Published Dec, 20 2024

Bitcoin ATMs: Your Gateway to the Crypto World

Learn all about Bitcoin ATMs in this comprehensive guide.
A digital illustration of a golden Bitcoin coin with a detailed circuit board pattern and the Bitcoin "₿" symbol in the center, shown against a dark background featuring a dotted world map. The coin appears to be floating with a reflection beneath it. The text "CRYPTOCURRENCY BITCOIN" and "DIGITAL" appears around the coin's edge in a circular pattern.

Bitcoin ATMs have gone from novel technology to widespread adoption in less than a decade. 

In fact, as of November 2024, there are around 40,000 Bitcoin ATMs* (data from coinatmradar.com) worldwide. These convenient crypto ATMs allow users to turn cash into coins, cutting out pesky intermediaries and simplifying the Bitcoin (BTC) buying process.

For the crypto-curious, Bitcoin ATMs act as a seamless entry point into the wide world of Bitcoin. 

Whether you’re interested in investing, keeping your coins long-term, or using BTC as a means to transact, there’s no better place to get started.

Consider this your ultimate guide to Bitcoin ATMs. We’ll cover everything you need to know, from what they are and how to use them to best practices and Bitcoin ATM benefits. So, buckle up and get ready for the crypto coaster to take you on a new adventure.

Bitcoin Basics: Crypto 101

Before we show you how to insert cash and purchase BTC at your local Bitcoin ATM, let’s start with the crypto basics.

Imagine money that works like email — instant, global, and controlled by nobody but you — that's BTC. It's a revolutionary digital currency that can be bought, sold, and saved without banks, giving you the freedom to manage your coins on your terms.

Oh, and it’s grown massively over the last few decades. When we say massive, we mean it:

And that’s just scratching the surface. 

For now, just know that BTC is a peer-to-peer decentralized cryptocurrency that’s quickly cementing itself as the go-to choice for the future of finance. As you might guess, getting your hands on this coveted digital treasure is top of everyone’s minds.

That’s where we introduce you to the star of our show: Bitcoin ATMs.

Bitcoin ATMs: Where Digital Meets Physical

A Bitcoin ATM is a type of crypto ATM that allows you to purchase BTC with cash. You don’t need a bank account to get started. All you need is a crypto wallet address, cash in hand, and a few personal details for identity verification, such as a phone number and email address.

These in-person machines bridge the digital divide, offering users like you an easy physical entry point into the world of crypto.

While they’re widespread now, Bitcoin ATM history is just as amazing as BTC itself.

The first Bitcoin ATM made its debut in Vancouver, Canada, in 2013* (as mentioned on cointelegraph.com). Back then, these BTC dispensing machines were more novelty than practical. 

But, as BTC grew, so did the Bitcoin ATM industry. These days, you’re likely to find a Bitcoin ATM near you, possibly right down the street. They’re in grocery chains, retail outlets, and convenience stores all across the world.

Oh, and the industry is booming. 

The global crypto ATM market size was estimated at $182.1 million in 2023* and is expected to grow 63.4% from 2024 to 2030* (data from grandviewresearch.com). That means more Bitcoin ATMs and even more opportunities to purchase BTC with cash. 

To understand why Bitcoin ATMs are so popular, we just need to look at their standout benefits.

Why Choose a Bitcoin ATM? Benefits and Advantages

So, why do the crypto-curios and veteran holders alike flock to Bitcoin ATMs? We’ll break it down for you:

How Do Bitcoin ATMs Work?

Okay, so now you understand why Bitcoin ATMs are so popular. These cash-friendly machines aren’t just convenient; they’re the preferred purchasing choice for many different kinds of users.  

But how do Bitcoin ATMs work?

Your First Cash-to-Coin Transaction

Going from cash to coins quickly is what Bitcoin ATMs do best. Unlike other types of crypto on-ramps, there’s no waiting, no banks, and no difficult buying processes. 

Here is a quick overview of what your first Bitcoin ATM experience might look like:

  1. You’ll find your local Bitcoin ATM.
  2. You’ll enter the amount of BTC you want to purchase with cash.
  3. You’ll offer up some identity verification information.
  4. You’ll insert your cash.
  5. You’ll receive your BTC.

It’s really that simple. Of course, this process will differ depending on the Bitcoin ATM operator, and we’ll show you the entire process for using Bitcoin Depot Bitcoin ATMs in just a bit.

For now, just know that turning your cash into BTC using a Bitcoin ATM is easy and built for everyone.

In fact, here at Bitcoin Depot, our mission is simple: bring BTC to the masses. We pride ourselves on crafting an unparalleled BTC buying experience, no matter who you are or your level of crypto know-how.

Just you, your cash, and your coins. Easy, right?

Bitcoin ATMs vs. Traditional ATMs

Bitcoin ATMs and traditional ATMs might share a similar name, but they’re very different. While traditional ATMs just give you access to the money you already have, Bitcoin ATMs open the door to the digital economy. 

They're perfect for anyone who wants to:

Getting Started with Bitcoin ATMs

Getting started buying BTC at a BTC ATM is simple. Unlike centralized crypto exchanges, you don’t need to wait days for your account to be verified or bank transfers to clear. Instead, all you have to do is move through an easy process of buying coins at a physical BTC kiosk location. 

But first, you need to find your local Bitcoin ATM.

Finding Your Nearest Bitcoin ATM

So, you’ve caught the BTC bug. It makes sense. Not only is BTC growing at a rapid pace, but it’s also your ticket into the exciting world of cryptocurrency.

However, the question still remains: How can you find a Bitcoin ATM near you?

Luckily, Bitcoin Depot makes it just as easy as buying BTC with cash. All you need to do is go to our convenient Bitcoin ATM locator tool. This tool will help you find one of the over 8,400 (as of November 2024) Bitcoin Depot Bitcoin ATM locations across the U.S., Canada, and Puerto Rico. 

Additionally, you can use the Bitcoin Depot mobile app to locate your nearest Bitcoin ATM.

What You’ll Need for Your First Cash BTC Purchase

At this point in the process, we know two things: you want to purchase BTC with cash, and you know where to go. So, what else do you need?

Here is where Bitcoin ATM limits and Know-Your-Customer (KYC) requirements come into play. Depending on how much you want to purchase, you may need to present additional identity verification information. 

Here is what you need to know:

Moreover, you’ll still need to have your phone handy to interact with the Bitcoin ATM. To move forward with your purchase, just download the Bitcoin Depot mobile app and go through the on-screen instructions when you’re at a Bitcoin ATM location.

Oh, and you’ll also need your cash. But I’m sure you know that already. Once you have everything ready to go, it’s time to finally make your first purchase. 

Using a Bitcoin ATM

With cash in hand and a phone in your pocket, you’re ready to find your nearest Bitcoin ATM and make your purchase. Here is a quick guide to take you from cash in hand to coins in your wallet. To really get the scoop on the whole process, be sure to check out our step-by-step buying BTC at a Bitcoin ATM guide.

An instructional infographic titled "Using a Bitcoin ATM" showing four steps, each with an icon and explanation. Step 1 shows a wallet icon and explains creating a digital wallet. Step 2 displays a user icon for entering personal information and identity verification. Step 3 features a QR code icon for entering wallet address. Step 4 has a dollar sign icon for completing the purchase. The bitcoindepot.com website and Bitcoin Depot logo appear at the bottom of the image.
Using a Bitcoin ATM - bitcoindepot.com

To get you started, here’s a quick overview:

  1. Create Your Digital Wallet: Think of your BTC wallet as your gateway to the world of BTC. It not only stores your coins but is the place where you can send and receive BTC. It’s also an essential part of the Bitcoin ATM buying process. As such, your first step is to create a crypto wallet.
  2. Enter Your Information: Once you’ve created your wallet, it’s time to meet your local Bitcoin ATM. Don’t worry, though. The process is super simple. To start, select the amount you want to purchase and enter some info like your phone number, name, and email address. 
  3. Time to Verify: After the Bitcoin ATM has all your information, it will send a 5-digit verification code to your phone. The next step is to enter that code at the Bitcoin ATM. Super easy, right? 
  4. Enter Your Wallet Address: Next, enter your wallet address into the Bitcoin ATM on-screen. While you can do this manually, we recommend you scan your Bitcoin Depot wallet via the mobile app. This will just make things easier and ensure you don’t make any mistakes. Which, on the blockchain, are permanent, meaning your coins could be at risk.
  5. Finalize Your Purchase: The time has come! The last step is what you might guess: inserting your cash into the Bitcoin ATM. Once the transaction is complete, all you’ll need to do is print or email your receipt.

And just like that, your BTC will hit your wallet in a few short moments.

Before we move on, there are just a few things to note. First, when it comes to which wallet to choose, you have tons of options. We covered wallets in another blog post, so be sure to check that out for more information. Luckily, you have access to a BTC wallet through the Bitcoin Depot mobile app. It’s self-custody, meaning you’re in control of your coins. 

Next, we need to emphasize that you should only send BTC from a Bitcoin ATM to your own wallet address. Never send coins to an address you don’t control from a Bitcoin ATM. Once you have your coins in your one wallet, though, you’re free to send them off wherever you want!

Lastly, we should double-back to the "enter your wallet address manually” point. 

While it might feel like the move if control is on your mind, it can lead to, well, disaster. You see, the BTC network is not controlled by anyone. It’s decentralized and peer-to-peer. When you make a mistake, there’s no one you can call to fix the error.

We strive to offer the best customer service in the Bitcoin ATM industry, but even we can’t change the public blockchain ledger. So, either be extra-extra careful or just scan the code in your wallet app. We promise it’s way easier this way.

Your First BTC ATM Visit: What to Expect

Buying BTC at a Bitcoin ATM can be a simple process. But, there are a few factors that can add some layers of complexity to your experience. For example, we touched on those Bitcoin ATM limits earlier. 

Let’s start with the basics: what can you use to buy BTC at a Bitcoin ATM? While other Bitcoin ATM operators may have different answers to this question, here at Bitcoin Depot, our answer is simple: cash. But, depending on the amount of cash you want to use to make a purchase, you might need to develop a unique buying strategy. 

Note: If buying BTC with a credit or debit card is more your style, we’ve got you covered with our Buy Online service

Now, back to those limits. 

Bitcoin ATM limits refer to the amount of BTC you can buy in a single transaction or in a day (daily limit). The Bitcoin ATM operator usually establishes these limits, though state laws may also impose restrictions. The specific amounts can differ based on your location, local regulations, and the individual operator's policies.

For example, in California, there are pretty strict limits on Bitcoin ATM purchases. In a single day, you can only purchase up to $1,000. 

Even so, users can still use a combination of a Bitcoin ATM, our BDCheckout™ service (which allows you to buy BTC with cash at a cashier), and buying Bitcoin online to purchase more BTC in a single day. 

Transaction limits vary among different Bitcoin ATM providers, with typical ranges as follows:

Security and Best Practices: The Basics

Public blockchains like BTC operate as open networks where anyone can participate. Their open-source code is publicly available and continuously reviewed by developer communities* (as mentioned on chainalysis.com) to improve security and performance.

Moreover, Bitcoin ATMs offer a safe way to enter the BTC ecosystem.

Not only are they located in well-lit, high-traffic areas, but they leverage cutting-edge technology and a multi-layered approach to security. That means your personal data is always safe, and you can count on a secure buying experience.

Even so, there is still a lot to know when it comes to BTC security and best practices to follow.

Security should always be a top priority, especially when dealing with cryptocurrencies. While the BTC network itself is very secure, the most secure of all the blockchain ecosystems, that certainly doesn’t mean it’s without potential risks. 

To help you stay safe and keep your coins secure, here is some information on BTC security.

Understand KYC and AML

First, we need to talk about regulations and compliance. 

Know-your-customer (KYC) and Anti-Money Laundering (AML) compliance isn’t just about abiding by the law; it’s about keeping users like you safe. We touched on KYC compliance earlier, but let’s dig a bit deeper and learn more about AML.

First, why do Bitcoin ATM operators use KYC and AML requirements? There are a few reasons:

Why do these things matter? Well, it’s not just about keeping the industry compliant. These identification processes keep users like you safer from theft and fraud. Additionally, when operators abide by these strict regulations, you know you're using a legitimate, supervised service.

Security measures also help ensure your money and personal information are safe. When Bitcoin ATMs follow strict security protocols, it reduces the risk of scams, hacks, or your coins disappearing.

BTC Security Best Practices

So that’s Bitcoin ATMs and security compliance, but that’s only part of the picture. The decentralized nature of BTC means users have both full control and full responsibility for their coins. Sure, this can be a huge benefit, but it presents some unique challenges.

An infographic titled "Bitcoin Security Best Practices" outlining five security measures, each with a yellow icon and explanation. The practices listed are: Use a Hardware Wallet (shield icon), Enable Two-Factor Authentication (key icon), Keep Software Updated (circular arrows icon), Avoid Public WiFi (crossed-out WiFi icon), and Secure Storage of Information (padlock icon). Each item includes a brief explanation below it. The bitcoindepot.com website and Bitcoin Depot logo appear at the bottom of the image.
Bitcoin security best practices - bitcoindepot.com

Luckily, following good habits and best BTC security practices can ensure you don’t make any missteps in your crypto journey:

Of course, this list is just a starting point. To really stay safe, you should always reevaluate your security practices and implement new strategies regularly. 

Beyond the Bitcoin ATM: Managing Your Crypto

Alright, now that you’ve got BTC in your wallet, what can you do with it?

While many people think BTC is merely an investment, it’s much more than that. Here are a few use cases for BTC:

To participate in many of these new opportunities, you need to understand the ins and outs of BTC transactions. So, how do you send BTC?

Fortunately, it’s a pretty simple process. In fact, you can send BTC easily through the wallet in the Bitcoin Depot mobile app. Simply enter/scan the recipient's address, input the amount, review, and send the transaction. 

While the process is easy, there are a few things to keep in mind:

Building Your Crypto Investment Strategy

BTC has transformed from a niche digital currency to a mainstream investment option. But what makes BTC worth considering?

Think of BTC as digital gold — it's not a company share or a traditional investment, but rather a new type of investment that can:

While BTC's impressive gains have attracted many investors, it's important to understand its volatility. BTC can experience price swings 3-4 times greater than traditional stock markets.

Even so, gaining exposure to the BTC world is only growing in popularity. Bitcoin ATMs offer an easy and streamlined way to start investing, even with purchases as low as $20. Here are a few common ways people invest in Bitcoin:

Keep in mind that there is no right or wrong way to invest in BTC. Consider these options as a brief introduction to the many types of investment strategies. Always do your own research and understand your own risk tolerance before investing.

Start Your Bitcoin ATM Journey with Bitcoin Depot

There it is, your guide to the world of Bitcoin ATMs. These convenient crypto machines are everywhere these days, giving users like you a no-nonsense way to purchase BTC with cash.

From what they are to how they work, you now have everything you need to get your BTC journey started. Along the way, Bitcoin Depot has your back. Not only do we operate the largest network of Bitcoin ATMs in the U.S., Canada, and Puerto Rico — with over 8,400 locations (as of November 2024) — but we also offer BDCheckout™ and buy online options. 

No matter how you want to purchase BTC, we’ve got you covered.

Additionally, we also pride ourselves on offering unparalleled customer support. Whether you need help navigating your first transaction or have questions about the purchase process, our customer service team is on standby to help.

To begin your BTC ATM journey, find your nearest Bitcoin Depot location today.

*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the 3rd party sites listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.