- 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!
More and more people are looking to get their hands on Bitcoin and become part of the mass adoption crowd worldwide. However, to do so, numerous individuals don’t actually know-how, or their banks will block transactions to specific crypto exchanges possible in their region.
So, this means they’re shifting to Bitcoin ATMs. Is this the definite time to get your hands on one? Is a Bitcoin ATM worth investing in?
Let’s Do the Math
Before you plunge into any investment, you need to secure you’ve done your homework.
For those looking to install a Bitcoin ATM, the assignment is the math required to make sure you break even, as this space can be a harsh industry to turn a profit.
Before anything else, verify whether you need a license or anything other than to install a Bitcoin ATM. For example, in the Netherlands, you need a permit that 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, the internet, insurance, and security. Nearly everyone has an inclination to try and steal Bitcoin ATMs, assuming there’s real Bitcoin inside.
So, you’re going to want to make sure your Bitcoin ATM is someplace safe; unless you’re going to be out of pocket for the ATM should it get stolen or vandalized.
Many people opt to place ATMs inside stores where the store owner will provide 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 parts and costs priced in, you need to assess your markup on the transactions made through your Bitcoin ATM. Most Bitcoin ATMs currently impose a 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 merely for convenience.
Pick a Location Prudently
When you’ve done the math, and you’re about to buy your Bitcoin ATM, you need to choose a location to place it. You need to make sure that there are operating to where people in the area that will use it, and if you’re going to go for the more expensive end of fees, make sure that there isn’t a Bitcoin ATM with more economical costs just around the corner – that would be self-murder.
And most importantly, make sure that you’re not hanging 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 keeper wouldn’t be too happy with you if he or she suffered a break-in just so someone could get to your Bitcoin ATM.
Is This for Thou? Only Thou Can Determine!
Running and managing a successful Bitcoin ATM is a huge undertaking. You need to develop it, make sure it’s continuously 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 flourishing 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.