- Thinking about getting your own Bitcoin ATM? Make sure you know what you’re up to
- Bitcoin ATMs can be expensive to run and make shops targets for break-ins
- But with the right planning, you can install a highly successful Bitcoin ATM!
All over the world, more and more people are looking to get their hands on Bitcoin and become part of the mass adoption crowd. But, in order to do so, many people don’t actually know how or their banks will block transactions to certain crypto exchanges that are available in their region.
So, this means they’re turning to Bitcoin ATMs. Is this the perfect time to get your hands on one? Is a Bitcoin ATM worth investing in? Let’s find out!
Do the Math
Before you dive into any investment, you need to make sure you’ve done your homework. For those of you looking to install a Bitcoin ATM, the homework is the math needed to make sure you at very least break even, as this space can be a tough industry to turn a profit.
First up, check whether you need a license or anything else in order to install a Bitcoin ATM. For example, in the Netherlands, you need a license which will set you back a cool €25,000 for 2020 and it will be increased to €30,000 for 2021.
Then you need to factor in electricity, internet, insurance and security. People have a tendency to try and steal Bitcoin ATMs, believing there’s actual Bitcoin inside. So, you’re going to want to make sure your Bitcoin ATM is somewhere safe, otherwise you’re going to be out of pocket for the ATM should it get stolen or damaged. A lot of people opt to place ATMs inside of stores where the store owner will give you the Wi-Fi password and hook you up with electricity. But, in return you’re going to have to give them a slice of the profits.
With all these factors and costs priced in, you then need to calculate what your markup on the transactions made through your Bitcoin ATM. Most Bitcoin ATMs currently charge anywhere between 5% and 10%, which is an awful lot of money. But, needs must and those people using Bitcoin ATMs will use it simply for convenience.
Pick a Location Carefully
When you’ve done the math and you’re about to buy your Bitcoin ATM, you need to pick a location to place it. You need to make sure that there are going to be people in the area that will use it, and if you’re going to go for the higher end of fees make sure that there isn’t a Bitcoin ATM with lower fees just around the corner – that would be suicide.
And most importantly, make sure that you’re not plonking your Bitcoin ATM down in a dodgy area. The last thing you want to happen is to come to restock your ATM with good old fiat and find that it’s been stolen or damaged. A shop owner won’t be too pleased with you if he or she suffered a break-in just so someone could get to your Bitcoin ATM.
Is This for You? Only You Can Decide!
Running and maintaining a successful Bitcoin ATM is a huge undertaking. You need to promote it, make sure it’s constantly working and make sure that it’s full of fiat money ready for people to cash out their Bitcoin.
A lot of work goes into running the most successful Bitcoin ATMs, so if you don’t think you’ve got the time, or you simply want to buy a Bitcoin ATM and leave it sat somewhere, hoping it will make you loads of money while you sit on your yacht, then you’re better off not getting one.
If you can at least break even after all the associated fees, then go for it. You’d be playing a huge part in the mass adoption of Bitcoin!