A Bitcoin ATM functions much like a traditional ATM, except it’s connected to a Bitcoin exchange. You can insert cash (or use a debit card) to purchase BTC on the spot, often receiving a paper wallet or transferring the coins to a specified address. Some ATMs also allow you to sell BTC and withdraw cash.

However, fees at these machines can be significantly higher than online exchanges, reflecting the convenience factor and operating costs. Additionally, most jurisdictions require some level of KYC, so using a Bitcoin ATM may involve ID verification. Despite these trade-offs, they remain a tangible, accessible on-ramp for newcomers who prefer a physical transaction experience.