Bitcoin ATMs: The Easy Way to Cash Out—But Are You Being Scammed?

Bitcoin, a form of digital currency and virtual payment platform, has seen a surge in popularity over the past few years. Those who hold significant amounts of this leading cryptocurrency have amassed billions from this digital asset.

Entering the world of cryptocurrency can range from straightforward to complex, and while it’s feasible to create your own coin, not all transactions need to occur online. Physical devices such as cryptocurrency ATMs are readily available across the country.

Here’s what you need to understand about Bitcoin ATMs and how to find them in Ohio.

What exactly is a Bitcoin ATM? Here’s how it differs from traditional banking ATMs

Bitcoin ATMs are kiosks that let you buy or sell cryptocurrency using cash or your own credit/debit card, just like regular ATMs. According to the personal finance website Bankrate, you can cash out your Bitcoin at a Bitcoin ATM, sometimes referred to as a BTM.

However, cash withdrawals are done using a QR code that the machine offers, in contrast to conventional banking processes. After sending your Bitcoin through the QR code, you get your money a few minutes later.

How does Bitcoin work and why is it so popular?

Bitcoin is a form of digital currency that can be mined, purchased, and sold. Investopedia states that it works as a payment method that is not controlled by a single organization. It is powered by a computer record-keeping system called the Blockchain, which keeps track of cryptocurrency transactions.

According to USA TODAY, Bitcoin is not issued by central banks or other agencies and has a limited supply due to its decentralized nature. Even though the coin is extremely volatile, some investors have made a fortune by timing their investments.

Are Bitcoin ATMs safe? Last year, Americans lost more than $60 million to BTM scams

Are you going to utilize a Bitcoin ATM? Due to an increase in Bitcoin ATM fraud, the rise of BTMs is not without risk.

According to the Federal Trade Commission, consumers lost almost $65 million to Bitcoin ATMs in the first half of 2024 alone; the most vulnerable were older persons over 60. Scammers will pose as a company, government official, or tech support person and advise victims to withdraw money from their bank accounts and put it into a Bitcoin ATM for further “protection.”

Scammers will provide victims with a QR code, according to the FTC. When their money is scanned at the machine, it is immediately transferred to the scammer’s cryptocurrency account. It also warns against reacting to unusual calls or messages, clicking on dubious links, and transferring money quickly if rushed.

“Don’t believe anyone who says you need to use a Bitcoin ATM, buy gift cards, or move money to protect it or fix a problem. Real businesses and government agencies will never do that – and anyone who asks is a scammer,” the FTC writes.

What is the number of Bitcoin ATMs in existence? How to find them in Ohio

There are approximately 49,000 cryptocurrency ATMs in the United States, including over 100 in Ohio, including multiple kiosks in Cincinnati, Cleveland, Columbus, and Akron, according to AARP.

An interactive map of neighboring locations and operators across Ohio and the nation is shown by Coin ATM Radar.