As a CoinSmart customer, the maximum amount of BTC, ETH, BCH, and LTC you may purchase cannot exceed $250,000 CAD per day, $750,000 CAD per rolling month long period, and $2,000,000 CAD per rolling 12 month period.
The maximum for all other crypto assets combined (excluding BTC, ETH, BCH, and LTC) you may purchase and sell (net acquisition cost) in a rolling 12 month period cannot exceed $30,000 CAD.
Let’s take a look at some hypothetical examples to understand how these limits work:
- You buy $30,000 worth of ADA, XLM, and DOGE putting your buy limit to $0.
- The market triples and now your portfolio is worth $90,000.
- Now, if you decide to sell $30,000 worth of crypto, it will reset your buy limit back to $30,000.
Why? Because at the point of buying, you purchased $30,000 crypto and at the point of sale, you sold $30,000 crypto. Both managed to cancel each other out.
- You buy ADA worth $30,000
- Market drops and now your ADA is worth $15,000
- You sell off all your ADA and your buying limit only goes up to $15,000.
Why? At the point of buying, you purchased $30,000 of ADA. At the point of selling, you sold the same amount of ADA tokens. However, because of devaluation, they are now worth $15,000. 30,000-15,000 = $15,000 -> your new buying limit.
- You buy XLM worth $30,000.
- Market skyrockets, and let’s say your XLM is now worth $60,000.
- You decide to sell all of your XLM. Even then, your buy limit will still reset to $30,000.
Why? The buy limit has a hard upper limit of $30,000
- You buy DOGE worth $30,000.
- Let’s say Dogecoin crashes horribly, and the market goes to $0.
- However, you will still not be able to buy any crypto (except BTC, ETH, BCH, and LTC)
Why? Since you have already touched your buy limit of $30,000.
- You buy $15,000 of ADA (Meaning you still have a $15,000 buying limit left)
- ADA drops to $10,000 and you decide to sell them off.
- Your new buying limit is $25,000.
Why? You sold off your portfolio for $10,000 and added it to the $15,000 leftover, giving you a $25,000 buy limit.
To locate your current limits, please log in at coinsmart.com and follow the steps below:
1. Click in the "Advance Trade" tab.
2. Click in "Your Trade Limits".
What is the significance of this step?
Crypto assets are known to be volatile. The buying limit manages our client’s risk exposure.
If you have hit your limits and wish to continue trading, feel free to sign up for our Premium/OTC Service which does not have these limits in place at https://www.coinsmart.com/premium/.
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