Transaction Amount Limits (if any)

So when is a cryptocurrency purchase amount too large or too small? Coin Pursuit takes a look at transaction amount limits and where they apply.

Perhaps you've run into transaction limits before. With many banks, when you go to an ATM to withdraw money, there's a set limit you can pull from your account in a 24-hour period. If your withdrawal amount is limited to $300, and you want to take out $500, you either have to go into the bank, stand in line, and talk to a teller, or you have to wait another day. Most banks also put a hold on deposits over a given amount, too, and these holds can take up to a week to clear. It can be frustrating to try to access money you know is there, but you can't get to it!

Along those same lines, we've been asked if there are any transaction limitations set on digital currencies—is there too small, or too large, an amount you can spend? We're happy to report that with the overwhelming majority of cryptocurrencies, the answer is no. Now, you can't extend a credit line like on a credit card, but if there's adequate currency in your account to cover a purchase—big or small—you can spend it, with no holds or waiting periods.

Alternative currencies have codes assigned to them; when the initial investment is made, the code applies to a given amount, such as a “coin.” However, you don't have to spend the exact amount of one coin when you make a purchase. Just like traditional currency, the system allows for you to make change. Say, for example, you're using your digital currency to buy a pack of gum. Unless you're shopping somewhere that's ridiculously expensive, that gum is gonna cost much less than a full coin. What will happen is your original coin's code will more than likely disappear. The amount of your transaction will be issued its own code, as will the “change” you receive from the vendor. For simplicity's sake, let's say your digital coin is worth exactly one US dollar, and has its original code. You buy the gum for 45 cents, and that amount gets a new code, as does the 55 cents you retain.  

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