Where To Find the Lowest Bitcoin ATM Fees
In this blog post, we’ll put all the details together so that you can reap the benefits of Bitcoin ATMs without getting hit with high fees.
First, let’s look at what you need to know about Bitcoin ATM fees.
Bitcoin ATM Fees: The Basics
BTMs operate like regular ATMs. The two major differences, however, are that:
- They dispense bitcoins instead of fiat currency
- They tend to charge higher fees than regular ATMs.
The fee varies from operator to operator and machine to machine. There are two main fees that you need to be aware of.
The Transaction Fee:
Did you think you could exchange Bitcoin for cash without paying a fee? Unfortunately, that’s not how it works. To use a Bitcoin ATM, you need to pay a transaction fee. This fee is a percentage of the total transaction amount. So, for example, if you’re buying $100 worth of Bitcoin, you might have to pay a $5 transaction fee. That doesn’t sound like much, but it can add up quickly if you’re making a lot of transactions.
The transaction fee accounts for the rent of the machine, the electricity used to power it, and the operator’s profit.
The location also plays a role in the transaction fee. For example, machines in high-traffic areas will likely charge higher fees than those in less popular locations.
The Network Fee:
In addition to the transaction fee, you also need to pay a network fee. This fee goes to the miners who confirm the transaction on the blockchain. The network fee is usually flat, so it doesn’t matter how much Bitcoin you buy or sell. For example, a network fee might be 0.0001 BTC. The network fee is generally much lower than the transaction fee. However, it can fluctuate depending on the current state of the network. The fees will be higher when there’s a lot of traffic on the network.
Why Are Fees Charged?
One of the main reasons why fees are charged is to cover the costs associated with operating a Bitcoin ATM. After all, just like any other business, running a Bitcoin ATM isn’t free. There are costs associated with things like maintaining the machine, building software, and marketing. Bitcoin ATM operators can offset some of these costs by charging fees. It will also help them keep their businesses running.
Rewarding the operators for their services is also a consideration. After all, they are providing a valuable service to the community. Charging fees allow them to make a profit and continue operating.
How Much Are Fees?
Fees can vary quite a bit from one ATM to another. However, they typically fall into one of two categories: a flat fee or a percentage-based fee.
A flat fee is a set amount you’ll pay regardless of how much Bitcoin you buy or sell. For example, you might pay a $5 flat fee when using a particular ATM.
A percentage-based fee, on the other hand, is calculated as a percentage of the transaction value. So, if you’re buying $100 worth of Bitcoin and the ATM charges a 5% fee, you’ll pay $105 in total.
Generally, BTM fees range from 5% to 20%, depending on the machine and location. However, it’s not uncommon to see fees as high as 25%.
What Should You Look for When Choosing an ATM?
When choosing a Bitcoin ATM, it’s important to compare fees so that you can find the most affordable option. Remember, every time you use an ATM, you’ll be paying a fee, so it’s important to find an ATM with low fees.
Another thing to look for is whether or not the ATM allows you to buy or sell without creating an account. Some ATMs require customers to create an account before buying or selling Bitcoin, which can add unnecessary hassle and delay to the process.
How to Find a Bitcoin ATM that Charges the Lowest Fee?
Fortunately, there are a few ways to find Bitcoin ATMs with low fees. One option is to use a service like CryptoBase ATM. Search for the lowest Bitcoin ATM fees in your area. You can also check the websites of individual Bitcoin ATMs to see what fees they charge.
Can You Trust BTMs?
Like any other financial transaction, there is some risk involved when using a Bitcoin ATM. However, you can do a few things to minimize the risk.
- Only use BTMs that are located in well-lit and busy areas. It will help to deter crime.
- Only use BTMs that require some form of identification, such as a fingerprint scan or a driver’s license. It will help to ensure that the person using the ATM is who they say they are.
- Ensure the selected BTM has all the necessary security features, such as a camera and a lock.
- Never leave your Bitcoin unattended. Once you’ve initiated a transaction, wait for it to be completed before walking away from the machine.
Conclusion:
Bitcoin ATMs are becoming increasingly popular thanks to their convenience and ease of use. However, one thing you need to remember is that most Bitcoin ATMs charge quite high fees.
To ensure you’re paying the lowest Bitcoin ATM fees, compare rates from different ATMs before making a purchase or sale. You should also look for an ATM that doesn’t require an account to make a transaction. It’ll save you time and hassle in the long run.
CryptoBase is one such ATM that offers excellent rates and doesn’t require an account. So, if you’re looking for a convenient and affordable way to buy or sell Bitcoin, check them out!
Following these tips can help ensure you get the most bang for your buck when using a Bitcoin ATM!
