Crypto ATM

A crypto ATM is a machine that sells cryptocurrency for cash or by card, and some models also buy it back and pay out cash.

How it works

You choose a coin, scan the QR code of your own wallet address, insert cash, and the machine sends crypto to that address. On two-way machines you can send crypto to the machine's address and collect cash. Many machines ask for a phone number or ID, and full verification for larger amounts.

The main downside is price. Crypto ATM markups are often much higher than exchange fees, frequently over 10% of the amount, plus the network fee. Convenience and cash come at a cost.

Scammers use crypto ATMs heavily. A victim gets a call from the "bank", the "police" or "support" and is told to put cash into a crypto ATM to move it to a "safe account", using a QR code they send. It is always a scam: real banks and authorities never do this. Regulators in several countries have restricted crypto ATMs for exactly this reason.

Example with numbers

You insert $200 in cash. The machine's markup is 12%, or $24, so you receive about $176 worth of BTC minus the network fee. On an exchange the same $200 would buy close to $200 worth.

Common mistake

The most dangerous mistake is scanning a QR code someone else sent you. The crypto then goes to them, not to you, and it cannot be reversed. At a crypto ATM use only your own wallet address. If anyone is rushing you to put money into a crypto ATM, end the conversation and call your bank on the number printed on your card.

Questions and answers

What is a crypto ATM in simple terms?

It is a machine where you can buy crypto with cash, and sometimes sell it for cash.

How much does a crypto ATM charge?

Usually much more than an exchange: a markup of 10% or more plus the network fee. The exact amount is shown on screen before you confirm.

Are crypto ATMs safe?

The machine itself usually works as promised if you scan your own address. The danger is scammers who pressure people into sending money to their addresses through crypto ATMs.

Crypto ATM

How it works

Questions and answers

Related terms

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