How to Use a Bitcoin ATM: A Guide for Beginners

Bitcoin is no stranger to news headlines. This cryptocurrency is a revolutionary piece of technology that launched a financial revolution back in 2009.

While many of its early headlines had claimed bitcoin was a scam, most of its current headlines declare its success, longevity, and desirability.

Bitcoin and the global crypto market are here to stay. And the sooner you accept that and start investing in bitcoin yourself, the better off you’ll be.

Wondering how to use a bitcoin ATM, so you can buy bitcoin with cash in a matter of moments? It’s easier than you think.

Keep reading our guide below to learn the ins and outs of a bitcoin ATM so you can go from no-coiner to bitcoin pro today. 

Bitcoin for Beginners; Research Coins to Buy

Before you head to a bitcoin ATM, you need to understand the different cryptocurrencies available and decide which one(s) you want to buy. 

Of course, any bitcoin ATM, like a Coinflip bitcoin ATM, will offer bitcoin as its primary offering. But most also offer other cryptocurrencies as well. Ethereum, the second most valuable cryptocurrency, is usually offered.

And other popular cryptos that are used in daily life, like LiteCoin, Bitcoin Cash, Ripple, and a number of others are also available on these crypto ATMs.

They offer a rather small number of cryptocurrencies. There are currently many thousands in existence, with new ones popping up daily. 

But for the savvy investor, there’s only a handful of coins worth putting money into. Most of the lower cap cryptocurrencies offer a high-risk, high reward scenario that leads to a lot of lost money.

The bigger coins, such as those in the top 100 by market cap, are a much safer bet. 

Set a Bitcoin Budget

Before you start buying, it’s important to set a budget. You want your bitcoin buys to be part of your overall investing strategy. Because buying bitcoin is so easy, it’s tempting to just keep buying it.

While that’s a good thing, you should spread your purchases out over time, otherwise known as dollar-cost averaging. This method of smaller purchases over time ends up being better for most people, helping you to avoid buying everything at the top of the market and losing money when it drops again. 

If you plan to buy on a regular basis, set a weekly or monthly budget before visiting that crypto ATM on your way home from work. Then you can buy in confidence and not fear the tumultuous crypto market as much. 

Find a Bitcoin ATM Near Me

When you’re ready to go and buy your first crypto, you need to find a place to do it. There are tens of thousands of bitcoin ATMs scattered across the US. Many different providers offer them.

Check out this map to see where the nearest Byte Federal ATM is. These offer bitcoin and a good number of other cryptocurrencies.

You’ll find the ATMs in a number of convenient locations, from gas stations to grocery stores, since these are the places you have to frequent on a regular basis anyway. 

You always want to use an ATM from a reputable provider. And choose one that offers transparent, low fees to ensure you aren’t getting ripped off.

And while using a crypto ATM is safe, try to find one in a location you are comfortable using, such as a well-lit storefront. 

How to Use a Bitcoin ATM

Found an ATM location? Now it’s time to make your first transaction. If you’re accustomed to standard ATMs that are linked to your bank account, then you’ll be pretty familiar with the process.

But there’s no debit card or pin number, nor is there a bank account to add funds to. Here’s how using a bitcoin ATM is different than a standard one. 

Set Up a Mobile Wallet

First off, you’re going to need a mobile crypto wallet. These are pieces of software that act similar to a bank account. 

But they are owned and operated by you. When you store your crypto in a wallet like this, you have custody of your funds rather than a bank.

That’s both freeing and terrifying at the same time. It’s freeing because there isn’t a middleman required to facilitate your transactions.

But it’s terrifying because if you lose your crypto or get hacked, there’s no support team to help you. That’s what self-custody means.

When using a bitcoin ATM to buy or sell, you’ll need a wallet app on your smartphone (to make the process as easy as possible). Download the wallet app of your choosing and set it up.

You’ll generate a new wallet address for bitcoin, and you’ll be given a seed phrase. The seed phrase is your ability to access your wallet and the crypto inside of it. Never share this seed phrase. Write it down and lock it up. But don’t lose it either. 

Create an Exchange Account

With a wallet ready to hold your crypto, you can now visit a crypto ATM. Be sure to bring your driver’s license and know your social security number.

You’ll need to create an account. Since bitcoin ATM providers are financial services companies (similar to a bank, but not really), they’re required to verify the identity of their customers. This is known as KYC, or know your customer.

KYC is intended to prevent fraud and other financial crimes, particularly those that could lead to funding terrorism.

Verifying your identity and account at a crypto ATM typically only takes a few seconds. When you do this with an online crypto exchange, it’s not uncommon for it takes hours. 

You’ll need your phone number, address, social security number, and a can of your license. Once verified, you can make a transaction.

Start Your Transaction

After creating your account, you’ll need to access it each time you visit the ATM. You do this by keying in your phone number on the ATM. You’ll receive a one-time code as a text message.

Key in this code on the ATM to access your account.

Then select the option to buy or sell, and choose which type of cryptocurrency you want. Tell the machine how much you’ll be buying.

Then, open that particular wallet address on your mobile wallet. If buying bitcoin, you’ll open your bitcoin wallet address.

Since these addresses are so long and would take ages to have to type in, you can use a QR code instead. Scan the QR code with the ATM’s scanner. Then, just insert your cash.

Confirm Your Purchase

You’ll see the current exchange rate of dollars to bitcoin (or any other crypto you are buying) and how much you’ll receive.

You’ll also see the fees associated with using the ATM and making a bitcoin transaction. If these look acceptable, you can confirm the transaction. 

Your transaction at the ATM is now complete and you can walk away. However, you might not see the funds in your wallet just yet. 

That’s because the bitcoin network (blockchain) might be congested. Because there are so many transactions happening every minute worldwide, it can take a few minutes for yours to hit your wallet.

Each transaction needs to be recorded in a block on the blockchain. A new block is created every 10 minutes, and each one can store a certain amount of transactions.

Typically, for bitcoin, it can take from 10 minutes to 60 minutes for your transaction to get recorded in a block and for those funds to hit your wallet. 

Just check your wallet within the hour after completing your ATM transaction to confirm the funds are there. 

How to Sell With a Bitcoin ATM Machine

Selling crypto at an ATM is basically the same process. But there’s one key difference that requires you to come back to the ATM a second time. Here’s what you need to know.

Access Your Account

Since you already have an account, all you need to do is key in your phone number on the ATM to get started. You’ll receive a code as a text message.

Key this into the ATM to start your transaction.

Start the Transaction

Click the option to sell and choose the appropriate cryptocurrency. Tell the ATM how much you plan to sell.

The ATM will then show you a QR code. This is the ATM’s receiving address. You need to send your crypto to this address in order to sell it.

On your mobile wallet app, you’ll choose the option to send or withdraw. It will ask for a receiving address.

You can then use the camera on your smartphone to scan the QR code provided by the ATM.

Confirm the withdrawal on your mobile wallet, and confirm the transaction on the ATM.

Collect Your Funds

Remember what we said about bitcoin transactions taking a few minutes, or even an hour to complete? It happens when you sell bitcoin as well.

Most ATMs will require the transaction to post on the blockchain before they will distribute your cash. That means that after completing your transaction, you’ll wait a few minutes, or as long as an hour before your cash is ready.

So after confirming your sale, you’ll collect a receipt. You can then leave the ATM safely and go about your business. Some ATMs will send you a text message once the transaction has been posted and your cash is ready.

Head back to the ATM, insert or scan your receipt, and it will distribute the appropriate amount of cash.

Because there can be a daily gap between selling your bitcoin and collecting your cash, it helps to plan these transactions ahead of them.

For example, if there’s a bitcoin ATM near a grocery store, and you have to go shopping this week, then start your transaction before you shop. Once you check out at the store, swing by the ATM and grab your cash.

Easy as pie, as long as you’re prepared. 

Stay Safe When Using a Bitcoin ATM

That’s all there is to it. Using a bitcoin ATM to buy and sell crypto is easy to do. Most people are familiar with using ATMs. As long as you also have a smartphone, then using one is convenient and fast.

But it’s important to have some basic crypto knowledge in order to keep your funds safe. The most important thing is to never share your wallets’ seed phrase with anyone.

There are countless phishing attempts that happen daily where hackers will try to imitate a bank or financial service provider asking for your seed phrase. But there’s never a time when you’ll need to share this information with anyone. 

Also, make sure you also send funds to the correct wallet address. If you send funds to the wrong wallet, they might be gone for good. There’s no one that can reverse the transaction.

That’s why it’s important to use QR codes rather than typing in long addresses, as it’s easy to make a mistake when typing. 

Lastly, don’t let anyone talk to you while using an ATM. ATM hacking attempts usually start when someone asks for help, or when they ask if you need any help.

Just decline, ignore, or walk away and come back another time. 

Using Crypto Online

You can also buy and sell cryptocurrency online. You can do this with either a centralized or decentralized cryptocurrency exchange.

Centralized exchanges are those that allow you to buy crypto using fiat currency like US dollars. When selling, you can acquire US dollars and transfer them to your bank.

Centralized exchanges, like bitcoin ATMs, require KYC, so expect to go through a verification process when creating your account.

Decentralized exchanges don’t offer fiat transactions. They simply allow crypto-to-crypto transactions. The benefit is that no KYC is required. You just need crypto in a software wallet in order to swap cryptocurrencies.

So if you use a bitcoin ATM to acquire crypto, you can then use that to transact in a decentralized exchange with ease. 

Investing in Cryptocurrency Today

Now that you know how to use a bitcoin ATM to buy and sell crypto, you can start investing in the most exciting asset class of all time. 

Just make sure to do your research before buying any particular cryptocurrency. And understand that the crypto market is extremely volatile and crazy price fluctuations are common.

Don’t worry, crypto always bounces back.

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