A Bitcoin ATM is a physical machine that allows users to buy or sell Bitcoin and sometimes other cryptocurrencies. Unlike traditional ATMs that dispense cash, these machines enable users to exchange cash for digital currency or vice versa.

To use a Bitcoin ATM, a person typically needs a cryptocurrency wallet to receive the Bitcoin. During the transaction, the user enters their wallet address or scans a QR code, inputs the amount of Bitcoin they want to buy, and then inserts cash. The machine verifies the transaction and sends the cryptocurrency to the wallet almost instantly.

Some Bitcoin ATMs also offer the option to sell Bitcoin. Users can send Bitcoin to the ATM and receive cash in return, though this process often involves additional steps and verification. These machines are popular because they provide a convenient and often anonymous way to engage with Bitcoin, catering to those who may not want to use online exchanges or who prefer in-person transactions. They’re becoming increasingly common in urban areas, making it easier for people to access cryptocurrency.