How to Use a Crypto ATM: A Beginner’s Step-by-Step Guide

Bank cards get declined, crypto exchanges take time to verify your identity, and sometimes you just want to use cash. That’s where Bitcoin ATMs come in.

With over 37,000 machines worldwide, Bitcoin ATMs let you buy Bitcoin and other cryptocurrencies instantly using cash or a debit card. Found in convenience stores, shopping malls, and airports, they work like regular ATMs – but connect directly to the crypto network instead of a bank.

Most transactions take under five minutes, making them ideal for quick purchases, private cash transactions, or access to crypto while traveling. In this guide, you’ll learn how to use a Bitcoin ATM, how to find one nearby, and how to avoid common mistakes.

What Is a Crypto ATM?

A crypto automated teller machine (ATM), or Bitcoin ATM, is a physical kiosk that bridges the gap between cash and digital currency. These machines process transactions directly on the blockchain, connecting to cryptocurrency exchanges instead of traditional banking networks. Think of them as specialized vending machines for Bitcoin and other digital assets.

How Crypto ATMs Differ From Traditional ATMs

Traditional ATMs verify your identity through your bank card, check your account balance, and dispense cash from your existing funds.

Crypto ATMs skip the banking system entirely. They take your cash, buy cryptocurrency at current market rates through partner exchanges, and transfer those digital assets to your wallet address. In short:

• Traditional bank ATMs pull money from your bank account.
• Crypto ATMs send digital currency to your wallet. No bank involved, no account required.

Another important difference to consider is the fee structure. Crypto ATMs charge higher fees of around 5% to 20% per crypto transaction. The convenience of instant cash-to-crypto conversion comes with a significant markup, at least while traditional bank ATMs remain the gold standard.

Types of Crypto ATMs: One-Way vs Two-Way

• One-way ATMs handle purchases only. Insert cash, receive cryptocurrency. These represent the majority of machines currently deployed. Simple, straightforward, and focused on getting people into crypto quickly.
• Two-way ATMs work in both directions. Buy crypto with cash, or sell crypto for cash. When selling, you send digital currency from your wallet to the machine’s address and collect physical bills in return. More versatile, but also more complex to operate and maintain.

How Do Bitcoin ATMs Work?

Bitcoin ATMs work pretty much the same as regular bank ATMs. When you insert money into a crypto ATM, that machine immediately contacts cryptocurrency exchanges to buy Bitcoin at current market prices. The ATM itself never holds any digital currency – it’s essentially a specialized computer that processes the order.

Most machines partner with multiple exchanges simultaneously, hunting for the best available rates while you wait. That behind-the-scenes exchange shopping happens in seconds, though you won’t see any of the price comparison logic. You’ll just see the final amount of Bitcoin you’re getting for your cash.

How Transactions Are Processed on the Blockchain

Once the ATM confirms your purchase, it starts a blockchain transaction to send Bitcoin to your wallet. This isn’t instant – blockchain networks need time to verify and confirm your transaction. Bitcoin transactions typically take 10-60 minutes, depending on network traffic, though the ATM will show the transaction as “pending” almost immediately.

The machine prints a receipt with your transaction ID, which you can use to track the transfer on any blockchain explorer. During busy periods, especially when Bitcoin prices are moving fast, confirmations can queue up and take longer than usual.

Understanding Fees and Exchange Rates

Crypto ATMs make money through markup, not transaction volume, that’s why Bitcoin ATMs charge fees that are higher than crypto exchanges. Most machines charge 5% to 20% per transaction, whereas online exchanges typically charge around 0.1% to 1.5%. That markup breaks down into several components:

• Exchange rate markup
• Service/processing fee
• Network (blockchain) fee

Buying crypto costs more than selling it (when available). Two-way ATMs typically charge 8-15% for purchases versus 5-10% for sales. The machines display these fees upfront, but the total cost can still surprise first-time users.

Security and Identity Verification Steps

Crypto ATMs implement Know Your Customer (KYC) requirements that scale with transaction size. Smaller purchases might only require phone verification via SMS, while larger amounts trigger more extensive checks:

• Phone number verification via SMS
• Government-issued ID scanning
• Biometric verification, like facial recognition

The machines encrypt all personal data and transaction details, though they’re still physical targets in public locations. Most crypto ATMs sit in monitored areas with security cameras, but the machines themselves become attractive targets for both thieves and scammers looking to exploit new users.

When to Choose Crypto ATMs

Speed wins when you need cryptocurrency now. Walk up, insert cash, leave with Bitcoin in just a few minutes. No account setup, no waiting for bank transfers to clear, no lengthy verification processes that can stretch for days.

Cash transactions appeal to people who don’t want their crypto purchases tied to bank records. For smaller amounts, many machines require minimal personal information, just a phone number for SMS verification. That level of privacy doesn’t exist with traditional exchanges.

Accessibility matters more than most people realize. If you don’t have a bank account or prefer avoiding online financial services, crypto ATMs provide the most direct path from physical currency to digital assets. The machines show up in everyday places: convenience stores, shopping centers, and airports. No special apps, no complex interfaces.

Choosing Between Crypto ATMs and Online Exchanges

Use crypto ATMs when you need cryptocurrency immediately, and the premium doesn’t matter. They make sense for cash-preferring users, privacy-conscious buyers of small amounts, or anyone without easy access to traditional banking.

Choose online exchanges when fees matter more than speed. If you’re buying regularly, trading multiple cryptocurrencies, or investing larger amounts, the cost savings add up quickly. Most exchanges also offer better security features, insurance, and customer support.

The decision boils down to your priorities: pay more for convenience and speed, or accept complexity for better pricing and selection.

Bitcoin ATMs vs. Online Exchanges

Bitcoin ATMs are great when you need fast, local, in-person access to crypto – especially if your bank card is declined or you want to pay with cash. But for most everyday buyers, online exchanges are the more practical (and affordable) option.

Bitcoin ATMs

• Buy with cash or a debit card
• No account required (in most cases)
• Instant transactions
• Higher fees
• Limited coins & purchase limits
• Must travel to a physical machine

Online Crypto Exchanges (like Paybis)

• Buy Bitcoin and other cryptos instantly with card, bank transfer, Apple Pay, or Google Pay
• Lower fees and better rates
• Access to 100 cryptocurrencies
• Higher purchase limits
• No need to leave your home
• Full transaction tracking and support

How to Use a Crypto ATM: Step-by-Step

Using a crypto ATM for the first time might feel intimidating, but the process is more straightforward than most people expect. Here’s exactly what you need to do, broken down into manageable steps.

• Step 1. Set up your Bitcoin wallet: Download a digital wallet before you go, make sure to get a strong password, and write down your recovery phrase. It’s the only way to restore your wallet if needed.
• Step 2. Locate a crypto ATM nearby: Use an online tool like CoinATMRadar, Bitcoin ATM Map, Google Maps, or an ATM operator’s website, like Bitcoin Depot, to find the nearest crypto ATM to you. Check the ATM’s working hours before you go – some might be closed for maintenance.
• Step 3. Choose buy or sell option: The ATM will ask if you want to buy or sell cryptocurrency. Most ATMs are purchase-only, but some let you cash out too. Read the terms of service before accepting – all fees are usually listed there.
• Step 4. Scan your Bitcoin wallet’s QR code: Open your wallet app, tap “Receive,” and scan the QR code at the ATM scanner. This tells the machine where to send your crypto. Make sure it’s correct – transactions can’t be reversed.
• Step 5. Insert cash: To buy crypto, insert your cash one bill at a time. The machine will display the amount of crypto you’ll get and the fees you’ll pay. To sell crypto, send it from your wallet to the ATM’s QR code, and double-check the address before you confirm.
• Step 6. Confirm and get the receipt: Check all details, amount, wallet address, and fees before you confirm. Save your printed or emailed receipt. The transaction ID lets you track it on the blockchain, and your crypto should arrive within minutes.

The entire process typically takes less than ten minutes.

Finding the nearest Bitcoin ATM

Tracking down a crypto ATM is now much easier than it used to be. Coin ATM Radar maintains up-to-date directories of Bitcoin ATMs worldwide. Type in your location, and you’ll see every machine within driving distance – fees, supported cryptocurrencies, and operating hours included!

Common Locations Where You Can Find Crypto ATMs

Crypto ATMs are usually placed in busy, visible spots where people go to handle money. Some of the most popular places include:

• Convenience stores and gas stations
• Shopping malls and retail centers
• Grocery stores and pharmacies
• Restaurants and bars
• Hotels and travel hubs

These aren’t random choices. Each location offers steady foot traffic, extended hours, and the kind of environment where a quick financial transaction feels natural. The goal is to make crypto as accessible as buying a lottery ticket or withdrawing cash for parking.

Where and How to Search for Nearby Crypto ATMs

• Dedicated ATM maps: Online tools and similar aggregators are the most reliable; they show location, operator, fees, transaction limits, supported coins, and live status (if available).
• Google Maps or Apple Maps: Good for quick lookups and directions; check recent reviews and “popular times.” Search for “Bitcoin ATM,” “BTC ATM,” or the operator’s name.
• Operator locators: If you prefer a specific operator (e.g., major national providers), check their website for an official map – those often have the most up-to-date status.
• Local crypto communities: Telegram groups, Reddit city subs, or local meetups sometimes report newly installed/out-of-service machines.

Summing Up

Crypto ATMs offer a fast, convenient way to buy Bitcoin and other cryptocurrencies with cash, no bank or exchange account required. While fees are higher than online platforms, they’re ideal for quick, in-person transactions.

Set up a wallet beforehand, verify machine details, and double-check every step to avoid mistakes. Use crypto ATMs for speed and accessibility, and exchanges when you want lower fees and more options.

Written by

Alanta Kaminskaite

Alanta is a tech journalist and content writer specializing in cybersecurity, blockchain, and emerging technologies. With over four years of experience in global IT companies, she brings clarity and depth to complex topics across FinTech and digital assets. At Paybis, she creates educational content that helps businesses and individuals navigate the fast-changing world of crypto and digital payments.