All ATMs impose limits on cash transactions, which are determined by each bank, and those working with cryptocurrency are no exception. However, there are different applications to these limits between the two types of machines.
A Bitcoin ATM limit refers to the amount of cryptocurrency you can purchase with cash each day. Since the limit resets daily, you have the ability to invest tens of thousands of dollars in Bitcoin weekly. Still, it is necessary to understand how limits work and what you can do to increase the amount available per transaction.
We will explain the reasons for Bitcoin ATM limits and the steps to take to invest in larger amounts of Bitcoin.
Reasons For Bitcoin ATM Limits
If you use a traditional ATM to withdraw cash, you are not a stranger to transaction limits. Most ATM withdrawal limits fall between $300 and $5,000 per calendar day or 24-hour period. Even though you are inserting cash into Bitcoin ATMs, there are still limits involved. The standard Bitcoin ATM limit is $10,000, although some operators allow larger transactions when certain conditions are met.
While some consumers are unhappy about these limits, they are put in place to protect consumers, ensure the ATM remains operational, and maintain regulatory compliance. Learn more about these factors to understand why limits are necessary.
Protect Consumers By Mitigating The Risk Of Fraud
Operators protect consumers from potentially fraudulent activity by setting a Bitcoin ATM limit on the amount investors can purchase. Bitcoin ATMs deposit cryptocurrency into consumers’ digital wallets. While generally secure, hackers occasionally exploit vulnerabilities in cryptocurrency wallets, allowing them to steal Bitcoin. By limiting the amount of Bitcoin purchased, ATMs mitigate losses if the wallets are hacked.
Bitcoin ATM limits also reduce losses in the event of fraud. For instance, the Los Angeles Times discovered that scammers impersonating attorneys and court officials trick victims into depositing cryptocurrency into their digital wallets via Bitcoin ATMs. These scammers make urgent demands for Bitcoin transfers, provide the victims with digital wallet information, and disappear once they receive the cryptocurrency. With limits in place, victims are less likely to lose significant sums of money.
Along with ATM operators, state officials can create limits to reduce the risk of fraud. For example, California Senate Bill 401 will go into effect in January 2024, limiting Bitcoin ATM transactions to $1,000 per day.
While the Bitcoin ATM limit might lower the risk of fraud, consumers must also be diligent when investing. They should only invest on their own behalf and transfer funds into digital wallets they own.
Ensure The Bitcoin ATM Remains Operational
As with traditional ATMs, Bitcoin ATMs can only hold a finite amount of cash. Allowing people to buy $100,000 of Bitcoin at once would quickly cause these machines to become inoperable until the money is removed. By setting a Bitcoin ATM limit, operators ensure the machines are operational and ready for customers.
Maintain Regulatory Compliance
Bitcoin ATM operators must adhere to anti-money laundering laws when facilitating cryptocurrency purchases. Essentially, as transaction limits increase, so does the amount of personal information gathered. Operators set a Bitcoin ATM limit to allow consumers to maintain privacy while purchasing Bitcoin.
How To Increase The Bitcoin ATM Limit
Since regulatory compliance is a significant reason for setting Bitcoin ATM limits, consumers can increase limits by providing more information before completing transactions. Some Bitcoin ATM operators allow investors to purchase $50,000 or more in Bitcoin in a single transaction when providing the necessary information. Learn more about the information necessary to increase limits.
Personal Information Needed To Increase Bitcoin ATM Limits
While some Bitcoin ATM operators have strict limits across the board, others set limits based on the information provided. To prevent money laundering, the government requires investors to undergo Know Your Customer (KYC) verification for higher transactions. Investors can choose how much verification they want to undergo when purchasing Bitcoin.
The first limit set is for customers who do not want to provide much personal information when buying Bitcoin with cash. Typically, they must only provide their name and undergo phone verification when buying Bitcoin at or below the first tier. They can increase the Bitcoin ATM limit by providing their government IDs, date of birth, occupation, and social security number. The company also conducts wallet risk scoring before agreeing to the limit increase.
Those interested in making significant investments of up to $50,000 must also provide their annual income, overall net worth, and source of funds. The operator also verifies the address before completing the transaction.
Some companies allow investors to purchase over $50,000. Investors must undergo a background check and provide proof of funds for approval.
Choose Your Bitcoin ATM Limit & Complete a Purchase Today
Experience the ease and accessibility of cryptocurrency transactions with CoinMover. We cater to those who prefer cash-based transactions, offering a valuable alternative to traditional bank account purchases. Our strategically located kiosks, high transaction limits, and rapid transactions in as little as 90 seconds ensure convenience like never before.
Choose from our four purchase tiers, ranging from $2,995 to over $50,000 per transaction, based on your personal preferences and needs. Whether you prioritize privacy or seek extensive verification, CoinMover provides an option tailored to you. Join us today and embark on a seamless journey into the world of cryptocurrency, where accessibility meets simplicity.
Browse CoinMover ATMs in your area, determine your investment limit, and complete your transaction today.