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Hosting a Bitcoin ATM is the Best Side Hustle of 2021

bitcoin depot

If you’re like most other crypto enthusiasts, a big reason you’re interested in the industry is due to the massive amount of growth and potential to make money through cryptocurrency investments. Almost everyone has at least one friend, uncle, or sibling that traded in their hourly 9-to-5 jobs back in 2018 in order to chase the explosive market growth that we saw with Bitcoin. Unfortunately, almost everyone also knows at least one person who fell from that ivory tower when the market pulled back in 2019-2020.

Say Goodbye to Traditional ATMs

Historically, if you owned a high-traffic brick-and-mortar location, hosting a traditional 3rd-party ATM was one of the best ways to bring in some additional revenue without giving up much of your floor space. Additionally, they were great ways to bring in potential customers to your location, making it a win-win for business owners.

Unfortunately, cash usage amongst Americans is on the decline. In a yearly study conducted by the United States Federal Reserve, cash usage has been on a consistent downtrend for the last decade. Enter the Bitcoin ATM  a relatively new advancement to the traditional Bank ATM that has been losing its market share due to the rising popularity of digital transfer apps like Zelle, Venmo & CashApp.

Bitcoin ATMs vs Traditional Machines

What’s the difference? Bitcoin ATMs fill an enormous gap for many new & existing crypto investors who are wondering how to buy Bitcoin by allowing them to purchase and withdraw their Bitcoin holdings using cash. Prior to these Bitcoin Kiosks, the only way to buy or sell crypto was with a bank account or by doing a Craigslist-style meet-up with someone you found online. That leaves a huge barrier for entry & exit for consumers who either don’t have a bank account or are not comfortable using their banks as a middleman in these Bitcoin transactions.

How to Get a Bitcoin ATM

So you’re sold on getting ahead of the curve before all of your competitors... How do you get one of the Bitcoin machines into your business? It’s not as hard as you might think. Many crypto kiosk providers like Bitcoin Depot can offer zero risks and costs to you as long as you have a storefront in a desirable location. Here’s generally what they’re looking for:

  • Brick & Mortar Location
  • High Foot Traffic
  • Long Operating Hours (24/7 is best)
  • 28x23” of Available Space for the ATM

If you check off all of these general requirements, you’re a perfect candidate for hosting a BTM (Bitcoin Teller Machine).

Benefits of Hosting a BTM

The ATM industry has quickly become a flat market, and growth is stagnant, while the corporate adoption of Bitcoin is on the rise. While it’s still beneficial to have these traditional machines on your premises, you can easily tap into a larger audience by providing both options to your customers. You also have the added benefit of servicing the customers who are looking to withdraw cash from their bank in order to purchase Bitcoin. Here are just a few of the benefits of hosting a Bitcoin machine in your business:

  • Drive new & additional customers to your business
  • Deliver an immediate turn-key solution to your customers asking for Bitcoin ATMs
  • Zero capital or knowledge of Bitcoin or Bitcoin ATMs required
  • Increase transaction volume of your cash ATMs by up to 30%
  • Get residual income for the life of the contract with no labor required after placement

How Much Can I Expect to Make Hosting a Bitcoin ATM?

The million-dollar-question (literally)! On average, a good machine will bring in about $30,000 in transaction revenue per month. This can range quite a bit due to market fluctuations and demand - some ATMs will service more than $300,000 per month in transactions. The revenue from your Bitcoin ATM will heavily depend on a few main factors:

  1. Kiosk Location: How convenient is your business location? Is there adequate parking for customers or do they have to pay to park in a lot? Is there a lot of vehicle and foot traffic?
  2. Public Interest In Your Area: Cryptocurrency interest and adoption widely vary depending on your geographic location. This is true even from city to city. There is a lot more interest in states like California & New York than there is in Mississippi and Arkansas.
  3. Machine’s Availability: A huge factor in your potential earnings is the Bitcoin Machine’s overall availability. Is it available 24/7? Are you frequently having internet outages? Is the cash being restocked when it needs to be?

What’s Your Cut?

Now, of course, you’re not going to be putting all of that money in your pocket every month - that’s just the raw revenue from the transactions on the machine. Instead, you will be taking a percentage of the transaction fees from the machines.

Your share of the transaction fee is usually around 10-12%, so on a machine that’s processing around $30,000 per month in transactions, your take would be around $3,000 to $3,600 per month - excluding the cost to rent and maintain the basics of the machine, which will usually only fall within a few hundred dollars per month. This isn’t even factoring in the additional sales of your products & services brought in by the new customers using the machine!

Kiosk Overhead & Maintenance

One of the best parts of hosting a cryptocurrency kiosk is how little overhead they require when you partner with a reputable company. Bitcoin Depot is the largest Bitcoin ATM operator in the world with over 1,250 locations across the United States & Canada, so you’re tapping into a vast existing network of other storefronts that have already made the push into the new age.

In addition to the tiny amount of space they take up (28x23”), all you need to handle is the initial installation (which can be handled by most providers for an additional fee) and the basic First & Second Line Maintenance (FLM/SLM). This is the standard day-to-day stuff such as paper jams from currency, cards, or paper as well as software updates and replacement of any worn or broken parts. From there, providers like Bitcoin Depot handle everything else, including:

  • All Operations Related to the Bitcoin ATM
  • AML Compliance
  • Customer Service
  • Online & On-Site Marketing

Want to See If You Qualify?

If you think you have a good location to host a crypto kiosk and want to take advantage of the huge influx of interest in cryptocurrency, you can easily apply online to host a bitcoin ATM. If your location meets the qualifications, you’ll be providing an invaluable service to help improve Bitcoin adoption in your community as well as joining the ranks of many other big companies who are starting to accept Bitcoin in 2021.

May 6, 2021