Bitcoin ATM machines

[liquigate.com 38]

Hi all 
 

I tried to search for Bitcoin ATM threads on CryptoTalk and I could not find one... I am therefore creating a small thread here in hope that it helps people to start such a business...

I have been working as Ops Manager for a large Bitcoin ATM Network for 2 years. My background is in Business Development for Brokers & Exchanges and have recently started a small start up (the profile of which I am writing from).
 

I have summed up some pros and cons for the users of this chat that I hope you can find useful.

If anyone is looking to seriously start a Bitcoin ATM business, by all means, go for it. If done preperly, chances are you will expand and someone will buy you out. Have heard quite a few such stories. BATM networks are not that many.
 

PROS:
1: It is a business that can run 24h (if you find 24h shops).
2: You can automate it with cash collection agencies while you handle only the finance part of it and other hardware bugs that might occur.
3: You can earn a good commission out of each transaction.
4: There is not so much competition compared to online brokers.
5: There is always going to be demand for cash and especially some remote locations with no competition such as large villages (not big cities) can be very successful as usually there is no competitor around.
6: You do not need to develop anything in terms of software.
7: Broken parts can be replaced quite easily and cheaply.
 

CONS:
1: Money laundering -> you need to have a solid KYC system otherwise your risk your business and quite high fines potentially jail.
2: Small Bitcoin ATM's are cheap BUT are small in size and can not hold much cash (you need to empty them quite often) AND can "easily" be broken into. Unless we are talking about a 20k Bitcoin ATM or a very secure location (cameras central location etc).
3: Expensive fees. You need to buy from an online broker, transfer to your hot wallet, and sell with a commission usually quite high as you need to cover:
  a: cash collectors / gas if you collect yourself.
  b: partner merchant that is renting you the space for the atm (idea -> pay them commission not fixed price unless the location is super central with no competitor, then monthly fee)
  c: other operational costs get SUPER expensive -> compliance and cash collection mainly NOT customer support.
  d: if someone damages the whole ATM when trying to brake in.
4: Installation process, you need to find solid workers that do nice job + you need to be careful as they might do some dodgy things (install it badly and then brake in it).
5: Small ATM's such as General Bytes do not hold many banknodes. If a location is busy you want a large ATM that holds quite a few nodes.
6: There is always going to be a big portion of cash spreaded in the ATM's, meaning that in high volatility periods you need to manage your reserves quite well or you risk losing from the price swing.

There might be more PROS and CONS that I can not think of, but pretty much this is all I can say....
 

RECOMMENDATION:
I would suggest that you get in touch with a few established BATM networks, OR small ones that are shutting down in order to either buy used equipment or even better offer your funds as an investment in order to save costs and expand the network as a partner. The Money Lisence and compliance is VERY expensive and time consuming. If 2 businesses are going to pay 2 times, it is best to merge and pay one fee (ofc you will need to be careful who you are partnering with).

The regulations for BATM's at the moment are very tight. A few years ago you wouldn't need a money lisence... today its jail time if you do not have it. I know many small operators that invested quite enough funds and are now out of business. You can perhaps buy used equipement from them.

Another idea, is to  get in touch with established operators and offer to install an ATM in your location and handle the cash collection part of it for them. Then keep a commission as a partner. They will put their brand and everything that comes with it (lisence, customer service, marketing etc. while you will handle the cash collection part).

Resources:
https://coinatmradar.com/
https://www.statista.com/statistics/343127/number-bitcoin-atms/

https://www.generalbytes.com/en/


Good luck to everyone :) 

 

[Goopang 202]

Bitcoin ATM machines best for using but the digital machines are using for this purpose so these machines are not using in maximum countries these machines are using in some countries but I am worried that some countries are resticted if we compared them with the countries that having digital machines name atm for bitcoin when those curriencies reach at good stage. 

 

[Nizami2088 236]

It seems to me in the future there will be bitcoin ATMs, because already in some countries and ATMs for the Bitcoin cryptocurrency, but in all countries only, probably, In the developed countries.

[Eezabell 339]

Bitcoin ATM machines Should Be launched at the markets or at the Plazas or the Banks. So, We can use the help of these Machines to with draw the Money In our National Currencies. Because we need the National Currencies to use it for Buying the Goods.

[Whited35 15285]

Majority of users have not understood yet how actually Bitcoin ATMs are working and how companies are offering Bitcoin ATM related services to the customers. Actually, the services which Bitcoin ATM offers, are not cheap. Users have to pay handsome charges for different purposes like exchanging crypto into fiat, paying the amounts to some online services, etc.  

[M Shahmeer 331]

Bitcoin ATM machines are not been seen yet now but I Am so much hopefull that we all will see these machines in future 

Bitcoin price and market value is increasing rapidly 

It is top best Cryptocurency 

I hope so the Atm machines for Bitcoin will be open soon 

If I have good investment 

MY first priority will be to invest that in Bitcoin 

Because it will bright my future 

[M arbaz 294]

Hi my dear. I didn't see any bitcoin atm till now. But wanna to see. Future is all about crypto currency.

Small ATM such as general bytes do not hold many banknotes. If a location is busy you want a large ATM that holds quite a few nodes..

We can use the help of these machines to with draw the money in our national currencies.

[M.Asif 499]

In my views it's very good service for users and best step to keep it's value safe in future. As in present days bitcoin trading and investing is very common and popular so if atm service is made possibility of more  market values. But it's not free but has very handsome charges according to withdraw or transactions.

[huesca123 946]

This is a business that I have been interested in for some time now. Thanks for the quality info contained in your post. I have saved it for future reference. Where I live in Spain, its a very rural area, with a lot of temporary agricultural workers from Africa. I know these people use the BTC ATM quit often. Also, to start to interest people in getting more involved with BTC & other cryptos. I would have to find a good location & the start up money. But where there is a will, there is a way.

[Zakir jamali 20]

Bitcoin ATM didn't not excess yet in various countries but it should establish because it will help for using the bitcoin it will also persue people to do work in bitcoin. The demand of cryptocurrency will increase with increasing Bitcoin with establishing ATM's.

[Maham123 292]

I don't know about crypto currency ATM machines exist or not but i think as it is digital currency its atm machine can not exist but i am not sure about it. 

[huesca123 946]

I think a lot of people post without really thinking or even if they know what they are talking about. It took me about 30 seconds to Google world wide BTC ATM Machines. See the screen shots below of where there are BTC ATM Machines world wide. There are now BTC ATM Machines all over, in shopping malls, train stations, bus stations, computer shops, cyber cafes ( if they still exist ) & maybe even in your local bread shop.

 

Here in Spain & other countries of the EU, you dont pay VAT, when you buy BTC at the ATM. But, the transactions can be expensive thou.

 

 

[Sunny7391 55]

Its a great idea for installation of bitcoin Atm b7t the thing is many countries hwve restrictions for bitcoin and even every crypto currency. Yes im agree with you but this could be happend after some years may be 1 year or more than. Im asking 1 year just because of that now a days crypto currency becomes most popular and those countries who have restricted crypto mining or business are now allowing it in their countries so any one can now mine or trade for crypto. And the idea of bitcoin atm is very useful after the complete implementation of orders. 

[Elbert 54]

If it done it's a great opportunity to withdraw our money from ATM because there are many scam on the crypto wallet some countries have launched a ATM  but most of country are not launched yet.