You can buy Bitcoin and other cryptocurrencies with cash or credit from one of the thousands of Bitcoin ATMs around the world. Many Bitcoin ATMs also enable you to sell bitcoin and receive cash. This article provides an overview of the process.
Using a Bitcoin ATM is one of several ways to buy and sell bitcoin.
Use the multichain Bitcoin.com Wallet app to safely store and manage Bitcoin and other cryptocurrencies you purchase from a Bitcoin ATM. You can also quickly buy crypto in the app using credit card and a range of other payment options. You can also use the app to sell bitcoin and other cryptocurrencies, and receive cash in your bank account.
Buying bitcoin from a Bitcoin ATM
There are three steps to buy bitcoin from a Bitcoin ATM:
Step 1: Get a Bitcoin wallet
When you buy bitcoin for the first time, the first thing you’ll need is a place to store it. A Bitcoin wallet is a digital tool that allows users to store, send, and receive bitcoin securely. Creating a Bitcoin wallet is as easy as installing an app, like the Bitcoin.com Wallet app, on your mobile device or laptop/desktop.
When you install the app, your Bitcoin wallet is automatically created. You can then receive bitcoin to your wallet immediately, store it safely, and use it as you please.
Step 2: Find a Bitcoin ATM near you
There are over 35,000 Bitcoin ATMs globally. Most of them are in the United States, and there are some countries and regions that don’t have Bitcoin ATMs.
Step 3: Buy bitcoin from the ATM
The process for buying bitcoin from an ATM is typically something like this:
- Enter the amount to purchase. Depending on local regulations and the amount you are purchasing, you may be required to verify your identity.
- Provide your Bitcoin wallet address. You will do this by using the Bitcoin ATM’s camera to scan the QR code of your Bitcoin wallet address that is displayed in your Bitcoin wallet app.
- Pay. In addition to cash, you may be able to pay with credit card, payment app, etc.
- Receive the bitcoin in your Bitcoin wallet. This generally takes a few minutes. The Bitcoin ATM will provide you with a transaction ID that you can use to monitor the status of the purchase. You will see a confirmation in your Bitcoin wallet app when you have received the bitcoin.
Selling bitcoin for cash at a Bitcoin ATM
The process for selling bitcoin for cash at a Bitcoin ATM is typically something like this:
- Enter the amount to sell. Depending on local regulations and the amount you are selling, you may be required to verify your identity.
- Send bitcoin to the provided address. The Bitcoin ATM will generate a Bitcoin address for your transaction. You can scan the QR code of the provided address and send the bitcoin to that address using your Bitcoin wallet app.
- Take your cash. Once the Bitcoin ATM receives the bitcoin, it will dispense your cash. This generally takes a few minutes, and you can monitor the status of the transaction using your Bitcoin wallet app.
What are the fees to use a Bitcoin ATM?
The fees for using a Bitcoin ATM vary and are usually determined by several factors. These can include the operator’s fee and the Bitcoin network fee required to complete the transaction.
The full cost of your transaction will be displayed on the screen before you confirm the purchase or the sale. This allows you to review the exact fees you’re paying and decide whether to proceed before any transaction is made.
Why might the ATM need your ID?
In some countries, Bitcoin ATM operators are legally required to verify customer identities for larger transactions. This may involve scanning a government-issued ID or providing additional personal information, similar to a KYC verification on an online crypto exchange.
These requirements are in place to prevent fraud and money laundering. For smaller purchases, identity verification may not be required.
Advantages and disadvantages of using Bitcoin ATMs to buy and sell bitcoin
The main advantages are:
- Speed/Convenience. For small amounts, you may be able to buy/sell quickly and without verifying your identity. This is particularly relevant when it comes to selling bitcoin for cash. With a Bitcoin ATM, you can receive cash in minutes. With other options, it generally takes 1-3 days to receive the money in your bank account.
- Using cash. Besides face-to-face transactions, Bitcoin ATMs are the only way to buy and sell Bitcoin using physical cash notes.
The main disadvantages are:
- Fees. Bitcoin ATMs generally charge higher fees than other buy/sell options. For most of them, fees typically start at around 5% of the purchase/sale amount.
- Limits. Bitcoin ATMs typically have lower maximums for the amount you can buy or sell at one time.
