The interest in cryptocurrencies and their uses is growing day by day for good reasons. Bitcoin, being one of the earliest cryptocurrencies, is by far the popular choice from around the world. Some of the earlier adopters of using Bitcoin as a means of payment are now beginning to reap the benefit of their investment. Considering the boom in 2021, Bitcoins and other viable cryptocurrencies are more popular and the chosen store of value over traditional currencies.
The accessibility to Bitcoin and other cryptocurrencies is becoming easier with new means of exchange springing up by the day. Statistically, there is a 50% year-over-year increase in the number of crypto kiosk installations of Bitcoin ATMs worldwide. This is a true testament to the accessibility and adoption of Bitcoin and other cryptocurrencies for obvious reasons.
Considering brands like Tesla and Microsoft teeing to capitalize on cryptocurrency as a means of payment, the use of cryptocurrencies like Bitcoin and others as a means of exchange is inevitable. It now begs the question, how can these cryptocurrencies be available to people? Where is the best location to install Bitcoin teller machines in the USA?
This article explains important criteria to consider before choosing a location to put a Bitcoin ATM in the US. It also recommends spots that users will be able to access Bitcoin ATM locations.
Criteria for Placement of a Bitcoin ATM
Using a physical Bitcoin ATM offers several benefits in comparison to the online exchange or peer-to-peer option. The placement of your Bitcoin ATM in specific locations supports these benefits or falls short of them. The transaction volume from the Bitcoin ATM depends on some key criteria. The performance of your machine depends on its ability to attract users in different locations and its accessibility.
Location is a big determinant of how successful and accessible a Bitcoin ATM will be to people. When coming up with your Bitcoin ATM placement strategy, you should consider the criteria to pick an accessible location for effective placement. When considering the best place to put a Bitcoin ATM, you should consider the following criteria below:
Convenience – When considering the best place to put ATMs, you should look for areas with high foot traffic and a dense population. This is how banks decide where to place their ATMs and branches. This strategy is also true for Bitcoin ATMs. You want to choose a place where the foot traffic is high and has a dense population that offers them convenience.
Speed – Customers want to get service as soon as possible. Having to queue up before getting service can be a turn off for most people. Bitcoin ATM provides access to services that people need in convenient areas. The speed of service promotes user access and fast service. Pick a good spot that allows people access to fast transportation and a great customer service experience in the location.
Availability – The ease to use is one thing, availability of service is another. Bitcoin ATMs are not bound by the same restriction of unavailability of cash that traditional ATMs are bound by. Hence, they should be available for service. Where traditional cash needs to get a fiat currency every other hour and a constant internet connection, Bitcoin ATM only needs to have a consistent internet connection and wallet with Bitcoin.
In addition, people need to be able to access the machine conveniently at all times. It should be accessible, visible, and easy to find.
Privacy – Another core criterion of choosing a location for your Bitcoin machine should be the privacy of the area. Privacy and anonymity are some of Bitcoin and other cryptocurrency selling points. When placing your Bitcoin ATM, you should consider this fact and select a location that will offer an element of privacy for your user. Although you want to maintain a steady stream of direct foot traffic, you should avoid places that will expose your users and their transaction information.
Support – New customers are bound to sign up as the popularity of Bitcoin and other cryptocurrencies grow. As the number of users increases, the number of ATM transactions and volume is bound to increase. This positive increase comes with the challenge of supporting users when they have issues with their transactions or with your Bitcoin ATM.
When selecting the location to put your next Bitcoin, consider how easy it is to provide support to both your Bitcoin ATM and your new users. This is crucial in boosting your total machine use and improving customer interactions. At the end of the day, customer satisfaction and continuous usage is the end goal.
Security – The security of your users should be a top priority when setting up your Bitcoin ATM in a new location. Even though not all secure locations can prevent scams or malicious activities, you can put checks in place that reduce the negative experience and shield your users. When you provide a secure spot to place your Bitcoin ATM, it builds a sense of trust in your user. Install your Bitcoin machine in a well-lit area like malls, airports, event grounds, et cetera. Ensure that these locations have their additional security and can provide privacy for your user.
Another consideration goes into selecting a location for your Bitcoin machine. The criteria above is a great starting point for you to get things started with your Bitcoin machine placement for effective interaction.
Ideal Location to Put a BTC ATM
There are some ideal locations you should consider when placing your Bitcoin ATM for strategic interaction with your target audience. Getting daily interaction depends greatly on some criteria and you have to make important and strategic decisions to ensure profitability. Placing your Bitcoin machine on the path of people who need its services is crucial to the success of your business.
The main aim of introducing a Bitcoin ATM in certain locations is to increase revenue significantly and make it accessible to your target audience. There are some ideal locations where Bitcoin ATMs work effectively. Some of these ideal places where ATMs are usually located include:
Festivals and Events
People attend festivals and events for several reasons. One of the things you can be sure is going to happen at an event or festival is attendees needing cash. This readily translates to people transacting in one way or the other. Providing your Bitcoin ATM to an event that borders around cryptocurrency will have its attendees interacting with your machine. One of the ways to ensure you are on top of this is to partner with festival organizers to place your Bitcoin machine in specific areas where there will be foot traffic.
Grocery Stores
In a country like El Salvador where Bitcoin is a legal tender, they can now legally use Bitcoin as a valid currency for paying for goods and services. In the near future, Bitcoin and other cryptocurrencies may become legal tender in several countries. Placing your Bitcoin ATM in and around a grocery store is a smart idea to offer convenience for shoppers. They take up a small footprint inside the store and guarantee the owners a solid return on their investment.
Asides from fast transaction fees, your customers will be able to convert their Bitcoin into fiat currency instantly. This smart way of generating more revenue is something that grocery stores and gas station owners will like to tap into to expand their ease in collecting and generating revenue.
Gas Station
Another convenient location to place your Bitcoin ATM is the gas station. It is a great way to provide and access cash to travelers on the go. It encourages more sales and revenue generation for you as a Bitcoin ATM owner and the gas station owner. Asides from the United States, having a Bitcoin ATM around the world at gas stations makes currency conversion easier and seamless. Users can convert their Bitcoin to fiat currencies and withdraw conveniently from anywhere in the world.
Hotels
The guests at various hotels are always in need of cash for several reasons. Providing a means of instant transaction is a great way for Bitcoin ATM owners and hotel businesses to generate extra income from transaction fees. It is also a great way of encouraging hotel guests to spend more money at the hotel. Because Bitcoin is a universal currency, guests can easily convert and withdraw local currencies from Bitcoin ATMs seamlessly.
Bars and Nightclubs
Placing your Bitcoin machine in a bar or nightclub is a great idea for people who would like to access cash quickly. They could exchange their Bitcoin for fiat currency when they need to quickly. Bar and nightclub owners would also find interest in having a Bitcoin ATM in their establishment as it allows guests to spend more in their establishment.
Casinos
Casinos are all about money moving around quickly. Whether on the roulette or blackjack table, there is always money exchanging hands. A casino is a place where quick access to more cash is needed and a Bitcoin ATM is a tool to bridge that gap. Casinos have the foot traffic and the need for Bitcoin ATMs for users who want to sell their Bitcoin for cash.
Airports
Travelers are always looking for a means to avoid currency exchange at a higher rate. A Bitcoin ATM solves their problem with easy access to traditional fiat in the country they are heading toward via exchanging their Bitcoin with Bitcoin ATM. It is easier and more seamless for travelers. There are also several people passing through the airports that would seize the opportunity to either buy or sell their Bitcoin through your Bitcoin ATM.
Challenges of Running a Bitcoin ATM
Just as there are benefits of owning a Bitcoin ATM, there are some associating risks to the business. Understanding the risks will help you plan for them whenever it arises and deal with them before it gets out of hand. Thankfully, there are more common risks that you can nip in the bud before it becomes uncontrollable. Here are some of the most common risks:
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Exchange Rate
The exchange rate of Bitcoin to local currency is a huge risk that you should consider. Just like other cryptocurrencies, Bitcoin's prices remain volatile and fluctuate from time to time. Running a Bitcoin ATM means you have to continuously monitor your exchange rate to continue to have a profitable business. If the price rises or falls without the proper correction, you get to pay the difference as the operator of the Bitcoin ATM.
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Cyber Attack Risk
In the scenario where there is a mirror deal on your Bitcoin crypto wallet, you run at the risk of being hacked and losing funds in the process. A mirror attack occurs when your transaction to and from the exchange is tracked and your information falls into wrong hands. It could lead to loss of funds and end of business in extreme cases. You need to be extra careful with cases like this by keeping your information safe and verifying transactions before proceeding.
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Physical Damage
Theft of your Bitcoin ATM is also something you should consider. Your Bitcoin ATM will have the cash to deliver to the bank. Hence, you will need security to secure cash delivery. If that is not in place, you are exposing your cash delivery. In addition, pay close attention to the location of your Bitcoin ATM. Someone may be toying with the idea of robbing your Bitcoin ATM.
ATMs Placement Strategies - Wrapping It Up
As the popularity of Bitcoin and other cryptocurrencies continues to rise, Bitcoin ATMs will keep popping up in different corners around the world. The information above should help you understand the criteria necessary to set up your Bitcoin ATM. The recommendation of a location where you can place your Bitcoin ATM is something you should consider. Finally, the risks surrounding any business will always be there. Do well to protect yourself against such danger while providing excellent customer service. If you are willing to start your own BTMs business - you can try calculating Bitcoin ATMs ROI or proceed to our Online Store and check your hardware or choose a new Bitcoin ATM.