Bitcoin ATM Meaning
What Is Bitcoin ATM?
Bitcoin ATM appears and functions similarly to standard bank ATMs (Automated Teller Machines). They provide users convenience and ease to transfer funds, but with a key difference—they are designed for digital assets like Bitcoin rather than cash.
With standard ATMs, you connect a bank account, then enter your PIN to authorize withdrawal from your account, and it will dispense funds as cash. Bitcoin ATMs, on the other hand, need you to have any debit/credit card and a wallet address to receive Bitcoins.
Bitcoin ATMs are operated by third-party service providers, which are registered under government authorities and must follow Anti-Money Laundering laws. A user can only purchase Bitcoin up to a certain amount with cash and may need to provide additional information like a government ID for large amounts.
To use a Bitcoin ATM, first locate one nearest you. As of 2024, there are over 35,000 Bitcoin ATMs all over the world, with 32,180 installed in the United States.
When using a Bitcoin ATM, you’ll likely be prompted to accept the terms and conditions and enter details like your name, address, phone number, etc. for identity verification. You may get a text message on your phone to complete the authorization.
Once verified, select the cryptocurrency you want to purchase, enter the amount and your crypto wallet address, or scan the QR code. You can use either cash or a debit/credit card to complete the purchases.
The operator will send the equivalent Bitcoin to the wallet address, and you will get a receipt. However, a BTC transaction can take anywhere from 10 minutes to hours to confirm, depending upon the network congestion.
Bitcoin ATMs may have higher charges than other buying methods, which often vary based on the individual ATMs and the operator managing them.