A routine visit to the mall or convenience store can now include buying/selling Bitcoin and running your usual errands. This has become possible due to the increased accessibility of Bitcoin ATMs.
These machines accept cash and card payments and send the purchased Bitcoin directly to your digital wallet or dispense cash in exchange for your Bitcoin.
Below is a step-by-step guide on how to use a Bitcoin ATM.
Initiating the Transaction
Bitcoin ATMs are not as widespread as cash ATMs. In 2024, estimates suggest approximately 31,000 Bitcoin ATMs are in the U.S. compared to over 500,000 regular ATMs.
As such, you’ll need to find a Bitcoin ATM near you using online directories, such as CoinMover. Although they resemble traditional ATMs, Bitcoin ATMs have a different user interface.
Below are steps to initiate a transaction on these machines:
Choose the Transaction Type and Enter the Amount
You’ll need to choose whether you want to buy or sell Bitcoin. The interface typically displays these options. If you want to buy, the ATM will prompt you to input the amount you wish to spend in fiat currency, specifically USD.
This can be in fixed denominations or a custom amount. If selling, the process involves entering the amount of cryptocurrency you wish to sell.
Enter Your Digital Wallet Address
Enter the digital wallet address where you want your purchased Bitcoin sent. Using your digital wallet app, you can scan the QR code displayed on the Bitcoin ATM screen or type the long string of alphanumeric characters making up your wallet address.
Insert Cash or Swipe Your Card
If you’re buying Bitcoin with cash, insert the desired amount into the machine. For debit/credit card transactions, swipe your card on the designated area of the machine and follow the prompts. The Bitcoin ATM will display the equivalent value in cryptocurrency.
Completing the Transaction
After completing the above steps, the ATM will process the transaction. A confirmation will appear on the screen, showing transaction details, including the amount, fees charged, and the wallet address.
Review the information carefully, keeping in mind that Bitcoin transactions are irreversible once broadcasted to the network. You’ll also be asked to accept the fees incurred when completing your transaction. If everything is accurate, proceed with the confirmation.
Identity Verification
The process may also involve identity verification according to the Know Your Customer (KYC)/Anti-Money Laundering (AML) regulations. These measures are implemented to prevent fraudulent activities and ensure the legitimacy of transactions.
Whether or not this is required depends on the transaction amount, the operator’s policies, and local regulations. You may be asked to:
- Provide a government-issued ID
- Verify your phone number by entering a code sent via SMS
- Provide biometric data
Receiving Confirmation and Receipt
After confirmation and identity verification, the Bitcoin ATM will process the transaction, dispense cash, or send the purchased Bitcoin to the provided digital wallet. You’ll also receive a printed receipt with all the transaction details for your records. Keep this receipt safe, as it serves as proof of your transaction.
You can check the progress and finality of the transaction by feeding the transaction ID provided on the receipt into a Bitcoin blockchain explorer.
The status of the transaction and the number of confirmations will be disclosed. Note that a transaction is considered secure after receiving at least six confirmations on the network.
Tips for a Smooth Bitcoin ATM Transaction Experience
For a seamless and secure experience when using a Bitcoin ATM, be sure to:
- Take necessary precautions to protect your identity and keep your digital wallet secure.
- Know how to access your digital wallet beforehand to save time and avoid mistakes.
- Beware of the current exchange rate for Bitcoin to ensure you are getting a fair deal.
- Research and choose reputable operators.
- Verify the transaction details carefully before confirming to avoid errors.
- Familiarize yourself with the machine’s features before initiating any transactions.
- Research daily or monthly transaction limits as well as limits without an ID.
The Importance of Choosing the Right Bitcoin ATM Operator
Historically, Bitcoin has been associated with illegal activities due to its falsely perceived anonymity and decentralization. As a result, the government, through the Financial Crimes Enforcement Network agency (FinCEN), requires Bitcoin ATM operators to comply with various regulations.
Users should choose compliant operators to avoid fraud or regulatory issues. The lack of central authority controlling Bitcoin also means operators independently determine their fees and other transaction terms.
As a result, fees for buying or selling Bitcoin at different ATMs can vary significantly. Users should compare these details for various operators in their area and read their online reviews. Confirming their user experience, customer support, and security measures is essential.
Buy and Sell Bitcoin With Ease With CoinMover Bitcoin ATMs
CoinMover has a nationwide network of secure, reliable, and user-friendly Bitcoin ATMs. As a registered money services business with the FinCEN, CoinMover abides by all applicable laws and regulations to ensure the security and legitimacy of transactions.
Find a CoinMover Bitcoin ATM near you today and experience convenience and security when buying or selling Bitcoin.