Most Bitcoin ATMs charge a fee between 9% and 12% to buy Bitcoin. However, you can find fees as low as 4% and as high as 20%. In comparison, many online cryptocurrency exchanges will charge less than 1.5% on transactions in highly liquid currencies such as Bitcoin. According to Radar data from coin ATMs, the average fee for bitcoin ATMs is between 11 and 12%.
However, many Bitcoin ATM companies do not announce their fee structure, which means that this data could be biased. According to our research, some companies charge a fee of more than 25% on Bitcoin ATM transactions, while most of them charge a fee of between 11 and 12%. Most ATMs ask for an average of about 8.5% on each transaction. This rate could be higher for some ATMs, or it could even be as low as, say, 5%.
When it comes to Bitcoin ATMs, the most important way to empower yourself is to understand where the fees go, how they are calculated, and how to find the ATM with the lowest or most consistent fees. Although that doesn't seem like a big commission, the amount does deter the practice of making small and frequent transactions with Bitcoin. These ATMs are usually located in easily accessible locations and allow you to exchange money for cryptocurrencies instantly. As one of the safest and easiest ways to buy bitcoins and other cryptocurrencies quickly, Bitcoin ATMs have been popping up all over the world to make cryptocurrencies more accessible.
Therefore, if you want to save as much money as possible, you should choose an ATM company that has already been around for several years or more. A Bitcoin ATM connects you directly to a cryptocurrency exchange or a Bitcoin wallet, where it can generate blockchain-based transactions. European Bitcoin ATM operators were unable to meet the rising level of KYC compliance, and there were massive shutdowns. With this in mind, it shouldn't surprise you to learn that fees can be added to your transactions when you use a Bitcoin ATM.
Unlike online trading, buying through a Coinsource Bitcoin ATM gives you a trusted partner for your cash-to-Bitcoin transactions. Some Bitcoin ATMs offer two-way functionality that allows both buying Bitcoin and selling Bitcoin for cash. In other words, the Bitcoin fee is much like a user fee that covers the cost of using the network to transfer Bitcoins from one crypto wallet to another. AML and KYC regulations have imposed stricter measures for identity verification, and the result is that you can buy or sell Bitcoin without worrying about losing your funds.
Bitcoin ATMs are also located in shopping malls, airports, and easily accessible or busy locations. Coinsource pays miner fees for you, while most other Bitcoin ATM operators transfer this variable fee to their customers. Being a money services company within the Bitcoin industry requires a strong program and compliance department to comply with state and federal regulations.