With the advancement in technology and rising demand for the same, the internet world has invented innumerable virtual technologies beyond one’s imagination, such as cryptocurrencies.
But, the hunger for more has led to developments in these new tech inventions as well, like the Bitcoin ATM that has made cryptocurrency trading a cakewalk for the traders. However, these new crypto services attract certain charges, known as the bitcoin atm fees.
The world currently has 19,000 cryptocurrency ATMs, a physical kiosk similar to the bank’s ATM that helps a crypto trader buy and sell cryptocurrencies seamlessly. Such crypto ATMs have substantially eliminated the difficulty related to buying and selling of crypto assets.
How about discovering more about the new tech-run Bitcoin ATM, how it works, the transaction period it offers, its limitations, and, most importantly, about the bitcoin atm fees that the trader has to pay each time he avails the service. Continue reading to find out more.
Working System Of A Bitcoin ATM
A Bitcoin ATM allows its users to buy and sell Bitcoin and altcoins using their debit cards or even cash after he accepts to pay the applicable bitcoin atm fees. The funds that the user deposits or withdrawals at Bitcoin ATM do not route through his bank account. Also, you must have an existing crypto trading account to transact on the Bitcoin ATM.
All you have to do is go to a Bitcoin ATM and carefully read the instructions that are flashing on the ATM screen. If you are there to buy Bitcoin cryptocurrency, the ATM will instruct you first to input the amount you want to buy after selecting the buy option. Once you do that, you have to open your crypto wallet and initiate a new OR code and receiving address. After successfully scanning the OR code, the machine will ask you to deposit the total buying amount in cash or through a debit card and finish the trade.
Similar to buying is the selling process on Bitcoin ATM. Here, you will only be asked to send funds to the ATM, which gets reflected on the ATM screen once the transaction is completed. After this, an equivalent amount of cash will be dispensed by the ATM automatically. The bitcoin atm fees for selling may be different from that fixed for buying.
Bitcoin ATM Fees And Other Applicable Charges
A change of network fees does not stop cryptocurrency exchanges between the users because the mediator platform has the rightful custody of all the user funds, even if trading of cryptocurrency takes place between users on the exchange platforms. A user can only pay the network transfer fees when he chooses to withdraw his balance from the exchange and transfer it to a wallet of his choice.
Bitcoin ATMs do not charge excruciatingly high bitcoin atm fees, but a small fraction of these ATMs offer an appalling buy/sell rate compared to the exchange rate floating in the market. For instance, if Bitcoin is priced at $40,000 on the exchange platform, the same coin will be priced at $45,000 by a Bitcoin ATM. A $100 transaction will practically give you only 0.001818 BTC on the net where you should have received 0.002 BTC.
As said above, this 10% difference in rates is charged by a few ATMs only. There are many Bitcoin ATMs, which diligently follow the global rates. The change in prices of such ATMs may happen every few minutes. But, the volatility of the crypto market may stop you from benefiting from the sudden drop in the exchange rates. On average, bitcoin atm fees range between 10 to 20 percent of the total transaction amount that can touch a maximum of 25 percent and drop not below 7 percent. However, there is no actual upper limit to the atm fees.
Bitcoin ATM Transaction Period
The dependency of Bitcoin ATMs on verification processes or slow bank transfers is completely zero. However, many countries have now made a regulation that orders Bitcoin ATMs to identify their users before initiating an exchange. This means you will be asked to verify your phone number to start a transaction on the ATM.
Moreover, several Bitcoin ATMs have kept meager transaction limits because they do not have full-fledged identification procedures in place. If your KYC process with the Bitcoin ATM operator is not completed, your country’s government will not be able to trace your tax liability. Therefore, to cover up this loophole from being exploited, Bitcoin ATMs permit their users to buy or sell cryptocurrency of only small amounts. This will also attract lower bitcoin atm fees.
Buying and selling at a Bitcoin ATM may take 10 to 15 minutes. In case of buying, after you deposit the cash in the Bitcoin ATM, the machine will show the funds in your exchange wallet in 10-15 minutes. Since Bitcoin ATMs run on the internet, the process of buying and selling through an ATM may get delayed on account of a dynamic blockchain network than usual or transactions getting blocked. At the same time, they wait for their turn to be written to the blockchain. This won’t have an impact on the bitcoin atm fees.
A part of bitcoin atm fees directly goes into the pocket of the ATM owner and operator. And, the remaining amount is most likely used to balance off Bitcoins’ network fees. Also, every time you transact at any of the Bitcoin ATMs, it has to initiate an on-chain transfer. In contrast, a virtual crypto exchange offers its users a wallet. It is believed that when the network is busy, the bitcoin atm fees surge since every trader trading at that time fights for the fastest transaction settlement times.
Conclusion
I hope that the above guide on Bitcoin ATM acts as a comprehensive book that will help you trade better at a Bitcoin ATM near you. The utility of a Bitcoin ATM differs from person to person. One might find the bitcoin atm fees to be fair enough. But, there are others for whom the online exchange platform is more convenient and economical. So, choose according to your requirements. In case you require any more information, do reach out to us.
Additional Reading:
- How To Buy Cryptocurrency – A Step By Step Guide In 2021
- 10 Of The Fastest Growing Cryptocurrencies To Watch In 2021
- What Is Cryptojacking – A Complete Guide For Beginners In 2021
- Cryptocurrency Crash: 5 Major Risks Involved In Investing In Crypto
