Bitcoin atm machine on city street at night

Bitcoin ATMs are spreading across city streets worldwide, offering instant purchase and sale of the cryptocurrency.

About this subject

Bitcoin ATMs (BTMs) are physical terminals that allow users to buy or sell bitcoin using cash or a debit card. Unlike a traditional ATM that deals with fiat currency, a BTM connects to a cryptocurrency exchange to execute the transaction. The first bitcoin ATM was installed in 2013 at the Waves Coffee House in Vancouver, Canada. Since then, the global number of BTMs has grown exponentially, surpassing 38,000 units in 2024, according to Coin ATM Radar. The United States leads in quantity, with over 30,000 machines, followed by Canada, the United Kingdom, and Spain. In Brazil, adoption is still modest, with about 50 BTMs spread across capitals such as São Paulo, Rio de Janeiro, and Brasília, often located in shopping malls or convenience stores. The machine typically requires a simple registration, such as a phone number or CPF identity verification, to comply with anti-money laundering regulations. A notable fact: transaction fees at BTMs are usually higher than on online exchanges, ranging from 5% to 15%, which has drawn criticism regarding affordability. Nevertheless, BTMs are popular among tourists and unbanked individuals for offering relative privacy and speed. The nighttime street lighting in the image reflects the 24-hour nature of these terminals, which operate independently of business hours.

Frequently Asked Questions

How does a bitcoin ATM work?

The user selects buy or sell bitcoin, inserts cash or a card, and the machine executes the transaction through an exchange. To buy, bitcoin is sent to a digital wallet provided by the user. To sell, cash is dispensed or deposited into an account.

How much does it cost to use a bitcoin ATM?

Fees range from 5% to 15% of the transaction amount, depending on the operator and location. Some BTMs also charge an additional fixed fee. It is advisable to check fees before transacting.

Is it safe to use a bitcoin ATM?

Yes, as long as the machine is from a trusted operator and located in a safe place. The transaction is encrypted, but users should protect their digital wallet and avoid sharing sensitive data. Verify that the BTM is licensed and complies with local regulations.