Bitcoin ATM

Despite the name, a Bitcoin ATM does not link to a bank account or dispense cash the way a traditional cash machine does. It is a standalone kiosk, usually run by a private crypto business, that lets a customer insert cash (or, less often, a debit card) in exchange for a small amount of Bitcoin (BTC) or another supported coin sent straight to a scanned wallet address, or sell crypto back for fiat cash.

Most kiosks worldwide are "buy-only": a user inserts cash, scans a wallet QR code, and the coins arrive on-chain once the network confirms the transaction, typically within half an hour. Two-way machines that also allow selling crypto for cash exist but are far less common, and they usually hold the payout until at least one confirmation clears.

The convenience comes at a cost. Operators build a markup into the displayed exchange rate, often a high single-digit to twenty percent spread depending on the machine and location, on top of flat service and network fees. That is well above the cost of a typical online exchange, so Bitcoin ATMs suit small, occasional cash conversions rather than regular trading.

Regulation has tightened as installation growth has leveled off. Operators increasingly require photo ID and impose daily purchase limits, and several jurisdictions have capped transaction sizes or paused new licenses after a wave of scams in which fraudsters, posing as government agents or tech support, pressured victims into feeding cash into a nearby machine. Anyone told to use a Bitcoin ATM by an unsolicited caller should treat it as a serious warning sign.