Bitcoin ATM Fees, Explained: Answering Your Questions About a BTC ATM Charge and More

Bitcoin ATM Fees, Explained: Answering Your Questions About a BTC ATM Charge and More

Bitcoin ATMs are springing up all over the world and with that comes Bitcoin ATM fees. Wondering if a BTC ATM charge is something you need to worry about? Traders from all over are looking for convenient ways to access their Bitcoin, buying and selling from anywhere. Bitcoin ATMs provide that avenue and make Bitcoin transactions more commonplace, but there are fees attached to your Bitcoin transactions. Here’s a guide to Bitcoin ATM fees, what they have to do with Bitcoin mining, how Bitcoin ATMs work, and more, to help you navigate the cryptocurrency world.

How Bitcoin ATMs Work, On The Surface and Behind The Scenes

To understand potential Bitcoin ATM fees, it helps to have a basic understanding of the machines themselves. Bitcoin ATMs are a fast, do-it-yourself way to convert your cash into Bitcoin when you’re on the go. They are similar to traditional bank ATMs in that most require you to verify your identity to make transactions with your Bitcoin wallet. A Bitcoin ATM is used to purchase and sell Bitcoin using cash. Bitcoin ATMs provide a user-friendly alternative to the customer interfacing directly with a cryptocurrency exchange, which can be somewhat intimidating and complicated, especially for someone who has recently developed the desire to buy cryptocurrency. Eliminating the friction between you and the crypto you want is a big part of the reason we provide cryptocurrency ATMs.

From the user’s perspective, a Bitcoin ATM works by allowing a user to input some basic information into a touchscreen, including the amount and type of crypto they want to buy, and change their cash into cryptocurrency. Behind the scenes, however, the ATM interfaces with a Bitcoin exchange on the user’s behalf, and cryptocurrency miners verify the transaction, as will be discussed later in this post.

The Value of Bitcoin ATMs

Today, Bitcoin can be widely accepted as a form of currency. More and more, businesses are allowing the use of Bitcoin to complete purchases and Bitcoin users need their Bitcoins readily available whenever they want to use them. Bitcoin ATMs create a space where people can access their Bitcoins in-person by depositing money and purchasing Bitcoin with an added Bitcoin ATM fee for the transaction, due to how the cost of verifying Bitcoin transactions on the blockchain can vary. Additionally, cryptocurrency may be held as an investment, and with an ATM it is possible to make this investment from the convenience of an ATM. Familiarity and convenience are both great reasons to use an ATM to purchase your cryptocurrency.

Newbies to the world of cryptocurrency who are looking for ways to complete Bitcoin transactions in a safe way love using these ATMs wherever they can find them. The good news is that wiith over 30 locations throughout the Gulf South, Pelicoin Bitcoin ATMs are not hard to find. However, it helps to be aware of things like cryptocurrency ATM fees before you go to use one for the first time, so it’ a good idea to study up a bit before you get started.

A Bitcoin ATM is a secure medium to buy Bitcoin when you’re away from your computer, and with companies like Pelicoin, there is no middleman to get in the way of you and your money. You can enjoy total control over your account and the reassurance that no one has access to your Bitcoin, but you. For those who want to dive into a crash course in Bitcoin, you should check out our Beginner’s Guide for ways to build your cryptocurrency and learn the best features for keeping your wallet protected from hackers.

Although we make the process of using our machines as easy as possible, bear in mind that when you go to use a Bitcoin ATM for the first time, you may run into a few hiccups. For starters, there’s a delay in transaction time that you might not be expecting.

An Explanation of Transaction Time

Bitcoin ATM fees aren’t the only thing to be informed about when you’re using a Bitcoin ATM. You should also know that transactions could take up to an hour or longer to be approved. Blockchain traffic heavily impacts the relationship between the ATM and your Bitcoin transaction. If you decide to purchase or sell Bitcoin during a time when the Bitcoin network is congested (i.e. there are a lot of unconfirmed transactions on the Blockchain), your transaction will take longer to approve. Bitcoin transactions are processed by Bitcoin miners; typically, it takes miners roughly ten minutes to get one confirmation for your transaction. You need between 3-6 confirmations from miners to get a transaction completed. This is the bulk of the waiting time for your transaction. It is not the Bitcoin ATM operator that determines this, but the network itself. The interesting thing is that Bitcoin is becoming more and more popular every day, which means the transactions may take longer, but also that there are likely more miners working to approve these transactions. To learn more about transaction time, check out our post about how long it takes to use a cryptocurrency ATM. The most important thing to keep in mind is that while receiving the cryptocurrency you purchased isn’t instantaneous, entering your transaction into a crypto ATM is a relatively quick and simple process.

Bitcoin ATM Fees and Bitcoin Mining

So what do you need to know about the issue of paying a BTC ATM charge? Bitcoin ATM fees cover the blockchain’s “mining fee.” Mining fees tend to correspond with the size of the Bitcoin transaction, how difficult it is to mine, and of course, demand. If you’re wondering why a digital currency needs to be mined in the first place, here is an explainer on Bitcoin mining. As you may have guessed, this is not literal mining; no metals have to be taken out of the ground for a cryptocurrency transaction to take place. Basically, crypto mining involves solving equations to verify Bitcoin transactions on the blockchain.

When there are more unconfirmed transactions on the Blockchain, the mining fees start to move up. This continuously updated chart shows mining fees in real time. Bitcoin users can choose which range (low, medium, or high urgency) to pay fees. Now, one thing that’s useful to note: miners will process the transactions that have the higher fees first. So, if you’re spending more money on mining fees, you will have a shorter wait time for your Bitcoin transaction to go through. This also means that if you shoot for a lower fee, your transaction will take the longest to process. The fees to process Bitcoin transactions serve as additional revenue for the Bitcoin miners that approve them. Bitcoin miners enjoy the payment of these fees and the block reward when they compete mining an entire block of Bitcoin currency. Low fee Bitcoin transactions may end up being put into a mempool to wait for space in a blockchain to become available. Since most Bitcoin buyers aren’t paying the highest fees for their transactions, most of them end up in a mempool and have grown accustomed to waiting a bit longer for a single transaction to be processed.

For our part, Pelicoin practices “block targeting”, effectively targeting a certain amount of time (typically 30 minutes), rather than a certain fee size. Pelicoin uses its transaction fees to cover the mining fees.

The Pelicoin Solution to Bitcoin ATM Fees

Bitcoin ATMs are a great resource for beginners and bitcoin users who want to perform transactions quickly. It’s a straightforward way to buy Bitcoin immediately and in-person. Different operators can take different approaches to the issue of a BTC ATM charge. For those Bitcoin users that don’t want to wait long for their transactions to be processed, Pelicoin actually solves the problem by paying the Bitcoin ATM fees for you.

Pelicoin’s fees cover armored truck service, 4G antennas, marketing, store rent, mining fees, etc. Operators are always working to minimize overhead so that savings can be passed along to the customers, ensuring the best possible experience.

This service enables your transaction to be processed within thirty minutes. Of course, Bitcoin buyers and sellers should be conscious that wait time ultimately becomes impacted by fluctuations in network volume. As a result, a fee may be considered adequate and get processed after only a few minutes. A fee may also be considered inadequate and take several hours to be processed. Ultimately, the amount of fees operators pay can be highly volatile. Call one of our helpful support team members to answer any questions you may have.

Other Ways Pelicoin Makes Sure The Process of Buying Crypto at Our ATMs is Convenient, Beyond Eliminating the Potential Stress of Not Understanding a BTC ATM Charge

Pelicoin takes into account customer comfort at every stage of the crypto-buying process with our ATMs. We provide an easy-to-use screen interface that displays step-by-step instructions for how to use the ATM. We also make sure that you don’t need to bring a lot of identification documents with you when you want to use one of our machines. In fact, if you have a cell phone, you’re all set for most transactions. More specifically, the ATM will send a verification code to your phone for security, and then you enter it into the machine. It also helps if you have your crypto wallet’s address or QR code, but if you don’t have one set up yet, you can create a paper wallet at the machine. If you’re not sure what would be the best option for you, you can read our guide to choosing the best cryptocurrency wallet.

Another way that we ensure convenience for our Bitcoin ATM customers is by placing our ATMs in locations where people go in their day-to-day lives, such as convenience stores and gas stations. Many of these locations are even open 24 hours. We have distributed our machines across five states: Alabama, Louisiana, Mississippi, Tennessee, and Texas. We also place our ATMs in small towns as well as big cities like New Orleans, because we want everyone in these states to be able to get the crypto they need, regardless of where they live. The wide distribution of our machines means that all throughout the Gulf South you are never too far from a Pelicoin Bitcoin ATM.

Keep in mind that, as mentioned above, we have a customer service team that is ready to answer your questions and make sure that you have a seamless experience. If you need assistance, don’t hesitate to reach out by phone or email.

We have also made sure that our website has the information our customers need, particularly with our blog that provides answers to questions about cryptocurrency, our machines, the digital economy, and more! For example, if you’re curious about the history of Bitcoin or how much a Bitcoin was worth in 2009, we have the posts for you. On the more practical side, you can learn more about purchasing cryptocurrency from a kiosk and how to find a Bitcoin ATM near you. Even wider questions like the economic and social impact of cryptocurrency are discussed on our blog so that you can understand every aspect of crypto.

When You Want to Use a Convenient Cryptocurrency ATM, Pelicoin Is The Best Choice!

Pelicoin Bitcoin ATMs make it easy to convert your cash into crypto. With the ATM format you’re used to and no need to worry about choosing between different ranges of BTC ATM charge and with that concern out of the way, you can get started with crypto whenever you want. With over 30 locations across the Gulf South, there’s no reason not to find a Pelicoin Bitcoin ATM today!