Do you remember the days where all cryptocurrency exchange will allow you to exchange as much Bitcoin as you want, without limits or ID verification?
This is no longer true. Ever since the popular cryptocurrency grew to worldwide popularity, governments of the world are trying to control BTC. There are now several hurdles when wondering how often can you buy and sell Bitcoin on exchanges.
So let’s start with the basics.
How much Bitcoin can you buy?
The answer depends on the payment method you use and whether or not you verify your identity:
- When you buy using a bank transfer, you usually have the highest limits. This is because banks always check the source of your funds, making it a very reliable payment method.
- Also, in order to use this option, exchange platforms need to know that your bank account actually belongs to you. For that reason, you will need to pass ID verification.
- There is usually a weekly limit that you can spend on Bitcoin, and you can spread that amount in as many transactions as you like.
- When you use a credit or debit card instead, you have faster transactions. Truth be told, bank transfers are not the fastest. In order for a bank to process your transaction and send your money to an exchange, you may have to wait several days. The same is not true with bank cards.
- Limits tend to be a little lower than bank transfers, but transactions are completed within just a few minutes.
- For example, verified accounts on Paybis can buy Bitcoin for up to $20,000 per day, or $50,000 per month, when using a bank card. And until that amount is reached, they can make as many transactions as they like.
- When you use e-money services, the same is true. Payment services like Skrill or Payeer can also be used to buy cryptocurrency. The amount and repeatability of transactions depend on each payment option but are generally lower than bank transfers.
- Buying with e-money does not only ensure the fastest transactions but in some cases, you don’t even need to go through ID verification.
- To get a better idea of the limits of each popular payment system, you can check this page.
Understanding how often can you buy and sell Bitcoin exchanges
If this question dabbles you because of your investment strategy, remember that limitations are way looser than they might seem.
For example, if you are using dollar-cost averaging, and are buying $100 worth of BTC on a weekly basis, you can probably make repeated purchases on any exchange.
And when it comes to selling, the final word is usually with your bank, and not the exchange platform:
- Make sure that to inform your bank before you cash out a large amount of cryptocurrency
- To avoid any issues with your bank, you might consider a more conservative approach, which entails cashing out smaller amounts over a longer period of time.