ATMs are a godsend for all of us who despise dealing with a bank teller. They’re fast, efficient, and usually don’t involve human interaction. Since fiat currency is gradually but surely becoming a thing of the past, it’s only natural that Bitcoin ATMs will become the need of the hour. As of now, in 2022, there are 39,011 BTMs in 77 countries.
Bitcoin ATMs help you buy and sell Bitcoin following an easy process. However, like regular ATMs, BTMs are also subject to withdrawal limits. As a user, you must be aware of the Bitcoin ATM buy limit to avoid any inconvenience in the future.
Therefore, this blog post will address the essentials of bitcoin ATMs. We hope you’ll feel more confident and comfortable using them to buy or sell Bitcoin by the end.
Bitcoin ATM Basics:
A Bitcoin ATM is just like a regular ATM, but instead of dispensing cash, it dispenses bitcoins. Another interesting difference between a regular ATM and a BTM is that a BTM allows you to sell and buy bitcoins. These are bi-directional machines. You can use a Bitcoin ATM if you’re looking to quickly convert your fiat currency into BTC or vice versa.
Using a Bitcoin ATM:
You first need to have a Bitcoin wallet to use a Bitcoin ATM. You can consider your Bitcoin wallet as a regular bank account where you store your bitcoins. It is essential to ensure that your wallet is secure before you use a Bitcoin ATM. So, only sign up for a wallet with a reputable provider. CrytpoBase is a popular choice.
Once you’ve set up your wallet, you can link it to your Bitcoin ATM account. To do this, you’ll need to provide the ATM with your wallet address. This address is a long string of random characters. You can find it in your wallet by clicking on the “receive” tab. Be careful when copying your wallet address, as a single typo could result in you losing your bitcoins.
Upon receiving the wallet address, the ATM will generate a QR code. This code is unique to your transaction and allows you to complete it without typing in your wallet address. To finalize the transaction, scan the QR code with your mobile phone and confirm the details of the transaction.
What is a Bitcoin ATM Buy Limit?
As the name suggests, a Bitcoin ATM buy limit is the maximum amount you can spend to purchase bitcoins. Most BTMs have a minimum requirement of $20. You must insert at least $20 into the machine to buy bitcoins. However, this limit may differ from BTM to BTM.
Not all BTMs are the same, however. The operators of the machines can set their limits on how much you can buy. For instance, some machines may allow a minimum transaction of $5. So, it’s always best to check the machine’s limit before using it.
Similarly, there is a limit on the maximum amount you can spend in a day. The average limit is $3,000, but some machines may have a higher limit of up to $9000.
Why is There a Limit in the First Place?
Bitcoin ATM buy limit is set by the provider. Is it to stop money laundering? Large purchases with cash may be suspicious to some and could be reported as an attempt to launder money. To avoid such situations, Bitcoin ATM providers have put a limit on the amount you can buy daily. The government can keep track of large cash inflows and outflows by capping the amount you can buy.
Among other reasons, limits also exist to protect the BTM operators from losses. Since providers have to comply with KYC (know your customer) and AML (anti-money laundering) laws, they have to verify the identity of each user. For this purpose, most machines require you to provide a government-issued ID. Verifying your identity can take some time, and the BTM operator may not want to wait for each customer. So, by capping the limit, they can ensure that each transaction is completed quickly.
Practicality is also one of the reasons why a Bitcoin ATM buy limit exists. If there isn’t a limit to how much a user can withdraw, then a BTM could run out of cash quickly. By capping the limit, BTM operators can better manage their inventory and ensure enough cash is on hand to meet customer demand.
What if I Want to Buy More Bitcoin Than the Limit?
You can always use multiple machines if you want to buy more than the limit. For instance, if you want to purchase $10,000 worth of bitcoins, you can use five different machines, each with a $2,000 limit.
Another option is to find a BTM that doesn’t have a limit on the amount you can buy. However, such machines are rare and are mostly available in large cities.
You can also use an exchange to buy bitcoins. Exchanges don’t have any limits on the amount you can buy. However, they may require you to undergo a lengthy verification before making a purchase.
Sometimes, you can even request the BTM operator to increase your limit. If you have a history of making large purchases, the operator may be willing to increase your limit. However, this will likely come at a cost. The operator may charge you a higher fee for increasing your limit.
Bitcoin ATMs are a new technology with a lot of potential. Their popularity is growing, and more and more people are using them to buy bitcoins. While some users may feel that the Bitcoin ATM buy limit is too low, it’s important to remember that the limits are in place for a reason. They exist to protect the BTM operator and to comply with government regulations.
Just like it’s essential to sign up for a digital wallet with a reputable provider, abiding by buy limits is an important part of using a Bitcoin ATM safely and responsibly. We hope this article has helped you understand why these limits exist and how you can work around them.