What is a Bitcoin ATM (or BTM)? How do Bitcoin ATMs work?

A Bitcoin ATM (BTM) is a physical kiosk that can be used to conduct transactions between Bitcoin and traditional currency or debit cards.

BTMs connect to Bitcoin wallets rather than bank accounts, and transactions are processed on the blockchain.

While Bitcoin ATMs are designed to provide convenience and accessibility, they also come with certain risks and limitations.

What is a Bitcoin ATM (or BTM)?

A Bitcoin ATM (Automated Teller Machine) or BTM (Bitcoin Teller Machine) is a physical self-service terminal that allows Bitcoin transactions, bypassing the traditional banking system. The use of these machines has been on the rise over the years, with the value of cryptocurrencies rising and people's trust in cryptocurrencies growing.

Unlike regular ATMs, BTMs connect to Bitcoin wallets rather than bank accounts. Bitcoin wallets are not bank cards, but rather a repository for sending or debiting Bitcoin. Some Bitcoin ATMs look very similar to traditional ATMs because they are indeed traditional ATMs with customized software for Bitcoin.

How do Bitcoin ATMs work?

Bitcoin ATMs facilitate Bitcoin transactions. They connect to cryptocurrency exchanges and convert deposited traditional currencies into cryptocurrencies. Transactions are processed on the blockchain, a digital ledger of cryptocurrency financial transactions.

To use a Bitcoin ATM, you connect your digital wallet (usually via a quick response [QR] code), deposit traditional currency, and the machine transfers an equal amount of Bitcoin to your wallet.