This step-by-step guide explains how to withdraw cash from a Bitcoin ATM. You will learn what a cryptocurrency ATM is, what fees apply, withdrawal limits, and the advantages and disadvantages of using these machines.
What Is a Bitcoin ATM?
A Bitcoin ATM, also known as a Bitcoin teller machine (BTM), is a kiosk that allows users to buy or sell cryptocurrencies using cash. While similar in appearance to traditional ATMs, these machines interact with cryptocurrency wallets instead of bank accounts.
This method of exchanging crypto has grown in popularity as it offers a straightforward way to handle Bitcoin transactions. A key benefit is the ability to access Bitcoin without needing a bank account, providing a more private entry point into the cryptocurrency ecosystem.
How to Withdraw Money from a Bitcoin ATM
The process for withdrawing cash from a Bitcoin ATM is generally consistent across different operators. For illustration, we reference a popular operator with a global presence. These machines often feature competitive fees and prioritize user privacy, requiring minimal Know Your Customer (KYC) verification depending on local regulations and transaction size.
It is often advisable to test a new machine with a small transaction, perhaps 20 euros, before processing a larger amount. For faster confirmation times, consider using a cryptocurrency like USDT instead of Bitcoin (BTC) or Ethereum (ETH), which can have slower network times and higher transaction fees. BTC and ETH are better suited for larger transactions.
Step 1: Locate a Cryptocurrency ATM
Use an online map to find a Bitcoin ATM near you. At the machine, select the "Sell Cryptocurrency" option to begin your withdrawal.
Step 2: Initiate the Transaction
The ATM will provide a receipt with a QR code. You will need to scan this code using your cryptocurrency wallet to proceed.
Step 3: Confirm the Transaction
Once your transaction is confirmed on the blockchain, scan the barcode displayed on the ATM's screen or your receipt to finalize the sale.
Step 4: Receive Your Cash
The machine will dispense your cash. Remember to take your receipt.
Step 5: Keep Your Receipt
Always retain your transaction receipt. It is essential for customer service inquiries should any issues arise.
How to Buy from a Bitcoin ATM Anonymously
For those seeking privacy, some Bitcoin ATMs allow for anonymous purchases below certain value thresholds.
Step 1: Find a Suitable ATM
Locate a machine that supports anonymous transactions and insert your cash.
Step 2: Open Your Wallet App
Have your non-custodial cryptocurrency wallet application open and ready.
Step 3: Scan the QR Code
Scan the QR code from your wallet to provide the destination address for the cryptocurrency.
Step 4: Wait for Confirmation and Collect Your Ticket
After the transaction is broadcasted, wait for it to be processed. The confirmation time will vary by cryptocurrency. Always keep your receipt.
How Do Bitcoin ATMs Work?
Bitcoin ATMs function as intermediaries connecting users to cryptocurrency exchanges. Unlike a traditional ATM that links to your bank account via a debit card, a Bitcoin ATM interacts with your crypto wallet.
When you buy or sell crypto at these kiosks, you are conducting the trade with an integrated exchange. The ATM provides the software interface to securely facilitate the payment and initiate the transfer on the blockchain. Many machines use QR code scanning to make the transaction process smooth and user-friendly. If you don't have a wallet, some ATMs can generate a paper wallet for you.
Types of Bitcoin ATMs
As of 2025, there are primarily two types of Bitcoin ATMs: unidirectional and bidirectional.
- Unidirectional ATMs: These machines only allow one type of transaction—either buying Bitcoin or selling Bitcoin for cash, but not both.
- Bidirectional ATMs: These machines support both buying and selling cryptocurrencies, offering greater flexibility.
The user interface and authentication methods (such as ID scanning or SMS verification) can vary significantly depending on the machine's manufacturer, operator, and local regulations.
Pros and Cons of Bitcoin ATMs
Before using a Bitcoin ATM, it's important to weigh its advantages and disadvantages.
| Advantages | Disadvantages |
|---|---|
| Provides access to crypto for the unbanked | May require some level of KYC verification |
| Transactions are completed almost instantly | Fees are often higher than online exchanges |
| Highly convenient for cash-based transactions | Limitations on large transaction amounts |
| Generally simple and easy to navigate | Limited physical availability in some regions |
| A practical alternative to using online exchanges | Some cryptocurrencies like ETH may require pre-transaction setup due to long confirmation times |
A common criticism is the high fee structure. Industry data suggests the average transaction fee across many operators can range from 8% to 15% or more, which is significantly higher than the fixed fees of traditional ATMs. However, some providers offer more competitive rates, with average fees as low as 3-4%, and occasionally even promotional 0% fee events.
Privacy is another major consideration. While some machines offer a tiered KYC policy where identification is only needed for larger transactions, many jurisdictions require operators to collect and retain personal data for a certain period, limiting anonymity.
How to Find a Bitcoin ATM
The global network of cryptocurrency ATMs continues to expand year after year. Finding one is straightforward using online directories and maps. These tools allow you to search by location, supported cryptocurrencies, and services offered, making it easy to locate a convenient machine. You can also use standard map applications on your phone to find nearby kiosks.
Bitcoin ATM Limits
The amount of money you can withdraw from a Bitcoin ATM is not fixed. The limits are predominantly influenced by local Anti-Money Laundering (AML) and KYC laws, which vary by country. These regulations dictate the maximum transaction sizes before identification is required. It is crucial to check the specific limits for your location, as they can change.
Bitcoin ATM Fees
Unlike traditional ATMs that often charge a fixed fee, Bitcoin ATMs typically charge a percentage-based fee on the total transaction amount. As noted, these fees can vary widely from 3% to over 15% depending on the operator and market competition. Always check the fee structure on the machine's screen before confirming your transaction.
Are Bitcoin ATMs Anonymous?
The anonymity of a Bitcoin ATM transaction is not guaranteed. It depends heavily on the operator's policies and local regulations. Many jurisdictions require some form of KYC, surveillance, or data retention. However, a tiered KYC policy does allow for a degree of privacy for smaller transactions, enabling users to buy Bitcoin without identification below a specific value threshold.
Is It Safe to Use a Bitcoin ATM?
Using a Bitcoin ATM is generally safe if you follow instructions carefully. As with any interaction in the decentralized ecosystem, security is paramount. Understanding how to properly use the machine beforehand will save time and prevent frustration.
These kiosks have become a convenient and easy method to buy and sell Bitcoin. They offer notable benefits like convenience, ease of use, and enhanced privacy for cash users. The key disadvantages are higher fees, transaction limits, and limited availability. Ultimately, Bitcoin ATMs provide a valuable alternative for engaging with the cryptocurrency market.
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Frequently Asked Questions
How does a Bitcoin ATM work?
A Bitcoin ATM acts as a intermediary for a cryptocurrency exchange. When you initiate a buy or sell order, the kiosk sends the transaction details to its partnered exchange for execution. The ATM provides the software to securely handle the cash payment and initiate the corresponding blockchain transfer.
How do you get cash from a Bitcoin ATM?
To get cash, select the "sell" option on the ATM. You will typically scan a QR code from your cryptocurrency wallet to send your BTC. Once the transaction is verified on the blockchain, the machine will dispense the equivalent amount in cash.
How do you use a Bitcoin ATM for the first time?
For your first time, start with a small transaction to familiarize yourself with the process. If using Bitcoin, be aware of its network fees and confirmation times. Carefully follow the on-screen instructions and have your digital wallet ready to scan QR codes.
How do I convert Bitcoin to cash?
You can convert Bitcoin to cash at a bidirectional Bitcoin ATM by selling your BTC. You can also sell your Bitcoin on a cryptocurrency exchange and then transfer the resulting fiat currency to your bank account.
Can I transfer Bitcoin directly to my bank account?
No, you cannot transfer Bitcoin directly to a traditional bank account. You must first sell your Bitcoin for fiat currency on an exchange or at an ATM, and then deposit that cash into your bank account.
How much money can you withdraw from a Bitcoin ATM?
Withdrawal limits vary significantly based on the ATM operator and the country's regulations. Limits are often tiered, with higher amounts requiring full KYC verification. For example, some operators may allow withdrawals up to 15,000 EUR per day with verified identification.
Do Bitcoin ATMs require identification?
Identification requirements depend on the transaction size and local laws. Many operators use a tiered KYC system, meaning no ID is required for small transactions below a specific value. Larger withdrawals will mandate identity verification.
Is it safe to pay with Bitcoin?
Bitcoin transactions are generally secure. They can settle faster than some traditional bank transfers and benefit from the security and immutability of the Bitcoin blockchain. Transactions are peer-to-peer, eliminating the need for a financial intermediary.
How many cryptocurrency ATMs are there in Spain?
According to data from popular online tracking websites, Spain had over 300 cryptocurrency ATMs as of mid-2024. This number is frequently updated by users and providers, so the exact figure may fluctuate.