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Bitcoin’s popularity and cryptocurrencies, in general, are on the rise. As of September 14th, 2020, there are 9,903 Bitcoin ATMs installed all over the world, according to coinatmradar.com. 7,605 of these are in the USA. This means that plenty of people have already recognized the opportunities the Bitcoin ATMs offer, and caught up with the trend early on. Still, it does not mean that you won’t be able to get your piece of this cake.
If you want to partake in the business of Bitcoin ATMs, there are many ways to do this. Here we’ll talk more about how to start a Bitcoin ATM business. We’ll give explanations to the most important aspects of this business and explain how you can benefit from having a Bitcoin ATM business. But first thing first:
Bitcoin ATMs are these cool machines that allow you to buy (and sell) Bitcoin using cash or debit card. A Bitcoin ATM needs an Internet connection to make the Bitcoin transaction. Close to 40% of all Bitcoin ATMs today are two-way (buy and sell), and about 60% are one way (buy only).
Generally, these are very much like standard ATMs. Instead of making a bank transaction, they connect directly to Bitcoin wallets or Bitcoin exchanges.
Advice: Before starting a Bitcoin ATM business, make sure you check out the local rules regarding them. A good way to start is by consulting with a lawyer experienced in this field. Also, you need to find a bank that will cooperate with you. Not all banks today are Bitcoin-friendly, so do your homework thoroughly.
Bitcoin ATM business started in October 2013 when a Bitcoin ATM was installed in a coffee shop in Vancouver, Canada. This is the first public Bitcoin ATM. The first one in Europe was installed in December of 2013, and the first Bitcoin ATM in the USA was installed in February 2014.
Concerns related to Bitcoin prompted countries to start setting cryptocurrency market regulations. This period saw a slow development of the Bitcoin ATM business. As many regulations took place, there is a surge of Bitcoin ATMs all over the world.
How much money you make depends entirely on the sort of arrangements you make with the exchanges that provide your liquidity (or if you supply your own), what markups you charge for the coins (20% is very standard in the usa), and what you are paying for rent.
However, on average, ATM owners typically keep about half of the markup (10%) after paying all their expenses.
Today, there are several manufacturers of Bitcoin ATMs. After considering the available options, we have selected the top-rated models you can select:
This is the leading Bitcoin ATM manufacturer today, with 3500+ locations worldwide (source: coinatmradar.com). The Genesis Coin Inc company currently offers two flagship models, Genesis1 and Satoshi1. We’ll cover the Genesis1 Bitcoin ATM by Genesis Coin, and here are its features:
Price: The current price of this model, including delivery, is $14,500.
Where to buy: Genesis1 Bitcoin ATM is available through the Genesis Coin Inc website. To make an order, you need to fill out a form, and a sales representative should contact you soon. A note here, the price of this Bitcoin ATM includes delivery.
General Bytes takes the second place for Bitcoin ATM manufacturers today. From the info on coinatmradar.com, General Bytes has 2,918 Bitcoin ATMs installed. Here are the main features of the BATMTwo, their most popular model:
Price: The current price of this model is $3,249, and it comes with free shipping.
Where to buy: BATMTwo by General Bytes is available through the General Bytes website. You can see all the optional features, and select anything you may need with your General Bytes BATMTwo Bitcoin ATM.
BitAccess has risen to third place in the number of Bitcoin ATMs in the world with 994 installed units. We bring you the main features of their base model, BTM C:
Price: The current price of this model is $5,000, and there is a minimum order of 2 BitAccess BTMs.
Where to buy: You can get the BTC C Bitcoin ATM through the official BitAccess website. We need to note that there is a 2 BTM order minimum.
To get the most of your Bitcoin ATM, you should place it at a good location. You have high chances of revenue if you place the Bitcoin ATM at the right place. It needs high foot traffic, easy accessibility, and good hours of operation. Think of placing Bitcoin ATM in a place where younger, tech-savvy people usually hang out, like:
As a way to spread the word on your Bitcoin ATM, you should add it to the most popular Bitcoin ATM websites. All the sites listed here make daily updates to their databases. Contact these via email to add your Bitcoin ATM to their listing, or register the Bitcoin ATM by yourself:
To increase your promotion, make sure you use all the social media networks at your disposal. Join groups devoted to cryptocurrencies and tell people about your Bitcoin ATM.
Info: In order to run your Bitcoin ATM business legally, you will need to follow federal and state law.
At the Federal level, the Bank Secrecy Act (BSA) requires that, among other things, you register with the Financial Crimes Enforcement Network (FinCEN) as a moneyservices business (MSB). Once registered, there are additional requirements of the BSA that must be followed. For example, you must appoint a compliance officer (which can be you, if you are a one-man operation), you must prepare and develop a written anti-money laundering compliance program. We encourage you to contact a law firm that specializes in Bitcoin ATM compliance.
At the State level, each state has their own laws concerning “money transmission” and many states require that Bitcoin ATM operators get a money transmitter license (MTL) in order to operate their business in a given state. Speak with an expert on Bitcoin ATM regulations to determine whether you will need an MTL for your Bitcoin ATM business.
If you choose to supply your machines with Bitcoins yourself, then you do not need an exchange partner. However, there are some exchanges that will simply let you plug into their exchange via an API and you don’t need to worry about filling up an atm wallet yourself.
You will pay for this service, but you eliminate the need to custody any coins yourself and you also elinate a key cash flow issue with initial outlay to buy coins. The ATM is essentially acting as a middle man between your customer and an exchange. In fact, many of the Bitcoin ATM manufacturers on this page have already set up these partnerships for you.
So its just a matter of plugging in the machine and getting going.
There are plenty of possibilities related to running a Bitcoin ATM business. But there are some risks too. Above we covered the benefits, and here are the most common risks:
As cryptocurrencies are on a rise, Bitcoin ATMs are showing up every day in all corners of the world. We hope we’ve covered all important matters related to starting your own Bitcoin ATM business. Follow us for more enticing content.
ATM stands for Automatic Teller Machine, which is a banking terminal that accepts deposits and dispenses cash.
yes, you can. You need to log in to your account on the Bitcoin ATM, select the withdrawal cash option, then enter the amount of cash and send Bitcoin to the wallet address QR code indicated. The blockchain network has to confirmm the transaction and then you can collect your cash. It usually takes under 30 minutes.
There are more than 5000 Bitcoin ATMs around the world. Most of them are in the U.S.A.
No, you can’t. You can sell your Bitcoins to somebody who then transfers money to your bank account or you you can sell them at an exchange and withdraw the funds from there.
The main Bitcoin ATM manufacturer are Genesis Coin and General Bytes (first has 34.6% of the market share, and the second has 30.3%).
