Many Canadian users face certain difficulties when they need a cryptocurrency exchange in Canada for getting fiat money – the exchange procedure is complicated and requires additional costs. Purchasing BTC is commonly done through online crypto exchanges, but more people are turning to Bitcoin ATMs to do it. Therefore, to solve this problem, there were Bitcoin-ATMs installed in many cities of Canada. They are also known as Bitcoin-terminals or Bitcoin machines.
When using Bitcoin ATMs in Toronto or any other city, you can buy Bitcoins for cash and vice versa. One of the main drawbacks is higher fees than online transactions (ranging from 5% to 10%), as it requires a lot of maintenance costs for terminals compared to online Bitcoin exchange services. The exchange process is a bit more complicated than in traditional ATMs due to certain requirements of legislative regulation (the procedure “know your customer” (KYC), the policy of anti-money laundering (AML), etc.), but there are no fundamental differences.
You should have an account to exchange cryptocurrency and fiat money through a BTC ATM in some cases. Bitcoin-ATMs have an internet connection (terminals synchronize with crypto exchanges) to regularly adjust the exchange rate due to the high volatility of cryptocurrencies.
Bitcoin machines types
By type of connection, Bitcoin-ATMs are divided into two types:
- The first ones are connected to a particular wallet, which contains a certain amount of cryptocurrency. Bitcoin-ATMs of this type limit the number of coins for exchange.
- The second ones are connected to the exchange service, and it is necessary to use personal data for BTC transactions. Such ATM models are the most popular since they do not limit the number of coins bought to the same extent as the terminals connected to the wallet.
Another important aspect is the security of Bitcoins-terminals. In 2016 in the United States, a criminal group began to extort money from BTC ATM operators. In the event of refusal to cooperate, scammers threatened to destroy Bitcoin-terminals. As a result, the attackers managed to disable and damage 70 terminals.
There are also cases of theft at Bitcoin locations. For example, in Montreal, intruders carried the machine straight from the store.
There are several types of Bitcoin-ATMs:
- unidirectional allows you to make only the purchase of cryptocurrency;
- bidirectional allow exchange in both directions;
- universal ATMs also allow making payment for various services and goods.
The most popular at the moment are unidirectional Bitcoin-ATMs. Their number prevails in comparison with bidirectional – 67.33% vs. 32.67%.
The first Bitcoin-ATM appeared in December 2013 on the wave of increased cryptocurrency popularity. Then there were only 3 terminals. The very first model of Bitcoin-ATM was called Robocoin and was launched in Vancouver. During the first month, the terminal processed more than 1 million Canadian dollars.
Now the number of ATMs worldwide is more than 2,500 units, the concentration of most of them is in the USA (1,512) and Canada (402).
The number of Bitcoins-ATMs installed for the whole period:
The largest manufacturers of Bitcoin-terminals
- Genesis Coin (858 locations);
- General Bytes (693 locations);
- Lamassu (312 locations);
- Coinsource (170 locations);
- BitAccess (146 locations).
In addition to Bitcoin, some ATMs support transactions with other popular cryptocurrencies:
- Litecoin (supported by 46.7% of terminals);
- Ethereum (26.7%);
- Bitcoin Cash (13.1%);
- Dash (8.4%);
- ZCash (1.2%);,
- Dogecoin (0.7%);
- Monero (0.3%).
- Travellers and tourists who want to exchange currencies can face high fees for currency conversion. Bitcoin-ATMs allow you to exchange cryptocurrency for cash with reduced fees.
- It is a convenient opportunity to receive cash at any time without resorting to banks and other financial institutions’ services.
- The most reliable and safe way to exchange Bitcoin for fiat money. The liquidity of transactions through BTC ATM is much higher than that of other exchange methods.
- Possibility to buy cryptocurrency offline. If you want to get bitcoins or cash urgently, this will allow you to make an exchange without going online.
Where to find Bitcoin-ATM in Toronto
There are several places where you can buy Bitcoin in Toronto. You are no longer limited to purchasing it online. Instead, you can now go to any of the many BTC ATMs conveniently located throughout Toronto and the rest of the world. You can find these Bitcoin ATMs in places like gas stations, corner stores, and malls.
There are various locator-services for ATMs. The most popular among them are Coinatmradar.com and Bitcoinatmmap.com. They show maps with the nearest Bitcoin locations and provide a list of Bitcoin-ATMs, their exchange fees and information on supported operations. To quickly display it is enough to type “bitcoin ATM Toronto” or “Bitcoin ATM near me” in the search string, and the search engine will immediately display the result relevant to the required location. The map displays all available points for the exchange of cryptocurrencies for cash.
In many ways, purchasing BTC from an ATM is easier than it is online. However, it is also more expensive due to the higher transaction fees. In all, there are nearly 400 Bitcoin locations scattered throughout Toronto and the surrounding area, which means you probably won’t have to travel very far to find one.