BTC ATM's installation and business model, any advice?

[ozoro]

I am UK based and looking to setup a BTC ATM, initially just one or maybe two locations, I'd rather not lease or take on a franchise, but run a machine myself. Has anyone any experience in this?, where's a good place to buy the actual machines? - I've seen a range of prices from US to China, how is easy is the software setup? I know the turnover question is difficult to answer but selling small amounts of SATs, can one location sell up to 1 btc per day?, any other things I should be aware of? BTW am pretty much clued on local laws in the UK.
Thanks in advance

[andulolika]

I am UK based and looking to setup a BTC ATM, initially just one or maybe two locations, I'd rather not lease or take on a franchise, but run a machine myself. Has anyone any experience in this?, where's a good place to buy the actual machines? - I've seen a range of prices from US to China, how is easy is the software setup? I know the turnover question is difficult to answer but selling small amounts of SATs, can one location sell up to 1 btc per day?, any other things I should be aware of? BTW am pretty much clued on local laws in the UK.
Thanks in advance

Ugh, no idea about regulations, I will try searching bout some nice ATMs I seen a while ago but it was few operative systems back so probably lost.
Anyhow leasing or taking on franchise isn't a good idea imho. Good luck and cheers for making bitcoin easy.

On a side note I'm waiting for my crypto visa, the atm's won't be doing very well as soon as these visas start proliferating.

[yazher]

I am UK based and looking to setup a BTC ATM, initially just one or maybe two locations, I'd rather not lease or take on a franchise, but run a machine myself. Has anyone any experience in this?, where's a good place to buy the actual machines? - I've seen a range of prices from US to China, how is easy is the software setup? I know the turnover question is difficult to answer but selling small amounts of SATs, can one location sell up to 1 btc per day?, any other things I should be aware of? BTW am pretty much clued on local laws in the UK.
Thanks in advance

Since you are installing it in the UK, the best thing to do is first go for the reachable nodes of the current network to find a place where you can suitable put your Bitcoin ATM machine. I think one of the sites can give you such information is https://bitnodes.earn.com/nodes/?q=United%20Kingdom

Just see for yourself if this kind of idea would help you.

[ozoro]

I am UK based and looking to setup a BTC ATM, initially just one or maybe two locations, I'd rather not lease or take on a franchise, but run a machine myself. Has anyone any experience in this?, where's a good place to buy the actual machines? - I've seen a range of prices from US to China, how is easy is the software setup? I know the turnover question is difficult to answer but selling small amounts of SATs, can one location sell up to 1 btc per day?, any other things I should be aware of? BTW am pretty much clued on local laws in the UK.
Thanks in advance

Ugh, no idea about regulations, I will try searching bout some nice ATMs I seen a while ago but it was few operative systems back so probably lost.
Anyhow leasing or taking on franchise isn't a good idea imho. Good luck and cheers for making bitcoin easy.

On a side note I'm waiting for my crypto visa, the atm's won't be doing very well as soon as these visas start proliferating.

Thanks for that, please post anything you find. Yep, I can't see the value in leasing or franchising, there are couple of players in the UK space who offer free installs and you generally charge them a rent....that's not for me, I want to get my hands dirty. I've had legal advice on the UK position. Think my real problem is equipment, software and judging market potential

[ozoro]

I am UK based and looking to setup a BTC ATM, initially just one or maybe two locations, I'd rather not lease or take on a franchise, but run a machine myself. Has anyone any experience in this?, where's a good place to buy the actual machines? - I've seen a range of prices from US to China, how is easy is the software setup? I know the turnover question is difficult to answer but selling small amounts of SATs, can one location sell up to 1 btc per day?, any other things I should be aware of? BTW am pretty much clued on local laws in the UK.
Thanks in advance

Since you are installing it in the UK, the best thing to do is first go for the reachable nodes of the current network to find a place where you can suitable put your Bitcoin ATM machine. I think one of the sites can give you such information is https://bitnodes.earn.com/nodes/?q=United%20Kingdom

Just see for yourself if this kind of idea would help you.

This interesting? but what's the advantage? do I have to be physically close to a node?.....the top node in the link is 450 miles from me!! I am in process of setting up my own node in any case. Will my own node help in the business model, I was just setting it up to have my own node and help the protocol.

[andulolika]

I has nothing on my recent bookmarks, I'll need to investigate a bit later when i feel like it, anyhow i think prices were up to 2k$ for one and cheaper versions existing.

[Lucius]

ozoro, in this case I can only say that Google is your friend, and that you can find a lot of relevant information on the internet. However take all the information with caution, because some are perhaps outdated and I believe that as in every business, in the sale of crypto ATM machines, there are scammers. I think one of the most important factors is the choice of location and protection of the device itself.

How to Start a Bitcoin ATM Business + Buy Bitcoin ATM

[andulolika]

ozoro, in this case I can only say that Google is your friend, and that you can find a lot of relevant information on the internet. However take all the information with caution, because some are perhaps outdated and I believe that as in every business, in the sale of crypto ATM machines, there are scammers. I think one of the most important factors is the choice of location and protection of the device itself.

How to Start a Bitcoin ATM Business + Buy Bitcoin ATM

Seems to me they making bank with it and they costing quite a bit, the crypto-visa is quite nice eventho a bit sad it probably just dumps the bitcoin to anyone.

[fiulpro]

Okay , you need to think about something first.
The fee should be a lil less as compared to the online fee when you sell the bitcoins to someone because that is what will make people use it more.
At the same time there have been problems with the ATM when the person transferred the money but had to wait a lot lot more than the normal waiting time therefore you do need to thinking about solving such kinds of problems instantly.
It is rather a good idea but you need to improve the existing idea of Bitcoin's ATM .

[ozoro]

Okay , you need to think about something first.
The fee should be a lil less as compared to the online fee when you sell the bitcoins to someone because that is what will make people use it more.
At the same time there have been problems with the ATM when the person transferred the money but had to wait a lot lot more than the normal waiting time therefore you do need to thinking about solving such kinds of problems instantly.
It is rather a good idea but you need to improve the existing idea of Bitcoin's ATM .

This is a good point, I'll ensure that there is always coin available for immediate transfer, the rates will be competitive, customers probably won't be able to buy massive amounts, both for security purposes and in line with KYC/AML and statutory reporting limits.

[Harlot]

Some sellers are selling it for around 900-1,000$ in Alibaba.com though I'm not recommending it since there is really no guarantee that the machine is clean from any kind of malware or not. The most preferable option is for you to build and develop the Bitcoin ATM yourself, you just need to buy the hardware for it but the software and the U.I. for your machine needs to be develop for you and designed for the UK market since from what I know Bitcoin ATMs in the U.K. needs to have some kind of KYC involved before their users can even buy/sell crypto in those ATMs. So before you even plan on buying ATMs you must also know how to fully operate in the UK legally.

[DdmrDdmr]

Besides reading through the links provided by @Lucius (pay attention to the dates of the posts, since they are not all recent, and some context may have changed since the post was created), the same site states that there are currently 306 BTC ATMs in the UK (see https://coinatmradar.com/country/225/bitcoin-atm-united-kingdom). I’d study the models, conditions and placement of those already in place in the UK, and try to visit some of them to get a better qualitative idea of how they are managed.

[The Sceptical Chymist]

Good luck, OP.  It sounds like you're ambitious and that's good.

I don't know anything about running a bitcoin ATM, but my advice to you is to make sure your machine is working and perhaps try to get it in a visible area.  As I've written in other threads, there's one in my town but it's in the back of a liquor store and when I went to go use it, it kept giving me an error--and the store employees sounded like that wasn't the first time something went wrong with it. 

It was very frustrating and that kind of crap will turn people off of using an ATM.  I think pretty much everything else is outside of your control if you're buying a machine from a manufacturer because I'm sure you won't be able to modify the software or go against the laws of your government as far as KYC stuff goes.

Again, best of luck to you and I hope you get one going.  I'd love to hear some followup if you do.

[kryptqnick]

Okay , you need to think about something first.
The fee should be a lil less as compared to the online fee when you sell the bitcoins to someone because that is what will make people use it more.
At the same time there have been problems with the ATM when the person transferred the money but had to wait a lot lot more than the normal waiting time therefore you do need to thinking about solving such kinds of problems instantly.
It is rather a good idea but you need to improve the existing idea of Bitcoin's ATM .

This is a good point, I'll ensure that there is always coin available for immediate transfer, the rates will be competitive, customers probably won't be able to buy massive amounts, both for security purposes and in line with KYC/AML and statutory reporting limits.

I support the fee point. Even though I've lived in places where there are Bitcoin ATMs and sometimes I needed to exchange Bitcoin for fiat, I've never used them. The main reason is that the fees are pretty much always higher than if one decides to exchange online. Limiting the amount one exchanges seems fine, and perhaps the fees should not be less than online. They should be about the same, and this could already attract people. Moreover, I am sure that many people are unaware of the existence of Bitcoin ATMs, so make sure people know it's out there, and the conditions of using it. Good luck!

[ozoro]

Thank you all for your comments and insights, yes there is a lot information on Google, etc , much of it is old though. I was a relatively active trader on LBC and before i started on LBC it was difficult to get a handle on market size and liquidity, even with all my prior research.

I seem to be facing the same issue here, I can't judge the size of the market, its even more complicated because the market depends entirely on geographical location. Am thinking of locating in trendy, up and coming areas of town, but am confused...young student areas or yuppie newly gentrified areas? or largely immigrant ethnically mixed areas?...... once again any suggestions?

It would be great to hear from someone who actually uses BTC ATM's or anyone in the business

[Lucius]

I seem to be facing the same issue here, I can't judge the size of the market, its even more complicated because the market depends entirely on geographical location. Am thinking of locating in trendy, up and coming areas of town, but am confused...young student areas or yuppie newly gentrified areas? or largely immigrant ethnically mixed areas?...... once again any suggestions?

As for location, you should definitely need to choose a place with a greater circulation of people, and also that place is under video surveillance, you certainly don't want someone to steal or break your ATM. A logical choice would be a mall, because nowadays people spend a lot of time in such places, and there you will certainly cover all age/ethnic groups.

It would be wise to do some research into how much people are interested in such a service at all, and of course keep an eye on other crypto ATMs nearby. What you can do to attract potential customers is lower fee on your service, and support by phone or e-mail - people will certainly appreciate such things and come back again.

[davis196]

I am UK based and looking to setup a BTC ATM, initially just one or maybe two locations, I'd rather not lease or take on a franchise, but run a machine myself. Has anyone any experience in this?, where's a good place to buy the actual machines? - I've seen a range of prices from US to China, how is easy is the software setup? I know the turnover question is difficult to answer but selling small amounts of SATs, can one location sell up to 1 btc per day?, any other things I should be aware of? BTW am pretty much clued on local laws in the UK.
Thanks in advance

Do you live in a big city?Having an ATM at some crowded place might generate some transactions,but I really doubt about reaching 1 BTC per day.I assume that you will need some kind of permission or license by the local authorities in the place where you live.If you ask me,leasing and franchising are the best options for a beginner.If you cover all the costs of buying and installation,combined with your lack of knowledge about how to setup and run the machine,you will be taking a big risk.

[BtcATMs]

Thank you all for your comments and insights, yes there is a lot information on Google, etc , much of it is old though. I was a relatively active trader on LBC and before i started on LBC it was difficult to get a handle on market size and liquidity, even with all my prior research.

I seem to be facing the same issue here, I can't judge the size of the market, its even more complicated because the market depends entirely on geographical location. Am thinking of locating in trendy, up and coming areas of town, but am confused...young student areas or yuppie newly gentrified areas? or largely immigrant ethnically mixed areas?...... once again any suggestions?

It would be great to hear from someone who actually uses BTC ATM's or anyone in the business

I understand very well the problem you are having judging the real size of your market. We are in a very similar situation installing the first machine(s) in Spain. I completely agree that the geographical location is the most important aspect (even on a micro level, ie. on one street vs. around the corner, inside a shop vs. street level w/ 24h access) and also security for the machine is very important.

Personally I can only go by statistics, which show Gen Y is the best target market (25% of Generation Y  between the age of 18 and 34 are now considering the cryptocurrency as a better investment than property - note that is a US based report) which seems like the natural progression. However I believe it is also just as important (or more important) to be in a location that is convenient, for example I think it would be better near the "central station" with high traffic and easily accessible by metro rather than a remote university town.

Also, I saw another report showing that most BTC users are not "spending" BTC in developed countries as most users in developed nations are speculators which has us focusing on purchasing/crypto adoption strategies (however, I personally have only used the machines a few times and that was to sell BTC-> Cash in a pinch, so it is very hard to tell).

I think it is best near a popular city centre plaza which is is also walking distance from a few universities (within the city it is a very high traffic area statistically). IMHO, the best solution is do as much research as possible, then test the market but make sure you are not locked-in by any long term rental contracts, and if necessary, move the machine(s) to different locations.

Good luck!

[BtcATMs]

I am not sure BTC credit cards are a "threat" to the BATMs because they still require KYC and time, whereas if someone was in a hurry they would prefer the convenience of a BATM, but I do have the concern any one of the high street banks could jump in the market and kill the little guy.

I think the fees should be competitive, but the fees don't need to be "lower" than online (if you can make them lower and still make money, hats off to you!) but I think people will always pay a premium for convenience. Pawn shops have been in business forever and their business model is not to give you a favourable price on your gold  But obviously the better price you can give, the better for everyone. But IMHO your fees will be determined by the location (machine volume, cost of rent, etc.).

Anyway, keep us posted on your progress and good luck.

[Nadziratel]

I think you can ask your questions to BTC ATM's producers;

https://bitcoinatm.com/
http://www.generalbytes.com/
https://bitaccessbtm.com/
https://lamassu.is/
http://www.coinsource.net/


Or you can find all manufacturers from here;
https://coinatmradar.com/manufacturers/

Also you may find some key information from here;

https://coinatmradar.com/blog/how-to-start-a-bitcoin-atm-business/