How crypto ATMs work and what they really cost

A crypto ATM is a kiosk that swaps your cash for bitcoin or another cryptocurrency, and some machines also buy crypto back from you for cash. These machines are fast and don’t need a bank account. They are also one of the most expensive ways to buy crypto, and the FBI and FTC now track them as a major payment channel for scams.

What is a crypto ATM?

A crypto ATM is not a bank ATM. It doesn’t connect to your checking account, and no bank stands behind it. A private company owns the machine, sets the price and moves your money. Legally, that company is a money transmitter.

The machines go by many names: bitcoin ATM, bitcoins machine, crypto machine, crypto kiosk, cryptocurrency ATM and cryptomat. “Crypto Dispensers” is also the brand name of one US kiosk operator, which has its own app. Most crypto ATM machines sit in gas stations, convenience stores, grocery stores and malls.

Coin ATM Radar, a tracker that maps cryptocurrency ATM locations, lists roughly 30,000 machines in the United States. That is the large majority of the world’s machines.

Machines come in two types:

• One-way kiosks only let you buy crypto with cash. Most machines in the US work this way.
• Two-way kiosks also let you sell crypto and take cash out.

How a crypto ATM works

Buying crypto with cash

The machine then sends the crypto to the wallet address you scanned. It usually shows on your wallet within minutes. Full confirmation on the bitcoin network can take longer.

The wallet step matters more than anything else. Whoever controls that wallet controls the money. If someone else gave you the QR code, they get the crypto.

Selling crypto for cash

On a two-way machine, you pick “sell” and enter the amount you want. The kiosk shows a wallet address that belongs to the operator. You send crypto there from your phone, wait for the network to confirm the transaction, and then the machine pays out cash. Some operators give you a redemption code so you can come back later and collect.

ID checks and limits

Kiosk operators must register with FinCEN as money services businesses under the Bank Secrecy Act. That means they have to verify customers, watch for suspicious activity and file a Currency Transaction Report for cash over $10,000 in a day.

In practice, small purchases may only need a phone number. Larger amounts trigger an ID scan, a selfie or more questions. Each operator sets its own tiers, and many states now set daily caps on top of those.

What crypto ATMs really cost

The fee is rarely a separate line you can’t miss. Most operators build it into the exchange rate. The machine quotes a bitcoin price above the market price, so you get fewer coins for your cash. Some kiosks also add a flat fee or pass on a network (miner) fee.

To find the real cost, compare the screen price with the market price on a public price site before you insert any money.

Worked example: $500 in cash

The markups below are illustrative. They fall inside the range regulators have reported and around California’s 15% cap.

Here is the math in plain words. At a 15% markup, $75 of your $500 goes to the operator. You walk away holding $425 of crypto. To get back to $500, that crypto has to gain $75 on $425, which is 17.6%. That ignores any network fee and any fee you pay later to sell.

If you sell at a two-way machine, there is usually a second spread, this time below market price. Buying and selling at kiosks can cost you a quarter of your money or more on a round trip.

Online exchanges and brokerage apps usually charge from under 1% to a few percent per trade. The tradeoff is that they need a bank account or debit card and take longer to set up.

The biggest risk: scams

Federal data shows how serious this is. The FBI’s Internet Crime Complaint Center received almost 11,000 complaints involving crypto kiosks in 2024, with reported losses of about $247 million. The FTC has reported that people 60 and older are more than three times as likely as younger adults to report losing money through a bitcoin ATM. In 2025, FinCEN issued a notice warning financial institutions about kiosks being used for scam payments.

Scammers like these machines because cash goes in, crypto goes out, and nobody can claw it back. The typical script goes like this:

1. You get a call, text or pop-up warning saying your bank account was hacked, you owe taxes, or a loved one was arrested.
2. The caller tells you to withdraw cash and keep the reason secret from bank staff.
3. They send a QR code and stay on the phone while you feed the machine.

Red flags

• Anyone sends you a QR code to scan at a kiosk.
• A “government agency” asks for payment in crypto. The IRS, Social Security Administration and police don’t do this.
• You are told to stay on the phone, or to lie to a bank teller or store clerk.
• An investment “advisor” promises steady high returns paid in crypto. That pattern often turns out to be a “ponzi scheme.”
• There is urgency: a deadline in hours, a threat of arrest, a frozen account.

Other risks

Crypto itself can lose all of its value. Prices swing hard, sometimes double digits in a day. Money at a crypto ATM is not FDIC insured, and crypto held in a wallet is not SIPC protected.

Custody risk. If you use a wallet app on your phone, losing the phone and the recovery phrase can mean losing the coins. If you scan an exchange wallet, that company holds your crypto, so its security and solvency matter.

Address errors. Crypto sent to the wrong address is generally gone for good.

Operator problems. A machine can take your cash and fail to send the crypto. Keep the receipt and contact the operator right away.

US rules for crypto kiosks

What is law now

• Federal. Operators must register with FinCEN, run anti-money-laundering programs and report large cash and suspicious transactions under the Bank Secrecy Act.
• States. Most states require kiosk operators to hold a money transmitter license. California’s Digital Financial Assets Law limits each customer to $1,000 per day at kiosks. Since January 1, 2025, it has also capped charges at the greater of $5 or 15% of the transaction. Minnesota, Illinois, Iowa, Arizona, Connecticut and Vermont are among the states that have passed their own daily limits, fee caps or fraud disclosures. The details differ by state, so check your state regulator’s site.
• Local. Some cities have gone further. Spokane, Washington, voted in 2025 to ban crypto kiosks within city limits.

What is only proposed

In Congress, the Crypto ATM Fraud Prevention Act, introduced by Senator Dick Durbin, would set national transaction limits and require fraud warnings and refunds in some cases. Until it passes, it is only a bill and has no legal force.

How to check an operator

How the IRS taxes crypto ATM transactions

Under IRS Notice 2014-21, the IRS treats crypto as property, not currency. That has two effects for kiosk users:

• Buying with cash is not a taxable event. Your cost basis is what you paid, and fees can be added to it.
• Selling for cash is a sale of property. You owe tax on any gain, or can claim a loss, compared with your basis.

Keep every receipt. Kiosk receipts are often your only record of the price you paid. They also show the date, which decides whether a gain is short-term or long-term.

Where to report a problem

If you were scammed or a machine shorted you, act fast:

1. Call the kiosk operator’s support line printed on the machine and ask them to freeze or flag the transaction.
2. Report to the FBI at IC3.
3. File with the FTC at ReportFraud.
4. Submit a complaint to the CFPB complaint portal and your state financial regulator. California residents can file with the DFPI.
5. Contact local police and keep a copy of the report.

Some states now require operators to refund certain fraud victims who report quickly. Speed matters.

FAQ

What is a crypto ATM used for?

Mostly for buying bitcoin and a few other coins with cash, without a bank account. Two-way machines also let you sell crypto for cash.

How much does a crypto ATM charge?

It depends on the operator and the state. Total markups commonly run around 10% or more over market price. California caps charges at the greater of $5 or 15%. Always compare the screen price with the market price before paying.

Do I need ID to use a crypto ATM?

For small amounts, a phone number may be enough. Larger purchases require a government ID, and operators set the thresholds within state and federal rules.

Can I get my money back from a crypto ATM?

Usually not once the crypto is sent. Report fraud to the operator, IC3 and the FTC right away. Some states require refunds for certain fraud victims.

Is a crypto ATM a good way to get emergency cash?

Selling crypto at a kiosk loses a large spread and can create a tax bill. If you need money quickly, compare credit union options and the other routes in our guide to “loans emergency” first.

Are crypto kiosks legal everywhere in the US?

No. They are legal in most places, but operators need state licenses, many states cap amounts and fees, and some cities have banned them outright.

Written byOwen ParkStaff writer, crypto

Owen explains how crypto works for US readers: coins and tokens, buying and selling, wallets and self-custody, staking and DeFi. He sticks to how things work and what they cost, never price calls, and checks platform fees and licensing against the companies' own disclosures.

Fact-checked byRuth AdlerStandards Editor

Ruth is US Financer's standards editor. Every article goes through her checks before and after it is published: each rate, fee, cap, deadline and rule is matched against its primary source, every law named is linked to its official text, and anything that cannot be…