What Is a Bitcoin ATM and How to Use it?

Global Bitcoin adoption is surging like never before. In 2025, over 37,000 Bitcoin ATMs operate worldwide, with nearly 30,000 in the United States alone. These machines are popping up in bustling cities and quiet rural areas alike. Meanwhile, trailblazing initiatives such as Trump's Strategic Bitcoin Reserves are making headlines. Former President Trump’s move to secure substantial Bitcoin reserves has sparked intense debate and further boosted interest in crypto adoption.

 

This trend is just one part of a larger global movement. Institutional investors are pouring money into Bitcoin, and governments are embracing crypto-friendly regulations. Other countries like Canada, Australia, and several European nations are expanding their networks of Bitcoin ATMs, reflecting a growing demand for decentralized finance solutions. In 2025, Bitcoin is not just a digital asset—it’s a cornerstone of a broader revolution in how we manage and perceive money.

 

Global distribution of Bitcoin ATMs | Source: CoinATMRadar

 

This guide explains Bitcoin ATMs, how they work, how to use them safely, and how they compare with crypto exchanges like KuCoin as a platform for buying and selling BTC.

 

A Bitcoin ATM is a kiosk that lets you buy Bitcoin with cash. It looks similar to a traditional bank ATM. However, it does not connect to your bank account. Instead, it connects directly to your digital wallet.

 

With a Bitcoin ATM, you can deposit cash or use a debit card to purchase Bitcoin. The machine then sends the Bitcoins you bought to your wallet address. Many machines allow you to sell Bitcoin as well. 

 

In short, Bitcoin ATMs give you a fast way to exchange traditional money for cryptocurrency. They are managed by third-party companies and follow strict regulations. In the U.S., operators must register with the Financial Crimes Enforcement Network (FinCEN). This ensures that the machines follow anti-money laundering rules and other security measures.

 

Bitcoin ATMs are equipped with specialized software that connects directly to the blockchain network. These machines integrate with cryptocurrency exchanges and use live price feeds to determine the current exchange rate for Bitcoin. 

 

When a transaction is initiated, the ATM’s system creates a secure, encrypted connection to the blockchain, ensuring that each transaction is recorded accurately and transparently. Additionally, the machine’s backend software communicates with financial networks and regulatory databases to validate identity and verify transactions in real time, thus meeting anti-money laundering (AML) requirements.

 

On the hardware side, Bitcoin ATMs incorporate robust security features similar to traditional ATMs. They include tamper-proof enclosures, secure key management systems, and encrypted data storage to safeguard both user data and the funds being exchanged. 

 

The device’s interface is designed for ease of use while still supporting complex backend processes like blockchain confirmations and transaction fee calculations. This combination of hardware resilience and sophisticated software ensures that Bitcoin ATMs reliably bridge the gap between conventional cash transactions and the decentralized world of cryptocurrencies.

 

Bitcoin ATMs use internet connectivity and blockchain technology to process transactions quickly and securely. The process is straightforward and designed for ease of use. Follow these detailed steps to confidently use a Bitcoin ATM:

 

1. Prepare Your Crypto Wallet: Before heading to a Bitcoin ATM, create a digital wallet using apps like Cash App and Exodus. Your Bitcoin wallet will generate a QR code that contains your Bitcoin address, which is essential for receiving your funds.

2. Locate a Bitcoin ATM: Use an online locator such as Coin ATM Radar to find a nearby machine. Bitcoin ATMs are commonly found in malls, gas stations, and airports. Check the machine’s ratings and details to avoid counterfeit or poorly maintained units.

3. Start the Transaction: At the ATM, you will likely be prompted to enter your phone number. This step verifies your identity and helps track the transaction. For larger amounts, the machine may require scanning a government-issued ID, further ensuring compliance with financial regulations.

4. Scan Your Wallet QR Code: When prompted, hold your phone up to the ATM’s scanner to capture your wallet’s QR code. This tells the machine exactly where to send your Bitcoin once the transaction is completed.

5. Deposit Cash or Use a Debit Card: Insert the cash into the machine or swipe your debit card. The ATM displays the current exchange rate and calculates the amount of Bitcoin you will receive based on your deposit. Ensure you review the rate and fees displayed on the screen.

6. Confirm the Transaction Details: Carefully check all the details, including the amount of Bitcoin and the fees associated with the transaction. Once everything looks correct, confirm the transaction. The ATM will then process your payment on the blockchain, which may take several minutes depending on network congestion.

7. Receive Your Bitcoin and Receipt: After the blockchain confirms the transaction, the Bitcoin is transferred to your digital wallet. You might also receive a printed receipt for your records. This receipt serves as proof of the transaction and can be useful for future reference.

How to Sell BTC Using Bitcoin ATMs

Follow these steps carefully to sell your Bitcoin at a supported ATM securely and efficiently.

 

1. Find a Supported Bitcoin ATM: Use an online locator (e.g., Coin ATM Radar) and set filters to “Crypto → Fiat” to find a nearby ATM that supports sell operations.

2. Verify Your Identity: At the ATM, follow the prompts to verify your identity. This may include entering your phone number, scanning a government-issued ID, or providing biometric data for larger transactions.

3. Select “Sell Bitcoins” Option: Choose the “Sell Bitcoins” function on the ATM’s menu. The machine will guide you through the next steps.

4. Receive the Deposit Address: The ATM will display a unique QR code. This code represents a temporary Bitcoin wallet address provided by the machine where you need to send your BTC.

5. Send Your BTC: Open your digital wallet and send the specified amount of Bitcoin to the QR code address displayed on the ATM screen. Make sure you double-check the address before confirming the transaction.

6. Wait for Blockchain Confirmations: Depending on the machine’s settings, you may need to wait for one or more blockchain confirmations before the sale is processed. This waiting period ensures the transaction is secure and valid.

7. Receive Your Cash: If the transaction is approved, you may receive cash immediately from the ATM. In some cases, the machine might print a receipt with a redeem code. Use this code by selecting “Redeem Ticket” on the ATM to collect your cash.

Bitcoin ATMs offer a range of benefits, especially for newcomers to crypto:

 

• Ease of Use: The steps are simple and clearly laid out. You do not need to understand complex trading platforms to use a Bitcoin ATM.

• Cash-Friendly Transactions: You can buy Bitcoin without needing a bank account. This makes it ideal if you prefer using cash or if you do not have easy access to traditional banking services.

• Fast Transactions: Most transactions occur in minutes. You do not have to wait for lengthy bank transfers or online verification processes.

• Enhanced Privacy: For small transactions, Bitcoin ATMs may not require extensive personal information. This offers more privacy compared to some online exchanges.

• Wide Accessibility: Bitcoin ATMs are often found in public places like shopping centers, gas stations, and airports. This makes them accessible even if you are not tech-savvy.

When buying Bitcoin, you have several options. Two popular methods are using a Bitcoin ATM and trading on a crypto exchange like KuCoin. Both options have their unique advantages and limitations. Below is a comparison to help you decide which method suits your needs best.

 

 

Bitcoin ATMs let you use cash and avoid banks. However, there are drawbacks. Fees at Bitcoin ATMs are high. They can charge between 7% and 20% per transaction. This fee can eat into your investment.

 

Crypto exchanges like KuCoin offer an alternative. They charge lower fees. Online exchanges usually charge between 1% and 4%. For instance, KuCoin provides a secure platform for buying Bitcoin and over 800 other cryptocurrencies. You get better exchange rates on exchanges. The process is streamlined, and you have access to many trading tools.

 

Here’s more information on how to buy your first Bitcoin on KuCoin.

 

Exchanges like KuCoin also offer more features. You can trade multiple cryptocurrencies beyond Bitcoin, giving you an option to diversify your crypto portfolio and trade the market’s volatility in a more convenient manner. You get access to charts and analysis tools. Cryptocurrency exchanges also support a wide range of payment methods. This makes buying Bitcoin more flexible.

 

Many people start with Bitcoin ATMs for simplicity. As you learn more, you might move to a crypto exchange. This shift can help you save money. It also opens up more trading opportunities. Even if you try a Bitcoin ATM first, consider using a trusted exchange later.

 

Both options have benefits. Bitcoin ATMs provide privacy and convenience. Crypto exchanges offer lower trading fees and advanced trading features. Weigh these factors based on your needs.

 

Explore the top ways to buy Bitcoin in 2025. 

 

Bitcoin ATMs come with certain drawbacks and risks. It is important to understand these before using one:

 

• High Transaction Fees: Bitcoin ATMs charge fees that can range from 7% to 20%. This extra cost can reduce the amount of Bitcoin you receive.

• Limited Cryptocurrency Options: Most Bitcoin ATMs only allow you to trade in Bitcoin. If you want to buy other cryptocurrencies, you will need to use a crypto exchange.

• Mandatory Identity Verification: Many machines require you to provide personal details or scan a government-issued ID. This requirement can compromise your privacy.

• Potential for Scams and Fraud: Fake or poorly maintained Bitcoin ATMs exist. Scammers may target these machines to steal your money. Always verify the machine’s authenticity and check online reviews.

• Transaction Limits: Bitcoin ATMs often impose limits on how much cash you can deposit or withdraw in a single transaction. This may restrict you if you need to process large amounts.

• Blockchain Confirmation Delays: Bitcoin transactions require blockchain confirmations. During periods of high network traffic, confirmation times can be longer than expected.

Bitcoin ATMs offer a simple way to enter the world of cryptocurrency. You can quickly buy Bitcoin using cash, even without a bank account. The process is user-friendly and accessible in many public locations. However, high fees and potential security risks are significant drawbacks.

 

Crypto exchanges like KuCoin offer lower fees, a wide range of trading options, and advanced features that can benefit both beginners and experienced traders. They require online access and more rigorous verification processes, but the cost savings and additional benefits can make them a better option for many users.

 

Remember, every investment comes with risk. Bitcoin ATMs and crypto exchanges both have their strengths and weaknesses. Always do your research before making a decision. Stay safe, verify your sources, and choose the method that best fits your needs and risk tolerance.

 

• Best Bitcoin Wallets in 2025

• Bitcoin Lightning Network: All You Need to Know

• What Is Solv Protocol (SOLV) for BTC Staking and On-Chain Bitcoin Reserve?

• The History of Bitcoin Bull Runs and Crypto Market Cycles