Bitcoin fever is shaking the world, even though there are considerable fluctuations in the field. Regardless, Bitcoin ATM numbers are increasing, with more and more people getting interested in different ways of getting, selling, and monetizing these precious coins.
The problems with Bitcoin ATMs are mostly related to fees. The number of users complaining about them being too high are increasing, but this is because they don't fully realize how complex operating a Bitcoin ATM can be.
Since there are many additional expenses to worry about, this short review will reflect on fees related to Bitcoin ATMs and how they compare to other ways of buying Bitcoins.
Revision of Bitcoin ATM Fees
Before we move on with the actual fees, let's revisit these two important terms:
- Defined values by hand - regularly applied for Bitcoin ATMs, these values go around passing online data over APIs. The best example is the Lamassu Bitcoin network that counts 185 fully functional ATMs all over the planet.
- Online feeds - an excellent way to gather valuable data, especially when it comes to statistical data. Many cryptocurrency ATM brands practice data gathering via online reporting. This data collection process resembles the way they collect information at actual ATMs. The best examples here are Bitaccess, General Bytes, and Genesis Coin. In our case, we're interested the most in General Bytes and Genesis Coin ATMs as these brands base their fees on the Bitcoin Average value. This makes all Bitcoin ATM fees comparable.
The price of Bitcoins changes regularly. So let's see how much Bitcoin ATM fees are around the world.
The mean Bitcoin ATM cost in the world is 8.4% for buying Bitcoins from the machines. If you're looking to cash in your Bitcoins, the normal rate is 5.4%. The medial buying rate jumped from 6% to 8% while the mean selling cost is constantly fluctuating but never going over 5.5%. Constant numbers of Bitcoin ATMs are keeping these prices in control.
Rate per Country
The three leading countries with the most ATMs on a global scale are the UK, Canada, and the USA. Let's delve deeper into their fees.
The USA is currently counting 520 Bitcoin ATMs, which makes it the dominant force at the moment. Their numbers make for 58% of all Bitcoin ATMs on a global level. The USA is the leading market, which means that it pretty much dictates the worldwide prices.
The purchase fee fluctuates from 6% and above to 10% and above. The selling cost saw a decrease and went from 6% to 4%.
The second leading force in the market is Canada, counting 135 ATM machines. This is about 15% of all cryptocurrency ATMs. The Canadian market is quite steady, with no significant fluctuations outside of what appears to be normal.
Buying fees went up to 6% while the selling fee marked a significant increase, going from 5.5% to 6.5% on average. Their current state seems more stable with respect to the American market.
3. United Kingdom
The UK has 46 machines. Their buying fee also marked a significant surge, jumping from ~4% to ~6%.
The 2016's end was particularly interesting for the UK market as selling fees went from a 5-6% range to the incredible 9%. However, these spikes were temporary, and the selling price decreased to ~6%.
Fees by ATM Brand and Manufacturer
When it comes to manufacturers, the biggest names with the most machines on the market are the ones that set the standards.
General Bytes and Lamassu keep their fees slightly above average, ~6.5%. BitAccess ATMs go up to 7.5% while the mean purchase fee for Genesis Coin goes up to 11%.
Alternatives to Buying Bitcoins
While purchasing Bitcoins with money is one of the simplest quickest, and most private methods to purchase Bitcoins, there are alternative ways at your disposal. You can check cash exchanges like LocalBitcoins, where you have two options:
- Cash deposits
- Cash trade
The pros of this exchange include smooth, speedy, and personalized commerce. If you choose to make a LocalBitcoins purchase, expect a 1% rate for each transaction. The alternative would be to hook up with a trader who offers cryptocurrency for cash. The rates are rather high in these cases and reach 2%.
You can check retail stores for cryptocurrency in the US that offer to sell. The rate is 1% on all deals, with the initial $1000 being free of charge.
Contrary to a popular belief that an increase in ATMs for Bitcoins will bring the fees down, we've seen it go the other way around. The last few years showed us that the rates are actually rising.
This increase is probably caused by low levels of flexibility in demand, but it's safe to say that the rates are still at acceptable levels. At the moment, the most preferred ways to purchase bitcoins are cash and cash deposits.
The global trade of Bitcoin ATMs is split into two almost equal parts. Both markets provide a combination of fee percentages, which eventually comes down to an 8% fee on average.
In the wake of the ongoing coronavirus pandemic, having additional financial stability has become imperative. Purchasing cryptocurrency might just be the best way to secure your well-being financially until this crisis is over.