Did you know that there are over 38,000 Bitcoin ATM operating around the world? It’s been 9 years since the first ever Bitcoin ATM appeared in a shop in Canada, and people have found many clever ways of weaving these machines into their everyday lives. They’re brilliant at sending cash, receiving cash, converting cash to crypto, and changing crypto back into cash.
These services, however, aren’t sponsored by governments, and so ATM operators collect fees to stay in business, much like regular banks. If you want to know how these fee structures work, keep reading this handy guide.
How Bitcoin ATMs Work
Bitcoin ATMs need access to two online networks to provide their services. The first is the crypto exchange, which is where cryptocurrency tokens of all kinds are traded for other tokens or various forms of fiat currency. Bitcoin ATMs also need to be able to access the various e-wallet and digital wallet services that people use to store their cryptocurrencies.
When a user chooses to buy crypto, they need to access their digital wallet from the ATM. They then need to insert cash into the machine, which will then go online and trigger a cryptocurrency transaction on the user’s behalf. The machine then tells the exchange to credit the user’s e-wallet with that amount of cryptocurrency.
This entire process takes place on privately owned servers. Because the infrastructure is newer and smaller than the infrastructure regular banks use, this process can be slower and more expensive.
Bitcoin ATM Fee Structures
Unlike regular ATMs (which charge set amounts per transaction), Bitcoin ATMs charge percentage fees. Depending on which ATM you use, you can get as low as 4% or as high as 25%. On average, however, you’ll be paying from 9% to 12% per transaction.
When you want to find a Bitcoin ATM, you shouldn’t only look at the ATM fees the parent company states on their website. Some operators charge miners fees of between 1% and 2%, and that charge could be even higher for some of the smaller and newer companies.
You should also be on the lookout for Bitcoin ATMs that don’t protect you from hidden fees. Some ATM companies won’t pay network, exchange, or any other fees for you, nor will they state that those extra costs will reduce the amount of crypto you’ll end up getting. Going with one of the larger ATM operators like Byte Federal or Coinbase is the cheapest option in this regard.
Find a Bitcoin ATM Near You Today
One great thing about Bitcoin ATMs is that they offer time and money-saving convenience. The time you end up saving by using a machine for crypto trading can be much more valuable than what you spend on service fees. Just be sure to check out the Bitcoin ATM operator’s full terms of service and fee structures before creating an account with them.
You can use a nearby Bitcoin ATM to quickly jump on an investment opportunity with whatever cash you have on you. If you want to jump on another opportunity, hop on our website and take some creative courses today. Earn money online in no time.