Are you planning to start a Bitcoin ATM business?
Bitcoin and cryptocurrency became a popular trend today. It serves as a form of digital money to buy or sell things on the internet. Besides a new way of paying, it also comes with new kinds of business.
One of the new businesses coming from cryptocurrency is the Bitcoin ATM. The business uses a device similar to a normal ATM to buy cryptocurrency using cash or debit. However, it also works by selling accumulated Bitcoins to physical currency.
There are many ways to start a Bitcoin ATM business. Read on for our guide on where to start with your business.
Before starting a Bitcoin ATM business, you must know the starting budget. After all, you will need to buy Bitcoin ATMs and other devices crucial to the business.
The average starting capital of a Bitcoin ATM business ranges from $10,000 to $15,000. It has a pricey startup due to a Bitcoin ATM cost, averaging $6,000. Meanwhile, the Bitcoin ATM maintenance can cost $4,000.
However, as a precaution, buy a Bitcoin ATM or device at trusted manufacturers. It will ensure the machine isn’t rigged or hacked. It helps avoid any legal issues from frustrated users.
The growth of your Bitcoin ATM depends on how you handle various factors. These include money exchanges, Bitcoin sales, and machine costs. As a basis, most Bitcoin ATM owners keep about half of the markup sales.
Besides management, the business’s locations also can affect your earning potential. If you place the ATMs in a cryptocurrency area, expect high profits. Otherwise, expect a slow development, especially in places where crypto isn’t as popular.
Banking the Bitcoin
Banks are often reluctant when working with Bitcoin or crypto businesses. They see the compliance and safety framework as risky investments. However, not all banks will decline cooperation.
If you come across a bank willing to work with crypto businesses, develop a good relationship with them. They can help in getting everything you need for smoother transactions. In some cases, they may even recommend your ATM business to one of their trusted partners.
Once you prepared everything, you will need an AML/KYC policy package. The document serves as an assurance that your business fulfilled all the requirements to operate.
Keep in mind that the document has no definite template. However, it’s best to follow all the requirements in your desired business location. Once done, you only need to register with FinCEN to make the business official.
Start a Bitcoin ATM Business Today
We hope this guide helped you how to start a Bitcoin ATM business. Never waste the profitability of Bitcoin and cryptocurrency trading. Start a Bitcoin ATM business and enjoy the benefits.
However, launching your business is only half the battle. Maintain your service quality to gain everyone’s trust.
Do you have another cryptocurrency-related question? Check our other content and learn valuable solutions.