22 January 2021
The cryptocurrency world is growing in popularity and use - according to Coin ATM Radar, there are approximately 12,449 Cryptocurrency ATMs out of which approximately 12,439 ATMs support Bitcoin, covering almost 99.9% of cryptocurrency supporting ATMs across the world. As more people participate in the bitcoin space, we could estimate that with the popularity of bitcoin the number is expected to rise.
The cryptocurrency enthusiasts are no longer only motivated in investing in bitcoin but also participate in the business aspect of cryptocurrency - and one such entrepreneurial approach is - Bitcoin ATM Business.
In this blog, we are going to discuss a guideline to start a Bitcoin ATM Business:
1. Business Plan
A good business plan involves every step of your business journey and even the factors that may or may not happen. A good business plan involves strategising, assessing every approach and steps, risk management, and an in-detailed R&D, it will help formulate a smooth rise to your Bitcoin ATM Business journey
2. Choosing the Location
The location you chose to place your Bitcoin ATM Business is a crucial part of the process. Identifying and choosing a location involves studying the demand of your business in the area, a location that has traffic - a crowded place, a go-to place is beneficial such as restaurants, gas station, shops, convenience stores, malls, offices, a busy and trend neighbourhood.
When you choose a location, the next step to follow is the regulations involved with your business. It is important to follow all the regulations and laws of the jurisdiction you plan to execute your business in as no one wants to find themselves in trouble, few jurisdictions need licensing and it also helps to avoid legal ramifications.
4. Cost Layout
How can one reap any benefits without investing? The cost associated with Bitcoin ATM is based on various factors such as the type of Bitcoin ATM machine, manufacturer, the location you have chosen - the country, its currency, taxes, legal costs, licenses and so forth. The things to consider while laying out costing budget are the fees, payment of the machine, installation, maintenance, Bitcoin ATM space rent, internet connection, electricity, advertising and marketing, legal costs, and so forth.
Also Read, Bitcoin ATMs — Everything you need to know!
5. Banking Relationship
The Bitcoin ATM needs to be linked to a bank account considering that the bank is bitcoin-friendly. Establishing a relationship with banks helps your business with security, helps minimize the potential risks, and it makes the transaction flow efficient. Thus, to make your business plan, building relationships with the bank plays a key role.
6. The Type of ATM
There are many different types of Bitcoin ATMs in the market thus choosing the right type would base your business goals and meet the user’s demand requirement.
The types of Bitcoin ATM in the market are -
- A Bitcoin ATM that allows one type of transaction - either selling or buying Bitcoin.
- A Bitcoin ATM that allows both types of transaction - selling and buying Bitcoin.
7. ATM Manufacturer
Once you have established the type of bitcoin atm, the next step involves choosing the bitcoin atm manufacturer.
Listed are few of the popular BItcoin ATM manufacturers -
8. Business Marketing
Business marketing plays a beneficial role to have a successful Bitcoin ATM Business. Involving Social Media Marketing, crypto community involvement, advertising and promoting your business, PR, SEO, standees or signboards outside your atm machine, a catchy phrase and so forth could hype the activities.
Building a Bitcoin ATM isn’t just enough, its the later part that smoothens your journey ad one such key point is the maintenance of the atm. The operators would need to round-the-clock monitor the working of the machine, regular visits, restocking, cashing, tracking the crypto wallets and exchange accounts as topped up.
10. Customer Support
Customer Support is an integral part of your business plan. A good business is that shows loyalty towards its customers and helps resolves its queries and issues.