Bitcoin ATM Limits: Explained | Hermes Bitcoin ATM (2024)

As private companies, Bitcoin ATM operators strive to offer the strongest security and customer support for their clients. This very competitive aspect protects your investment, but will also affect the amount you can withdraw per diem.

Minimum amounts vary, but generally start at $20 per transaction, and max out at $3,000 to $10,000 per day. The maximum amount available for daily withdrawal from an Hermes Bitcoin ATM is $10,000 per day.

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:

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

Another important factor for a Bitcoin ATM is security. If someone gains access to your keys (the long alphanumeric code that identifies your crypto) as part of a swindle or scam, the limited volumes of available withdrawal can prevent that person from draining your entire account.

Security measures will vary between operators. Some larger companies have digital wallets linked to consumer accounts, and the purchaser may need to know the address of that wallet. Others use a verification code sent to their mobile phone. Still others may require a QR code or scan a driver’s license. It depends on the BTM operator.

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.

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, before completing a transaction.”

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.

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 of identification.

Absolutely. Cash is the primary tender for exchange in Bitcoin ATMs. One of the main benefits of using these machines is the absolute privacy and anonymity of the transactions. Cash allows for untraceable purchases. While the blockchain can be followed, the identity of the buyer or seller can’t be traced.

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.

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.

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 in existence, so of course you can’t buy more than are available.

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

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.

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.

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 way to do business.

Just be sure that you are using a vendor that complies with the law, and that they are operating under an established company like Hermes Bitcoin. If you come upon a machine that doesn’t set purchase limits, then it is almost certainly not in compliance with the law and you should avoid using it. Always go with a Bitcoin ATM you can trust.