the bitcoin atm market is “mooning”. when the first bitcoin atm was installed in vancouver, canada in 2013, bitcoin was still a largely unknown phenomenon. fast forward to 2020, with bitcoin becoming a global topic of discussion in financial and government circles, there were 9,903 bitcoin atms installed over the world as at september 2020. today, the figures are quite higher, with bitcoin atms seemingly everywhere. the number of bitcoin atms worldwide has grown every month since 2015, reaching new highs in early 2021. as of january 1, 2021, there were nearly 14,000 bitcoin atms all over the world with the highest figures of bitcoin atms recorded in the united states. canada, the united kingdom and austria followed. in total, approximately 83 percent of global atms were concentrated in north america, but now, even the small african nation of djibouti is home to a bitcoin automated teller machine. as bitcoin awareness and adoption grows, more entrepreneurs are installing bitcoin atms, in an attempt to benefit from the “bitcoin gold rush” and the trend won’t reduce; instead it will keep increasing, thus keeping open the opportunity for new players to have a slice or chunk of the market.
bitcoin atms are machines that allow you to buy (and sell) bitcoin using cash or debit card. a bitcoin atm needs an internet connection to make the bitcoin transaction. close to 45% of all bitcoin atms today are two-way (buy and sell), as one-way (buy only) machines which make up about 55% of the total bitcoin atms in circulation are gradually being phased out. generally, these are very much like standard atms, only difference being, instead of making a bank transaction, they connect directly to bitcoin wallets or bitcoin exchanges to dispense cash or bitcoin.
the setup costs for a bitcoin atm business can vary greatly, depending on the types and quantity of atms you decide to purchase to launch your venture. thepricesofbitcoinatmranges from€5,000foraone-way purchase only machine, to €14,500 for a two-way senior high-end model. delivery costs, installation costs, taxes, and import duties may need to be factored into setup costs as well as potential up front rental charges for your chosen bitcoin atm location(s), depending on location. exchange integration is also an important aspect of setting up a bitcoin atm (except you choose to use your own company/personal cryptocurrency wallets). binance which is preferred exchange generally does not charge an upfront fee as they settle execution fees on each trade, unlike other exchanges. the purchase price and funding of the machine(s) will be the largest portion of the setup costs while the remaining expenditure will range from a few hundred dollars to a few thousands. marketing expenses would also be taken into consideration as investor will need to inform/attractusersto theatm. provided investor chooses one of the more affordable models, set-up costs could be as low as €50,000 and could go as high as €500,000 if investor goes for the high end machines and integration.
the profits that can be generated per atm kiosk depend on factors as location, the machine’s availability and the sort of arrangement made with the exchange that provides liquidity for the machine if investor provides theirs. let’s assume a cobra smart is purchased for €5,000 and is expected to process 300 buy-only transactions, with an average transaction volume of €250 per month. a 20% mark up as transaction fee is standard in the us, but we will work with 10%, as transaction fees.
binance as the linked exchange charges a 0.2% trade settlement fee. €100 or less is paid monthly as rental cost for the location of the atm (a café, restaurant, shop or mall) with a one-off of €5,000 linked to the machine’s wallet which is replenished by the linked exchange. in this instance, the investor could generate €7,500 in revenue per month. take out binance’s 0.2% settlement fee, 10% of profits for running costs and machine maintenance and €100 rent, profits would be €6,635 in a single month, paying off the investment. this here illustration shows that the bitcoin atm investment can be highly profitable at theright location, where enough users can be attracted. while this is only a theoretical example, it provides evidence of bitcoin atm’s profitability, if an investor having the funds, launches such a venture and is located in a bitcoin- friendly jurisdiction, a bitcoin atm business may be an excellent entrance into the bitcoin economy for entrepreneurs who are willing to take risks and, as a result, potentially receive a high monetary payoff.let’s assume a cobra smart is purchased for €5,000 and is expected to process 300 buy-only transactions, with an average transaction volume of €250 per month. a 20% mark up as transaction fee is standard in the us, but we will work with 10%, as transaction fees.
the day-to-day management of a bitcoin atm business involves providing customer service to users who may have issues with the machine, doing cash runs to either restock the machine or to take cash for safe keeping. ensuring everything runs smoothly with the exchange integration, prices feeds remain operational, and that the machine is running without glitches.
there are 2 categories to the machines; one-way or two-way machines. if an investor would like not to only allow customers buy bitcoins, but also sell bitcoins through the machine, the investor may need to consider a more expensive two- way machine solution. according to records by number of installations worldwide —45% of all bitcoin machines are two-way, and 55% are one-way only. by information from our clients and users, there is not an even split between buy and sell operations at the moment with pure dominance of buy operations (90% buy vs. 10% sell on average). however, during huge price swings, user behavior might change a lot. many operators reported a fall in volume of buy bitcoin operations, and sell operations increased drastically (making volume ratio of about 50/50). so not to lose opportunities as the market can be volatile, we advise prospective investors to provide 2-way machines that handle both options; but however in “normal” times, a one-way bitcoin atm could suffice and provide a steady stream of income as well. we are still in the “enter bitcoin” phase for average customers, hence its noteworthy to the opportunities here are massive.
our team of investment experts help investors find the best solutions to setting up their btc atm business, withinour expansion &penetrationprogram. binance haven within 5 years positioned ourselves to become the biggest, less costly and most reliable exchange in the world, this new programme is another people targeted program to further propagate bitcoin and binance’s brand dominance, while simplifying process of acquisition and safe investment to clients. our team will bring our expertise to your venture; make cash and exchange integration runs seamless for your bitcoin atm investment and the brand is certain to give your business more credibility. we have identified new markets around the world. our global reach, makes it easier to enter new profitable markets, most especially outside the us, while entry is still early. audit records per machine are sent daily to the client, so client is fully in the know at all times, of activities of the machine. terms and conditions apply and are fully amplified in the contract before take-off. see below, an illustration for the bitcoin atm-exchange integration/interface.