Calculate your profits with our ROI calculator
This calculator estimates the profitability and return on investment of purchasing a Bitcoin Teller Machine (BTM).
Calculation table
Warning!
- All calculations are approximate, values may vary depending on the country, state, selected location, and a variety of other variables that our calculator does not take into account.
- There are hidden costs that may include legal, banking, cash collection and other services.
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Practice and theory of calculations
Do We Need to have a Bank Account?
To operate a Bitcoin Teller Machine (BTM), a bank account is needed. The desire to operate a BTM without one is unfortunately an impractical option. Some Bitcoin ATMs have bill recyclers. But buying or selling prices are not dynamic in these machines and there is a limit to local demand, resulting in price fluctuations.
Operating a buy-only Bitcoin ATM means owners will need to organize regular cash collection, bank delivery, and bank transfers to replenish crypto balances.
Despite crypto’s recent boost in popularity, some banks remain reluctant to transact with crypto related businesses Check on options and best practices to fit a bank’s requirements. Even with all legal requirements satisfied, some owners still may not receive bank support.
What type of BTM should We Choose?
While we offer several machines, you essentially choose from one that allows customers to one-way buy Bitcoin or a BTM that enables two-way buying and selling. Around 58% of BTMs enable purchases only, while 42% are two-way BTMs. Choose your machine today!
Currently, the average buy compared to sell is 90% to 10%, so there is a bias towards buy-only BTMs. There are times when the market will swing and two-way machines will be in demand. However, with market confidence in Bitcoin as it is at present, a buy-only machine can still provide you with a steady income.
Bitcoin ATM providers are in abundance on the market with machines ranging from $2.1K for buy-only up to $14.5k for two-way. The speed, protection, and simplicity that a BITCOVAULT BTM provides will launch our product to the top since offering multiple cryptocurrencies is not the norm yet in several other BTM providers.
Will I need to provide Customer service to my clients?
A crucial part of a successful BTM business is providing superior customer service. BITCOVAULT prides ourselves on offering excellent customer service to you, and we highly recommend you do the same for your customers.
Customers should receive the owners email address and a telephone number provided on a website and at the physical location. Quality customer service enhances retention and provides a solid future for the business are more features roll out in the future. A customer feedback option is available as well.
What are the regulations surrounding BTMs?
As cryptocurrencies near mass adoption, the regulations are tightening. A BTM business is not exempt including licenses such as Money Service Business (MSB) licenses. Contact our client support to learn more about regulations in your local area.
Serious regulatory issues surround crypto and attempting to circumvent them is a bad idea. All regulations should be understood and complied with and BITCOVAULT can help our customers sort them out.
Seek legal advice when setting up your BTM business in the United States. The legal regulations will depend on the home state of the business.
Administration requirements may include compliance policy for KYC/AML and multiple licenses. One way to simplify this process is to operate under the legal umbrella of current licenses of an established operator.
Reach out to our customer service team to learn more.
Where do I place my BTM?
For our retail clients that already own and operate a physical location, the questions of where to place is not a concern. For partners starting from scratch, location is a crucial decision. Our team is capable of helping you through this essential business plan.
For existing premises, installing a BTM will increase traffic and revenue across the board. According to research, BTM retail centers are likely to increase sales by 10-30%.
Finding a location with the following facilities will likely increase revenues: location with the following facilities:
- High traffic
- Ease of access
- Public Transportation
- Long hours
- Adequate Parking
- Appropriate manner of business
The five most appropriate locations for your Bitcoin ATM:
- Restaurants, fast food outlets
- Cafeteria, ice cream parlor
- Company office, BTC embassy
- Shopping malls
- Food stores, delis
The common denominator with these locations is their high traffic potential.
What about the Volume and Transaction Fees?
Before launching your BTM business, a proper calculation and estimate of profits should be developed. Reaching your planned volume could take several months so developing a plan to stick with one location for a time is essential.
The average turover of a BTM is $30k per month, with variability. This number can be used to calculate the fees charged for using the BTM which is generally between 5.5 and 7.5%.
These figures are based on operators who report their fees. Those who choose not to report their fees tend to charge higher, around 15-25%. When starting out, charging 0% fees will likely increase your customer traffic. We recommend dealing directly with miners to get discounted cryptocurrency.
What type of BTM should you choose?
While we have several options available, you can essentially choose between one that allows customers to only buy Bitcoin (one-way), or that allows for both buying and selling (two-way). Approximately 58% of BTMs on the market only allow purchases, while 42% are two-way BTMs. Choose your machine today!
Currently, the average buy-to-sell ratio is 90% to 10%, indicating a preference towards one-way BTMs. There are times when the market shifts and the two-way machines are in high demand. However, with the current level of market confidence in Bitcoin, a buy-only BTM option can still provide you with a consistent income.
There are numerous Bitcoin ATM suppliers on the market, with machines ranging in price from $2.1K one-way to $14.5K for two-way BTMs. There are several other BTM providers that do not yet support multiple cryptocurrencies, therefore, the speed, security, and simplicity of BITCOVAULT BTMs will drive our product to the top.
What are the regulations surrounding BTMs?
As cryptocurrencies approach mass adoption, regulations around them are tightening. A BTM business is not an exemption, and requires to have licenses such as Money Service Business (MSB) to operate legally. To learn more about regulations in your area, please contact our client support.
There are serious regulatory issues surrounding cryptocurrency and not complying with them is a bad idea. All regulations must be understood and followed, and BITCOVAULT can assist you customers in doing so.
When establishing your BTM business in the United States, it is recommended to seek legal advice. Legal regulations will be determined by the home state from which the business is operating.
Administration requirements may include KYC/AML compliance policy and multiple licenses. One way to make this process easier is to operate under the legal umbrella of an established operator's current licenses.
To learn more, please contact our customer service team.
What are Expected Volume and Transaction Fees
Before launching your BTM business, you need a proper calculation and an estimate of profits. Reaching your planned volume could take several months so developing a plan and sticking to one location for some time is essential.
The average turnover of one BTM is $30k per month, which can vary from location to location. This number can be used to calculate the fees charged for using the BTM which is generally between 5.5% to 7.5%
These figures are based on operators who report their fees. Those who choose not to report their fees tend to charge higher, around 15-25%. When starting out, charging 0% fees will likely increase your customer traffic. We recommend dealing directly with miners to get discounted cryptocurrency.
Do you need a Bank Account?
A bank account is required to operate a Bitcoin Teller Machine (BTM). Unfortunately, operating a BTM without one is impractical. Certain Bitcoin ATMs are equipped with a bill recycler. However, these machines do not have dynamic purchasing or selling prices, and there is a limit to local demand, resulting in price fluctuations.
Operating a buy-only BTM will require you to arrange regular cash collections, bank deliveries, and bank transfers to replenish your cryptocurrency balances.
Despite the recent spike in popularity of cryptocurrency, some banks remain cautious when working with crypto-related businesses. Examine available solutions and best practices to make sure they meet the bank's requirements. Even if all legal requirements are met, some banks may still refuse to support you.
Will you need to provide Customer Service to your clients?
Superior customer service is a critical component of a successful BTM business. BITCOVAULT takes pride in providing excellent customer service to you, and we highly recommend you to do the same for your customers.
Your company’s email and phone number should be available on your website and present on the BTM itself. Quality customer service boosts retention rate and ensures your company's long-term viability as new features are added.
Where should you place your BTM?
For anyone who is entering this type of business, choosing the right location for a BTM is a very crucial part . Our team is capable of assisting you with this essential business decision.
Finding a location which has the following amenities is likely to increase revenue.
Here are some key factors which determine a great location to place your BTM:
- High attendance volume
- Ease of access
- Close proximity to Public Transportation
- Long working hours or 24/7
- Adequate Parking
The five most appropriate locations for your Bitcoin ATM:
- Restaurants, fast food outlets
- Cafeteria, ice cream parlor
- Company offices
- Shopping malls
- Food stores
The common characteristic of these locations is their high traffic volume potential.