Published Oct, 26 2024

Bitcoin on Exchanges vs. Bitcoin ATMs: Weighing Your Options

So, you’re making your first Bitcoin (BTC) purchase. Do you opt to buy Bitcoin on exchanges, or do you use a Bitcoin ATM (BTM)? While it might not seem like a big deal, you might be surprised to learn about the differences between these popular purchasing options. If you're saying to yourself, “It’s all the […]
Close-up of a US dollar bill featuring Benjamin Franklin's portrait, partially obscured by a torn yellow strip reading 'BITCOIN EXCHANGES VS. BITCOIN ATMS' in bold black text.

So, you’re making your first Bitcoin (BTC) purchase. Do you opt to buy Bitcoin on exchanges, or do you use a Bitcoin ATM (BTM)? While it might not seem like a big deal, you might be surprised to learn about the differences between these popular purchasing options.

If you're saying to yourself, “It’s all the same, right?” This article is for you. Let’s explore each of these choices in-depth so you can make a more informed buying decision. 

From Cash to Coin: The Rise of Bitcoin ATMs

Bitcoin ATMs (BTMs) are a rapidly growing sector of the greater crypto economy. 

In 2017, you’d be lucky to have access to a BTM, with less than 1,000 locations worldwide (data from coinatmradar.com). That’s a different story in 2024, with over 35,000 BTMs (data also from coinatmradar.com) across the globe. 

These automated teller machines offer convenient purchase options of Bitcoin (BTC) with cash.

Before the widespread adoption of BTMs, one of the only ways to make a purchase with cash was to use online marketplaces that acted as escrow services. This often tedious process required users to deposit cash into another user’s personal bank account to receive their funds. 

As you can imagine, this was less than ideal, especially for those new to the Bitcoin community.

Here are a few other ways people got their hands on BTC in the pre-BTM era:

Here at Bitcoin Depot, we’ve seen this explosive BTM growth firsthand. Back when we started in 2016, our mission was simple: bring crypto to the masses. Since then, we’ve become the largest network of BTMs across the U.S., Puerto Rico, and Canada.

Why do our users keep coming back to our locations? We’ll break it down in the next section.

5 Benefits of Using a Bitcoin ATM

These days, Bitcoin is more accessible than ever. That’s thanks in part to the rise of BTMs. 

But why do users lean on these convenient Bitcoin machines compared to other purchasing options? Here are five benefits of using a Bitcoin ATM:

  1. They’re Accessible: With thousands of BTM locations, it’s likely you have a BTM somewhere near you. Don’t believe us? Use our Bitcoin Depot BTM locator and find out for yourself!
  2. They’re Fast: Don’t want to wait on lengthy bank transfers or cumbersome exchange wait periods? With a BTM, you get near-instant access to your BTC. 
  3. They’re Simple: BTM technology has come a long way. With a Bitcoin Depot BTM, you’re only a few simple steps away from BTC in your personal wallet
  4. They’re Secure: With a BTM, you don’t need to hand over your bank account information just to make a purchase. Remember that identity verification is still required and can vary depending on the purchase amount and BTM location.
  5. They’re Cash-Friendly: Whether you’re privacy-sensitive or don’t have a bank account, you can easily use cash to purchase BTC using a BTM. Exchanges simply don’t offer this option.

In almost ten years, we’ve seen BTMs go from novel technology to widespread adoption. But, so has excitement around Bitcoin. People no longer see it as a fading fad; it’s now a maturing industry with millions of users.

Over around 40% of Americans* (as mentioned on security.org) own cryptocurrency of some kind — and catering to the crypto-curious is big business.

If they’re not using a BTM, they’re probably using an exchange.

Bitcoin on Exchanges: What You Need to Know

Bitcoin operates on a decentralized, peer-to-peer network. That means no banks, financial institutions, or other intermediaries get in the way. This, of course, is by design. 

But there’s a bit of a catch.

To participate, you still need to get your hands on BTC. As we touched on earlier, this was historically a roadblock for adoption. 

One of the first contenders hoping to meet the growing demand were centralized exchanges.

What is a cryptocurrency exchange? Think of an exchange as the go-between the seller and buyer. They act as the brokerage, allowing users to deposit money via bank transfers and other methods to make a purchase.

Coinmarketcap.com tracks over 250 exchanges*, but there are likely thousands available globally. 

Which exchanges have Bitcoin? Most reputable exchanges will offer BTC purchases. They’ll also provide additional cryptocurrency options and advanced financial offerings like futures contracts and margin accounts. 

There are many reasons users purchase through an exchange:

Note: We’re talking about centralized exchanges. Decentralized exchanges exist but are geared more toward advanced users.

The Downsides of Centralized Exchanges

While many people buy Bitcoin on exchanges, they present unique challenges relative to other purchasing options. Moreover, most users are somewhat unaware of the potential risks exchanges present. 

To help you make a more informed purchasing decision, here are a few of those downsides:

Where Is the Best Place to Buy Bitcoin?

There are many purchase options available. But where is the best place to buy Bitcoin?

As you’ve probably guessed by now, there is no wrong answer. It all depends on your personal preference and experience. 

For instance, if you want to turn cash into Bitcoin, a BTM is your best bet. Not only do they accept cash, but they are easy to use, making them the perfect choice for those new to crypto and experienced users alike. 

If you’re looking for more cryptocurrency options and additional features like margin accounts, a centralized exchange can offer quite a lot of functionality.

Regardless of your choice, be sure to research each option thoroughly before purchasing BTC.

No More Buying Bitcoin on Exchanges: The Bitcoin Depot Experience

The world of Bitcoin is vast and growing quickly. Your first step in this new frontier is to make a BTC purchase. Between buying Bitcoin on exchanges and using a Bitcoin ATM, you should now have the knowledge you need to make a better purchasing decision. 

Bitcoin Depot is here to help you along your crypto journey. 

With over 8,300 Bitcoin ATM locations across the U.S., Canada, and Puerto Rico, Bitcoin Depot is your go-to choice for easy purchases of Bitcoin with cash. 

Get to your local BTM by finding your nearest Bitcoin Depot location.

*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 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.