In the volatile financial market, the recognition of Bitcoin ATMs (BTM) has grown significantly fast. Because of the volatilization in the financial market, the investor wants quick access to their cryptocurrencies like Bitcoin. People in these counties, such as traders and investors and Bitcoin holders, are eagerly looking for a virtual currency without any central regulation.
In fact, Bitcoin ATMs are a solution for these people. Especially for the investors who have been prevented from making purchases of Bitcoin through their financial credit by the centralized authority.
But before you eagerly dive in to purchase a Bitcoin ATM, there are indeed some notable mentions to keep in mind. Here, we’ve busted up little significant stuff before starting a Bitcoin ATM business.
Understanding the Bitcoin ATM
As more investors are eager to tap into a growing market, the Bitcoin ATM business increased its popularity among most of us. Transferring physical cash into Bitcoin via BTMs, Bitcoin ATM is the most convenient and effortless method than others.
Bitcoin ATMs are similar kiosk machines to regular ATMs. It allows users to purchase Bitcoin by using various methods such as cards or cash.
Some of the BTMs have the feature of both purchasing and selling Bitcoin with an accessible account to execute on the BTMs.
Bitcoin ATM comes in two categories, unidirectional means it can operate only purchasing Bitcoins and bidirectional means it has the feature of both, purchasing and selling.
Both unidirectional and bidirectional works through the internet for functioning the transactions. Instead of connecting to a bank authority like the traditional ATMs, it directly connects to the user for exchange.
How to start a Bitcoin ATM Business?
Were you interested in setting up a Bitcoin ATM? After 2017, many folks were interested in investing in a Bitcoin ATM and grabbed the opportunity of becoming the operator of a Bitcoin ATM.
But like most of them, you have no idea how to set up the machine and the necessary steps to take.
Establishing a Bitcoin ATM is not tough, and any individual can do it easily.
In this article, we’ll cover the essential step required to get started. Quickly note down the steps and be ready to become a Bitcoin ATM operator in no time.
Selecting the proper location
The foremost crucial part of any business is the prime location. Thus it implied in the Bitcoin ATM business too. Planning to host an ATM business for Bitcoin is good but even in the digitalization; location decides the fifty percent success for the business
Perform thorough research to check that there is demand from people around the area or it is just a blind spot. If you fail to do so, your business will struggle and end up being a failure.
So, the first is to figure out where you want to land your Bitcoin ATM machine. There are a bunch of locations such as barbershops, nightclubs, bars, restaurants, sporting events and even more.
Consider seeking out professional assistance to ensure your ATM business is fully compliant.
To ensure compliance, look for professional assistance to avoid any unfavourable conditions related to the Bitcoin ATM Business. Go through any set of laws pertaining to the Bitcoin ATMs in the area you have selected. Some of the areas may require a licensing or permitting in the form of jurisdictions registration, or other before operating the business.
There could be different Licensing and regulations act which can diverge depending on the site authority.
Establish Relation with Banks
Establishing relationships with a bank is very important as BTM requires operate to deposit cash from the machine then it will relish into BTC wallet which can be utilized to acquire Bitcoin.
To eradicate the probable risk of shutting down your Bitcoin ATM business surprisingly, try to build relationships with multiple banks because the banks have authority to close your account whenever they feel not comfortable doing business with a Bitcoin ATM operator.
Conducting research beforehand to find out the potential banks in your locality is recommended for the customers because not all banks are able to offer banking services for Bitcoin ATM.
Additionally, while concerning banks, it is also notable that the Bitcoin ATM industry will continue to develop at a swift rate.
Pick The Right ATM Model
Working with the wrong type of Bitcoin ATM could be traumatic, and no one wants that! Choosing the right Bitcoin ATM is crucial, instead of going for the cheapest one think about the feature, installing process and service.
Currently, there are a bunch of Bitcoin ATMs available in the market, choose one is suitable for your pocket and location. Yes, because you may don’t end up purchasing a wrong Bitcoin machine that does not support the user’s bank.
For Bitcoin ATM business, moderately two types of Bitcoin BTMs, one-way, which means it can either buy or sell and other is for both purposes. It should be highly configured and should be scale-able in terms of both hardware and software.
The exclusive intention of these BTM is to provide valuable service to your customers and scale up the business while reducing technical complications.
The concrete price for a Bitcoin ATM machine can fluctuate greatly, depending on the BTM type you have to purchase to initiate your project, country, specification and shipping charges.
In general, the cost of Bitcoin ATM varies from $614 for a portable BitTeller machine to $14,500 Genesis1 Bitcoin (2-way) model.
Besides ATM, the additional cost of fitting charges, import duties and taxes, also need to be considered as well as probable rental charges for the prime location to initiate the business.
Bitcoin ATM Maintenance Cost
As a trader, quality service should be the top-notch priority of your BTMs. A point for quality maintenance is crucial to offer exceptional customer service. A BTM operator should constantly observe whether the Bitcoin ATMs are operating well and that if any increment of decrements is necessary to reduce the operation cost and increase the flowing revenue.
Further costs of managing a Bitcoin ATM profession includes licensing cost, monthly rent for space, customer support and machine maintenance.
Additionally, the Bitcoin ATM operator needs to actively involve various things like restocking the BTM, frequent visits to the bank to maintain glitch-free operation.
Usually, active marketing is not required for Bitcoin AMTs, but in some cases, marketing does help. Marketing includes posting and sharing news and pictures to aware people about the location of your Bitcoin ATMs; it could be near the liquor shop, gas station, restaurants, or even near the hospital.
The best way marketing is the word of mouth to get them to use your Bitcoin ATMs. Another free yet powerful way would be through expanding in social media. Engage in various relevant Facebook groups and communities and promote the ATMs.
Bitcoin ATM business can be highly profitable if enough traffic is found, which can be attacked by choosing an appropriate location for the business. For a young entrepreneur, this could be an excellent opportunity to enter the Bitcoin economy. However, as with every business, there is danger involved and no guaranteed success.