When Bitcoin ATMs first started popping up all over the world in 2014, people were curious about how Bitcoin transactions would work. The new digital currency was different from anything that had ever existed before, and Bitcoin ATMs made it possible for anyone to trade cash for Bitcoin without needing to make a bank account transfer.
But what do you need to know if you want to use one of these machines? In this article, we will discuss how long Bitcoin transactions typically take as well as some things you should consider when using your Bitcoin ATM!
How Long Is the Processing Time for a Bitcoin Transaction?
Typically, Bitcoin transactions take about ten minutes to be processed and securely recorded on the blockchain. If everything is processed correctly, you'll find that trading and buying Bitcoin won't take more than 20 minutes to show up in your digital wallet. However, this time can be delayed for a number of reasons, but it usually has to do with the amount of processing time it takes for the blockchain to complete your transaction. Typically, there are two main reasons why you might find your transaction delayed. We've listed both reasons below to help you understand what goes into the processing of your Bitcoin transactions.
Current Amount of Network Traffic on the Blockchain
A Bitcoin transaction is processed solely by broadcasting it to the Bitcoin network. If there are many Bitcoin transactions being posted at any given moment, you might find that your transaction takes longer to go through than usual. A key reason for this has nothing to do with how long Bitcoin transactions take in general but rather how many people are currently using Bitcoin and, more specifically, what they're doing when they use it.
When many people are trying to purchase Bitcoin at one time, the transactions start to get backlogged. The more significant the backlog, the longer it will take for your transaction to get approved, especially because each transaction has to be approved through a Bitcoin miner. This miner has to dig up the amount of Bitcoin you choose to purchase.
Plus, on top of that, your transaction also needs to be verified. There are multiple security checks that go into this process to ensure that it's going to the right wallet, which can also delay your Bitcoin transaction processing time.
It's important to remember that while blockchain technology makes processing digital currency much safer, faster, and cheaper, sometimes, due to the current state of congestion of the Bitcoin network, you can expect a delay in your transactions' processing time.
Current Fee for Blockchain Transactions
The second reason that you may find your transaction is delayed is due to the current fees for blockchain transactions. There is a wide range of fees offered in multiple levels, including high, middle, and low transaction fees. The buyer gets to choose the range of fees they're willing to pay. However, when you decide to use a Bitcoin ATM, your provider will automatically pay this fee for their customers.
Of course, blockchain is going to process higher fee transactions first. This means that if you spend more on your processing fee, your order will be filled faster than someone who has paid the lowest processing fee available.
If your transaction fee is very low, you'll instead go into a mempool, which is an additional queue that puts your order on hold until there is an available space to have your transaction processed. Most people choose to pay the lower fee to save money, knowing that it will take a while to complete their transaction.
Waiting Time Will Vary For Your Bitcoin ATM Transactions
The processing time for Bitcoin ATMs can vary greatly because it depends on lots of different factors. This includes which digital currency is being used in your transaction, what other people are doing at that moment when you're trying to make your Bitcoin purchase, and the processing fee you pay for your transaction. This means that while blockchain technology does shorten up the wait time tremendously compared to traditional banking methods, there may be a delay if more than one person wants to buy Bitcoins from an ATM machine during peak hours or periods of high volume.
Purchase Your Bitcoin with Paydepot Bitcoin ATM
If you're interested in purchasing Bitcoin from a Bitcoin ATM machine, we recommend using the Paydepot Bitcoin ATMs—they offer some of the lowest processing fees around. Our Bitcoin ATMs allow you to convert your hard-earned cash into Bitcoin, transferring your purchase into your digital wallet.
To get started, all you have to do is visit our locations page and type in your address to find the nearest ATM location automatically. Once you find the ATM you want to visit, you'll be able to pull up more information about the ATM, including how to get to the ATM, functions of the machine, and pictures of the location.
The information provided contains opinions of the author or editorial staff regarding investment, tax, or financial information. Such articles are provided for general informational purposes only and do not purport to provide specific legal or other professional advice. This information provided is in no way a solicitation to sell or purchase cryptocurrencies in any way. The recipient agrees that the authors, owners, and publishing agents of this article have no liability whatsoever for the material presented here, as we do not offer any brokerage or advisory information.
PAYDEPOT doesn’t give any advice or recommendations!
For financial advice, contact a professional consultant.