Bitcoin ATMs 101: What You Need To Know About This Growing Business …

Interested in becoming a bitcoin ATM operator? ATM Marketplace, an ATM industry resource, has released a 40-page guide on bitcoin ATMs that explores every aspect of the business opportunity. The report is titled, “Bitcoin ATMs 101: Opportunities for the IAD.” IAD stands for independent ATM deployment.

The guide, the first to examine the emerging cryptocurrency ATM market, notes bitcoin ATMs offer an efficient and secure way for people to buy and sell bitcoins. ATMs are an alternative to bitcoin exchanges that many believe are more susceptible to hacking and fraud. Bitcoin ATMs shoulder the credit, counterparty and volatility risk associated with bitcoin exchanges.

The guide includes an overview of bitcoin for readers who may be completely new to cryptocurrency.

Opportunity for Existing ATMs

ZenBox Bitcoin ATM Orange County

Orange County’s first bitcoin ATM

For existing ATM operators, bitcoin offers an opportunity to generate additional revenue streams at their ATMs. Operators of existing ATMs can install bitcoin software, allowing them to provide bitcoin in addition to traditional currency.

Those who opt for dedicated bitcoin ATMs must decide whether to provide the ability to buy and sell bitcoins or just bitcoin purchase capability.

Bitcoin ATM transaction fees are generally higher than traditional ATM transaction fees. The average transaction fee for buying and selling bitcoin at bitcoin ATMs is 6 percent.

In addition to charging transaction fees, some bitcoin ATM operators make money on the currency “float.” Because bitcoin prices vary among the different exchanges, bitcoin operators can sell bitcoin at a higher price than they pay for it.

As for income potential, the guide notes prime bitcoin ATM locations are reporting monthly transaction volumes ranging from $70,000 to $300,000. Successful operators have been covering the cost of their machines

Originally appeared at: