How to Start a Bitcoin ATM Business?
Given that the interest in cryptocurrencies continues to grow, an increasing number of people are thinking about starting bitcoin ATM businesses. These ATMs give customers the ability to buy and sell bitcoins and other cryptocurrencies, and their operation is in line with how conventional ATMs work. What helps is that starting a bitcoin ATM business might not be as complicated as you imagine.
How to Start a Bitcoin ATM Business?
Since buying a maintaining a bitcoin ATM comes with its share of potential drawbacks, partnering with a reputable bitcoin ATM operator might be in your best interest. Among other benefits, this ensures you have all the information you need surrounding local rules and regulations. For instance, while you are federally required to register as a Money Services Business (MSB), some states follow stricter guidelines than others.
Besides, all bitcoin ATM operators need to develop and implement anti-money laundering (AML) and know your customer (KYC) programs, which become considerably simpler when you function as a bitcoin ATM franchisee.
Selecting an ATM
While most such ATMs are referred to as bitcoin ATMs, the fact is that most of them are capable of dealing in other cryptocurrencies as well. For example, you may find an ATM that also lets users transact in Etherium, Tether, Monero, Binance Coin, USD Coin, Litecoin, Cardano, and Polkadot. Bear in mind that while some ATMs only support a handful of cryptocurrencies, others support considerably more. In addition, while some bitcoin ATMs let people buy and sell cryptocurrencies, others only support buying.
Other features on offer also need your attention. These include, but no not limit to, the bitcoin ATM software, EMV card readers, HD cameras, bill validators, thermal printers, ID document scanners, fingerprint scanners, QR-code scanners, multilanguage support, multiple fiat currencies support, and overall user experience.
Securing Supply of Cryptocurrencies
One option is to handle the supply of cryptocurrencies on your own. In this case, you hold ownership of the machine’s “hot wallet” and you have all the required passwords and keys. You need to set up the wallet to fund the machine. The other alternative is to sign up with an exchange partner that lets you plug into its exchange via an application programming interface (API). While you pay for this service, it takes away the need to fund the ATM on your own. What helps is that a number of bitcoin ATM manufacturers now offer built-in partnership capabilities. In such a scenario, you’re good to go the moment you plug in your bitcoin ATM.
Selecting a Location
ATM placement plays a crucial role in the profit your business manages to generate. Ideally, you should select a location that is easy to access, has elongated hours of operation, and has a steady supply of foot traffic. If you don’t have space of your own, you may consider renting through local gas stations, coffee shops, or grocery stores.
Conclusion
Coming up with a workable bitcoin ATM business plan is the first step. This requires determining whether you wish to buy an ATM or rent/lease one, as well as how you plan to fund the ATM. More often than not, it’s best to partner with a specialist ATM provider when you’re starting. Once you establish a firm foothold, you may think about charting your own course.
