Bitcoin ATM business plan
The Bitcoin ATM business is a great way to generate profit, with the right Bitcoin ATM location the business can be very profitable month to month. It’s a fairly young business that started in 2013 when the first bitcoin ATM was installed precisely in Vancouver, Canada. According to the latest statistics, there are nearly 35,000 bitcoin ATMs around the world and the United State dominates this business with over 25,000 installed across the country. In this article, let’s find out all the details about this kind of business and what are the necessary steps to get started.
Unlike the classic ATM which allows people to withdraw, deposit, or transfer money to their bank account, a bitcoin ATM is something else entirely. This is because it is an internet-connected kiosk that allows people to buy and sell Bitcoin or other cryptocurrencies using cash or a debit card. This exchange requires people to have an already existing Bitcoin wallet to facilitate transactions.
Two types of Bitcoin ATMs
One-way bitcoin ATMs only allow buying and two-way bitcoin ATMs that both buy and sell bitcoin. But most of the bitcoin ATMs around the world are one-way. Only about 30% of all crypto ATMs in the world are two-way and less than 23% in the United States. Both types are connected to the Internet, allowing the purchase of cash and/or the sale of Bitcoin.
The steps to follow to get started
The choice of the bitcoin ATM
To start this type of business, there are several steps to follow correctly one after the other. First, you have to order the bitcoin ATM by choosing the model you want from one of the manufacturers and then take the time to familiarize yourself with all the features of the system. To ensure the financing of the machine, you will have to configure your bitcoin wallet.
Nowadays, there are several manufacturers of Bitcoin ATMs in the market. Normally, it takes at least $ 5,000 to purchase one of these products. However, based on reviews from people who have purchased this product, some bitcoin ATM manufacturers are rated higher than others.
Detailed bitcoin ATM business starting process can be found below through the link.
As with starting any other business, compliance with the law is the most important thing. This is what makes it possible to comply with the law and to operate such a business normally. So, it is the same for Bitcoin ATM activity, the first step to take to start this kind of business is to proceed to register the business as a monetary business in the region you want to start it. Because the legal framework depends on your location.
However, there is another much easier way to get started without having to obtain special licenses. This is to seek collaboration with a Bitcoin ATM operator (already having its legal license) existing in the region to operate under the umbrella of its license. This method is the least expensive.
The location is a key element in this kind of business because to generate profit you must first make sure that the bitcoin ATM is accessible to as many people as possible. This is why placing it where there are a lot of activities (near shops, train stations, restaurants, or trendy neighborhoods) can be very profitable. Thus, the factors to be taken into account when locating are the volume of traffic, accessibility, availability, or even proximity to public transport.
People tend to look for Bitcoin ATMs near their location and usually find them through Bitcoin ATM location interactive maps like this.
One of the most problematic things in this kind of business is the banking affiliation. Indeed, to function better, the operator will need to provide liquidity. Normally there are 2 ways to do this, first, the trader can use his capital for this or use the bitcoin exchange to make the job easier. But the latter requires a bank affiliation and the problem is that it is very rare to find a bank that accepts this kind of transaction.
The utility of the banking system in this business is to keep the money deposited by the customer during the purchase of the bitcoin and then transfer it directly to the liquidity provider. But unfortunately, banks don’t like having companies like bitcoin ATM operators as customers.
Regulating the bitcoin ATM is another step that should not be overlooked. Because we all know that bitcoin is very volatile, it has no fixed value, so when people go to make transactions in machines, they must have an overview of the calculation of the transaction carried out. For this, it is important to have a bitcoin calculator linked with one of the popular exchanges.
Starting a Bitcoin ATM business is very simple, but it does require a lot of care and precaution. Building a solid business plan is the first step to getting started. If you are willing to start your own profitable business with Bitcoin ATMs, visit Bitcovault.com and read more information about this technology.