Start your own Bitcoin ATM business

[buwaytress]

Don't know if this list ever existed anywhere else but yeah, this is probably the most comprehensive list I've seen in a long time. I have een following other threads of people trying to start up in Spain and in Vietnam (you can hunt them on this forum, I believe in the Investment sub-forum). It's surprisingly not easy to get hold of this info. How'd you source the list?

[malevolent]

How'd you source the list?

Probably from here?

https://coinatmradar.com/manufacturers/

A couple more are missing, excluding those with 0 locations (assuming the website is up-to-date).

[shoreno]

The price difference of each ATM is too high. I wonder what is the difference between a $20,000 and a $1,900 bitcoin ATM. Or is it just those two ways ATM that are more expensive?

what are two way atm's? btc to fiat and fiat to crypto? if that is then they can add a price on it because this was still an extra feature and its useful . operators can more of it compare to a normal atm because people are gonna use it more to withdraw to and to cash in fiat to btc . quality of the atm is also behind of the price difference . good quality is equals to high price and low to mid quality are more cheaper .

Shitcoins.club ATMs are two-way. You also can't buy them, the company behind them makes them and operates them by themselves.

Weren't they all taken down by the German government for operating illegally or something?

there name looks like a joke and untrusted , no wonder why they are illegal . if the name is shitcoin , does it mean they also sell shitcoin inside this atm ?

[claire_lovely]

I want to look more into doing this. It could be very helpful in third world countries to increase adoption.

[buwaytress]

Probably from here?

https://coinatmradar.com/manufacturers/

A couple more are missing, excluding those with 0 locations (assuming the website is up-to-date).

I guess I should have said about the pricing. That's actually not easy to find, unless you make direct contact for a sales request or quotation. At least, that was my experience when I last checked. Manufacturers weren't actually very transparent with pricing, setup and commission rates.

[shield132]

I don't understand what kind of KYC verification users will have to pass when using Bitcoin ATM? Can anyone enlighten me in this case?

Btw thank you for this thread, very beneficial. Will be glad if anyone decides to write a detailed review of each service provider and write it's pros and cons.
GENERAL BYTES sounds pretty amazing with it's features and price.

Btw as I see in my country, people rarely use Bitcoin ATMs, if they get near to it, it's because they just see a new thing and are a little bit interested in it, saying: WTF is this? Otherwise, days pass and no one uses ATM. It's in my friend's cafe in a prestigious place.

It depends on country. Personally I don't think it's a good business to start right now. You have to pay for equipment, pay for rent, internet, while you have to keep low fees and gain enough customers to withdraw a lot of bitcoins in order to cover fees/taxes and get some profit, so, I think in some places ROI is non existant and in other ones - bad. It's better choice to buy car with that money and rent daily on taxi drivers.
Maybe we need to wait for higher demand on bitcoin and cryptocurrencies?

[Bitcoin577]

Surely this is very helpful but now we have many problems even in developed countries for going with this business so third world countries cannot think about this as they already not accepting bitcoin and cryptocurrency and as @shield132 already mentioning many other things also involve so its not easy for all just some big investors can take some risk but ROI is still on risk because you need some good number of users for bitcoins.

[malevolent]

I guess I should have said about the pricing. That's actually not easy to find, unless you make direct contact for a sales request or quotation. At least, that was my experience when I last checked. Manufacturers weren't actually very transparent with pricing, setup and commission rates.

If they aren't it's often because the final cost depends on many factors, the major one being order quantity.

I don't understand what kind of KYC verification users will have to pass when using Bitcoin ATM? Can anyone enlighten me in this case?

Depends on the country, laws in place, operator's risk profile, etc. Can involve anything from providing a phone number to showing documents and scanning fingerprints.

[xZork]

For the time being, investing in a Bitcoin ATM carries more risks than it can pay off. Cryptocurrency is still considered only as an investment tool rather than a currency, so its demand is not great. Besides, people wishing to use Bitcoin ATMs are not much and scattered in many places, it is difficult to locate ATMs.

[Sapphire915]

This kind of business is too much costly and really needs a huge capital for start up and maintenance while the business is running. However, it do brought an excitement in me to realize that this business gives more profits and can definitely help the country's economy to grow. How I wish that soonest our Government will come to realize it and will legalize the usage of bitcoin and other crypto currencies here. After all, its for the economy's growth and the country's improvement as a whole. In this modern time, where bitcoin's trend and popularity are getting wider in the market, it is just wise for the Government to take part of bitcoin's success and popularity.

[malevolent]

For the time being, investing in a Bitcoin ATM carries more risks than it can pay off. Cryptocurrency is still considered only as an investment tool rather than a currency, so its demand is not great. Besides, people wishing to use Bitcoin ATMs are not much and scattered in many places, it is difficult to locate ATMs.

Judging by the (increasing) rates of growth (93% in the past 12 months), it must be paying off to some: https://coinatmradar.com/charts/growth/

Locating an ATM isn't difficult, just click on the country and zoom in: https://coinatmradar.com/countries/

[adzino]

The price difference of each ATM is too high. I wonder what is the difference between a $20,000 and a $1,900 bitcoin ATM. Or is it just those two ways ATM that are more expensive?

what are two way atm's? btc to fiat and fiat to crypto? if that is then they can add a price on it because this was still an extra feature and its useful . operators can more of it compare to a normal atm because people are gonna use it more to withdraw to and to cash in fiat to btc . quality of the atm is also behind of the price difference . good quality is equals to high price and low to mid quality are more cheaper .

Correct. There are some ATMs that are two way, which means you can buy and sell crypto currencies.

there name looks like a joke and untrusted , no wonder why they are illegal . if the name is shitcoin , does it mean they also sell shitcoin inside this atm ?

Not really. I doubt any ATMs would sell shit coins. Too risky for them. As far as I have heard, shitcoinclub were one of the ATMs with a very low and a reasonable fee. Too bad none of them operates where I live. And their name has nothing to do with shitcoins. There are actually very popular in Europe because of their fees and very low KYC requirements.

I don't understand what kind of KYC verification users will have to pass when using Bitcoin ATM? Can anyone enlighten me in this case?

Like malevolent said, depends from country to country and the amount you want to withdraw. So far I just had to do phone verification and ID scanning (for high withdrawals). Used ATMs that had fingerprints, but never had to provide any.

[proTECH77]

There are few bitcoin users in my country, I wonder how it will favour me and, help me to make a good profit from the business because our government just newly legalized bitcoin in our country.
I think I will open the school of Bitcoin where people can learn more about bitcoin before switching to Bitcoin ATM business by then there will be more Population of bitcoin users which will help me to make a good profit from the business. With that strategies all the citizens they will like to join the business where you can use your bitcoin ATM card to do transaction .

[CryptoYar]

Shitcoins.club ATMs are two-way. You also can't buy them, the company behind them makes them and operates them by themselves.

Thanks for the information, I have removed the shitcoin ATM from this list.

It's so risky to just start an investment with big money without having the right tools to maintain it for long run .

Of course it is, I agree with you. But I want to know if there is a business that does not suffer losses.

I don't understand what kind of KYC verification users will have to pass when using Bitcoin ATM? Can anyone enlighten me in this case?

Believe me it is not too difficult. If you watch the videos, you will know yourself.

[1] https://youtu.be/bJVbf3GcAvA
[2] https://youtu.be/BBEgK6DTPMA
[3] https://youtu.be/sqASvrZCLtU

[liquigate]

Thanks,you are right....

I worked in UK as an Ops Manager for SatoshiPoint UK.

Hello all. This is a very good thread thank you for taking the initiative.

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 cheapily.

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 investement 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).


That being said, good luck to everyone. Feel free to DM me if you have questions.

 

Weren't they all taken down by the German government for operating illegally or something?

Nah, only in Germany, they're a Polish company and are active in multiple European countries. They also said they had plans on resuming their presence in Germany.

Hello all. This is a very good thread thank you for taking the initiative.

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).

You might want to mention in which country you're operating.

[virasog]

How much these bitcoin machines will cost. It would be better if you can provide the price comparison for all the machines. Secondly even if the crypto is legal in our country, we can't just put the bitcoin ATM machine anywhere and start the business. Permission from the government and NOC certificate is required before implementing this business.

[liquigate]

Yes this is true. You need a money license (on top of KYC structure and compliance department), which costs A LOT OF money... This is the reason that I said that perhaps the best option is to partner with someone so that the costs drop.

CoinATMradar.com has all companies that provide ATM's I think its best to visit their website.

How much these bitcoin machines will cost. It would be better if you can provide the price comparison for all the machines. Secondly even if the crypto is legal in our country, we can't just put the bitcoin ATM machine anywhere and start the business. Permission from the government and NOC certificate is required before implementing this business.