11-21-2019 icon

How to Buy Bitcoin Using a Bitcoin ATM

By Sagetwriter

Buying Bitcoin through exchanges and peer-to-peer purchases are very common, however it is also possible to buy Bitcoin using a Bitcoin ATM (Automated Teller Machine).

What is a Bitcoin ATM?

Just like regular fiat money ATM, a Bitcoin ATM is an internet-connected kiosk that allows you buy bitcoin or sell bitcoin and withdraw cash. Bitcoin ATMs support the use of cash or debit card to make coin purchases.

How  Does it Work?

BTC or cryptocurrency ATMs come in two basic types.

Uni-directional (fiat to crypto) ATM: This type only allows you deposit cash in the ATM and receive a paper wallet or scan a QR code to receive your BTC.

Bi-directional Bitcoin ATM: This type of ATMs offers you the opportunity to buy bitcoin from the machine at the spot, or sell your BTC and withdraw cash from the ATM.

There are also multi-cryptocurrency ATMs which support purchase of Bitcoin and other cryptocurrencies on the same machine.

Bitcoin ATMs offer an instant method of buying Bitcoin as you do not go through vendor hassles, and it lets you buy or sell privately.

How to Buy on a Bitcoin ATM

Buying Bitcoin on a Bitcoin ATM could be confusing, so we advise you take time to follow every step.

  1. At Bitcoin ATM click on “Buy Bitcoin”.
  2. Select Bitcoin or other coin in case of multi-cryptocurrency ATM.
  3. Next Click Scan QR code.
  4. Proceed to Scan your wallet QR Code.
  5. Insert cash amount into the machine.
  6. Wait on processing, then click “Send bitcoin”.
  7. Click on finish.
  8. Take your printed receipt / paper wallet containing Bitcoin keys to be transferred later on to your wallet.

How to Sell Bitcoin Using Bitcoin ATM

  1. At Bitcoin ATM select ‘Cash Withdrawal’ option.
  2. Select Bitcoin or other coin you want to sell.
  3. Key-in amount you want to sell or withdraw.
  4. Send the bitcoins to wallet QR code shown on ATM screen.
  5. Allow to process.
  6. Confirm and take your cash.

Note that: Bitcoin ATM procedures vary according to vending company, however the above steps are common.

How to Send Bitcoins from ATM Paper Wallet to Your Online Wallet

For some Bitcoin ATMs, once your cash deposit is confirmed, the machine prints out a Paper Wallet – a piece of paper which holds your purchased Bitcoin.

The paper wallet contains a public and a private Bitcoin key (2 separate alphanumeric addresses). To access your Bitcoin BTC, you are required to import the private keys/address on the paper into your online or blockchain wallet.

To do this using Blockchain.com wallet:

  1. Go to Settings
  2. Select address
  3. Click on Import address
  4. Type or scan the paper wallet private key
  5. Once confirmed, the funds from your paper wallet will be transferred to your blockchain wallet.

Note that transferring Bitcoin from paper wallet to your online wallet is a sensitive process and should only be done when you have carefully understood the steps.

In some cases, it could take longer probably a few hours after importing before the funds are spendable (available for sending) out from your blockchain wallet to any other wallet. You are advised to wait.

Also do not share or expose the private keys on the paper wallet, as any one who has access to them has access to your BTC.

How to Locate a Bitcoin ATM

To find the nearest Bitcoin ATM in your city, all you have to do is use any of the Bitcoin ATM services such as Coin ATM Radar or Bitcoin Depot to locate the nearest Bitcoin ATM to you.

The Coin ATM Radar service also shows you a list of Bitcoin ATMs worldwide, their purchase limits, fees, whether they are Buy only, Sell only or bi-directional (buy and sell) bitcoin ATMs.

Challenges of Bitcoin ATMs

  • There are no Bitcoin ATMs in Nigeria currently.
  • Bitcoin ATM operators are known to charge high transaction fees (up to 7%) for buying or selling Bitcoin; unlike buying on exchanges such as NairaEx which is free to buy or sell.

While Bitcoin ATMs come in handy, they do not beat the ease and No fees you get from buying Bitcoin on NairaEx.

NairaEx is Nigeria’s premier bitcoin exchange and has over the years offered different ways for Nigerians to buy/sell Bitcoin BTC. Including buying Bitcoin with Bank, Debit or Credit Card all done instantly on its website. Nairaex.com.

NairaEx charges NO FEES for buy or sell, instant payouts, and 24/7 service. The NairaEx platform also recently launched an array of new services:

NairaEx Pay which allows individuals, businesses, and companies integrate Bitcoin payments on their website, as well as accept bitcoin payments converted directly to their bank account.

The NairaEx platform is safe and easy. No stress, no transport to ATMs, no long queues.

Trade with NairaEx today. Enjoy instant payouts, trusted and efficient service.

Fun Fact: There are about 6,000 Bitcoin ATMs globally. 65% of these are in the United States. Africa has 6, Nigeria is yet to get its first Bitcoin ATM.

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