What Is a Bitcoin ATM?
A bitcoin ATM is an Internet-connected kiosk that allows customers to purchase bitcoins and/or other cryptocurrencies with deposited cash.
A bitcoin ATM is not the same as an automated teller machine (ATM) that allows bank customers to physically withdraw, deposit, or transfer funds in one's bank account. Rather, bitcoin ATMs produce blockchain-based transactions that send cryptocurrencies to the user's digital wallet, often via the use of a QR code.
Key Takeaways
- A bitcoin ATM is a standalone device or kiosk that allows members of the public to buy or sell bitcoin or other cryptocurrencies for a terminal.
- Bitcoin ATMs are connected to the Internet and often utilize QR codes to send and receive tokens to users' digital wallets.
- There are currently more than 14,000 bitcoin ATMs in operation around the world.
Understanding Bitcoin ATMs
A bitcoin ATM allows customers to buy bitcoin and other cryptocurrencies. The use of "ATM" is a misnomer. The machines are not actually ATMs and do not dispense cash. Rather, they are kiosks that connect to the bitcoin network and allow customers to purchase crypto tokens with deposited cash. Bitcoin ATMs are rarely operated by major financial institutions and do not connect customers to a bank account.
Buyers will typically scan a quick response (QR) code corresponding to their own bitcoin wallet address, to which purchased coins are transferred. If the buyer does not yet have a wallet, a new one can be generated. After the purchase, a record of the bitcoin will appear in the customer's wallet, though this may take several minutes to process.
Most bitcoin ATMs will set a lower and upper limit on the cash that can be deposited. All bitcoin ATM operators in the United States must register with the Financial Crimes Enforcement Network (FinCEN) and comply with anti-money laundering provisions of the Bank Secrecy Act (BSA). Depending on the transaction size, the bitcoin ATM may ask you for a mobile phone number to receive a text verification code. Or it may require you to scan government-issued identification, such as a driver's license, before completing a transaction.
Bitcoin ATM Fees
Customers are charged a service fee for using a bitcoin ATM. This fee is typically charged as a percentage of the transaction rather than a fixed dollar value. The Consumer Financial Protection Bureau (CFPB) has warned that fees to use Bitcoin ATMs can be very high, and the exchange rates offered may not be as competitive as what consumers could find elsewhere. Bitcoin ATM operator CoinFlip says its average fee for purchases is about 7% higher than the spot price for Bitcoin.
Bitcoin ATM Locations
Bitcoin ATMs are becoming increasingly popular in the U.S. Coin ATM Radar, which maintains an online directory of Bitcoin ATMs, estimates an installed base of more than 9,000 kiosks in the U.S. as of October 2020.
ATMs are more likely to be owned and operated by companies focused on the cryptocurrency industry. In some cases, a bitcoin ATM may be operated by a company that offers its own trading platform or wallet. These companies may require a customer to have an account in order to conduct a transaction, much like how banks do.
FAQs
Bitcoin ATM fees
Most Bitcoin ATM transaction fees fall between 5 and 15 percent of the total amount. By contrast, it's easy to find online cryptocurrency exchanges with transaction fees of less than 1 percent. In addition to transaction fees, some Bitcoin ATM operators may charge a variable miner fee.
What fees do Bitcoin ATMs charge? ›
Bitcoin ATM fees
Most Bitcoin ATM transaction fees fall between 5 and 15 percent of the total amount. By contrast, it's easy to find online cryptocurrency exchanges with transaction fees of less than 1 percent. In addition to transaction fees, some Bitcoin ATM operators may charge a variable miner fee.
How much does Bitcoin ATM charge for $100? ›
Many bitcoin ATMs charge between 13%-15%. If an ATM charges 15%, you will pay $15 for a $100 transaction. This does not take into account any additional fees like flat fees or conversion fees.
Which Bitcoin ATM has lowest fees? ›
According to our research, some companies charge a fee greater than 30% on Bitcoin ATM transactions, while most of them charge a fee between 16-25%. On average, CoinFlip charges 30% less in fees than our leading competitors. (Data compiled by CoinFlip in February 2023.)
Can I send $10000 through Bitcoin ATM? ›
Minimum amounts vary, but generally start at $20 per transaction, and max out at $3,000 to $10,000 per day. The maximum amount available for daily withdrawal from an Hermes Bitcoin ATM is $10,000 per day.
How much does Bitcoin ATM charge per $50? ›
Selling Options
| Selling Options | Min | Fee |
|---|
| Bitcoin ATM | $50 | 6% |
We apply a 12% exchange fee for all Bitcoin ATM and Teller Window transactions at the time of the customer's purchase.
How much does a Bitcoin ATM charge for $1000? ›
A $1,000 transaction might still cost you around $5. You can also increase the charge for a quicker transaction.
How much does a Bitcoin ATM profit? ›
According to estimates from CoinATMRadar, one Bitcoin ATM machine has the potential to earn up to $3,000 a month (e.g. $36,000/year) with gross monthly revenues of $30,000. This can go even higher with an increase in the volume of transactions. Partners share a percentage of revenues with an operator.
How much can Bitcoin ATM send at once? ›
The amount of money you can transfer from a Bitcoin ATM can vary depending on the machine you are using. Most machines allow for transfers between $1,000 and $4,000 per day. However, some machines may allow for larger transfers, up to $8,000 per day.
We apply a 12% exchange fee for all Bitcoin ATM and Teller Window transactions at the time of the customer's purchase.
How much does it cost to send money through Bitcoin? ›
💡 Bitcoin.com does not charge any additional fees for sending and receiving cryptoassets or for transacting on public blockchain networks. Network fees are paid to the miners/validators of the public blockchains.
How much is Bitcoin charges? ›
Fees may be negotiated based on volume and trade frequency. The purchase and sales prices displayed on the Buy/Sell Virtual Currencies displays a substantial fee between 0.1% and 6.0%.
Can I get Bitcoin in Walmart store? ›
Purchasing Bitcoin at Walmart
If you're wondering where to buy bitcoin when you arrive, head to the Walmart Money Center or Customer Service counter. They're usually located at the front of the store. Once there, give the teller the information you copied from your P2P. Then pay the cashier and keep the receipt.
Can I take cash out of a Bitcoin ATM? ›
Bitcoin ATMs are a way to get immediate access to cash using your bitcoins. Bitcoin ATMs do not operate like traditional ATMs. In order to make a cash withdrawal and sell your Bitcoin from the ATM, the machine provides a QR code to which you send your Bitcoin. You simply wait a couple of minutes and receive your cash.
Does Bitcoin ATM accept cash? ›
Bitcoin ATMs (Automated Teller Machine) are kiosks that allow a person to purchase Bitcoin and other cryptocurrencies by using cash or debit card. Some Bitcoin ATMs offer bidirectional functionality, enabling both the purchase of Bitcoin and the sale of Bitcoin for cash.
Why are Bitcoin ATM so expensive? ›
Crypto ATMs are notorious for charging high fees for transactions. These fees may include a crypto exchange fee, cash exchange fee, or card processing fee (if using a debit card). Transaction fees can be as high as 20% (or more), depending on the ATM and the transaction being processed.
How do I host a Bitcoin ATM? ›
Process Explained
- Buy Bitcoin ATM from chainbytes.com. Choose between Bitcoin ATM models and place the order by adding machines to your Cart and initiating order requests. ...
- Register AML/KYC requirements, (if in USA) with btmcompliance.com. ...
- Secure a steady supply of Bitcoins. ...
- Deploy Machine to Location. ...
- Service Cash.
USA. In the USA, you can generally withdraw up to $900 without undergoing KYC verification. You will have to undergo KYC identity verification for Bitcoin ATM withdrawal limits up to $10,000. You might be able to withdraw more than this with an 'enhanced' KYC procedure, but this is rarely offered.
How much is bitcoin worth right now in USD? ›
Bitcoin Price Chart (BTC/USD)
| 24 Hour High | 24 Hour Low | Market Capitalization |
|---|
| 26,452.48 USD | 25,113.43 USD | 511,418,892,039.62 USD |
The most common ranges seem to be $100-$900 and $1,000-$3,000. KYC verification will typically be required in the $1,000-$3,000 range. You can also purchase up to $20,000 with enhanced due diligence with certain Bitcoin ATMs.
Why is bitcoin sending fee so high? ›
Because most Bitcoin blocks are only 1MB-1.5MB, each block processes a limited number of transactions, leading to long waiting periods and, sometimes, higher fees.
Why is sending bitcoin so expensive? ›
The bitcoin block size is 1MB, which means that miners can only confirm 1MB worth of transactions for each block (one every ten minutes). The fact that only 1.5 million is out there to be mined for future BTC enthusiasts is one of the biggest reason why the price of bitcoins is so expensive.
What is the cheapest way to send bitcoin to someone? ›
Using the Lightning Network is a faster and cheaper way to send and receive bitcoin transactions. There are typically little to no fees involved, and it's used to send smaller amounts of bitcoin.
Why are Bitcoin transaction fees so high? ›
The increased demand for Bitcoin's block space led to the corresponding rise in bitcoin transaction fees. The blockchain backlog got so congested that the crypto exchange Binance paused withdrawals for almost two hours on Saturday, May 6. And this may only be the beginning.
What percentage does CoinFlip charge? ›
The fee for purchasing crypto at CoinFlip Bitcoin ATMs is 15.99%. The Bitcoin blockchain itself has its own fluctuating fee given to the network miners as a reward for processing transactions.
