Have you heard of a bitcoin ATM? It sounds like a futuristic device but it is now a reality.
A Bitcoin ATM has been growing in popularity in recent years. These ATMs allow you to buy Bitcoin directly from them using your debit card or bank account information (which can be done anonymously). It’s become more popular since the pandemic led to an increase in cashless transactions.
But what are bitcoin atm fees and how do you minimize them?
Here’s everything you need to know.
What Are ATM Fees?
Bitcoin ATM fees are one of the most important things you need to know about Bitcoin ATMs alongside, the question ‘where are bitcoin ATMs near me’ located?
Crypto fees are usually charged by the ATM operator. You will find out how much they charge when setting up your account with them. The fee can range from 2-10% depending on how long they have been operating and where they are located in terms of competition with other similar machines nearby that also accept cash deposits or withdrawals (EDD).
The fee is usually paid by the buyer as part of their transaction on a per-withdrawal basis, although some operators may allow for it to be paid by both parties involved in an exchange transaction depending on what type of model works best for them at any given time (one party paying all fees upfront vs splitting those costs evenly across buyers and sellers).
What Is Bitcoin?
Bitcoin is a digital currency. It’s not physical, it’s not a company or a government entity, and it’s not owned by one person or group of people—but rather by everyone who uses bitcoin.
And while there are many different ways to define what Bitcoin is, one certain thing is that it functions as an independent and decentralized currency system that can be used across borders without needing to use any middlemen.
But what exactly is Bitcoin? And how do you buy Bitcoin? Bitcoin is a digital currency that allows people to send money through the internet without using a bank or any other financial institution. The transactions are made directly from one person to another and are recorded on a public ledger known as the blockchain.
The History of Bitcoin
Bitcoin is a cryptocurrency that was created in 2009. It’s the first decentralized digital currency, and it’s an open-source software project. Because there’s no central controlling authority, Bitcoin has no physical form or backup system to protect against data loss—all transactions are recorded on a shared public ledger called the blockchain.
The value of one bitcoin rose to over $1,000 in late 2017 when its price began to increase rapidly; as of this writing, it has fallen somewhat after a crash but remains high compared to traditional fiat currencies.
What Are Bitcoin ATM Fees?
As cryptocurrencies have become more popular, so has the number of Bitcoin ATMs popping up around the world. With this new technology comes a flurry of questions from curious consumers and investors alike. One common question is, “What are Bitcoin ATM fees?”
The answer isn’t as simple as it may seem: Bitcoin ATM fees vary by country and even by city, so it makes sense that you’d want to know more about them before spending your hard-earned cash on one that’s not worth it.
In this article, we’ll look at what goes into calculating these charges and how they compare to other services like traditional ATMs or even online exchanges like Coinbase.
Bitcoin Fees Compared With Other Companies
Compared to other companies, Bitcoin fees are low. For example, PayPal charges a fee of 2.9% plus $0.30 per transaction and Square charges 3%. Bitcoin transaction fees will cost you less than either of these popular payment platforms.
Bitcoin’s fee structure is comparable to other digital payment solutions like Venmo and Square Cash. Venmo costs 1% plus $0.25 per transaction while Square Cash works on a flat fee structure of $0.15 per transaction no matter the size (up to $3,000).
Bitcoin is also cheaper than credit cards when it comes to international transactions. Credit cards are charged a 2% fee by Visa and MasterCard for every transaction made outside of the U.S., while foreign exchange rates can add up to 3% on top of that.
Compared to Bitcoin Fees With Coinbase
Compared to the cost of buying bitcoin from a Bitcoin ATM, you’re looking at a much higher fee with Coinbase. The company charges a flat fee of 1.49% for buying or selling cryptocurrency on its platform, which is lower than most other exchanges but still higher than the ATM’s fees.
If you’re using an in-network ATM, this isn’t an issue—but if you have to withdraw your bitcoins and deposit them into another exchange to sell them immediately, then there’s no reason to stick with Coinbase over an ATM when it comes to fees.
The company also doesn’t allow you to sell your bitcoins for cash at a Bitcoin ATM. If you want to use Coinbase’s services, then it makes sense to stick with them—but if you’re looking for a way to sell your cryptocurrency for cash quickly and easily, then the ATM is a better choice.
How Do You Calculate Bitcoin Transaction Fees?
When you send a Bitcoin transaction, you pay a fee to the miners who process it. The amount of this transaction fee is calculated by the size of your transaction and its priority in the queue.
To calculate how much you’ll pay in fees, there are two important factors:
- Size of your transaction (in bytes)
- Priority of your transaction (high or low priority)
Because the size of your transaction is fixed (it’s determined by how many inputs and outputs it has), you can reduce your fees by making sure that you’re sending as few inputs as possible.
If you want to send a small amount, for example, consider using a single input instead of two or three. This will save you money on fees because each input is associated with its fee.
Which Countries Use the Most Bitcoin ATMs?
You may have heard that the US has the most Bitcoin ATMs, but did you know that it’s not even close? The United States currently holds about 1,900 Bitcoin ATMs—which is more than twice as many as any other country.
The UK comes in second place with around 200 machines and then there are several European countries with 100 or fewer machines each: Germany, France, Spain, and Italy all fall within this range.
How Can I Buy Bitcoins Cheaply?
If you’re looking to buy Bitcoin, the first step is finding a way to get cash into your hands. You can do this by going through an existing exchange that supports bank deposits.
But what if you want to save as much money as possible on fees or avoid paying any at all? Then there are some more affordable options out there.
Use Cash
This is one of the easiest ways you can bypass a lot of fees when buying Bitcoin. If your local bank offers debit cards with low transaction fees (or no fees at all), then this method may be for you.
The downside here is that not everyone has access to a debit card that doesn’t charge high rates or monthly fees—so this might not be an option for everyone!
Avoid ATMs
One thing to keep in mind when buying from an ATM is that it’s going to cost both time and money. The machines themselves won’t charge any extra money beyond what’s already built into their exchange rate, but they’ll still take longer than simply walking into most stores or restaurants (which usually offer free Wi-Fi).
Another problem with these machines is that anyone could potentially use them without having any identification on hand—meaning people who don’t want others to know what they’re doing could potentially use one without needing proof of identity beforehand!
How Can I Pay a Lower Fee at a Bitcoin ATM?
Here are some ways to pay a lower fee at a Bitcoin ATM. Use a wallet with a low fee. If you use a wallet with low transaction fees, the ATM will charge less for processing your deposit.
Find an ATM with high volume and liquidity. Most ATMs have small margins on their transactions and thus can only offer competitive rates when they have lots of volume and liquidity through regular use. So if you find an ATM that has been in operation for several months (or years), it’s likely that it will have lower fees than an account that hasn’t been used much recently.
Buy from an operator with high transaction volume and liquidity. An operator is someone who runs an online exchange service, so he needs to keep his customers happy by offering competitive rates — otherwise, they’ll go somewhere else!
Buying Bitcoin From an ATM; Here’s How To Avoid High Fees
How can I avoid high fees and extra charges?
Here’s a list of some of the things you can do to minimize ATM fees.
Find a Bitcoin ATM that doesn’t charge a fee. Many ATMs will charge you a percentage of your purchase as an additional fee, so look for one without this extra cost.
Use your debit card. Some Bitcoin ATMs allow users to buy using their debit card, which means they don’t have any other option but to pay the high fees associated with credit cards or cash transactions. If your local Bitcoin ATM accepts debit cards, make sure you use yours! You’ll get better value for your money this way.
Try buying smaller amounts first; then move up from there if needed later on down the line in order not only to save money but also reduce risk by not making too much money at once when it comes time for someone else who wants something similar – like perhaps yourself later on down the road?
You Can Pay Less in Fees if You Know the Right Steps
You can pay less in fees if you know the right steps. Use a wallet that lets you set the fee. Some wallets let you choose what fee to pay, while others automatically use the recommended fee by the blockchain network itself.
If your wallet doesn’t allow you to adjust it, consider switching to one that does.
Choose a wallet that allows you to set the number of confirmations needed for your transaction. The higher this number is, the more time it will take for your transaction to go through but also longer it will be untraceable.
Conversely, lower numbers mean faster confirmation times. However, there is more risk of having your money stolen if someone gets hold of your private key or password.
Generally speaking though: 4–6 confirmations should be enough for most users but larger payments may benefit from waiting longer as well (depending on how much speed/security matters).
Choose a wallet based on its size and the minimum amount required before sending coins out – some wallets require higher amounts than others (e.g., Bitcoin Core requires 2 BTC worth before making an outgoing transaction). This means if all else fails then maybe try another app instead!
Bitcoin ATM Fees Vary
With so many options available, it’s easy to get confused about how much you should be paying in bitcoin ATM fees. The takeaway here is that there are ways to avoid paying high fees if you know where and how to look for them.
We hope this article has helped you understand what exactly Bitcoin ATM fees are and how they work so that next time around when buying Bitcoin from an ATM goes smoothly!
For more on crypto fees and the future of the crypto, ATM be sure to check out the rest of our site.
