You can find several Bitcoin ATMs in Brampton such as in markets, shops, food marts, and convenience stores. Aside from Bitcoin, these ATMs might also support other cryptocurrencies such as:
Before going in front of the machine and starting a transaction, first ensure that it supports your cryptocurrency. Also make sure that you’re using the correct QR code and wallet address so that the assets will indeed go to you or to someone you trust and know.
It’s a familiar process just like when using a conventional ATM where you follow the on-screen prompts.
To buy BTC using a Bitcoin ATM:
Blockchain-based transactions may take some time because the network still has to process and verify the transaction. It’s good to wait for a confirmation first before you use the Bitcoin or other crypto asset for other transactions.
Whether you’re new in Brampton or you’re just about to start in crypto investing, it helps to know how a Bitcoin ATM works (including its advantages and drawbacks).
First, Bitcoin ATMs don’t dispense cash. Typically, what you can do is insert cash in exchange for some Bitcoin. The blockchain network confirms the transaction and the Bitcoin will arrive in your wallet.
Bitcoin ATMs have operators. Some of the biggest operators are Localcoin, Instacoin, HoneyBadger, Hodl Digital Services, and Bitcoin Depot. They charge a fee to facilitate the transactions. The transaction fees can range from 6.5% to 20% (common is around 10%). It’s good to find an ATM with lower fees especially if you’re inserting a large amount one time or you’re planning to make your transactions frequent (e.g. once or twice a week).
Because Bitcoin ATMs don’t dispense cash, some refer to these machines as kiosks. These kiosks will connect you directly to a Bitcoin wallet. They won’t connect to your bank account because you’re directly using hard cash. As a result, users see this approach as more secure because they don’t have to input their bank details and personal information.
In contrast, online crypto trading platforms require you to provide your personal information so that you can create your account and use the platform. You should also have a bank account so you can add funds and buy crypto. The platform and its database will store your information, which is why enterprise-level encryption and security are required.
But for convenience and ease of access, beginners often choose to sign up to an online crypto platform. Adding funds is easy and they can view their balance and assets anytime. It’s also practical for regular trades because users can just go to the app, buy or sell crypto, and confirm the transaction (all done online).
On the other hand, using a Bitcoin ATM will require you to look for a kiosk and check if it supports your cryptocurrency. You also have to check its fees and preferably, find an ATM closest to you and with the lowest fees. Although secure, the inconvenience and high fees might make you want to consider other options.
Those who use a Bitcoin ATM often have a mobile, web, or hardware wallet. As long as they can show the wallet address QR code, they can use a Bitcoin ATM to buy some crypto.
However, beginners might find it hard or intimidating to set up a mobile, web, or hardware wallet. This may require some technical knowledge about blockchains and data security. Also, it might take some time for beginners to grasp how wallets work and for them to actually start in crypto investing.
Using a crypto platform is more beginner-friendly. Although you’ll have to provide your personal information to create an account, add funds, and buy crypto, it can help you get started immediately. The process is quick and easy, similar to opening a new email and bank account.
Big and popular crypto trading platforms have enterprise-level encryption and security to protect the users’ data. Although online attacks are possible, they become unlikely if the users take all the reasonable steps in protecting their accounts (e.g. avoid phishing and clicking on suspicious links).
Using a hardware wallet is considered to be the safest way to store crypto. To be precise though, it’s a way to store your private keys and access your cryptocurrencies. That’s because you can’t physically store crypto in the hardware wallet. Crypto assets live in the blockchain network and a wallet only allows you to access those assets.
However, a hardware wallet is a physical device (similar to a small USB drive which you have to buy). You might lose the device anytime and also lose your assets. Because of this risk and the upfront cost, many just start with a crypto platform. Later on as they get more comfortable with cryptocurrencies, they buy and use a hardware wallet to keep large amounts of crypto for months or years. Because hacks and online attacks are impossible, they get to protect their assets better.
But for frequent trades, a crypto trading app is better because you can access your account and carry out transactions anytime. Although phishing and other online attacks are always around the corner, the convenience brought by using an app better encourages beginners to finally sign up with Coinberry and start their crypto investing journey.