Factors to Consider When Opening a Bitcoin ATM Business Part 1

Factors to Consider When Opening a Bitcoin ATM Business Part 1

Public interest and the location of an ATM

 

A cryptocurrency ATM is a machine that allows a person to exchange a cryptocurrency into a regular currency. Some machines offer two-side functionality and it some cases the functionality is one-sided, meaning that the machine allows to buy a cryptocurrency with cash, but not to sell cryptocurrency for cash.

One of the biggest questions that potential owners of cryptocurrency ATMs have is about profits of a machine. A Bitcoin ATM in a location with a lot of traffic and a lot of interest to cryptocurrencies can bring around USD$30,000 in volume. You profits will depend on a number of factors.

 

Public Interest

One of the biggest factors has to do with public interest in cryptocurrencies. If you are located in a major metropolitan area in a Western country, the area most likely has enough people with knowledge of cryptocurrencies and your business will have interest and will bring profits.

In some countries and areas, the level of adoption is lower than in others. To check the level of adoption, you can visit a website such as meetup.com and see if there are any meetups dedicated to cryptocurrencies and blockchain technology in your area. You can also check if there are any conferences and events dedicated to cryptocurrencies, initial coin offerings, and using Bitcoin and other cryptocurrencies in business.

If there are no such events, you could organize an event yourself and see how much interest you get. It is very possible that the interest is there, it is just that in-person activity in the area is low.

 

Location

A cryptocurrency ATM is a brick-and-mortar business, meaning that while it does sell cryptocurrencies, to be profitable it needs people to come and use the ATM in person. This also means that just like with other brick-and-mortar businesses, such as retail stores, gas stations, and others, location is critically important.

Even if you have never operated a brick-and-mortar business before, figuring out a location does not have to be hard. All you have to do to find good locations in your area is see where companies such as McDonald’s, Starbucks and Seven Eleven have their locations. These companies have been in the retail space for a long time and the fact that they are profitable means that they know what they are doing. For this reason, you want to see where businesses such as Starbucks are located in your area and this will tell you where the popular locations are.

Because a cryptocurrency ATM business is not in competition with a coffee chain or a restaurant, you may consider partnering with some of the popular locations in your area and opening a cryptocurrency ATM inside of a Seven Eleven or some other store in the same way that Amazon opens Amazon lockers inside of the stores. To the owners of the stores, having a cryptocurrency ATM inside will generate additional foot traffic and is also an excellent opportunity to promote the store by getting free publicity.

 

Location inside of a store

Most regular ATMs today are located in the lobbies of stores, or outside at the gas stations and shopping areas. A bank location would typically have an ATM right next to the entry and would have a special area that is accessible 24/7 by inserting a credit or a debit card into a special slot an opening the entry door even when the bank location is closed. This is because there is nothing special about getting cash and everybody is used to doing so. Also, placing an ATM in a well-lit area increases the safety of using the ATM.

What many people do not understand about criminals is that when committing a crime, criminals do realize that they are committing a crime and they are looking for the least possible amount of problems. This is why home burglars want the owners of a home not be home and this is why criminals avoid well-lit areas with a lot of people, which is where most financial institutions place their ATMs.