Bitcoin ATMs are the next biggest thing in technology. Getting money out of one of these machines is more secure than using a regular bank ATM. You also don’t have to worry about losing your finances if your bank shuts down.
The only problem that you’ll run into is bitcoin ATM fees. You can’t convert your money into cryptocurrency or sell your bitcoin for cash without paying the miner costs.
For some, the price can make people question if using bitcoin is worth it. We’ll let you form your own opinion. Check out this guide to learn how much it will cost to use an ATM.
What Is a Bitcoin ATM?
A bitcoin ATM works a lot like a traditional bank ATM with a few differences. For one, bitcoin ATMs don’t connect to a bank account of any kind. They use your digital wallet instead.
Bitcoin ATMs also allow you to deal in cryptocurrency. Despite the name, most machines offer more than bitcoin as far as digital currency goes.
Types of ATMs
There are many different types of ATMs that you can choose from. The most common ones let you buy cryptocurrency and only buy it. There are others that will allow you to sell it and transfer it to someone else’s account, but those are much harder to find.
As far as bitcoin ATM withdrawal fees go, all of them come at different costs. The wait time will vary as well. Sometimes your digital funds will go in your wallet right away, and sometimes it takes a few minutes.
Using a Bitcoin ATM
Before we start talking about fees, it’s important that you understand how these ATMs work. The process is a little different depending on if you’re buying, selling, or transferring, but here are the basics.
Set Up Your Digital Wallet
If you don’t have a digital wallet, most bitcoin ATMs will print off a paper code that you can add to your digital wallet later. Still, buying cryptocurrency goes a lot smoother if you already have one set up when you go.
The process is pretty simple. Get on your phone and download one of the many wallet apps that are available. Plugin your personal information to set up your account, and you’ll be good to go.
Verify Your Identity
When you walk up to the ATM, the first thing you’ll need to do is to verify your identity. The machine won’t let you carry on with the transaction until you do. There are two ways you can go about it.
The first is to type in your phone number. After you do, you’ll be sent a verification code that you’ll put into the machine. The other way you can verify you are who you say you are is to scan some form of government ID.
Scan Your Wallet
When you set up your wallet, it will have a QR attached to it that links it to your email address. You won’t be able to send the funds to your account without your code.
Again, if you don’t have a digital wallet ready to go before you head to the machine, that’s okay. The ATM will prompt you to put in your email address, so it can print off a paper wallet that you can add to your digital one later.
If you have your wallet set up, the process is a lot faster. All you have to do is hold your phone up to the machine to scan the QR code and go about the rest of your transaction.
Insert Your Money and Confirm the Transaction
The next step is choosing how much bitcoin you want to exchange for currency. Once you’ve typed in the amount, put in cash that correlates to it.
Double-check to make sure everything is right before you click the confirm button. Once you do, there’s no going back due to the nature of the transaction.
After you hit okay, the funds will get transferred to your digital wallet. You’ll receive your bitcoin anywhere between a few minutes to a few hours.
What Are Bitcoin ATM Fees?
One of the downsides of using a bitcoin ATM is the fees. You have to pay a certain percentage of the transaction for the convenience of using the machine.
Every single ATM will make you pay a fee. There’s no getting out of it. If you’re using the machine to exchange bitcoin for cash, most of the time, the fee will come out of the money that’s owed to you.
A lot of ATMs only charge you about 10 to 15%. It can get as high as 25%, depending on where you go.
We said that you’re paying for the convenience of using the ATM, but that’s not all of it. Crypto miners are the ones that process the transaction. They will charge you a small fee as well.
This fee can be as expensive as 3 dollars or as cheap as $1.50. The screen will reflect the amount going to the miners, so there will be no surprises at checkout.
Is It Worth It?
With all this talk of the average bitcoin ATM fee, you may be asking yourself if it’s worth it to go to one. The answer is yes. There are many reasons why you may want to go to https://www.bytefederal.com/wallet/ to get an account set up.
Ease of Use
The main benefit of using a bitcoin ATM is the simplicity of it all. You don’t have to be super tech-savvy to understand how it works. If you’ve ever used a regular bank ATM, you’ll find that the steps aren’t that much different.
The machine pretty much walks you through the entire process. There aren’t many buttons to push because you’re mostly scanning codes.
One of the reasons why many people tend to stay away from these ATMs is security risks. There’s not too much to worry about, though.
You’ve got to show some form of ID before you even get to the part of the process where you show scan your wallet. Despite being completely digital, most ATMs are safe from hackers and cybercriminals. As you can see, using a bitcoin machine is no more dangerous than putting in your PIN at your bank’s ATM.
When you use a Bitcoin ATM, the only time a financial trail is left behind is when you transfer funds from one wallet to the other. Any other time, your identity is kept 100% secret from any other party.
Of course, if you don’t want to go out, you can deal in bitcoin via an online exchange. The problem with that is all your transactions will go through a third party.
Most bitcoin ATM companies don’t work with a third party, so there’s no middle man between the cryptocurrency and your digital wallet.
When you buy cryptocurrency, you’ll see it in your wallet within a few seconds. The only time you may need to wait is if you’re selling bitcoin for cash.
The machine will print off a receipt that you can use to redeem your money when it’s ready. It could take about ten minutes, but you won’t have to wait at the ATM that long.
You’ll get a text message when you can go get your cash. You can go where ever you want in the meantime.
Great for Travelers
The biggest problem with traveling to another country is converting your cash. Bitcoin ATMs can help you avoid going to an exchange.
If you go to an ATM and convert your digital currency to cash, it will do all the work for you in seconds.
Finding a Location
All you have to do to find a cryptocurrency ATM is Google it. The second you type in “bitcoin ATMs near me,” you should see a map with a list of machines that you can go to.
Certain websites will show you the same map along with the fees that you can expect to pay. This way, you can make cost comparisons before you go and choose the best ATM for your wallet.
Get the Bitcoin You Need
Using a cryptocurrency ATM is the best way to manage your finances. It’s safer than going to most regular bank ATMs, and you’ll see your digital funds reflected in your wallet in seconds.
The biggest problem is the bitcoin ATM fees. All machines have some kind of cost attached. The amount you’ll pay all depends on the location where you live and the machine operator.
For more information on digital currency and how it works, visit the Technology section of our blog.