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A Bitcoin ATM, sometimes called a BTM, is a physical kiosk that allows crypto users to buy, and in some cases sell, Bitcoin using cash or a debit card. Many people prefer Bitcoin ATMs over online exchanges as they provide convenient, direct access to funds, although not all Bitcoin ATMs offer cash withdrawals. There are currently some 31,000 kiosks in the U.S., and more than 38,000 in operation around the world demonstrating the popularity of this method of buying and selling crypto among the community. While many find them convenient, Bitcoin ATM operators have been known to charge up to 25% commission on the transaction, making them an expensive alternative to trading or withdrawing Bitcoin via an online exchange.
At ForumPay, we offer a dedicated crypto ATM solution that functions both as an ATM and as an exchange bureau, offering crypto users greater accessibility to their digital funds, convenience and autonomy.
How does a Bitcoin ATM work?
As we’ve seen above, Bitcoin ATMs are stand-alone devices, also called BTMs or Bitcoin kiosks, that allow users to buy and sell Bitcoin. Unlike traditional ATMs, which are connected to centralized banks and bank accounts, Bitcoin ATMs are completely “off-grid” and facilitate transactions using blockchain technology, the basis of all crypto transactions. To use a Bitcoin ATM, users can insert cash or use a debit card to exchange FIAT currency for Bitcoin, which is then transferred to a digital wallet instead of a bank account.
The pros and cons of a Bitcoin ATM
Bitcoin ATMs provide easy and convenient access to cryptocurrency funds, and are a particularly useful lifeline for crypto users who do not use an online exchange. Bitcoin ATMs are designed to be user-friendly, widely accessible and also offer privacy benefits —some ATMs allow users to purchase Bitcoin with minimal information. Another advantage is that users can convert physical cash directly into digital assets, eliminating the need for a bank account.
But Bitcoin ATMs also have their downsides. They typically charge higher transaction fees than online exchanges and could also have unfavorable exchange rates. Many ATMs only accept Bitcoin purchases rather than sales, making it impossible to convert Bitcoin funds into the local currency and withdraw cash (ForumPay’s crypto ATM allows for Bitcoin-to-cash conversions, see below for more information or click here to read about our ForumPay ATM). Some ATMs also offer limited customer support compared to online platforms.
How does the ForumPay ATM work?
The ForumPay crypto ATM offers users a convenient way to convert various cryptocurrencies (including Bitcoin, Litecoin, Ether, Bitcoin Cash, and Dash) into cash, and vice versa. Each ForumPay ATM operates both as a traditional ATM and as an exchange bureau, allowing crypto users to transfer crypto to a unique blockchain address associated with the ATM to withdraw cash in their preferred FIAT currency.
Our fees are notably lower than typical exchange bureaus, and users can use ForumPay ATMs to purchase crypto directly in cash, and bypass standard exchanges. Our ATMs are designed with a secure admin dashboard to monitor transactions, exchange rates, and balances, and each transaction is secured through encrypted TLS protocols, two-factor authentication, and comply with KYC/AML standards.
Buying crypto with cash from a ForumPay ATM
- Head to a ForumPay ATM with your digital crypto wallet.
- The crypto purchase will be executed by ForumPay at the best available conversion rate.
- ForumPay will send the purchased crypto funds to your wallet address.
Selling crypto for cash at a ForumPay ATM
- Head to a ForumPay ATM with your digital crypto wallet.
- Scan the QR code on the ATM generated by ForumPay. The crypto sale will be executed at the best available conversion rate.
- The currency exchange receives the payment and the ATM will pay out to you in cash.
For more information about finding or using a ForumPay ATM, visit our webpage or chat to a member of the ForumPay team.
