What Is the Bitcoin ATM …Cryptocurrency is a $1.3 trillion industry, trading at around $60 billion a day. More people are trading cryptocurrencies than ever before.
One of the simplest ways to get in on the action is by using a Bitcoin ATM. All you need is your digital wallet key, your ID, and a little cash to buy in.
There are limits on the amount of cryptocurrency you can buy at one time. And buy limit usually affects both minimum and maximum transaction amounts. Understanding those limits can help you plan your cryptocurrency investment strategy.
Bitcoin ATM Basics
It provide a real-world location where you can buy cryptocurrency and sell it for cash.
The first Bitcoin ATM sprung up at Waves Coffee House in Vancouver, British Columbia (Canada), in October 2013. In February 2014, Coinme became the first licensed in the United States.
Like traditional ATMs, Bitcoin ATMs are real-world devices where you can conduct financial transactions. Unlike traditional ATMs, you can’t access your bank account at a Bitcoin ATM.
This is quick, convenient, and easy to use. And there are Bitcoin ATM locations all across the country.
The Bitcoin ATM Buy Limit
Generally, a licensed this ATM business will set a limit on how much Bitcoin you can sell. They’ll have a Bitcoin buy limit as well, usually capping transactions at $10,000 or less. These limits serve several purposes.
Due to the nature of cryptocurrency exchange, no chargebacks are possible. So, It is only accepts cash as payment. And it only pays cash when you sell. That cash-only business model would make conducting million-dollar exchanges impractical.
Any licensed Bitcoin ATM business operating in the United States must follow federal anti-money laundering regulations. That includes registering with the Financial Crimes Enforcement Network (FinCEN) and complying with Bank Secrecy Act (BSA) rules.
BSA rules say a money-services business, like a Bitcoin ATM, must monitor customer transactions. They must also report any single transaction that is over $10,000.
By setting a Bitcoin buy limit, this business avoids filing extra reports.
The federal government heavily regulates U.S. currency. With bank ATM transactions, you’re protected against unauthorized electronic fund transfers. Your liability is limited to $50 in most cases.
Since cryptocurrencies aren’t issued by the government like fiat currency, there are no liability limits to protect you. So, if someone gains access to your digital wallet, you could lose your entire investment without limits.
It buys limit helps prevent serious crimes like money laundering. That helps protect your interest as a cryptocurrency investor and the integrity of the system.
Looking Out For Your Interests
Trading in cryptocurrency and using this ATM are not the “wild west” they used to be—at least not in the United States. Setting a Bitcoin ATM buy limit helps protect consumers from bad actors.
You can protect yourself by dealing only with reputable exchanges and their companies. If it in the United States doesn’t require ID, or if it has no Bitcoin buy limit, it may not be licensed.