Bitcoin’s massive rise in popularity has led to an increase in Bitcoin ATMs. These machines allow you to buy Bitcoin with cash in just a few minutes. Every operator charges a Bitcoin ATM fee to their users, just like traditional ATMs. But why are these fees in place? How are they determined? And why do they vary from machine to machine? Read on to better understand what Bitcoin ATM fees go towards, and how they help operators provide better services for you.
what are the bitcoin ATM fees?
All bitcoin ATM transactions have two different types of fees.
Reading: Bitcoin atm fees 2021
the miner fee
All bitcoin transactions must be added to the blockchain to be considered valid. the blockchain is the official public ledger that records all bitcoin transactions. miners validate transactions and add them to the blockchain.
miners own extremely powerful computers that connect to the network. miners who work to continuously validate transactions on the network give you decentralized properties. To incentivize miners for the power and energy used to run these validations and support the network, they receive financial rewards. Each transaction becomes a block on the blockchain, and as each block is added, a block reward is created. these financial rewards for miners are converted into fees for those who post transactions to the network.
This setting means that every bitcoin transaction requires a fee that goes directly to the miners. this fee may vary depending on the desired speed of validation and the size of the transaction. Coinsource pays the miner fees for you, while most other bitcoin ATM operators pass this variable fee on to their customers.
the operator fee
Just like traditional ATMs, bitcoin ATMs allow you to exchange cash on the go. however, instead of putting money on a card, you’re converting cash directly into bitcoin, stored in a wallet on your phone. secure identity verification ensures the safety of every transaction.
Average bitcoin ATM fees range from 11% to 25%. Coinsource has the lowest bitcoin ATM fee at 11% in the whole country all the time, accurate bitcoin price and absolutely no hidden fees. Bitcoin ATM operator fees are flat fees that include your operating and equipment costs that need to be covered.
These costs may include:rent. Locations that host a bitcoin ATM are paid to sublease the space that the ATM requires.software. bitcoin ATMs have software that comes with development and maintenance costs.compliance. Being a money service business within the bitcoin industry requires a strong compliance program and department to obey state and federal regulations.hardware. Bitcoin ATMs are not free to purchase or maintain, and each kiosk has its own maintenance costs.support. Because the industry is new, we are happy to provide live support 7 days a week to our customers who may need help making their first cash-to-bitcoin transaction.
how the rates work
First, you’ll need to create an account, and then find a bitcoin ATM near you. Let’s say you have $100 that you want to spend in bitcoin. if you only enter this amount into the machine, the fees will be subtracted from the total deposited.
However, if you want exactly $100 worth of bitcoin, you’ll need to deposit $100 plus additional cash to cover bitcoin ATM operator fees. this covers operator costs and miner fees. in this case, total bitcoin ATM fees would total roughly $12-$25 on average (depending on location, additional fees, and time of day) or $11 at any coin fountain kiosk. /p>
Most traders show a portion of this fee as a flat percentage, with the rest coming from the highest spot price of bitcoin being offered. additionally, many carriers will adjust the fee based on the time and location of the transaction.
updated rate comparison
You can find transaction prices for most bitcoin ATM locations on Coin ATM Radar. beware, not all prices displayed are accurate and many do not include miner fees.
why bitcoin ATM fees vary
Transaction fees for bitcoin ATMs depend on a variety of factors. these include location, transaction size, and more, depending on the carrier. Each bitcoin ATM operator can determine the fees as they wish. however, they must continue to comply with state and federal regulations.
But what about the companies that promise the lowest rates? with many operators you have to look at more than just the quoted rate. For example, some companies may keep their stated fee low, but then inflate the cost of bitcoin, or add miner fees or other fees, driving up the actual fee per transaction.
For example, a vendor that showed a buy rate lower than Coinsource’s daily low rate also showed a bitcoin price that was 6% higher than the actual bitcoin price. This inflated price means that your $100.00 purchase would generate less satoshis on the other provider than you would on Coinsource, simply due to the difference in the price of Bitcoin being offered. see the full breakdown below:
(these numbers are used for demonstration purposes only)
This shows the difference an exact bitcoin price can make to your wallet. Double check the price displayed on the kiosk you are using with the real time price of bitcoin to ensure no additional fees are hidden.
Other carriers sometimes vary the transaction fee based on location. high-use locations may have lower average rates than low-use locations. This can make it difficult to trust that you’re getting the best price possible and will eat up even more of your cash. that’s why coinsource keeps our 11% fee constant all the time, across the country.
the coin source difference
With coinsource, you can trust that the price you see is exactly what you pay. coinsource allows customers to know exactly what they are paying for a transaction with clear and accurate bitcoin prices. We are committed to keeping all transactions transparent for you, which is why our fees remain low and constant at 11% nationwide. coinsource does not increase fees in different locations.
We also absorb the mining fee. bitcoin miners operate by prioritizing the companies that give them the most incentive, meaning you have to pay more to get your transaction verified faster. By covering that cost, we keep your fees lower, transactions faster, and we prevent the fluctuating network from affecting the amount you pay to trade bitcoins.
coinsource always shows you the actual price of bitcoin at the time of your transaction. We maintain competitive rates and prioritize transparency for our clients. Create an account today to get access to our industry-low fees and transparent bitcoin pricing!
coinsource values your security and your privacy. Unlike online trading, buying through a Coinsource bitcoin ATM gives you a trusted partner for your cash-to-bitcoin transactions. With coinsource, all you need is a wallet and an account to operate at any of our ATMs easily and conveniently.
Understanding bitcoin ATM fees
Entering the world of cryptocurrencies when you are used to banking and traditional currencies can be intimidating. Just like traditional banking, it’s about finding a company you can trust to guide you and give you the ease and comfort you’re looking for.
When it comes to bitcoin ATMs, the most important way to become empowered is to understand where the fees go, how they are calculated, and how to find the ATM with the lowest or most consistent fees. It’s important to know that you’re getting the best bitcoin price and clearest fees at the ATM you’re using!