How does a Bitcoin ATM work? How to Use a Bitcoin ATM? Beginner's Guide 2019

Anisa Batabyal
| 06 May, 2020 | 2 min

Bitcoin ATM, also known as BTM, which stands for Bitcoin Teller Machine, helps in exchanging fiat into Bitcoin unbelievably easy. Bitcoin ATM’s are a quick and convenient process to sell or buy your Bitcoin being anonymous. The best part was that it doesn’t matter whether you want to withdraw 100 dollars or 1000 dollars, there are no lengthy verification processes that need to be completed as per the previous Bitcoin ATM Withdrawal guidelines. But now, the Government has taken a step forward on tightening up the regulations a bit. The users who don’t have a bank account might find the Bitcoin ATMs extremely convenient with high privacy and speed. Some of the ATM’s like Lamassu BTC ATM supports less than 15-second operation, wherein scanning the QR code and sending/receiving will happen.

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Now, let’s go directly to how does a Bitcoin ATM work:

More than half of the Bitcoin ATMs are located in the United States. In order to find the nearest Bitcoin ATM, you must use Coin Radar, which will help you find one, within your vicinity. You can even get other necessary information like buying and selling limits, price of BTM, Bitcoin ATM fees, etc. From Coin Radar, you can even find out which of the other cryptos are being accepted in the ATMs.

The working of ATMs depend on various types of machines, which are as follows:

  • Genesis1 Bitcoin ATM
  • Satoshi1 Bitcoin ATM
  • Satoshi2 Bitcoin ATM
  • Lamassu Bitcoin ATM
  • General Bytes BATM2 (one-way)
  • General Bytes BATM3 (two-way)
  • BitAccess
  • Skyhook
  • Robocoin

These kiosks connect you to an exchange where you can buy or sell Bitcoins. Just scan your public address and put the fiat currency like dollars or Euros or pounds into the machine. If you don’t have a public address, the machine will print a paper for you.

Steps involved in how to use a Bitcoin ATM:

#1 Identity Verification

This is an optional step, and it depends on the ATM or the processor. Some times they might even ask for your mobile number, with an OTP (One Time Password) method, which might be needed in order to proceed. Some of the machines might ask for your Passport or driving license in order to go ahead.

#2 Give BTC Address

After the identity verification, you need to give your Bitcoin address to the machine, so that the machine gets where to send the Bitcoins. You can have any Bitcoin mobile wallets, and it will get transferred there. You can also give your mail id, and receive the Bitcoin by mail. You can print the QR code on a paper, which can act as a paper wallet, after scanning you can get the private key.

#3 Put Your Fiat Money In The ATM

In this step, you insert the fiat money, in exchange for what you need Bitcoin. You can slip the money one by one in the designated area in the Bitcoin ATM machine. But some of the machines accept bulk fiat money insertion as well. Be careful while putting the money in the machine.

#4 Confirm The Amount, Complete The Transaction

This is the last step, wherein after you have done with confirming the amount, you need to proceed with your transaction by clicking or tapping on “CONFIRM”, “BUY” or “FINISH”. The Bitcoin will be sent to the respective address given in Step 2.

Even Bitcoin can be sold using ATMs, where you just have to enter the amount you want to sell, then send the Bitcoin address displayed on the machine screen and finally, cash will be dispensed after that and this is how to withdraw money from Bitcoin ATM. The question is does BTC ATM accept credit cards, whose answer is no as of now, which might change in the near future.

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