More than 20 Bitcoin ATMs are in Victoria. You can find them in malls, markets, pubs, convenience stores, and other businesses and commercial areas.
Bitcoin ATMs in Canada are usually operated by:
Localcoin is Canada’s largest Bitcoin ATM operator. They have more than 500 crypto ATMs in Canada. Through Localcoin or another Bitcoin ATM operator, you can easily buy some Bitcoin or other supported cryptocurrencies in exchange for your cash.
To buy Bitcoin using the machine, do the following:
Make sure that the QR code points to your Bitcoin address. If the QR code belongs to someone else, the Bitcoin you bought won’t go to your Bitcoin wallet address. Also typically, your QR code should be scannable (on the machine you can’t manually enter your wallet address)
At a minimum, you can buy Bitcoin or other coins for 20 CAD. Common in Bitcoin ATMs is you can do up to 5 transactions per day and with a maximum of around $995 per transaction.
Bitcoin ATM fees are usually 10% of the transaction value. Because of the high fees, some prefer using an online crypto trading platform instead. This way, they can save money and use that to buy more crypto.
As long as you use the correct QR code and you send Bitcoins to a person you know, your transactions will be safe and secure. Bitcoin ATMs are safe to use and they don’t store the users’ private keys and other information. You directly use cash so your bank details are not exposed.
What if something goes wrong? If Bitcoins don’t show up within minutes, it could be because of a slight delay. The blockchain still has to confirm the transaction (may take up to one hour). Or, you used the wrong address and someone else received the Bitcoin you bought. Always make sure the address is correct before you finalize the transaction.
What if indeed you sent your Bitcoins to the wrong address (wrong QR code or it belongs to someone else? If the address is invalid, the transaction won’t go through (Bitcoin can detect typos and an invalid address won’t receive any asset). But if you send the Bitcoin to someone else’s QR code or address, you won’t get a refund. That’s because Bitcoin transactions are irreversible and most likely scammers won’t give back your Bitcoin.
If the transaction failed even if you used the correct address and followed all the steps, you can always call the customer support team of the Bitcoin ATM operator. Most likely, they have recorded the transaction in their systems and they will resolve the issue if nothing’s wrong with the transaction.
With Bitcoin ATMs’ high fees (usually 10%), it makes most of us think twice about using the machine to buy crypto.
For many, one benefit of using a Bitcoin ATM is that it feels safe. You don’t have to provide your information so you can buy some Bitcoin or other cryptocurrencies. You just need your wallet address, QR code, and cash. You don’t have to log in and all the information and transactions live in the blockchain (which is decentralized and can be more secure because it’s harder to hack)
In addition, using a Bitcoin ATM is already a familiar process. Just like using a conventional ATM to withdraw and deposit money, you can just follow the on-screen prompts and confirm the details. Bitcoin ATMs are also reliable and failed transactions are rare.
Aside from Bitcoin ATMs, you can also use a crypto trading app to buy some Bitcoin. However, you have to provide your personal information so you can create an account, add funds, and buy your chosen cryptocurrency.
Also, your information will live online. Hacks and other online attacks are possible because your information is in a database. As a result, you have to choose a crypto trading platform with enterprise-level security. It also helps if the platform complies to relevant data privacy laws such as PIPEDA (Personal Information Protection and Electronic Documents Act). Such compliance will help protect your personal information and help ensure that the platform only uses your data for the agreed purposes.
Despite the disadvantages of using a crypto platform (providing your personal information and the risk of online attacks), it still makes it easy, quick, and convenient to buy crypto. Anytime, you can access your account and online and quickly make a buy or sell. Also, you can easily view your funds and fund your account.
Although blockchain-based transactions are secure, the intermediary steps might still expose you to risks. With a Bitcoin ATM, using the wrong address or QR code will make you lose your Bitcoins and funds. With a crypto trading platform, a phishing attack (someone got your login details and can now access your account) can make you lose your assets.
To protect yourself, make sure you’re only using the correct address or QR code (or the QR code belongs to someone you really know and trust). Also make sure that your password in the crypto platform is strong and that it requires multiple authentications to log in and finalize transactions.
It also helps to start small or regularly invest small amounts (instead of a one-time large sum). You can start with 20 CAD (in Bitcoin ATMs) or 50 CAD (in crypto platforms such as Coinberry) and first see how they work. As you get more comfortable, you can add more funds or make your transactions more frequent, so don’t hesitate: sign up today to get started on your crypto journey with Coinberry.