Limits to Buying, Selling, and Using Crypto
These days, many more people around the world are using cryptocurrency. From those who are speculative trading tokens to those using them to pay for products and services to those HODLing, cryptocurrency is getting moved around a lot these days.
But does this mean that cryptocurrency can be used with no limits or restrictions? One of the biggest appeals of digital assets is the fact that users have much more control over them, but it is debatable whether this control is truly limitless. For anyone who uses crypto, it is worth exploring its potential limitations.
Limits to Buying and Selling Crypto
Many crypto users buy and sell their crypto using centralised exchanges and these tend to come with limits. Coinbase reportedly allows some users to purchase up to $5,000 worth of cryptocurrency each day. Withdrawal limits for cryptocurrency are also in place.
A lot of these limits have to do with the account type and how much verification the user has provided to the exchange. Most of this has to do with anti-money laundering measures and even some requirements put in place by the government.
A brand-new account immediately trading thousands of dollars in crypto without providing much verification will be seen as a red flag by whatever platform you use and will be flagged. Also, banks and card providers also tend to have limits on how much you can spend on crypto-related transactions in a single period. UK-based bank Nationwide, for example, has a £5,000 daily limit on crypto-related transactions and these apply to all of its adult accounts.
These limits for crypto exchanges can mostly be gotten around by providing verification, using your account responsibly, and earning the exchange’s trust. Take crypto whales, who are crypto users that control large amounts of crypto, sometimes in the millions. It is not unusual for a whale to go through a lengthy verification process with an exchange and buy millions of crypto in one go.
However, keep in mind that all these transactions mostly apply when using centralized services such as a bank or a centralized crypto exchange. If you are buying cryptocurrency on a peer-to-peer basis or using a decentralized exchange; then there will be few or no limits to how much you can trade. As long as you are the only one in charge of your crypto wallet; and you are trading with people in a similar situation; there is hypothetically no limit to how much crypto you can buy and sell at any given time.
Limits to Gambling with Crypto
Many more gaming sites these days accept cryptocurrency from users and there are even some that only allow cryptocurrency. In terms of limits, most do not have any for how much cryptocurrency you can deposit at any given time.
While there are minimum deposits in some cases, most don’t limit how much you can deposit; especially the best no limit casinos—as the name suggests, you can play without limits at such sites. The only restriction you might encounter will be based on your payment provider such as a bank or credit card company that might limit how much you can pay to a gambling or crypto-related business. When it comes to withdrawing crypto, many casinos have daily or weekly limits on how much you can withdraw; and it is best to factor this in when choosing a casino.
You also need to consider possible stake limits. Some casinos will allow you to stake as much or as little crypto as you want on their various games; and some have limits on how much you can stake at any given time and on which games. This, of course, will impact the experiences of players; and depending on their preferences, might make the experience better or worse.
Additionally, most casinos list this information on their sites, usually in a table showing what limits apply to both deposits; and withdrawals by various methods and what stake limitations they are on the different games. By having this information, you can make the most informed choice possible.
Conclusion
Cryptocurrency has the advantage of giving its holders considerable control over how they use their tokens and in what quantity. However, this only applies to cryptos being used outside of centralized institutions. Once you begin using a cryptocurrency exchange, a crypto casino, a bank; or any other centralized body, some level of restrictions will usually come in.
These include restrictions on how much cryptocurrency can be bought, sold, staked; or otherwise used in a single day and this is something to be aware of as a consumer; especially before you sign up with any of these platforms.
