- February 4, 2022
- |Bitcoin, University
Did you know that the cryptocurrency market has just reached a worth of $2 trillion? This tremendous surge is happening for the first time since May. Best of all, a single Bitcoin is now almost worth $50,000.
You could buy a beautiful sportscar or another hot-ticket item on your wishlist with that kind of money. Knowing how Bitcoin ATM fees work is essential whether you’re new to cryptocurrency or have been buying and trading online for years.
More and more people are using these ATMs as a secure and straightforward way to get the cryptocurrency they want.
Are you wondering what you need to know? Then, please keep reading to learn all about Bitcoin ATMs and the associated fees.
Fees Are Standard Practice
It’d be nice if you could go to any ATM in the country to get the Bitcoin you need. However, you can only find this type of crypto at official Bitcoin ATMs. The good news is that there are so many locations already, and more keep appearing.
As the Bitcoin industry evolves, you can expect to find a convenient Bitcoin ATM at almost every street corner. So no matter where you live, you’ll always have access to one of the best forms of currency, helping to reduce the fees.
Even regular ATMs that deal in American fiat currency have charges. Sometimes they’re only a few dollars, but there are situations where it could be 5$ or more. With this in mind, you shouldn’t be surprised to learn that fees can be added to your transactions when using a Bitcoin ATM.
Aside from building the machine and putting it in a convenient location, converting American dollars into a specific cryptocurrency takes time and money. As a result of these processes, crypto ATM companies charge services fees. Otherwise, the convenience wouldn’t be there anymore.
Getting Ready to Buy Bitcoin
After finding your nearest Bitcoin ATM, you must first verify your identity before making any transactions. Verifying your identity is one of the safety measures that make these machines so secure for users.
Once you’ve completed that step, you can put some or all of the paper money from your wallet into the machine, converting it into any cryptocurrency you desire.
Now that you’ve saved yourself the trouble of Googling “Bitcoin ATM how to use,” you can start deciding what cryptocurrency is right for you. Whether you want Bitcoin, Marscoin, Etherium, or all of the above, an ATM will make the process much easier than if you buy these currencies another way.
Mining Fees Associated With Blockchains
Instead of dealing with a middleman who could overcharge you for their services, you can expect an ATM to charge a fee calculated based on various factors. While the fees are not usually set in stone like a conventional ATM, cryptocurrency is far from a conventional currency.
One of the most significant factors that come into play is the mining fee associated with blockchains. Without blockchains, all cryptocurrencies would be open to fraud and other problems. So in a way, part of the fee ensures that everyone’s currency remains safe and tamper-free.
No matter what cryptocurrency transaction you’re trying to make, it has to go through a blockchain. (This is true for all other buyers and sellers of Bitcoin and other cryptocurrencies.)
You’ll be glad to know that there are blockchain charts for every type of cryptocurrency. They can tell you how many transactions are processed in real-time and how many are waiting to be processed. These details can give you a much better idea of the fee situation.
For example, suppose many transactions co-occur when you’re using the Bitcoin ATM. In that case, you can expect the fee to be higher. The adage “time is money” certainly applies to blockchains. The great thing about paying a higher fee is that your transaction will be processed faster.
You can slow down the process, though, and save money on the fees.
Processing Speed Vs. Cost
Since Bitcoin miners prioritize transactions with higher fees first, you have to decide if you want the transaction done sooner for more money or later for less.
Going with the option that costs less, your transaction might be in something called a “mempool.” This word is a combination of “memory” and “pool.” A mempool is where the unconfirmed transaction information will wait until the high-priority transactions are finished processing.
Depending on the traffic, you could be waiting for an hour or longer. However, there’s still the chance that things can be processed within a quicker timeframe. You can ensure that by checking up on the traffic before making a transaction.
The best-case scenario is that you end up paying less and skipping the mempool altogether. However, so that you can make an informed decision, you should know that people who use Bitcoin ATMs and other transaction methods often choose the lower price. Consequently, this ends up filling mempools and making everyone wait longer.
You can think of the scenario as something similar to buying a fast pass at an amusement park. Are you willing to endure the long lines for fun rides? If you’re not someone with a lot of patience and free time, then it’s best to cover the higher fee so that you can move on with your day.
The Size of the Company Can Affect Bitcoin ATM Fees
Another factor that can contribute to higher ATMs fees relates to how established a company is. Regular ATMs are commonplace, and people expect to find one at just about any place handling money. However, more progress still needs to be made before this is also true for cryptocurrency ATMs.
When a new ATM company only has a handful of locations, higher ATM fees will be necessary to cover related costs. So if you want to save as much money as possible, you should choose an ATM company that has already been around for several years or longer. Plus, you can be confident that they’ve worked the kinks out of everything so that your experience is smooth and efficient.
No matter what ATM you choose, you can ensure that it’s running with as many regulations as a casino machine. In fact, the regulations for operating a cryptocurrency ATM are even more secure and reliable than any casino machines in Los Angeles, for instance. Cyber laws are becoming more and more strict, making perfect compliance expensive.
Every time you pay an ATM fee, you can have peace of mind knowing that a portion of it has gone toward networks that monitor and maintain procedure and policy compliance. While cybercrime and money laundering will probably never be things of the past, security is something that can be strengthened and improved.
Let’s not forget that each ATM unit is an expensive piece of sophisticated machinery. If even one gets damaged or somehow stolen, it would cost the company a significant amount of money. This factor also plays into the way that ATM providers calculate fees.
Private Vs. Public
One of the greatest appeals of cryptocurrency is that it offers a kind of financial freedom that you can’t get with U.S. dollars, for instance. America’s Federal Reserve could print a trillion dollars and crash the economy overnight. With cryptocurrency, mining and decentralization prevent people from making unwise decisions that affect everyone else.
An extension of this privacy relates to ATM ownership. Unlike big bank ATMs, which have government involvement if not ownership, cryptocurrencies are owned and operated by private businesses. The downside of private ownership is that it results in higher ATM fees.
It’s like going to a clothing boutique instead of a shopping mall. The shopping mall has enormous chain stores, such as JCPenny and Macy’s, but the quality of the clothes is low, and the selection tends to be lesser, too. On the other hand, a boutique store is more expensive, but the clothes are often beautiful works of art that can last a lifetime.
Anyone who has chosen to join the cryptocurrency revolution will be able to see the benefit of using a Bitcoin ATM.
ATM fees feel worth it when considering all the money you can make as a savvy investor. With cryptocurrency being part of a free market, you don’t have to worry about arbitrary limits on your profits and overall wealth. There’s a slight possibility that this could change in the future, so it’s wise to start investing now rather than later.
After all, what’s a handful of ATM fees compared to thousands or millions, if not more than that?
A Fee Range Depending on the Provider
Most ATMs ask for an average of about 8.5% on each transaction. This rate could be higher for some ATMs, or it could even be as low as, say, 5%.
Since cryptocurrency ATM companies have no set fee, you’ll have to compare and contrast fees to find the best deal. However, you shouldn’t run to a specific ATM just because it has a low fee percentage. A low fee could be an indication of a low-quality experience. (As a general rule. Of Course, there are exceptions to every rule).
The last thing you’d want to do is have your money stolen, whether it’s your U.S. dollars or USDC cryptocurrency. So it’s best to look at an ATM provider’s website. That’s where you’ll be able to get a detailed look at their terms and conditions.
If you have any questions, comments, or concerns, it’s good to reach out to them before putting your hard-earned cash into one of their ATMs.
With enough diligence, you may even be able to find online reviews of people who have used the ATMs. By reading several reviews per ATM provider, you’ll have a better idea of what to expect from your experience.
It’s worth noting that once a cryptocurrency transaction becomes confirmed, there’s nothing that can change that. Much of this is because cryptocurrency has a decentralized construction. Of course, ATM providers can’t undo confirmed transactions either, but you could use their machines to trade one kind of currency for a type that better suits your needs.
You should never purchase or trade for a cryptocurrency without being absolutely sure about it. If you choose a low-fee option, you’ll be glad to know there will be plenty of time to cancel the transaction if it’s still unconfirmed.
Are You Ready to Pay Bitcoin ATM Fees?
Not that you’ve learned all about Bitcoin ATM fees (and the convenience of using them), you can have the pleasure of purchasing all the crypto you could ever need. The fees are a small price to pay for having financial freedom that isn’t weighed down by fiat currency issued by a government.
At ByteFederal, we’re dedicated to providing quick and affordable cryptocurrency services. We have numerous Bitcoin ATM locations across the country, from the West Coast to the East Coast, and plenty.
You’ll be glad to know that we facilitate the purchase of more than just Bitcoin. We’re happy to serve customers who need Ethereum, Dogecoin, Marscoin, Dash, and other types of cryptocurrency.
Do you have one or more questions about cryptocurrency, ATMs, or other related topics? Our dedicated support team is ready and willing to answer any questions you may have. We’re also happy to address concerns or receive comments about your experience using one of our Bitcoin ATMs.
Please don’t hesitate to contact us. That way, we can get back to you as soon as possible.