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 BTM business is developing very fast.
The process of purchasing is not complicated, you can check the stages here. But prior to make 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 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.
We hope that our advices will be helpful on your way to invest in bitcoin ATM. Stay tuned for new articles!