- November 3, 2022
- |Bitcoin, University
In 2021, there were around 26,000 Bitcoin ATMs, and there are many more of them today.
If you’re thinking about using a Bitcoin ATM and selling or buying Bitcoin, you’ll realize that there are fees with your transaction.
But how much does a Bitcoin ATM charge per transaction? Keep reading to find out all you need about fees on Bitcoin ATM transactions.
Before using a Bitcoin ATM or BATM, you’ll need to create an account (depending on which crypto ATM) you choose. Then, find a BATM near you.
Once you locate an ATM, you must calculate how much cash you will need to put in. For example, if you wish to buy $100 of Bitcoin, you’ll need to be prepared to have over $100 to cover fees and purchase exactly $100 in BTC.
The fees will come out of whatever cash you deposit. So you’ll need to deposit $100 plus any fees to cover the expenses. In addition, you’ll have to cover operator costs and miner fees.
On average, this could cost anywhere between $12 to $25. Of course, the fee will depend on additional fees, time of day, the operator, and the location. So it’s best to look around before choosing a Bitcoin kiosk.
Many operators will display a portion of the fee as a flat percentage. The rest will come from a higher spot price of Bitcoin. In addition, many operators might adjust the fee based on how busy the blockchain network is.
At Byte Federal, we like to keep things clear and concise so you know just what you’re getting into. Our fees are competitively priced and depend on region and Bitcoin rate source. Our kiosks display their Bitcoin rates prominently and include all our fees. The fee rate contains the cost for cash handling, volatility fluctuations, banking and federal regulations, and hardware and software costs.
Different Types Of Bitcoin Fees
Whenever you use an ATM, you’ll have to consider two different types of fees. Those are mining fees and operating fees.
Mining fees have been reduced recently because of different innovations and design features. Of course, there are many moving parts to the equation, but the designers of the Bitcoin blockchain have tried to reduce mining fees over time.
Thankfully, the fee percentage is relatively low, and even though it can fluctuate, it’s less than 1%.
Traditional ATMs have operational fees, and Bitcoin ATMs are no different. These will allow you to buy or sell your Bitcoin with cash, but there is a fee for that convenience.
When asking” How Much Does A Bitcoin ATM Charge Per Transaction” it is vital to consider operating fees. BATM operating fees range in percentage depending on who is in charge of the ATM. Make sure you find one that doesn’t have hidden fees, so you know exactly how much money you’ll be spending.
Many different factors will determine how high the operating fees are. For example, the software could cost a lot, and ATMs must keep up with the latest maintenance and development costs.
The location will also vary because the Bitcoin ATM operator must pay to sublease the space. If they’re renting in New York City, this will cost more than somewhere in the middle of Kansas.
Bitcoin ATMs are costly to maintain, and each kiosk will have upkeep costs. These costs will is part of the maintenance costs. Learn more about how Byte Federal Bitcoin ATMs break down their ATM fees.
Why Are Fees Sometimes High?
The cryptocurrency industry is less established than the traditional banking center. Moreover, because the blockchain network is decentralized, no one is regulating it.
Regulators could draft a new law that would make investing in crypto very difficult. Because of this, many Bitcoin ATM operators also have to deal with increasing compliance, which can sometimes raise costs.
If crypto ATMs had low fees, anyone could offer cryptocurrency at a lower cost for a scam. However, bitcoin fees make more sense when you fully understand the blockchain system.
If security were lax, there would be more scams and hacks throughout the industry. However, the regulation is helping to end this, all while slightly raising costs in the meantime.
Why Do Bitcoin ATM Fees Vary?
The fees vary depending on the transaction size, location, and operator. The operator can make the fees whatever they want, but they must comply with federal and state regulations.
If the regulations change, the operator might have to lower or increase their fees. Of course, some operators will offer a meager fee, but you should always read the fine print.
In some cases, companies will offer a low fee, then inflate the cost of purchasing Bitcoin. They may also add miner or other fees, raising the price for each transaction.
Are Bitcoin ATM Fees Worth It?
In general, when weighing the cost and convenience of Bitcoin ATMs, you will find that the ATM fees are worth it. Moreover, they offer exceptional access for a beginning investor who wants to convert cash into Bitcoin or, in some cases, sell their Bitcoin for cash.
Using a BATM is one of the most convenient ways to acquire crypto. Of course, cryptocurrency ATM transactions come with fees, but they’re primarily for convenience.
With Bitcoin ATMs, users can receive Bitcoin quickly instead of waiting up to a week for the transaction to clear from a traditional cryptocurrency exchange. So yes, the small fees are worth it for many cryptocurrency investors.
Learn More About: How Much Does A Bitcoin ATM Charge Per Transaction
These are only a few factors that determine: “How much does a Bitcoin ATM charge per transaction?” However, there are many other factors that you should consider.
We know that using one of these ATMs is convenient, but you also need to find one that is affordable.
Click here for a list of nearby ATMs to compare fees and find one that works for you.