Bitcoin ATMs are game changers aren’t they? I’ve invested in digital currencies and rely on these ATMs heavily. Oftentimes a position comes up where I need to quickly make a transaction like change cash to crypto or vice versa.
When you start using a Bitcoin ATM, you should know there are transaction fees. There are other alternatives to using an ATM that have smaller fees associated, but those options do not allow for a cash exchange unless you route it through a bank.
Below I’ve listed out the fees for different transactions done through Bitcoin ATMs.
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3 Transaction Fees You Need to Know When Using a Bitcoin ATM
There are three main transaction fees that’s important to know if you plan on using Bitcoin ATMs. One of my main motivations for moving part of my finances into a digital currency portfolio was the ability to keep my traditional bank out of certain transactions. So considering what you get for each of these transaction services I find them to be pretty modest.
1) The Biggest Fee You’ll Pay For: Turning Your Cash to Crypto
Understandably, the largest fee you’ll pay using these crypto exchange ATMs is when you want to buy digital currency with cash. For a while I was accustomed to seeing a range between 7% and 24% for a transaction fee. Now I see them as low as 4% when you use those change machines you see at grocery stores.
The reason the fee for this type of transaction is so high is because of the “digital mining” associated with getting the currency. Mining costs as well as the regular costs it takes to maintain these types of systems are attributed to this fee. Luckily, all other fees on these ATMs are much smaller.
2) Digital Wallet to Wallet Transaction Fees are Minimal Fees
You can use a Bitcoin ATM to send digital currencies like Bitcoin to other people for a pretty minimal fee. Normally, Bitcoin ATMs will charge a flat fee of $1 to $5 for this type of transaction. There’s also the option to transfer your crypto to another digital wallet you have.
3) Getting Cash for Your Crypto May Have Two Types of Small Fees
When you want to get a cash payout for one of your crypto currencies, most ATMs will have a flat fee and a percentage of the transaction fee. These fees are not as high as converting cash to crypto. Commonly, I’ve seen under $3 flat fee and under 3%. I frequently make these types of transactions when I’m looking to make a cash purchase or trade and don’t want to use my normal bank.
A Modest Fee Structure for Financial Freedom
As you can see the fees for making transactions on a Bitcoin ATM are pretty minor for the service that you get. The whole point of cryptocurrencies is so we can diversify our financial portfolios with a currency that isn’t confined to the traditional banking systems. Having to run transactions through your bank sort of defeats the purpose. Bitcoin ATMs are definitely a win for the financial world.