The first Bitcoin ATM was installed in Vancouver, Canada in 2013

When the first Bitcoin ATM was set up in Vancouver, Canada in 2013, Bitcoin was still an unknown phenomenon. In 2019, Bitcoin ATMs are widespread worldwide – there are nearly 5400 worldwide, according to Coin ATM Radar.

Contents hide

1 Legislation

2 Banking partner

3 Initial costs

4 What profits can be registered?

4.1 Related posts:

Romania is one of the most advantageous countries from this point of view – there are currently 36 crypto ATMs, of which 13 in Bucharest. According to a recent statistic, 14% of Romanians have cryptocurrencies, and the adoption rate is increasing. This means that the demand for these ATMs will also increase.

So, what do you need to know to launch a business with Bitcoin ATM?

Legislation

First of all, you will need to find out about the law applicable to this type of business. The legal framework for operating a Bitcoin machine can differ significantly from jurisdiction to jurisdiction.

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Therefore, it is necessary to consult a lawyer to help you understand the rules to be followed.

Banking partner

Every business needs a bank account – but when it comes to cryptocurrencies, the situation is more complicated. Many banking institutions refuse to provide services to these types of businesses.

Make sure you have a banking partner, whether it is an online bank or a foreign bank. It is advisable to have a reserve, if the bank you work with suddenly changes its policies.

Initial costs

These include the device itself, location and marketing expenses.

There are several types of Bitcoin ATMs, with prices ranging from $ 775 (Bitteller BTM) to $ 14,500 (Genesis Coin Genesis1). To this cost are added the delivery, customs duties and other installation costs.

The integration of an ATM with an exchange does not generally generate costs, because these platforms charge commissions per transaction.

The rent of the location can be another expense that must be considered, along with a possible campaign to popularize the device.

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Overall, initial costs can range from $ 5,000 to over $ 25,000.

Subsequently, the ATM will need to be maintained, from its money supply to its functionality. Generally, this involves an employee who travels to the location / locations when needed.

What profits can be registered?

Profits generated by a Bitcoin ATM vary significantly depending on many factors. These include how many transactions are made, the commission charged, the Bitcoin price and the public interest.

CoinATMRadar offers a tool called Bitcoin ATM ROI Calculator. It allows you to enter the related business costs, ATM specifications and expected transaction volumes to calculate an estimated ROI (return on investment) on each machine.

Any business is risky. BTC machines in Romania have increased in the last two years, which shows that there are entrepreneurs who have taken this risk. From the BitMahavi exchange to Bitcoin Romania to the new-found shitcoins.club (with a funny / scary name but 78 ATMs in 6 European countries – Polish company), the ATM network grows every day.

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