What is the Bitcoin ATM Withdrawal Limit? Your Crypto Questions, Answered
When you want to buy crypto from an ATM, you may wonder if there is a Bitcoin ATM withdrawal limit, as well as other questions such as what you need to bring with you to use these machines, and how to use them. The good news is that you can find that information in this blog post.
Bitcoin and other forms of cryptocurrency have exploded in popularity in the past several years, meaning more ways to spend your money–but how can you actually access and spend your Bitcoin? Some, but not all mainstream banks are accepting cryptocurrency as of yet. Nonetheless, just like regular cash, there are ATMs available for you to access your crypto. Unsurprisingly, these Bitcoin ATMs have a limit on how much Bitcoin you are permitted to withdraw. This is probably familiar to you from when you have used traditional ATMs, but the withdrawal limit is somewhat different with cryptocurrency ATMs. Read more to find out everything you need to know about the Bitcoin ATM withdrawal limit and other useful cryptocurrency information.
The Basics of Bitcoin
If you follow cryptocurrency, you may know that Bitcoin was the first to become successful and is the most popular type of cryptocurrency. While Bitcoin is the most popular, other options like Litecoin are also among the growing number of crypto options for the everyday consumer. More broadly, cryptocurrency is a decentralized form of money–meaning it is more directly tradable than U.S. dollars or other centralized forms of payment.
What are Bitcoin ATMs?
Bitcoin ATMs, on a basic level, are a way for users to engage in financial transactions with cryptocurrency, such as Bitcoin, without having to go directly through an online cryptocurrency exchange. These ATMs allow users to convert cash into crypto and back again, similar to a traditional ATM. They even look like a traditional ATM, with a screen that will display directions for you! This makes them a more approachable way for new users to get started buying crypto versus navigating online exchanges on their own. It also means that for people who buy crypto on a regular basis, they have convenient locations where they can purchase it while going about their daily life.
What are the benefits of using an ATM to buy your Bitcoin?
With Bitcoin ATMs, users are able to access Bitcoin more easily than having to go through many different online portals. Moreover, some banks still do not accept Bitcoin and other cryptocurrency, so Bitcoin ATMs make it easier to obtain and sell crypto. Cryptocurrency access may also be able to offer another option for financial transactions for people who are unable to obtain a traditional bank account. This could mean that having access to an ATM can offer the convenience of banking on the go to unbanked individuals.
The Bitcoin ATM Withdrawal Limit and Its Justification In Security
While Bitcoin is growing in popularity, it’s still not as widely used as cash, debit, or credit cards, and for this reason not everyone understands how to obtain and use it. However, as cryptocurrency is on the rise in mainstream media and use, it's also gaining more and more in common with the place held in our culture by the U.S. dollar. ATMs, or automated teller machines, fit into daily life as they can be located just about anywhere–banks, grocery stores, convenience stores, and more. Just like traditional ATMs, Bitcoin ATMs allow users to withdraw money–in this case, involving cryptocurrency. Unlike ATMs, however, you can purchase Bitcoin directly from the ATM portal using cash, rather than only being able to deposit or withdraw money.
With this access of Bitcoin through ATMs comes one the same restrictions as cash ATMs: withdrawal limits. Withdrawal limits are put into place for a number of reasons. Firstly, traditional ATMs can only hold so much physical money, so if someone withdraws more than the ATM can hold, neither party, the bank or the user, is going to be happy. Secondly, withdrawal limits are put into place for both the user and institutions’ safety. If someone steals your debit/credit card, you don’t want the thief to have total access to your bank accounts through ATMs. This way, thieves can only withdraw so much money, which is easier for you–and the bank–to recoup.
Bitcoin ATM withdrawal maximums tend to be $1,000 to $10,000. For Pelicoin Bitcoin ATMs, for example, the minimum for a Bitcoin transaction is $20, and the withdrawal maximum is $9,000 worth of Bitcoin per day. By comparison, traditional ATMs often have a daily withdrawal limit of around $300 to $3,000.
Bitcoin has fewer physical restrictions compared to cash, so you’re able to withdraw more in a day than you could with a cash ATM. However these cryptocurrency ATMs want to protect you and your investment, which is why there is still a Bitcoin ATM withdrawal limit, for many of the same reasons for which traditional ATMs have limits. Bitcoin ATM withdrawal limits will help protect you in the case of theft, which is still a risk with digital currency. Because of its decentralized nature, cryptocurrency doesn’t have all of the same protections as government-backed cash, so these withdrawal limits may help to protect you and your Bitcoin.
Where Can I Find Bitcoin ATMs?
Wondering if there is a Bitcoin ATM in your town so that you can conduct your Bitcoin transactions? Finding a Bitcoin ATM is easy with Pelicoin! Pelicoin has Bitcoin ATM locations throughout the Gulf Coast–from Alabama, to Louisiana, to Mississippi, and even in Texas and Tennessee. In Louisiana alone, Pelicoin has over 20 locations available for users to buy and sell Bitcoin to their heart's content. Pelicoin Bitcoin ATMs are located for your convenience, many of them in convenience stores! Just like the convenience of traditional ATMs, Pelicoin Bitcoin ATMs can be found in common spaces. These crypto ATMs are located in places such as gas stations, groceries and markets, and more. This means you can find them at the places where you already go frequently when running errands, shopping for food, or fueling up during a trip. We want to make buying crypto a normal part of your routine, rather than the stressful experience it can be if you go directly through an online exchange, particularly if you are a new crypto buyer.
What Kind of Identification Documents Are Required To Use A Pelicoin Bitcoin ATM?
Bitcoin ATMs in general can have different identification requirements. Concerns such as “Know Your Customer” can mean that certain information may need to be collected. This may seem at odds with some of the objectives of cryptocurrency transactions in terms of customer privacy, but it can be necessary. Fortunately, if you are using a Pelicoin Bitcoin ATM, the only form of identification you need is actually your cell phone. As part of the transaction process, the machine will prompt you to enter your cell phone number. Then, the ATM will send a code to your phone, and ask you to enter the code back into it. Once you do that, you’re all set! This verification process is security but keeps that concern balanced with the desire of cryptocurrency buyers to have privacy in their transactions.
Do I need to already have a cryptocurrency wallet set up before using the ATM?
Asking this question shows that you’ve done some research on how cryptocurrency works, which is a good sign if you’re considering buying it from an ATM. The short answer is no, you don’t have to have to have a cryptocurrency wallet to use a Pelicoin Bitcoin ATM.
A cryptocurrency wallet acts as an interface that lets you interact with your cryptocurrency, and is also used to store your public address and private keys. It can be online or physical, located on a hard drive or even printed on a piece of paper. That last one is the reason you don’t need an established crypto wallet to use one of our ATMs: you can print a paper wallet right there at the machine! Hopefully this puts your mind at ease, but feel free to research topics such as cryptocurrency wallet security if you want to prepare in advance.
How to Get Started Using A Bitcoin ATM
Knowing basic information like where to find a Bitcoin ATM, what a Bitcoin ATM is, and what you will need to bring with you is only the first step–now it's time to learn how to use one. First you’ll need to know a few things before starting your Bitcoin transaction:
How much cash you want to convert (keeping in mind there is a minimum transaction of $20 for Bitcoin transactions only).
The type of cryptocurrency and how much of it you’d like to purchase.
Where the QR code or address of your digital wallet address is (or if you prefer, you can create a paper wallet at the ATM).
Now that you have all of this information (and you have your cell phone on you for verification), it’s time to buy or sell Bitcoin! Once you’ve arrived at the Pelicoin Bitcoin ATM of your choice, you're going to tap on the start screen and click “Buy Coins.” Next, you’re going to select the amount of US dollars you’d like to convert into cryptocurrency. Once you’ve done that, you’ll use the keypad type in your cell phone number. After you’ve typed in your cell number, type in the verification code that was sent to that number. Then, you’ll select which type of cryptocurrency you’d like to convert your money to. Finally, choose which way you’d like to receive your cryptocurrency: through a QR code, by entering a wallet address, or by creating a paper wallet.
Voila! You’ve purchased your very own cryptocurrency. Now you can purchase and sell Bitcoin and other forms of crypto whenever you wish–at least until you hit the daily Pelicoin Bitcoin ATM withdrawal limit of $9,000 maximum. And when we say “whenever,” we mean it; many of our ATMs are at locations that are open 24/7, so as long as you stay under that maximum, you can buy crypto any time, night or day!
Is there a transaction or usage fee to use a Pelicoin ATM?
When using a cryptocurrency ATM, it is important to understand the fee associated with the service, and that the particular crypto mining conditions at a given time can influence the fee. Good news: you don’t have to worry about paying cryptocurrency mining fees directly when you use a Pelicoin Bitcoin ATM. As the ATM operator, Pelicoin pays the fees for you, which is good news since these fees can vary a lot, and uses transaction fees to cover the mining fees. All you need to worry about is converting the minimum amount of cash ($20) into Bitcoin (the only type of crypto we sell that has a minimum transaction amount) and following the instructions on the screen.
Now That You Understand The Basics Like The Bitcoin ATM Withdrawal Limit, Want to Learn More About Bitcoin ATMs?
The Bitcoin ATM withdrawal limit and other questions like what Bitcoin ATMs do are pretty simple to answer, but they might just have piqued your curiosity to learn more about cryptocurrency. Maybe you are ready to learn more about what Bitcoin could become in the future or about how it fits into the history of cryptocurrency. Maybe you are simply wondering if you can buy Bitcoin at an ATM in your small town or big city. Whatever your questions, we want to help you get the information you need.
Are you looking to learn more about cryptocurrency in general, Bitcoin ATMs, or how to get more involved in the cryptocurrency community? Have no fear, Pelicoin is here! Check out our FAQ page and blog where you find out more about the latest and most thought-provoking topics in cryptocurrency. From which traditional banks accommodate cryptocurrency to whether Bitcoin might become the global reserve currency, our blog is the place to go for discussion of all things crypto.
If you are ready to get started in the world of cryptocurrency, you can find one of our ATMs in your state all across the Gulf South for a smooth crypto buying experience!