How to Send Money Through a Bitcoin Machine in the USA

Bitcoin ATMs (BTMs) facilitate the exchange of traditional currency for digital assets like Bitcoin, and sometimes the conversion of digital assets back into cash. These specialized kiosks allow individuals to engage with cryptocurrencies using physical cash. The increasing presence of Bitcoin ATMs across the country reflects a growing interest in accessible cryptocurrency transactions. They provide a direct way to acquire or liquidate digital currency without a traditional banking intermediary.

Locating a Bitcoin ATM

Locating a Bitcoin ATM in the United States involves using online mapping services like Coin ATM Radar and Bitcoin ATM Map. These platforms serve as comprehensive directories, allowing users to input their location to find nearby BTMs.

These tools provide detailed information for each ATM, including its operational status, hours, and whether it supports both buying and selling Bitcoin. Users should verify the machine’s specific capabilities before visiting. Directions to the ATM are usually integrated within these map services, guiding users to the precise location for their transaction.

Preparing for a Bitcoin ATM Transaction

Bitcoin ATMs primarily facilitate the purchase or sale of Bitcoin, not direct money transfers. To “send money” using Bitcoin from an ATM, you first buy Bitcoin, then transmit it from your digital wallet to the intended recipient. The ATM serves as the point of acquisition or liquidation for the digital asset.

A digital Bitcoin wallet is a prerequisite for any Bitcoin ATM transaction. This wallet, which can be a software application on a smartphone or a dedicated hardware device, functions as a secure storage location for your Bitcoin. You must set up and understand your digital wallet prior to using an ATM, as the Bitcoin purchased will be sent directly to this digital address. Your wallet will generate a unique Bitcoin address, often represented as a QR code, which the ATM will require to send the cryptocurrency.

Identity verification is a standard requirement for most Bitcoin ATM transactions due to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations in the United States. This often means providing a phone number for verification. For larger transactions, a government-issued identification like a driver’s license or passport may be required. Transaction limits without full identity verification can be quite low, sometimes ranging from $300 to $900. Verified users may access limits between $3,000 and $10,000 per transaction, or even higher, depending on the operator.

Most Bitcoin ATMs operate on a cash-only basis for buying cryptocurrency, so users must bring cash for their transaction. Bitcoin ATMs charge fees for their services, which are distinct from the network fees required for blockchain transactions. These operator fees can vary significantly, typically ranging from 7.5% to 30% of the transaction value, and will be displayed before the transaction is completed.

Process of Buying Bitcoin at an ATM

To buy Bitcoin at an ATM, select the “Buy Bitcoin” option on the machine’s interface. You will be prompted to enter your phone number and receive a verification code via text message. This step is part of the identity verification process, which helps the operator comply with regulatory requirements.

After successful phone verification, the ATM may require scanning a government-issued ID for larger transaction amounts. Specify the amount of cash you intend to insert into the machine. The ATM will display the corresponding amount of Bitcoin that will be received, along with any applicable operator fees and network fees.

Scan the QR code of your digital Bitcoin wallet. This action provides the ATM with the specific address where the purchased Bitcoin will be sent. Insert cash into the machine’s bill acceptor, ensuring the exact amount is provided. Confirming the transaction on the ATM screen initiates the transfer of Bitcoin to the designated digital wallet.

Following confirmation, the Bitcoin is sent to your wallet, though it may not appear instantly. Blockchain transactions require a certain number of network confirmations before the Bitcoin is fully accessible. This confirmation process can take an average of 10 minutes per confirmation, but depending on network congestion, it could range from a few minutes to an hour or more.

Sending Bitcoin to a Recipient

After purchasing Bitcoin at an ATM and receiving it in your digital wallet, you can send it to a recipient. The Bitcoin ATM does not directly facilitate sending Bitcoin; instead, the transaction is initiated from your own digital wallet. Once the Bitcoin has been confirmed and settled in the wallet, you can proceed with the transfer.

To send Bitcoin, open your digital wallet application or access your hardware wallet. Within the wallet interface, there will typically be an option to “send” or “transfer” cryptocurrency. You will then need to accurately input the recipient’s Bitcoin wallet address. Double-check this address for accuracy, as Bitcoin transactions are irreversible, and funds sent to an incorrect address cannot be recovered.

Specify the amount of Bitcoin you wish to send. Your wallet will usually display an estimate of the network fees associated with the transaction, which are paid to the miners who process and secure the blockchain. After reviewing all details, including the recipient’s address, the amount, and the network fee, confirm the transaction. The Bitcoin will then be broadcast to the blockchain network, subject to blockchain confirmation times.

Selling Bitcoin for Cash at an ATM

Many Bitcoin ATMs offer the functionality to sell Bitcoin in exchange for cash. The process begins by selecting the “Sell Bitcoin” option on the ATM’s screen. You then specify the amount of Bitcoin you wish to sell or the amount of cash you wish to receive.

The ATM will generate a unique QR code, which represents a temporary Bitcoin address for the ATM operator. You must then send the specified amount of Bitcoin from your personal digital wallet to this QR code address. After initiating the transfer from your wallet, you will need to wait for the Bitcoin transaction to receive the necessary blockchain confirmations. This waiting period ensures the transaction’s security and can vary based on network activity, often taking several minutes to an hour or more for sufficient confirmations.

Once the required confirmations are achieved and the Bitcoin is received by the ATM operator, the machine will dispense the corresponding amount of cash. It is important to collect the cash promptly from the ATM’s dispenser. Similar to buying, selling Bitcoin at an ATM typically incurs operator fees, which are deducted from the transaction amount before the cash is dispensed.