A Bitcoin ATM (also called a BTM) looks similar to a regular ATM. You walk up to it, insert cash, scan a QR code from your wallet, and receive Bitcoin. The whole process usually takes two to five minutes. Some machines also work in reverse — you can send Bitcoin to the machine and receive cash.
Bitcoin ATMs are operated by private companies — not banks. The largest operators in the US include Bitcoin Depot, Coinstar Bitcoin, and CoinFlip. You’ll find them in convenience stores, gas stations, grocery stores, and check-cashing businesses. They’re specifically placed to reach people who don’t have easy access to online exchanges.
How they work
Select “Buy Bitcoin” on the machine’s touchscreen.
Enter your phone number and verify with an SMS code (required for KYC compliance above certain limits).
Scan the QR code of your Bitcoin wallet address using the machine’s camera.
Insert cash. The machine shows you how much Bitcoin you’ll receive after fees.
Confirm. Bitcoin is sent to your wallet. Depending on the machine, it may send immediately or wait for network confirmation.
Bitcoin ATM fees are significantly higher than online exchanges. Industry average fees run between 8 and 20 percent — meaning a customer inserting $100 in cash might receive Bitcoin worth $80 to $92 at market price. This is largely a convenience premium. If a customer mentions using a Bitcoin ATM, they likely paid a meaningful fee to acquire the Bitcoin they’re spending with you.
Who uses Bitcoin ATMs
Bitcoin ATMs serve several distinct groups: people who prefer cash transactions and want to avoid linking a bank account to a crypto exchange, people in communities with limited banking access, tourists or travelers wanting quick access to Bitcoin, and people making smaller one-time purchases who don’t want to go through full exchange onboarding. The placement in convenience stores and check-cashing locations reflects the demographics — people who are underbanked or cash-primary.
KYC at Bitcoin ATMs
Bitcoin ATMs are regulated as Money Services Businesses under FinCEN rules, which means operators must comply with KYC requirements. In practice, many machines require only a phone number for small transactions (under $250–$1,000 depending on the operator), with more extensive ID verification for larger amounts. Regulations have tightened significantly since 2021, and most operators now require government ID for higher-value transactions.
If you accept Bitcoin, some customers will have acquired it through ATMs. Their Bitcoin arrives in your wallet exactly like any other Bitcoin — the acquisition method doesn’t affect the transaction at your register. Knowing how customers get Bitcoin can help you have better conversations with curious or first-time crypto users. ₿
When they have the Bitcoin, you’re ready to accept it.
OrangeTill generates a QR code for every transaction. Whether a customer bought their Bitcoin at an ATM or an exchange, it works the same way.
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