Many Canadian users face certain difficulties when they need to exchange cryptocurrency for fiat money – the exchange procedure is complicated and require additional costs. 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.
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When using Bitcoin ATM 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.
In some cases, you should have an account to exchange cryptocurrency and fiat money through Bitcoin-ATM. Bitcoin-ATMs have an internet connection (terminals synchronize with cryptoexchanges) to adjust the exchange rate regularly due to high volatility of cryptocurrencies.
Bitcoin machines types
By type of connection, Bitcoin-ATMs are divided into two types:
- The first 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 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 security of Bitcoins-terminals. In 2016 in the United States a criminal group began to extort money from 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 of ATMs. For example, in Montreal, intruders carried the machine straight from the store.
There are several types of Bitcoin-ATM:
- unidirectional allow you to make only the purchase of cryptocurrency;
- bidirectional allow exchange in both directions;
- universal ATMd also allow to make 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 around the world 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%).
- Travelers 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.
- A convenient opportunity to receive cash at any time without resorting to the services of banks and other financial institutions.
- The most reliable and safe way to exchange Bitcoin for fiat money. The liquidity of transactions through 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 way will allow you to make an exchange without going online.
Where to find Bitcoin-ATM in Toronto
This service shows a map with the location of the nearest ATMs, and also provides a list of Bitcoin-ATMs, their exchange fees and information on supported operations.
To quickly display it is enough to type “bitcoin ATM Toronto” in the search string and the search engine will immediately display the result relevant to the required location.
The map on site Coinatmradar.com the displays all available points for the exchange of cryptocurrencies for cash.
It provides a convenient list, which you can configure with the any parameters necessary: the fees, the availability of operations (buying or selling Bitcoin, etc.).
In the Details section, you can find the information on every terminal (support phone number, rating and other information). Also, there you can see all available operators in the specified territory.
The most popular Bitcoin ATM in Toronto
- Localcoin, based in Ontario, offers trading services for the exchange of bitcoins for local customers. The team was one of the first to bring Bitcoin vending machines in Toronto. Vending Localcoin supports Bitcoin, Litecoin and Ethereum.
- Instacoin – The first company to distribute the Lamassu bitcoin machine network in Quebec. Instacoin terminals are located in many major cities of Canada, including Montreal, Toronto, Hamilton, Ottawa-Gatine, Niagara Falls, Halifax, Moncton and others.
- Netcoins is a Canadian company that provides virtual ATM software for outlets. The stores become points of Bitcoin sale, where the user can come and buy bitcoins instantly for cash or using debit cards. For cryptocurrency purchasing you don’t need any preliminary registration and verification – one just have to come and buy.
- TheBitcoinMachine is one of the largest operators in Ontario. The company has 34 installed ATMs.
- Getcoin is located on a commercial property in Canada. GetCoin chooses only safe, open areas to provide comfort and security for its customers. Terminals have a stylish attractive design that complements the premium shopping area.
Anyone can find the instructions for using Bitcoin-ATMs on the official ATM sites or directly in the terminals themselves.
How does the procedure for exchanging cryptocurrency through ATM terminals go?
Buying Bitcoin or any other cryptocurrency occurs in several stages:
- First of all, you need to provide a QR code, which the device should scan. You can do this from smartphone screen or a paper sheet. Purchased coins are transferred to the user’s wallet. If there is no purse, then you can create a paper purse when using the terminal (after you will complete the exchange).
- Proof of identity or verification. Different ATM models support different ways of confirming identity – through identity documents or contact information (up to fingerprints and palms). These are government measures to prevent money laundering through bitcoins, but anonymity is excluded. Nevertheless, there are some ATMs that do not require verification of identity.
- We pass directly to the exchange itself. At this stage it is necessary to indicate the desired amount of the purchased cryptocurrency. Depending on the type of connection and the operator, there are certain restrictions on the number of coins (both maximum and minimum limits).
- Paying cash. After this, you need to wait for transaction confirmation.
The exchange process is quite simple and lasts no longer than the traditional withdrawal or deposit of cash through ATMs. The procedure for selling cryptocurrency is similar to buying process. Depending on the Bitcoin-ATM model, the procedure may vary slightly.