Prospects with Bitcoin ATM Business
- November 20, 2017
With time Bitcoin is getting popular in many places around the globe and hence it is becoming a good investment opportunity. As per some of the recent Bitcoin Industry statistics, there is growing number of Bitcoin installations taking place around the globe. The reasons are quite obvious, Bitcoin users are increasing every day, and in coming days’ time, it will reach new heights. Starting Bitcoin ATM business is undoubtedly a good option. If you are planning to start your own Bitcoin ATM or want to install Bitcoin ATM machine at any existing business centers, there are many important things to consider. Here in this particular piece, we will help you learn some of the important points and features before taking a decision.
Important Things
There are some major developments taking place with this digital currency in the past few years, but before you start, it is important to be clear about regulation. Like any other business, Bitcoin ATM business is also not an exception. With many authorities, you need to get special licenses so that you can conduct the business without any inconvenience or hassle. Running a Bitcoin ATM machine business without following or abiding by law may end up illegal or bad, so make sure you follow all rules before setting up ATM machines in prime locations. Before starting the business, the main aim is to check every legal aspect necessary for setting up Bitcoin ATM machine in your region.
In every country there are different legal frameworks, make sure you follow that properly before starting the business. If you are in the US there are some source available online where you can learn a lot about good start points. The legal framework is dependent on the location where you are planning to set up the Bitcoin ATM machine, make sure you consult your local lawyer first.
Running a Bitcoin ATM business on your own will need huge investment in the legal field, for instance creating your AML as well as KYC compliance policy, obtaining genuine legal licenses and much more. However, there are some cheaper solutions too available. Find existing Bitcoin ATM operator or service providers in your area and approach for collaboration. Under this collaboration you can approach the other operator so that you ca work under their legal license, this will help in saving huge investment in the legal field. In order to locate Bitcoin ATM operators around your place or region check our Bitcoin ATM machine location map, for some of the major listings operator information.
Support from Financial Institution
If you are planning to start a Bitcoin ATM machine business, make sure you have a bank account. There were few ideas available to build “unbanked” Bitcoin ATM, but now it is no more a practical idea. There are many Bitcoin machines available in the market with bill recyclers, but unfortunately, there are no special tool or features available that will automatically define the buying or selling prices based on Bitcoin or Cash balances. Moreover, the local demand is also very low; the reality is Bitcoin user-base is small when compared to other online services accessible in other places that may result in wrong price discovery from a particular machine.
By having bought only Bitcoin machine, you need to organize cash delivery to the particular bank and to make wire transfers from bank account to exchange so as to replenish the Bitcoin Balance. But the reality is that not many financial institutes or banks wish to have customers related to any of this digital currency business. So before you start it is important to check all possible options in advance and select the best bank for the purpose that will effectively eliminate all potential risks of closing account at any stage. For instance, the Bitcoin ATM service provider in any place had to close his or her business due to lack of support from any financial institute or bank, even though the company or service provider abides by all necessary and suitable legal requirements.
Strategically Selected Places
The location of your Bitcoin ATM machine is another important thing to consider. If you are an owner of another business, this won’t be a major issue as you can easily place it at your shop or store. Placing Bitcoin ATM machine in your store or shop will increase traffic, and this will be an additional revenue stream for the store. According to some of the owners who installed Bitcoin ATM machine in their store found that it increased sales by about 10% to 30% all due to new customers who came to use Bitcoin ATM. Adding Bitcoin ATM machine in store or shop is definitely a good idea, and there are enough benefits associated with it.
If you are a new Bitcoin ATM business owner eager to start your business but don’t have a place where you can install the machine, the best idea is to approach any other operate close to your place. Suggest them your idea and have a private discussion with the operators. It is tough to find a good Bitcoin-friendly location; the best option is to find someone who will put your Bitcoin ATM machine in the store.
However, if you are confident enough to run the bitcoin ATM machine yourself, the only task is to find a proper location. In such situation you need to consider some important factors such as availability or ease of accessing the Bitcoin ATM machine (easy way to find the ATM or public conveyances), opening hours (the longer, the better it is for Bitcoin users), traffic volume and the business type.
These are all high traffic business areas, placing your Bitcoin ATM machine in any of these locations will help your business and make things easier on the part of Bitcoin users too.
Selecting the right BTM Machine
Another most important thing to decide is the right ATM machine for your business venture. There are different categories of Bitcoin ATM machines coming up in the market; some are one-way machines whereas few are two-way. If you want to have only ATM machines where customers can buy Bitcoins, the one-way machine is the right choice. Two-way machines give your customers the option to buy and sell Bitcoin options simultaneously, but the only problem is that these devices are pretty expensive. As per a recent data, it was found that almost 58% Bitcoin ATM machines are one-way whereas 42% Bitcoin ATM machines are two-way machines.
As per information from different operators, there is not an even split between sell and buy operations. At present there is a pure dominance of buying operations, according to data, almost 90% opt for buying whereas 10% uses the selling operation. But when there are huge price swings, the user behavior changes a lot. Many operators or Bitcoin ATM machine service providers reported of fall in volume to buy Bitcoins and selling operations are increased to a large extent which makes the volume ratio around 50/50. Why lose such opportunities when the market is harsh? The best option is to bank on both options so that customers can use your Bitcoin ATM machines in all possible situations. In “normal” times one-way bitcoin ATM machines can give you a steady income but buying a two-way machine is undoubtedly the best option.
Having a Rough Business Plan
The next step is to have a rough business plan which is important for your new venture. This profitability calculation is very important, and it will help you to set up everything at the start. With CoinATMfinder.com you will find a Bitcoin ATM profitability calculator using which you can easily calculate approximates costs as well calculate ROI with every detailed report.
Apart from that, you can visit our blog posts to learn about theoretical profitability calculations as well as real examples of how much Bitcoin ATMS bring for operators at different places around the globe. This estimation and calculation help you to plan the whole thing in best possible manner.
To set it up, some average values can be used at the very start. In order to grab the attention of users, you can give attractive offers at the very start. Operators often suggest of lower rates or at times 0% commission which is good enough to lure potential Bitcoin users. In such cases, you need to find ways to buy cheap Bitcoins from miners at a much-discounted price.
Top Notch Customer Service
When you are running a Bitcoin ATM business, the most important thing you should emphasize is offering top notch customer service. Once Bitcoin users are satisfied and thoroughly convinced with your services, it will help your business grow and reach more users. It is your task to ensure that all machines are operational and Bitcoins funds are in proper place. Make sure there is no negativity or complains coming with your bitcoin ATM services, it spread quickly and will affect your reputation.
Provide both phone as well as email services; we recommend you to make it available on our website listing too. Recently Bitcoin ATM voting functionalities are coming up in the market which helps you to track customer feedback and experience. As an operator, we will recommend you to use printed QR with the link to our machine on the website so that you can gather more user reviews and feedback. This will help you to monitor the status of the machine closely and provide better customer service in days to come.
These are some of the important questions that you need to investigate and learn before starting Bitcoin ATM machine business. We are always there for help; our team comes up with best possible solutions and services so that you can start this venture easily. For any more queries and information regarding the Bitcoin ATM business, you can write to us; we will help you with necessary details.
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