Author: John Ma
Carefully! Lots of text.
There are many ways to buy cryptocurrency online, but what if you want to quickly exchange cash for cryptocurrency? Typically, this involves depositing cash into a bank account, registering with the exchange, going through identity verification, funding your account, waiting for exchange approval, and finally completing the swap.
Quite troublesome, isn't it? If only there was a magical vending machine that would dispense Bitcoin in exchange for fiat bills. Good news! This machine is called a Bitcoin ATM, and in this article we will tell you how to use it.
Introduction
Most ways to buy Bitcoin on the Internet involve the transfer of personal data: from KYC/AML verification on exchanges to specifying a card/bank account.
The easiest way to anonymously purchase Bitcoin (BTC) is to use a Bitcoin ATM. In this guide, we'll walk you through the process of buying Bitcoin with cash at a physical ATM, detailing each step before, during, and after your purchase.
What is a Bitcoin ATM
A Bitcoin automated teller machine (ATM) functions in the same way as regular ATMs, which deposit cash into a bank account. A regular ATM takes cash and funds a bank account, giving the customer an IOU that can be used to pay for goods and services.
At a Bitcoin ATM, cash is exchanged for bitcoins, which go directly to the user's Bitcoin wallet. You can also often buy altcoins at Bitcoin ATMs, and at some retail outlets you can sell cryptocurrency for cash!
Want to know how to buy Bitcoin without any hassle? Start by creating an account on Binance.
Preparation
First of all, you need to create a wallet to receive purchased bitcoins. There are many wallets available on Android and iOS devices. In this guide, we will look at buying bitcoins using Trust Wallet as an example, but the process will be similar with other wallets.
You need to find the public address in your wallet app. In most applications, this information is available by clicking the "Get" button. In this tutorial we will use a QR code. If you are using a wallet that supports multiple cryptocurrencies, make sure your public address matches the currency you are purchasing (in our case, BTC).
Global map of Bitcoin ATMs. Source: coinatmradar.com
Now we need to find a Bitcoin ATM and physically get to it. To search, you can use the interactive map on coinatmradar.com, which displays the location of ATMs. Enter your region in the search bar to see ATMs nearby.
Information about specific ATMs. Source: coinatmradar.com
By clicking on any of the icons, you will see information about the location of the ATM and supported currencies. Open details to view quote feed, fee structure, operator details, and other user ratings.
Choose ATMs with good ratings, owner contact information, and information about prices and fees. Do not forget about the existence of counterfeit ATMs - choose only proven options.
Buying coins
So, here we are standing in front of a Bitcoin ATM with a mobile wallet in one hand and cash in the other. Don't rush to press the buttons: first, carefully inspect the device and understand how it works. ATMs may vary slightly in button placement and design, but the basic functions are always the same. In this guide, we will look at buying coins using the ATM pictured above as an example.
On the right is a touch screen with instructions for buying or selling Bitcoin. The screen shows the current price at which the machine buys (about €9,100) and sells (about €9,900) bitcoins. (Note: According to coinmarketcap.com, the total market price of Bitcoin is approximately €9,600 - ATM operators make money from the price difference).
On the left are slots for depositing and receiving fiat money, a receipt printer and a QR code scanner for entering addresses.
Click Buy (remember we are looking for BTC, not altcoins) on the right side of the touch screen (Buy side). At different ATMs, the purchase tab may be located in a different part of the screen - in any case, you need to find the “Buy Bitcoin” option.
Scan the address from your e-wallet using the QR code scanner to credit the purchased bitcoins to that wallet.
Make sure the alphanumeric address displayed by the ATM matches the address in your wallet app exactly.
Insert money into the deposit slot.
Specify the miner fee you want to pay to have the transaction included in the block (note: not all ATMs have this feature). The higher the commission, the faster the transaction will be confirmed.
Confirm your purchase to complete the transaction.
Take the receipt and keep it in case any problems arise.
The transaction will be sent to the Bitcoin network, and the purchased BTC will go to your wallet. Please note that the funds will not immediately appear in the wallet - the transaction will first need to be added to the blockchain. Typically, about six confirmations are required before a transaction is considered “complete.” On the Bitcoin network, one confirmation takes about ten minutes.
After the purchase
After making a purchase, you can track the transaction's processing using a Bitcoin block explorer (such as Blockchain.com) by searching for the receiving address or transaction ID. Depending on the wallet application, funds will be credited to your balance after 5-15 confirmations.
You must receive at least one confirmation within the first hour. If after several hours this still does not happen, contact the ATM owner immediately and find out if there is any technical reason for the delay.
Summary
Bitcoin ATMs offer an easy way to buy Bitcoin with cash. The purchased coins will not be tied to your identity, as is the case with a bank transfer or card payment.
ATM owners make money on the difference between the purchase and sale prices, based on the current market price of Bitcoin, similar to sellers on currency exchanges. Using an online tool like coinatmradar.com can help you find a reliable ATM with reasonable fees.
