Today, there are many cryptocurrency exchanges for Canadians that make it easy to buy bitcoin directly from your phone and computer. But it wasn’t always so easy. Ten years ago, there weren’t many exchanges, but then the ATM came along to make bitcoin purchases quick and easy. In fact, one of the first places you could buy bitcoin was at an ATM. The world’s first Bitcoin ATM appeared in Vancouverin Canada in 2013. Since then, thousands more bitcoin ATMs have been made available across the country. They mainly appear in convenience stores, shopping malls and coffee shops, so they are easy to find. You may not have noticed them, but there are plenty of them in larger Canadian cities. You won’t have to use Bitcoin ATMs in 2023 because there are many cheaper and different ways to buy cryptocurrencies in Canada, but some people still use Bitcoin ATMs.
Bitcoin ATMs are extremely convenient. All you need to do is scan the QR code of your receiving wallet, insert your cash and you’re ready to go. Unfortunately, Bitcoin ATMs have much higher fees than cryptocurrency exchanges, so while they are convenient, they are not cheap. Of course, a Bitcoin ATM may be your only option for purchasing Bitcoin and cryptocurrencies if you are under 18 years of age. You don’t have to verify your identity and go through the KYC process. Bitcoin ATMs are therefore ideal when you cannot use an exchange or when you want to buy bitcoins anonymously. Since Bitcoin ATMs accept cash, you can also sell Bitcoin and receive cash almost instantly.
You may be wondering how to use a Bitcoin ATM? Is their use safe? We have prepared a step-by-step guide on how to buy bitcoins at a bitcoin ATM in Canada.
There are several types of Bitcoin ATMs, but most of them will have the same process. We used a Localcoin ATM located in a small grocery store in Vancouver, British Columbia. A warning is included to remind you that the Government of Canada does not accept bitcoin payments and to be cautious of scams.
Step 1: Tap the screen to start
Step 2: Select the cryptocurrency you want to buy
Step 3: Agree to provide your phone number
Step 4: Enter your phone number and SMS verification code
Step 5: Scan your wallet’s QR code
Make sure you have a cryptocurrency wallet! Here we have discussed the cryptocurrency wallets available to Canadians.
Step 6: Insert cash
Step 7: Done
What are the fees for Bitcoin ATMs? The fee for purchasing $20 worth of bitcoin was $2.75 which is a fee of 13.7%.. Bitcoin ATMs have extremely high fees, so if you can use a cryptocurrency exchange instead, we highly recommend using one. A good cryptocurrency exchange usually only charges a 0.2% purchase fee, so the difference is huge. Here we have covered the best cryptocurrency exchanges for Canadians.
To use a Bitcoin ATM to buy Bitcoin or altcoins, you must have cash. Bring as much cash as you want to convert into cryptocurrencies. Please note that Bitcoin ATM charges a fee of at least 10% per transaction.
You will also need a cryptocurrency wallet. You can download a cryptocurrency wallet app, desktop wallet to your computer, or purchase a hardware wallet for maximum security. You can read our guide to the best cryptocurrency wallets for Canadians to help you choose. Even if you have a hardware wallet like Ledger, you can use the Ledger Live app to generate a QR code for your wallet.
When purchasing cryptocurrencies using a Bitcoin ATM, you will be asked to scan the QR code of your wallet. This is because the Bitcoin ATM needs to send your bitcoins somewhere. Please make sure you can access and present this QR code when using a Bitcoin ATM in Canada. Make sure you are using the correct wallet for the cryptocurrency you want to purchase. If you want to buy bitcoins, you will need to provide your bitcoin wallet address. If you want to buy Ether you will need to provide your Ethereum wallet address and so on.
Similarly, if you use a Bitcoin ATM to sell cryptocurrencies in Canada, you will need access to your wallet. Use your wallet to send/withdraw cryptocurrency, then scan the QR code on the bitcoin ATM screen. Your crypto will be sent to your bitcoin ATM address and then you will receive cash from the ATM once you receive your cryptocurrency. Depending on how busy the network is, it may take up to an hour to send and receive your crypto.
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FAQs about Bitcoin ATMs in Canada
Can I use a debit or credit card to use a Bitcoin ATM?
No, Bitcoin ATMs only accept cash. You can buy cryptocurrency for cash or sell cryptocurrency and receive cash.
What are the fees and limits at Bitcoin ATMs?
Fees vary depending on location and ATM type. Localcoin ATM charges an average 10% fee, but this may be higher in areas with a high cost of living.
Where can I find a Bitcoin ATM in Canada?
You can use www.coinatmrader.com to find a Bitcoin ATM near you. You will be able to see what cryptocurrencies they offer and whether they accept the purchase and/or sale of cryptocurrencies.
We still recommend using the right cryptocurrency exchange as you will save a fortune in commission.
