the funds into your account.

Do bitcoin ATMs have disadvantages?

As in the case with traditional ATMs, cryptocurrency ones have a number of disadvantages. These include fees, limits, and lack of secure transactions at some providers.