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Crypto Blog: Coinberry

Is There Bitcoin ATM in Scarborough?

More than 800 Bitcoin ATMs and tellers are in and around Scarborough, Toronto. You can find these machines in several shops, convenience stores, food marts, gas stations, and other stores and businesses.

Many of these Bitcoin ATMs might also support other cryptocurrencies such as Ether (ETH), Dogecoin (DOGE), and Ripple (XRP). Through these crypto ATMs, you can buy Bitcoin and other cryptocurrencies.

About Bitcoin ATMs

Bitcoin ATMs don’t dispense cash. They’re only machines that connect to the blockchain network. As a result, you can use them to buy some cryptos with your deposited cash (Bitcoin ATMs usually don’t connect to customers’ bank accounts).

In other words, you insert cash in exchange for Bitcoin. You should have your own Bitcoin wallet address first so that you can use the machine. Here’s what you’ll do:

  1. Create an account with the Bitcoin ATM operator
  2. Get your Bitcoin wallet ready
  3. Find a Bitcoin ATM in Scarborough or nearby
  4. Enter your Bitcoin wallet address
  5. Or, scan a QR code that points to your own Bitcoin wallet address
  6. Insert your cash (example: insert 100 CAD and buy 100 CAD worth of Bitcoin)
  7. Get your receipt and see your transaction confirmed

You can also use the machine to sell Bitcoin. But for every transaction, customers will pay a fee. This fee is a percentage of the transaction amount (can reach up to 10%).  If you want to get the best value, find a Bitcoin ATM operator with reasonably low fees and with competitive exchange rates.

Do Bitcoin ATMs have limits?

Yes. Many ATMs have a maximum of just under $1,000 per transaction (and around $5,000 per day in total). Other ATMs may allow for up to $9,000 worth of transactions per day. When it comes to the minimum amount of transactions, around $20 could be the amount.

The limits to transaction amounts help ensure that more people can use the ATMs. Each customer won’t be able to carry out too many transactions in one session or in one machine per day. These limits may also help protect each customer in case of fraud (financial losses will also be limited).

Are Bitcoin ATMs safe?

Bitcoin ATMs are considered safe because you’ll only use your crypto wallet and your Bitcoin address (or use a QR code instead for a smooth transaction). Because Bitcoin ATMs carry out blockchain-based transactions, the network is considered secure.

However, scammers might get you to use their own QR codes or Bitcoin address. This way, when you buy Bitcoin through the machine, your purchase will go to their Bitcoin wallet instead of yours. This has already happened many times in the past several months.

To protect yourself, you have to make sure that the QR codes you use indeed point out to your Bitcoin address. This way, your purchases will actually result in buying more Bitcoin assets.

Pros and cons of Bitcoin ATMs

Advantages of using a Bitcoin ATM:

  • Easy to figure out and use
  • Straightforward transactions (just use the correct QR code)
  • Secure transactions (crypto ATMs don’t store the users’ private keys, bank details, and personal information)

Disadvantages of using a crypto ATM:

  • High fees (can reach up to 20% of the transaction amount)
  • Rigid limits on transactions
  • Lack of customer support (while using the ATM there could be no one to help you when something’s wrong)

Those disadvantages (especially the ATM’s high fees) have made some investors and customers switch to crypto platforms.

Bitcoin ATMs vs crypto trading platforms

Bitcoin ATMs usually have higher fees than crypto trading platforms. Let’s compare:

  • Bitcoin ATMs (usually 10 to 20% of the transaction amount)
  • Crypto trading platforms (usually 1 to 1.5%, many platforms also offer lower percentages)

For customers to save more money, some crypto trading platforms also offer zero CAD deposit and withdrawal fees. That’s what happens in Coinberry. They earn money instead by sourcing crypto at lower prices from their network of liquidity providers and then reselling the crypto at the listed prices.

Because of the huge difference in fees between Bitcoin ATMs (can reach up to 20%) and crypto platforms (around 1.5%, and zero deposit and withdrawal fees are possible), many investors prefer the latter. It’s especially the case in high-volume and frequent buying of Bitcoin. Although using a Bitcoin ATM is easy and straightforward, its high fees make almost everyone think twice about using the machine. In addition, crypto platforms are also easy and simple to use (and investors benefit because of the savings).

How to choose a crypto trading platform

If you choose crypto trading platforms over crypto ATMs, you will save significant amounts of money in the long term. Then, you can use your savings to buy more crypto and other assets. This can help grow your investment capital or somehow somehow soften the financial losses if they occur

To choose a crypto trading platform, consider the following:

  • Popularity
  • Security
  • Capability

A crypto platform usually has become popular because of trust and confidence from customers. Their huge number of users also tells us that the platform is beginner-friendly and easy to use. In addition, signing up to a platform with hundreds of thousands of users feels safe. The fear of making a mistake becomes less because you see that many other people trust and use the platform.

You also have to choose a secure crypto trading platform. They have to apply all practical and timely measures in protecting your assets and personal information. This way, you will have fewer things to worry about and you can better focus on your investments.

It’s also good to choose a crypto trading platform with enough capability. If the platform can handle large volumes and high frequencies of transactions, this means you can always count on it whenever you want to buy or sell some crypto. This capability also tells you that the platform has a big enough infrastructure and adequate resources for facilitating trades.

Whether you choose a crypto trading platform or a Bitcoin ATM to buy some coin or token, it’s good to compare the transaction fees and which one is always available or accessible. For instance, you can always access a crypto trading platform online and buy some Bitcoin with lower transaction fees.