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

[Bitcoinislife09]

In my opinion I think bitcoin ATM could be useless at some point. In my experience here in my country a lot of bitcoin ATM don't last for a long time because their is a easy way to buy or withdraw your bitcoin(I think the best purpose is withdrawing bitcoin or converting it to a cash). A lot of bitcoin ATM was closed here in our country because withdrawing and buying your bitcoin? you could easily just do that online less hassle than going to a bitcoin ATM. Also it has high fees so I think people just choose to go with the other alternative you could just convert your bitcoin into your currency and then withdraw it to any banks using your card. I'm not negative in your idea but I think their is other businesses that is less risky than this.

[1715187389]

1715187389

[1715187389]

1715187389

[1715187389]

1715187389

[1715187389]

1715187389

[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

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!

Thank you for your detailed response. Yes I am looking at locating the ATM in a busy city centre with lots of Gen Y and students and very mixed nationalities. I expect to make more in people buying BTC than selling (but time will tell). I am also expecting average buyer of BTC to spend on average €100 per person. Our target was 1 BTC per day but a previous poster says that's highly unlikely. What do you think?

[ozoro]

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/

thank you, that's a good resource

[Docnaster]

Most of the premium spots have already been taken up, and if you're forced to franchise or lease one, then you'll come across clauses that means you can't place your unit within X distance of another Bitcoin atm.

As for how much you'll earn, you should try contacting other Bitcoin ATM providers and ask how much they earn. Then you'll need to estimate whether you're likely to get the same numbers where you end up placing your unit.

[ozoro]

Most of the premium spots have already been taken up, and if you're forced to franchise or lease one, then you'll come across clauses that means you can't place your unit within X distance of another Bitcoin atm.

As for how much you'll earn, you should try contacting other Bitcoin ATM providers and ask how much they earn. Then you'll need to estimate whether you're likely to get the same numbers where you end up placing your unit.

Thank you, that's one reason I want to go it alone, so I am not hampered by the
 franchise agreement. I know one other BTC owner and they're doing at least 2 BTC a day, but am not certain how many machines his has

[sheenshane]

Probably before you start installing your Crypto-ATMs, you should at least do your feasibility (calculating the revenue). If you already did, would it be profitable? As far as I remember, people are still choosing third party companies that offer liquidation options via remittance centers. As it has a cheaper price for services.

May I also know where will you be installing the ATMs? Are you currently located in a central city? 1 or 2 BTC transaction a day isn't really a good expectation for the atm. As far as I remember, you need to at least have an authority to do that by having your license from the city and the department of finance.

I may suggest you read this online article, How to Start Your Own Bitcoin ATM Business.

[FanatMonet]

Well, first of all, various kinds of hypermarkets, supermarkets, and maybe even a bank come to mind. In those places where people deal with fiat, but at the same time, they also have some free time, including to pay attention to your Bitcoin ATM.

[1Referee]

In my opinion I think bitcoin ATM could be useless at some point. In my experience here in my country a lot of bitcoin ATM don't last for a long time because their is a easy way to buy or withdraw your bitcoin(I think the best purpose is withdrawing bitcoin or converting it to a cash). A lot of bitcoin ATM was closed here in our country because withdrawing and buying your bitcoin? you could easily just do that online less hassle than

Not sure what country you are from, but the reason they don't 'last long' could be related to the legal framework in your country.

In general, there has been quite a decent increase in the number of ATM's installed worldwide, which signals that there is demand, otherwise there wouldn't be much incentive to spin up those ATM's. I wouldn't use them myself, but there are a bunch of people who do and do not care much about the fees that are tied to using an ATM.

In the end, I do agree that those ATM's will become 'useless', but only because of how legacy bank ATM's will offer crypto buying/selling straight from their widely deployed ATM network. Can't compete with that.

[Swordsoffreedom]

~snip~
In my opinion I think bitcoin ATM could be useless at some point. In my experience here in my country a lot of bitcoin ATM don't last for a long time because their is a easy way to buy or withdraw your bitcoin(I think the best purpose is withdrawing bitcoin or converting it to a cash).

I don't know why ATM doesn't last for a long time on your country, I think it could happen due to lack of popularity.
Bitcoin ATM's could be set up same as other ATM's of banks are set up every here and there. The user has to log in to his Bitcoin wallet account be it coinbase or blockchain or electrum.Then they can send money to their preferred destination or maybe make some kind of payment or even in exchange for the bitcoin, they can cash out money depending on how much they have in their wallet.

[BtcATMs]

In my opinion I think bitcoin ATM could be useless at some point. In my experience here in my country a lot of bitcoin ATM don't last for a long time because their is a easy way to buy or withdraw your bitcoin(I think the best purpose is withdrawing bitcoin or converting it to a cash). A lot of bitcoin ATM was closed here in our country because withdrawing and buying your bitcoin? you could easily just do that online less hassle than

Not sure what country you are from, but the reason they don't 'last long' could be related to the legal framework in your country.

In general, there has been quite a decent increase in the number of ATM's installed worldwide, which signals that there is demand, otherwise there wouldn't be much incentive to spin up those ATM's. I wouldn't use them myself, but there are a bunch of people who do and do not care much about the fees that are tied to using an ATM.

In the end, I do agree that those ATM's will become 'useless', but only because of how legacy bank ATM's will offer crypto buying/selling straight from their widely deployed ATM network. Can't compete with that.

This "legacy bank ATM's" is the part I have a concern with as well, however I have also been told the tech is totally different and is not compatible, although I would assume this is something banks could easily solve (info I have seen varies on this opinion). Maybe someone with tech knowledge of both bank ATMs and BATMs could clarify?