Bitcoin ATMs are springing up all over the world and with that comes Bitcoin ATM fees. 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 to help you navigate the cryptocurrency world.

How Bitcoin ATMs Work

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.

Today, Bitcoin is 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. 

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. 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. Enjoy total control over your account and the reassurance that no one has acces 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. 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. 

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, 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. 

Bitcoin ATM Fees

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. 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 urgenct) 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. 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. 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. Operator’s are always working to minimize overhead so that savings can be past along to the customers.

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 your questions. Find a Pelicoin Bitcoin ATM today!