Bitcoin ATM Limits Explained

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Ben Seton

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Key Points

  • Using a scanned QR code, bitcoins are dispensed directly to the consumer’s Bitcoin Wallet
  • Hermes Bitcoin ATM is a BTM company based out of Los Angeles, California.
  • Find the nearest BTM, simply jump online and enter your location and your company of choice.
  • On approaching the BTM, you will first be asked for identification.

Learn everything you need to know about Bitcoin ATM limits- why they exist, and how much you can buy at once from the experts at Hermes Bitcoin.
Before finding a Bitcoin ATM (or BTM), it’s a good idea to have an idea of what amount of Bitcoin you can buy or sell. These parameters vary between different operators, and may even require different levels of account verification for higher amounts. In this article, we’ll do a deep dive into the details of Bitcoin ATM limits–why they exist, how they can vary, and what to expect for your transaction.

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Bitcoin ATM Limits Everything You Need to Know and More

A bitcoin ATM (also known as a BTM) is a machine that dispenses bitcoin in return for cash. Some of these machines will also purchase bitcoin from you, dispensing cash in return. Because these machines are anonymous, the majority have strict transaction limits.

Why Do Bitcoin Atm Levels Exist?

According to Forbes, banks create withdrawal limits in the interest of both security and practicality (1). These same reasons apply to Bitcoin ATMs, although on a slightly different level.
Read on to find out more about why Bitcoin ATM levels benefit the consumer with a more secure.

Practicality

Just like traditional ATMs, it makes sense to set a limit on withdrawals for Bitcoin ATMs so that the machine doesn’t run low on funds. This ensures that the machine can be used by more people, and remain operational continually and without interruption. If someone wipes out a particular machine, then no other customer can use it until it’s replenished. Companies guard against this to promote excellent customer service.

Security

Some of the other methods of buying bitcoin can feel a little unsafe, but that’s not a problem here. You’ll be working with a high-tech machine that has all the necessary security measures in place, and you won’t be passing around personally identifying information beyond your phone number (a photo ID would be required for a purchase beyond $999).

Compliance

Bitcoin ATM companies like Hermes must comply with anti-money laundering regulations. Any legitimate Bitcoin ATM must set withdrawal limits. A BTM without limits is not in compliance with the law, and may be unsafe to use.

FinCen requires Bitcoin ATM companies to implement a written AML (anti-money laundering) program. It must address these four pillars:

  • Create internal controls and implement procedures to comply with the Bank Secrecy Act
  • Ongoing training for personnel addressing their responsibilities under the AML program
  • To designate a compliance officer to ensure daily compliance with both the AML and the BSA programs
  • Annual (at minimum) independent reviews or audits of the AML program
These purchase limitations are put in place for consumer protection. A Bitcoin ATM operator can’t stay in business long if they can’t provide safety, trust, and convenience for their clients. Hermes Bitcoin understands this, and will always work toward making your experience the best possible. We have phone support and contact form submissions that we check daily to provide the customer support that you need to make seamless transactions.

But many of you may be wondering, “Why set any limits for purchase at all?” There are three main reasons why BTM operators set and enforce limits on their crypto machines. They are as follow:

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Do Bitcoin Atms Need Id?

The level of ID varies. According to Investopedia, “Depending on transaction size, the Bitcoin ATM may ask you for a mobile phone number to receive a text verification code. Or it may require you to scan government-issued identification, such as a driver’s license.

These varying levels of identification verification will depend on the crypto bitcoin ATM operator, as well as the amount of money you are trying to spend or retrieve.

How Much Bitcoin Can I Buy At Once

Again, this will depend on which bitcoin ATM operator you’re using. The average amount that is allowed for purchase from typical crypto ATMs is around $3,000 to $10,000. If you want to buy more than this, you will be prompted to contact the vendor.

Also, while most Bitcoin ATMs will only ask for your mobile number and create an SMS password for you to enter, if you want to buy larger amounts you may need to present higher levels.

Does Bitcoin Atm Accept Cash

Some Bitcoin ATM machines will also buy Bitcoin from a customer and dispense cash in return. This process may take a few minutes more than a purchase, but if you’re looking to offload some Bitcoin in a hurry you can check to see if your local BTM allows for sale of Bitcoin.

Also, while most Bitcoin ATMs will only ask for your mobile number and create an SMS password for you to enter, if you want to buy larger amounts you may need to present higher levels of identification.

How Much Does Bitcoin Atm Charge?

Be sure to read the instructions on your Bitcoin ATM machine before initiating purchase. Each company will implement a different charge per purchase. A rough average of this fee is just under 9%.

Hermes Bitcoin ATMs offer some of the lowest rates available. And while these fees are more than you’d spend using peer to peer trading, many consumers find them worth it for the speed, convenience, and cash payout.

Is There A Limit To How Much Bitcoin I Can Purchase

No. While there are limits on the amount you may purchase from a Bitcoin ATM on a per day basis, you are allowed to purchase as much Bitcoin as you like. There is no legal limit on the amount of Bitcoin you can buy. There is only the practical consideration that you can’t buy more Bitcoin than currently exists. There are currently 21 million Bitcoins.

As far as purchasing from a Bitcoin ATM, you always have the option of purchasing maximum amounts.

Can I Buy $100 Worth Of Bitcoin

Sometimes a consumer isn’t looking to the limits of maximum purchase, but to the minimum. When someone wants to buy a comparatively small amount of bitcoin, they can do so by adhering to the minimum buying standards.

For most machines, there is a minimum purchase amount in place of around $20. Also keep in mind when purchasing, that most machines will only denominations of $5, $10, $20, $50, and $100. Know what your particular ATM will accept before you buy. And while some will take credit cards, most are cash only.

Bitcoin Atm Locations

You can easily find a Bitcoin ATM machine through an online directory like the U.S. Coin ATM radar. Locations are increasing almost every day, as Bitcoin ATMs become more and more popular.

Many Bitcoin ATMs are owned and operated by corporations that are focused solely on cryptocurrency, like Hermes Bitcoin. These locations are run very much like a traditional bank. The company offers their own digital wallets, and accounts.

Limitless Buying Within Safe Limits

Using a Bitcoin ATM for purchase (or sale) of Bitcoin is one of the fastest, and most convenient ways to trade cryptocurrency. While limits are set for customer service excellence, as well as compliance to the law, you won’t find a more private business.

Using a Bitcoin ATM for purchase (or sale) of Bitcoin is one of the fastest, and most convenient ways to trade cryptocurrency. While limits are set for customer service excellence, as well as compliance to the law, you won’t find a more private business.

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