A Bitcoin Automated Teller Machine (ATM) helps people buy and sell cryptocurrency with cash. Bitcoin ATMs have been popping up worldwide to make cryptocurrency accessible to individuals who are unbanked and do not have the credit/debit cards required to purchase crypto online. If you have cash and want to buy bitcoin, an ATM is a safe option.  

An Upgrade from In-Person Exchanges 

In the early days of crypto, those looking to exchange cash for bitcoin had to do so through websites like craigslist.org, LocalBitcoins.com, or various forums. Once you found a buyer or seller, the two parties would meet in-person to exchange currency. Meeting up with a stranger from the Internet already poses significant safety risks, but meeting up with a stranger carrying large amounts of cash is even riskier. 

The dangers of in-person cash-to-crypto exchanges are a driving force behind why so many Bitcoin ATMs keep popping up. Bitcoin ATMs provide people dependent on cash a safe and secure option to instantly buy and sell cryptocurrency without meeting up with strangers from the Internet.  

Bitcoin ATM Safety Measures 

Bitcoin ATMs operators host the ATMs in locations such as gas stations, restaurants, and convenience stores. This means the ATMs are in areas that are well-lit with staff members nearby.  

However, carrying cash is always risky. Similar to using a standard ATM, there are some general safety guidelines to keep in mind when using a Bitcoin ATM:   

• Pre-register to save time at the machine. You can also register through the CoinFlip Wallet app.

• Have your crypto wallet, smartphone, and cash ready before you begin the transaction.  

• Never count cash at the machine or in public, be sure to do so only in a safe, secluded place.  

• If anyone tries to force you to make an urgent Bitcoin ATM payment, it is likely a scam. 

• Use a trusted digital wallet. Keep your wallet key private. A person who cannot access your digital wallet key cannot access your currency or complete transactions. 

• Contact customer support if you need assistance with your transaction or think you may be a scam victim.  

• Remember, no payment processor, utility, or debt collector will ask you to pay through a Bitcoin ATM.  

How Do I Know if a Bitcoin ATM is Legitimate?  

The great part about cryptocurrency is that all transactions are public. When you buy or sell from a Bitcoin ATM, a message should appear that provides the transaction ID, also called a hash ID. Using a blockchain explorer, you can check the status of a transaction ID, as well as inspect the wallets involved. One wallet should be yours, the other belongs to the ATM operator and when you inspect it there should be many, many transactions associated with it. Note that ATM operators cycle through wallets regularly as a security precaution, so it is unlikely that the wallet used for one transaction will be the same next time you access the machine.  

When using a new machine or trying a different ATM operator, it’s a good idea to check their credentials through the company’s website, or a third-party verifier like the Better Business Bureau. If the company has a phone number, call it to make sure it leads to a real business line.  

CoinFlip's Approach to Bitcoin ATMs

Since its inception in 2015, CoinFlip has become the world’s leading Bitcoin ATM operator. We have 5,000+ crypto ATMs across the globe and we process millions of dollars through cash-to-crypto transactions every day. Our Chicago-based customer support team provides service 24/7 should you have any problems while using our machines. Call us at (773)-800-0106 or by email at [email protected]. 

Looking to buy or sell with cash right now? Use our ATM locator to find the nearest one!