Where is the Cheapest Bitcoin ATM?
The Types of Bitcoin ATM Fees
Whether they’re made online or in person, Bitcoin transactions come with fees. There are two different types of fees. Although knowing about them won’t help you avoid them, it will help you understand why they exist in the first place.
The Miner Fee:
Do you know what makes a Bitcoin transaction valid? It’s the Blockchain, which is a digital ledger that records all Bitcoin transactions.
Miners, people with specialized computer hardware, race to be the first to solve a nexus math problem to contribute new transaction data to the Blockchain. The winner gets to add the new data to the Blockchain and is awarded a certain number of Bitcoin. It is how new Bitcoin enters circulation.
As an incentive for their efforts, they collect a fiscal reward from each transaction they process. This reward is called the “miner fee,” paid by the person who initiated the transaction.
The Operator Fee:
Exchanging Bitcoin for cash, or vice versa is not free. The company that owns and operates the Bitcoin ATM will charge a fee for each transaction. Just like a regular ATM, there will be a fee for using the machine. However, this fee is generally much higher than what you would pay to use a regular ATM.
The fee for using a Bitcoin ATM includes charges for:
Rent: Hosting a Bitcoin ATM costs money. The owner of the machine will likely pass this cost on to the user in the form of a fee.
Hardware: Bitcoin ATMs are specialized machines that can cost upwards of $15,000.
Software: The development and maintenance of software come at a price.
The operator fee can range from 11-25%, making it one of the most expensive ways to buy Bitcoin.
Do Bitcoin ATM Fees Vary?
The short answer is yes. The fees can differ from one Bitcoin ATM to another depending on a few factors. The transaction size and location are two factors that will affect the fee. But what contributes the most to the fluctuation is the operator.
Each operator freely determines the miner fee they will charge. The only aspect they are bound by is being compliant with the law.
Do Companies with Bitcoin ATMs Offer Discounts?
You must have come across companies flashing “cheapest Bitcoin ATM” or “lowest ATM fees.” They are not wrong. Some companies do offer discounts on their machine’s usage fee. The problem is, however, that the discounts are not always that significant.
Another counterpoint is that some companies might charge a minimum operator fee. They make up for it by charging higher miner fees. Not to forget, inflating the exchange rate. So, even with a discount, you might not be getting the best deal.
The location also significantly impacts the fees you will be charged. If a company has machines in populated areas, it can afford to charge lower transaction fees. The demand is high, and they can still turn a profit. In less populated areas, however, the company might have to charge higher fees to compensate for the lack of demand.
To find the cheapest Bitcoin ATM:
- Do your research.
- Check the rates of multiple machines in different locations before settling on one.
- Remember to factor in the cost of traveling to the ATM. It might be a few dollars more expensive, but worth it if it’s closer to you.
How to Dispense Bitcoin from a Bitcoin ATM?
You’ll have to sign up for a digital wallet before you can use a Bitcoin ATM. A digital wallet stores your cryptocurrency. When you have a digital wallet, look for a Bitcoin ATM near you using a Bitcoin ATM finder.
When you find a machine, insert your cash into the ATM and follow the instructions on the screen. The ATM will then dispense your Bitcoin, and it will appear in your digital wallet. The entire process usually takes a few minutes.
Where is the Cheapest Bitcoin ATM?
CryptoBase, available in 15 US states, offers some of the lowest fees for buying and selling Bitcoin. In addition, since all the locations are in highly populated areas, you don’t have to worry about security.
Another benefit of being in well-secured and easily-accessible locations is that you don’t have to pay higher fees for convenience. The company charges a transaction fee of as low as 3% with an exchange fee of 20%.
To find a CryptoBase ATM near you, check out their website.
Factors that Set CryptoBase Apart
Many users are intrigued by how CryptoBase can offer such low fees for their Bitcoin ATM services. The company has some tricks up its sleeve to make this possible.
Transparency:
The company is open about its rates and has nothing to hide from its customers.
Fixed Rates:
CryptoBase doesn’t believe in dynamic pricing. They offer one of the most competitive rates in the market and don’t change it depending on the market conditions. Neither does the pricing vary from location to location.
No Hidden Fees:
The company doesn’t charge any extra fees, and what you see is what you get. It includes the miner fee, transaction fee, and exchange rate.
Final Thoughts:
Many Bitcoin ATM companies are vying for your business. It can be hard to decide which one to go with. But if you’re looking for the cheapest Bitcoin ATM, CryptoBase is a great option. They value transparency and offer some of the best rates in the market. Give them a try next time you’re looking to buy or sell Bitcoin!
