Bitcoin ATMs are a quick and convenient way for novice users to obtain Bitcoin in exchange for fiat currency. Unfortunately, there is a high fee associated with Bitcoin ATM transactions, which can be as high as 7% or more. But even regular bank ATMs are suffering from high fees and a solution has to be found to reduce these charges.
Also read: Buy Bitcoin From 13,000 Retail Locations With LibertyX
Lowering The [Bitcoin] ATM Fees
There is one major difference between Bitcoin ATMs and regular bank ATMs. The former is completely transparent regarding fees, as well as how much value for their money customers will get at that exact time. The latter, on the other hand, are known for charging hidden fees, which will only be visible on a bank statement at the end of the month.
But there are also parallels between both types of ATMs, as it will heavily depend on which machine one uses to find lower fees. Bitcoin ATMs owned and operated by manufacturers are – in some cases – subject to lower exchange fees, compared to machines operated by a third party. Depending on where the ATMs are located, there can be a fee discrepancy of 2% or more.
Bank ATMs suffer from the same issue, though, as proprietary ATMs will either charge no fees or a lower fee compared to machines belonging to other operators. That being said, national ATMs – which are linked to networks such as Cirrus, for example – will usually charge the highest fees per transaction. In some cases, these fees can amount to double the regular charge.
A little-known fact is how various banks around the world are adding their own type of charge on top of the regular ATM transaction fee. Especially where foreign transactions are concerned – which are costly enough as it is – these fees can amount to quite a lot of money if these devices are frequently used.
Luckily for everybody involved, there are ways to reduce ATM fees as well. Doing research on which [Bitcoin] ATM charges the lowest fees at any given time, and use that device, even if it’s further away. While this may not be the most convenient solution, it will save you money in the end.
Secondly, try to make large transactions rather than completing multiple small transactions. This is especially true for Bitcoin ATMs, as a fee of 5% or more can add up quickly when it has to be paid several times. Besides ATM fees are changing on a regular basis, both for bank and Bitcoin ATMs.
At the time of publication, the average Bitcoin ATM fee sits at 6.46% per transaction. Do keep in mind this number is calculated based on 489 Bitcoin ATMs around the world. Individual ATM fees may be lower or higher in your region, and are dependant on whether you’re buying or sell BTC.
Source: InsuranceTight
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