Published: Nov 08, 2022
Bitcoin ATMs are an increasingly popular, fast-growing way to buy and sell cryptocurrency. All it asks is for you to insert cash into the machine, and in return, you’ll get Bitcoin deposited directly into your digital wallet.
While this seems like a great deal, there are some things you need to be aware of before using a Bitcoin ATM – namely, withdrawal limits. These parameters depend on the operator and may even require different account verification levels for bigger numbers.
If you have questions about Bitcoin ATM withdrawal limits, this guide is for you. Here, we’ll touch upon everything you need to know about how these limits work and what you can do to get around them.
What are the Withdrawal Limits?
There are two types of Bitcoin ATMs: those that allow you to buy Bitcoin and those that let you sell it. The former will have higher limits, as they’re not dealing with as much risk. However, the latter will have lower limits to protect the ATM operator.
Either way, you’ll need to create an account with the specific Bitcoin ATM provider to use their machine. It is how they’ll track your limits and transactions.
When it comes to the Bitcoin ATM withdrawal limits, they vary from country to country, operator to operator, and even from machine to machine. In terms of minimum withdrawal, an amount between $10 and $50 is mandatory. It is a good way to get accustomed to the process before taking on bigger sums.
As for the maximum amount, the range falls between $900 and $10,000, depending on the level of KYC strictness you undergo. Some providers also set a daily maximum limit, usually around $5,000. Mostly, you’ll have to make two transactions.
The digits represent the US dollar worth of Bitcoin you can buy.
Why do Bitcoin ATMs have Withdrawal Limits?
As a user, you must understand why Bitcoin ATMs have limits in the first place. We will highlight a few key reasons:
Compliance:
Bitcoin ATMs have withdrawal limits mainly because they are regulated by Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the US Treasury Department responsible for combating money laundering and other financial crimes. To comply with FinCEN regulations, Bitcoin ATMs must implement KYC (know your customer) and AML (anti-money laundering) policies. Part of these policies includes having daily withdrawal limits in place.
Risk Management:
Another reason why ATM operators put limits on Bitcoin withdrawals is for risk management purposes. By capping the amount of Bitcoin that can be withdrawn in a day, they minimize their exposure to potential loss if the user turns out to be involved in criminal activity. For instance, if a user were to withdraw $10,000 worth of Bitcoin to purchase illegal drugs on the dark web, the ATM operator would be at risk of losing their business if they were to be caught by authorities.
To ensure the safety of both the user and the ATM operator, it’s important that limits are in place.
Theft:
It’s not only the operator who’s at the risk of losing money – users themselves are also susceptible to theft. If your card or account information were to fall into the wrong hands, someone could easily make a large withdrawal from your account without your knowledge. Considering the volatile nature of cryptocurrency prices, we all know the damage we may suffer.
By capping the amount that can be withdrawn in a day, users can rest assured knowing that their funds are safe from theft.
Ways to Get Around the Bitcoin ATM Withdrawal Limits:
If you need to withdraw more than the daily limit from a Bitcoin ATM, there are a few ways.
- Make multiple transactions over the course of several days.
- Find an ATM that has higher withdrawal limits.
- Contact the ATM operator directly and ask if they will raise your limit for a one-time transaction or on an ongoing basis.
Are There Any Penalties to Dodge Bitcoin ATM Withdrawal Limits?
Customers have no option but to comply with their chosen provider’s Bitcoin ATM withdrawal limits. If you were to try and withdraw more than the limit, your transaction would be declined, and you would not be able to access your funds.
On the other hand, businesses may have to face severe penalties if they do not adhere to the KYC and AML policies set by FinCEN.
How to Buy Cryptocurrency at a Bitcoin ATM?
There is a general process you will follow when buying cryptocurrency at a Bitcoin ATM:
- Choose “buy BTC” on the screen of the ATM
- Enter your phone number for verification
- Insert the code you receive on your number
- Set a 4-digit passcode of your choice
- Choose the currency you’d like to purchase
- Select one of the three delivery methods displayed on the screen
- Scan your wallet QR code
- Insert the cash you want to spend
- Receive the cryptocurrency in your digital wallet
It is important to note that your location, the total transaction amount, and the operator you select will affect the process. For instance, smaller transactions may not require you to go through the KYC process.
Conclusion:
Bitcoin ATM withdrawal limits are a necessary evil you must accept if you want to use this convenient service. Since they allow up to $10,000 to be withdrawn daily, they should satisfy the needs of most users. However, if you need to withdraw more, you can always contact your chosen provider to ask for a limit increase. Just remember to stay safe by using a reputable provider and keeping your personal information private.
CryptoBase is the most convenient and trusted place to buy, sell, and use cryptocurrency. They offer 24/7 customer support, instant withdrawals, and a simple, straightforward platform. Get in touch with them today to learn more about how they can help you take your crypto journey to the next level!
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