ATM Investment

Bitcoin ATM Investment

Posted by
Bitcovault Team
Knowledge

Knowing how to start your own atm machine business can enable you to generate an almost passive source of income for a long period of time. Please note that it’s important to take your time and explore the question from all sides, to consider everything that will be involved during the business process. Bitcoin ATM investment opportunities still look good in 2022 - the competition in the market is tough, but there is still a place for your BTC ATM location possibility.

Location of an ATM

How much you can earn in the BTC ATM investment business depends on where an ATM is located and foot traffic at that place. An atm can be installed anywhere. Inside or outside any retail merchant location, such as convenience stores, fast food restaurants, bars, night clubs, gas stations, train stations, stadiums, hotels, etc. Anywhere people need to obtain cash, an ATM business investing can make you a passive income.

Legislation

Also, when you are considering an opportunity to invest in Bitcoin ATMs, carefully investigate the issue of the regulation in your region. First of all you have to buy a license from your city government. If you plan to start your business under a business name, you will have to register it with your county clerk. Also, you can set up a business entity such as a limited liability company so that you can avoid any personal liability. For this purpose you have to file articles of organization with your state and pay the appropriate filing fee.

Bank account

An equally important point to keep in mind when you deal with an atm investment is the relationship with your bank. It is an extremely important part of this business, so we suggest you check in advance whether your bank or a bank in the area where you plan to install a new Bitcoin ATM, provides suitable options for the atm business.

Bitcoin ATM industry review

One of the most popular tendencies in the ATM industry of the last years is the installing of cryptocurrency ATMs, which allow users to buy and sell bitcoin and other cryptocurrencies. These machines run like any other ATM, yet they are equipped with the specialized crypto software that enables safe and easy transactions on the blockchain.

Return on your investment into a Bitcoin ATM depends on the fee that you are going to set up. According to the Coinatmradar Blog the average bitcoin atm fees are now at 5.5% for sell operations and 7.5% for buy operations. And the average normal monthly volume of a bitcoin atm is about $30K. Take it into account when preparing the business plan for your bitcoin atm business.

Number of Bitcoin ATMs in the world

The next question is what type of a bitcoin ATM to choose. Here you can find a quite wide range of bitcoin terminals with super reliable, fast and high quality software and hardware at reasonable prices. They include one way terminals and two way bitcoin machines.

Bitcoin ATM investment opportunity

If you think about starting your own BTM business and investing into Bitcoin ATMs, what are the most important aspects you have to note?

As long as Bitcoin is gaining popularity, the business spheres related to cryptocurrency are becoming increasingly requested as well. We can observe this trend all over the world, especially in the USA. According to the information from the site www.coinatmradar.com most of the bitcoin ATMs installed are concentrated in North America - 75.71%. The second region in terms of the bitcoin ATMs’ number is Europe - 20.88%. Top-3 countries are the USA, Canada and Austria. In April, 2018 compared to the statistics of April, 2017, the amount of bitcoin ATMs has doubled. Thus, we can conclude that the BTM business is developing very fast.

The process of purchasing is not complicated, you can check the stages here. But prior to making a decision whether to enter the bitcoin ATM business, we strongly recommend you to review the essential points that we highlighted below.

Business Plan. It is hard to imagine a successful business without this document. Preparation of a business plan will help you to identify your goals and evaluate your perspectives based on the resources you possess. Absence of cost and revenue planning is one of the most often reasons for BTM business failures.

Compliance with regulations. This aspect is extremely important because requirements vary significantly depending on the location, for example, some jurisdictions may require ATM businesses to get a license. Also, you must register as a money services business (MSB), create your ‘Know your customer’/Anti-money laundering (KYC/AML) compliance, get special licenses, etc. If you are in the USA, for these purposes you can check a very helpful website with the online tracker of bitcoin regulation state by state. The easiest way to resolve legal issues is to collaborate with a bitcoin ATM operator, who will provide you with ready-to-use solution of BTM and software.

Bank account. If you are going to make bitcoin ATM investment, you have to open your bank account. Moreover, establishing a good relationship with a bank is important in order to minimize the risk of the BTM’s business bank account being closed unexpectedly.

Location. When you are planning where to place your BTM terminal, you need to find a good location, considering safety, traffic volume, easy-to-access factor, opening hours and type of business (cafe, pizzeria, shopping mall, grocery store etc.).

BTM type. There are one-way and two-way bitcoin ATMs. Using the 2-way terminal customers can sell bitcoin for cash as well as buy bitcoin. The 2-way bitcoin ATMs are more expensive than the one-way models, but in the meantime, they help not to lose opportunities on the harsh market. Also pay attention on the possibility to adjust the fee on your terminal, that will facilitate control of ROI.

Crypto terminals investment FAQ

Finally we want to sum up our article with a bunch of most popular and important questions on crypto machines investment:

1. Is owning an ATM a good investment?

Yes, we strongly believe that this business has great potential. And in 2022, it's still not too late to start your own business in the growing crypto ATM market. To calculate the necessary investment in the business, as well as the return on investment, you can use the calculator.

2. How to invest in an ATM?

To start investing in crypto terminals, you need to follow a number of steps:

  • Choose your preferred Bitcoin ATM model at our online store.
  • Bitcoin ATM model
  • Place your order by adding machines to your cart and initiating order requests.
  • Register AML/KYC requirements (if in the USA) with btmcompliance.com.
  • Secure a steady supply of Bitcoin and deploy your BTC machine to your kiosk's location.
  • Finally, ensure that you have adequate service cash at hand.

3. How to prepare an ATM business plan?

Usually a good and complete business plan includes the following steps:

  • Summary.
  • A description of the industry and company.
  • Description of services or products.
  • Sales and marketing.
  • Production plan.
  • Organizational plan.
  • Financial plan.
  • Evaluation of the project's effectiveness.
  • Warranties and risks of the company.
  • Appendices.

We are owners of the Bitcoin ATM business from 2017 and we prepared our own guide to starting a crypto ATMs business.

4. What is the best time to invest in ATMs?

Right now, in 2022, the bitcoin ATM market is booming, triggered by a number of factors, including the Covid pandemic, the mass move of companies to work remotely around the world, and the complication of financial interactions between people and companies in different regions.

All of these have contributed to both the development of the crypto industry as a whole and the growth in the number of crypto kiosks being installed around the world.

Crypto ATMs do not yet have as much competition as conventional bank ATMs, which are on every step of the way in the U.S. So the best time to start investing in a crypto business is today! Don't wait, contact us, we'll help you find the best option to start a cryptocurrency exchange ATM business around the world according to your needs and financial capabilities!


Disclaimer:

The information published on the Bitcovault blog is provided for informational and educational purposes only. Each person has their own unique financial situation, as well as experience and knowledge, so you should understand that perhaps the products and services described here may not be suitable for you personally. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular financial assets or cryptocurrency. Published information may have changed since the time of publication. Past performance is not indicative of future results.

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