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Today, the popularity of the bitcoin ATM business is growing rapidly due to the improved technology, increased functionality of devices and, above all, the increased demand for this service. Therefore, many entrepreneurs are interested in this particular industry.
The first Bitcoin ATM was called Robocoin. It was commissioned on October 29, 2013, in Vancouver, and processed over 1,000,000 Canadian dollars in the following months. There are currently 4 Bitcoin ATMs in the USA, 4 in Canada, one in the UK and one in Singapore, and the number is constantly increasing. Lamassu and BitAccess were the next manufacturers to take the lead. What other Bitcoin ATMs are there? Find out in this article!
How Does Bitcoin ATM Work
Although there are countless types of ATMs from different manufacturers, they all mostly work the same way.
A Bitcoin ATM is connected via the Internet to the Bitcoin blockchain via the Internet and gives the user the address to which the cryptocurrency has been transferred (in both the usual way and in the form of a QR code). At the same time, cryptocurrency is transferred from one of the wallets of the company that owns the ATM.
Usually, 2 main options are available for users:
Whether the Bitcoin ATM could be used anonymously or not depends on the legal requirements of the country where it is installed. Although in some jurisdictions they can be used anonymously, in most cases the ATM camera takes a picture of the user’s face, and sometimes the client is required to show their ID to the camera.
Even if some companies offer the possibility of using an ATM anonymously, users should not forget about the lack of complete anonymity of bitcoin itself, as transactions can be tracked and a wallet can be linked to a specific person.
In most cases, ID documents are not required, but in some states in the US and parts of Canada clients have to allow a Bitcoin ATM to scan their driver’s license or another form of an identification document.
The commission fee in a Bitcoin ATM depends on the pricing policy of the operator company. In most cases, it is 7-9% of the transaction amount.
Bitcoin ATMs do not usually support credit cards, since the user can later request a chargeback, and it is impossible to cancel a transaction on the Bitcoin blockchain.
There are some Bitcoin ATMs in the US that allow the purchase of bitcoin using a credit card, but there are only a few dozen of them. The vast majority of Bitcoin ATMs works exclusively with cash.
According to data provided by the Bitcoin ATM Map, the installation speed of new ATMs has been growing since 2018. There are now 5,914 ATMs in total, of which more than 3,000 are located in North America.
How to Buy or Sell Bitcoin Using ATM
When buying crypto, you will need to deposit cash in the currency you’re buying with. Then, the amount will be converted into the equivalent in BTC and after a while, it will be credited to the previously entered wallet, or you will need to create one if you don’t have it or the machine requires you to make a new one.
When withdrawing funds, you need to show the address of your wallet by bringing it closer to the QR code scanner on the machine, and then enter the equivalent of bitcoin that you want to sell by converting it into fiat.
There are several security procedures for each operation. You may be asked to enter a PIN code, which will be sent to the mobile phone number that you entered earlier or to confirm your identity by scanning your ID or taking a selfie.
The steps you need to follow vary depending on which model of crypto ATMs you’re using, but the general algorithm is as follows:
- Pass verification. In most cases – using an SMS code, but there are options with scanning ID cards and even fingerprints. The verification step is not present for some models.
- Enter the bitcoin address to which you want to transfer funds. This is done either using the keyboard (and then you need to be careful to avoid typos) or using the QR code generated by the wallet application. Some terminals allow you to generate new addresses and keys, but it is better not to rely on this function.
- Deposit cash.
- Confirm the operation.
You can even buy a Bitcoin ATM. The terminal itself is $ 3,000 to $ 8,000 depending on the model, but other fees (delivery, installation, taxes, fees, and so on) bring the “starting” cost up to 10-15 thousand dollars per terminal.
You can buy bitcoin ATMs in either specialized online stores or directly from one of the four dozen manufacturers.
Best BTC ATM
There are many types of Bitcoin ATMs, offering various features. As you can see below, there are quite a few ATM manufacturers, for example, General Bytes, Genesis Coin, Lamassu, BitAcess, and others. We will highlight only the best Bitcoin ATMs in this review.
Using this Bitcoin ATM you can buy Bitcoin for cash in more than 200 countries around the world. The ATM takes a 7% commission fee. As for verification, you only need the QR code of your Bitcoin wallet to make a transaction.
They produce four ATM models: Gaia, Sintra, Sintra Forte, Douro II (the latest one).
At the moment, Lamassu has already sold more than a hundred of these terminals; they are scattered all around the world.
How to buy crypto at a Bitcoin ATM made by Lamassu?
- Scan your Bitcoin wallet
- Insert cash
- Click “Send Bitcoins”
#2. Genesis Coin
Genesis1 is the most popular crypto ATM produced by the Genesis Coin Corporation, and, as it features the AML/KYC verification procedure, users have to remember to have a passport with them. Additionally, upon request, an additional fingerprint scanner, the ability to run verification checks via SMS, an ID card reader and a high-definition camera can be added to the machine to comply with applicable legal standards.
The ATM supports three cryptocurrencies: Bitcoin, Litecoin and Dogecoin. Cash withdrawal is limited to $6800. The price of one terminal is $14,500.
#3. General Bytes
The Czech company General Bytes has been ranked second for the number of implemented crypto machines. The majority of their ATMs are located in Europe due to the geographical location of the company’s headquarters.
There are two Bitcoin ATMs in the General Bytes product line: BATMTwo and BATMThree. Both are based on the Android operating system. In addition to having to complete the KYC/AML procedure, the client must also provide their email. User verification is carried out by operators and takes about 15 minutes.
BitAccess is a Canadian Blockchain company producing Bitcoin ATMs that allow clients to deposit cash and instantly receive a digital wallet containing the equivalent in Bitcoin, or exchange Bitcoin for fiat currency. The ATMs are spread around the world. Click here to find your nearest BitAccess ATM.
How to use a BitAccess ATM?
- Click Start
- Enter the phone number and click “Proceed”
- Enter the verification code sent to your mobile number
- Scan the QR code of the BTC address to which you want to receive BTC
- Deposit money and continue
- Coins will be sent to your BTC address
Coinme is a leading blockchain company. It helps the world gain access to digital currency. Coinme became the first state-licensed Bitcoin ATM operator in the U.S. and now, through their partnership with Coinstar, operates one of the largest bitcoin kiosk networks in the world.
How to purchase BTC with a Coinme Kiosk?
- Insert ID to Create Wallet
- Purchase Bitcoin with Cash
- Manage In Coinme Wallet
Bitcoin ATM Near Me
Is there a Bitcoin ATM near you? You can check on the CoinAtmRadar website, where it is possible to view a map with all the ATMs where you can buy and sell cryptocurrencies.
Using this service you can:
- Explore the Bitcoin ATM Map
- Locate the nearest crypto ATMs
- Get all the necessary data about that ATM (commission fees, limits, whether it is only purchase, only sale or purchase/sale)
- Get directions from your location to the selected ATM
Most Bitcoin ATMs are located in the United States and Europe. The leader for the number of crypto ATMs in Europe is the UK.
Using Bitcoin ATMs is very simple, especially if there is one near you.
Please note that some ATMs may require you to scan identity documents and may also request a phone number for KYC purposes. However, that usually happens when operations are performed with a large number of cryptocurrencies.
As it has been mentioned previously, there are quite a few crypto ATMs in the world, some of which only allow buying bitcoins, some, only selling them. There are very few ATMs which can perform both types of operations.