Bitcoin ATMs are one of the most cost-effective BTC businesses you can start. These units cost around $10,000 each. Bitcoin ATMs don’t require a lot of electricity to function, and there is no additional hardware required to monitor your investment. These reduced operating costs are luring would-be miners to the ATM sector.
Restocking costs must be accounted for when considering the operating costs of your ATM. Most units will require you to connect your device to a hot wallet dedicated to your ATM. You will need to monitor this wallet to ensure bitcoin are available for purchase by your customers. If you allow your wallet to empty, your customers will be unable to purchase bitcoin.
Some units come preprogrammed to an exchange. These units don’t require you to stock a hot wallet. Instead, Bitcoin is purchased directly from the exchange and transferred to the Bitcoin ATM user. This option can save you on startup costs, but you will have to pass the exchange fees on to your customers to avoid cutting into your profit.
You will need to stock your ATM with cash if you live in an area where customers can sell their Bitcoin at the device. Pro-crypto countries such as Japan and South Korea provide their citizens with this option. The US has been restrictive in allowing this option due to the regulations revolving around fiat currency exchanges.
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