Bitcoin ATMs (Automated Teller Machine) are kiosks that allows a person to purchase Bitcoin and other cryptocurrencies by using cash or debit card. Some Bitcoin ATMs offer bi-directional functionality enabling both the purchase of Bitcoin as well as the sale of Bitcoin for cash. In some cases, Bitcoin ATM providers require users to have an existing account to transact on the machine.
There are two main types of Bitcoin machines
- unidirectional (one-way)
- bidirectional (two-way)
Only about 30% of all crypto ATMs worldwide are bidirectional, and less than 23% in the U.S. Both types are connected to the Internet, allowing for cash purchase and/or sale of Bitcoin. Some machines use a paper receipt and others move money to a public key on the blockchain. Bitcoin cash kiosks look like traditional ATMs, but do not connect to a bank account and instead connect the user directly to a Bitcoin wallet or exchange. While some Bitcoin ATMs are traditional ATMs with revamped software, they do not require a bank account or debit card. On average, transaction fees are 10-20% but can go as high as 25% and as low as 7%.
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