How to Start Your Own Bitcoin ATM Business – Featured Bitcoin News

The number of Bitcoin ATMs (BTMs) is increasing daily and so is the number of people entering the industry. To operate a profitable BTM business, many costs and risks need to be considered.

Also read: U.S. Dominates Supreme in Bitcoin ATM Industry

Turnover

Vlad of Coinatmradar, a website that tracks BTM positions, explains: “BTM revenue depends on several factors. The location of the machine is of prime importance. Profitable BTMs are typically found in a conveniently accessible area with high traffic and general public interest in Bitcoin.

How to Start Your Own Bitcoin ATM Business
Some BTM Operators Listed on Coinatmradar

For machines located in a facility, opening hours and type of business are also important. Restaurants and pizzerias are the most popular locations for BTM, Vlad noted.

Based on data from 952 BTMs listed on its website by 20 manufacturers and 193 operators worldwide, Vlad said miners report an average of one BTM bringing in around 30,000 trading volumes. USD a month.

At the lower end, some operators report up to $20,000 to $25,000 per machine while others report upwards of $100,000 per machine. Overall, he noted that:

We found that $30K is quite realistic to get in a good location with enough internet visibility and advertising.

The revenue per machine depends on the fee charged by the operator. Currently, the average BTM fee is 8.48% for buying bitcoin and 5.64% for selling, as calculated by Coinatmradar.

Costs

How to Start Your Own Bitcoin ATM Business
Genesis 1 BTM

There are various costs associated with running BTMs that vary based on factors such as machine type, manufacturer, country, and currency. Currently, the price of this machine ranges from $775 for the Bitteller BTM model to $14,500 for the two-way Genesis Coin Genesis1 model.

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Vlad estimates that the hardware cost of a bitcoin ATM, including price per machine, shipping, taxes, and installation, is typically in the $10,000 to $15,000 range.

Additional costs for running a BTM business include costs associated with space rental, advertising, customer support, and machine maintenance. There are also legal costs that can be huge and can include licensing. The cost of hoarding bitcoins and cash is also an issue to consider as BTMs will become useless if they run out of money.

He added that:

Many people do not assess all the risks and all the operations required to run a machine.

In addition, a new type of cost associated with theft and vandalism of BTMs is becoming significant. These costs should also be factored in before starting a BTM business.

Steps to Start a Bitcoin ATM Business

Here are some key steps to take when starting a BTM business.

Have a business plan: A good business plan will help you shape your trading strategies and know for sure whether it will be profitable and when it will break even.How to Start Your Own Bitcoin ATM Business

Check the rules: Some jurisdictions may require ATM businesses to obtain a license. Costs can be high, and a lengthy process can lead to unexpected costs and delays in starting a business.

Establishing a banking relationship: Some banks have problems doing business with Bitcoin companies. Some businesses have had to close bank accounts because banks are ‘reducing risk’ by closing accounts of customers they feel are high risk. Establishing a good relationship with the bank is important to minimize the risk of a BTM business’s bank account being closed unexpectedly. Coinatmradar recommends having a few How to Start Your Own Bitcoin ATM Businessbanking relationships “to eliminate the potential risk of closing an account at a bank”.

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Secure a good location: A BTM needs a good location to be profitable, but at the same time, a BTM can help the facilities in which they are located. come to use the Bitcoin ATM. “

Select BTM type and manufacturer: There are one-way and two-way BTMs. The latter allow customers to sell bitcoin for cash as well as buy bitcoin, but they are more expensive. Some of the most popular BTM producers include Genesis Coin, Lamassu, General Bytes, and Bitaccess.

Customer support and maintenance planning: A BTM operator should strive to provide excellent customer service and a point of contact for customer support is very important. Miners also need to constantly monitor whether each machine is up and running and whether bitcoins are being loaded around the clock.

Are you thinking of starting a BTM business? Let us know in the comments section below.


Image provided by Shutterstock, Coinatmradar, Genesis Coin


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Kevin Helms

An Austrian Economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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