Crypto ATMs: everything you should know

A Bitcoin ATM, also called a BTM or crypto ATM, is a physical machine that allows you to buy Bitcoin (and sometimes other cryptocurrencies) with cash or a debit card. Some machines also let you sell crypto and receive cash in return.

Unlike a bank ATM, it doesn't connect to your bank account. Instead, it sends crypto directly to a digital wallet you control. You will typically scan a QR code for your wallet address, insert cash, and confirm the transaction.

Bitcoin ATMs are available in over 80 countries, with the United States and Canada having the highest concentration of machines. In the UK, Bitcoin ATMs were popular; however the FCA (Financial Conduct Authority) made them illegal in 2022.

Here's a simple example. You walk into a convenience store and spot a Bitcoin ATM. You want to buy $50 worth of Bitcoin.

1. Select ‘Buy Bitcoin’ on the touchscreen.

2. Verify your identity if required (some machines ask for a phone number or ID scan).

3. Enter or scan your Bitcoin wallet address.

4. Insert your cash.

5. Confirm the transaction and check the fee.

6. The Bitcoin is sent to your wallet, usually within a few minutes once the blockchain confirms the transaction.

No bank or personal account needed. No exchange sign-up. Just a wallet and some cash.

Crypto ATMs are legitimate in certain jurisdictions. But they come with risks you should know about before you use one.

• High fees: most machines charge between 8% and 20%. On a $200 purchase, that's up to $40 lost to fees.

• Scams: fraudsters often instruct victims to send money via Bitcoin ATMs because transactions are irreversible.

• Wallet mistakes: if you enter the wrong wallet address, your crypto is gone. Always double-check.

• Limited recourse: there is little-to-no customer support to contact if something goes wrong, meaning users can lose their funds with no way to retrieve them.

Regulation varies significantly by country and is tightening in many jurisdictions.

• United States: operators must register with FinCEN as Money Services Businesses and comply with AML/KYC requirements.

• European Union: under MiCA, crypto ATM operators across the EU must comply with standardized crypto-asset regulations.

• United Kingdom: the FCA previously required all crypto ATM operators to be registered, however after outlawing them in 2022, the FCA issued a number of warnings in 2023 that many machines operating were doing so illegally.

Before using a crypto ATM, check whether the operator is registered with the specific country’s relevant financial authority before proceeding. And consider using cash instead of your debit card to avoid it getting swallowed by the ATM.

They look similar, but they work very differently. A regular ATM pulls cash from your bank account. A Bitcoin ATM sends cryptocurrency directly to your digital wallet. There’s no bank involved, fees are much higher, and transactions can't be reversed.

The table below presents a side-by-side comparison for key differences, including output, fees and availability.

Using a crypto or Bitcoin ATM is straightforward once you know the steps. Here’s how to buy Bitcoin:

1. Find a crypto ATM near you (more on this below).
2. Have your crypto wallet ready. You'll need to scan or enter your wallet address.
3. Verify your identity if prompted. Many machines require a phone number; higher amounts may require a government-issued ID.
4. Select the cryptocurrency you want to buy and enter the amount.
5. Review the fee and exchange rate before confirming.
6. Insert your cash.
7. Confirm the transaction. Your crypto will arrive in your wallet once the blockchain confirms it, usually within minutes.

To sell crypto for cash, the process is reversed: you send crypto from your wallet to the machine's address and receive cash in return. Not all machines support selling.

Fees are the biggest drawback of crypto ATMs. The average transaction fee sits between 8% and 20%, compared to less than 1% on most online exchanges.

On top of the percentage fee, you may also encounter:

• Spread – The difference between the market price and the rate the machine offers you.
• Network (miner) fee – A blockchain transaction fee passed on to you.
• Flat fee – Some operators charge a fixed amount on top of the percentage.

Always review the total cost on screen before confirming, most machines show the fee breakdown before you commit. If you're buying crypto regularly, an exchange like Kraken is significantly cheaper and gives you more control.

The easiest way to find a crypto ATM near you is to use Coin ATM Radar. This interactive map displays thousands of available machines worldwide, filterable by cryptocurrency, operator, and transaction type (buy/sell).

Other ways to find crypto ATMs:

• Search ‘Bitcoin ATM near me’ in Google Maps.
• Check Bitcoin.com's ATM finder.
• Visit the operator’s website directly (e.g., CoinFlip, Bitcoin Depot, Lamassu).

Always verify the operator is registered with the local financial authority before using the machine.

Krak Card: See Support Center to check your eligibility.