Bitcoin ATMs Revenue and Costs in 2024 | Unlock Big Profits (2024)

Bitcoin ATMs, or BTMs, provide a convenient way for consumers to purchase and sell Bitcoin and other cryptocurrencies. Resembling traditional ATMs, these machines generate revenue for operators through transaction fees.

Bitcoin ATMs present a unique investment opportunity for both businesses and individuals. They allow participation in the Bitcoin market while earning extra profits. The rising interest from investors, the revenue potential, and growing consumer demand all point to the lucrative possibilities in this market.

In this guide, we’ll discuss how to make money with Bitcoin ATMs, the costs involved, and their profitability in 2024. Read on to discover the financial potential of this industry.

Key Takeaways

• Bitcoin ATM operators charge transaction fees between 5% and 15%, which significantly contributes to their revenue.
• Additional fees, including a profit margin of 1% to 4%, are applied on transactions to cover various costs like market creation and transaction processing.
• Operators can partner with local businesses to place ATMs and share a percentage of the generated revenue.
• Monthly fees paid to host locations range from $100 to $500, ensuring a stable placement for the ATMs.
• Significant legal expenses, ranging from $5,000 to over $100,000, cover initial consultations, compliance policies, and state-specific licenses.
• Purchasing and installing Bitcoin ATMs can cost between $2,800 and $15,000, depending on the machine type and additional expenses like delivery and installation.
• Renting a space for a Bitcoin ATM typically costs between $500 and $3,000 per month, depending on the foot traffic and profile of the location.
• Providing effective customer support costs $25,000 to $35,000 annually, with additional monthly maintenance expenses ranging from $100 to $500 to ensure machine reliability.

Bitcoin ATMs Revenue Streams

Operators and owners of Bitcoin ATMs can earn revenue through various revenue models, including:

Transaction fees

Operators can charge a fee for each transaction made through the machine.

Which can range from 5% to 15% of the transaction amount.

Transaction Surcharges

Transaction surcharges are the direct fee percentages you apply to your customers for each transaction they make.

These are the costs that come with trading crypto coins on exchanges online.

The fees you pay when buying or selling cryptocurrency cover various expenses.

These include creating a market for buying and selling, processing the transaction itself.

And moving your crypto between hot wallets and financial institutions.

The fees you pay may also include a profit margin for the cryptocurrency exchange or ATM operator.

This profit margin typically falls between 1% and 4% of the transaction amount.

Partnerships

Operators can partner with other businesses to offer their services.

earning a percentage of the revenue generated by the partnership.

Host fees

Operators can pay a fixed monthly fee to the machine’s host.

which can range from $100 to $500.

Operational Costs of Bitcoin ATMs

These are the expenses that come with running a Bitcoin ATM:

Legal costs

Operating a Bitcoin ATM involves significant legal costs, often underestimated by new operators.

Key expenses include initial legal consultations ($500-$1,000), FinCEN registration (free but time-consuming), and developing an AML/KYC compliance policy.

Which can range from less than $1,000 for self-written policies to $25,000 or more when using a lawyer.

State regulations might add extra costs for money transmitter licenses and surety bonds, starting at $5,000 per state.

Staying compliant means keeping policies up to date and possibly hiring a compliance officer. Annual costs can range from $10,000 for small operators to over $100,000 for larger companies.

Overall, legal costs can range from $5,000 for small operators to over $100,000 for larger ones.

Hardware costs

The hardware costs for operating a Bitcoin ATM vary based on the type and vendor of the machine.

Common models include Genesis Coin’s Satoshi1 (one-way, $6.8K) and Satoshi2 (two-way, $8.9K). Others are Lamassu (one-way, $6K; two-way with stand, $11K), General Bytes’ BATMTwo (one-way, $2.8K), and BATMThree (two-way, $7K).

A graph showing the percentage of Bitcoin ATMs that support buy and sell

The delivery costs range from $500 to $1,000, with additional import duties varying by country (0-30%).

Installation costs can add another $2-3K per machine.

Overall, total hardware costs, including the machine, delivery, taxes, and installation, typically range from $10K to $15K.

However, if you are looking for a cheaper option, consider a pre-owned model.

These offer price reductions of 30-50% due to the increased hardware risk and potential defects.

Rent payments

Renting a location for a Bitcoin ATM can vary widely.

In rare cases, some locations might be free if the business owner supports Bitcoin and sees the benefit of extra foot traffic and publicity.

Typically, rent ranges from $300 to $700 per month for standard locations in the Unites States.

High-traffic areas like shopping malls can cost between $1,000 and $3,000 per month, often with additional costs for banners and advertising.

On average, operators can expect to pay around $500 monthly for regular locations, and about $2,000 for high-profile spots.

Customer support services

Effective customer support is important for a successful Bitcoin ATM business.

Many operators manage this in-house by responding to emails and phone calls, while others outsource to ensure 24/7 coverage.

The salary for a dedicated support person ranges from $25,000 to $35,000 annually but depends on their location and the employment laws in the area.

Additionally, specialized software for customer support costs around $20 to $40 per agent per month.

Liquidity

Operating a Bitcoin ATM requires good liquidity management. It involves balancing funds between fiat on exchanges and Bitcoin in hot wallets.

Operators often distribute liquidity in ratios from 50/50 to 80/20.

For a machine with a $30K monthly volume, about $10-15K in both fiat and Bitcoin is needed, assuming weekly turnover.

Higher volumes require proportionally more funds.

A network of machines can lower per-machine liquidity needs by averaging transaction peaks.

Notably, a safety buffer is also important to handle high-volume transactions smoothly.

Machine maintenance

Machine maintenance for Bitcoin ATMs can be a significant expense. This is due to the limited availability of specialized technicians.

These costs can range from $100 to $500 per month, covering both physical and software defects or malfunctions.

The higher costs reflect the specialized knowledge required to maintain and repair Bitcoin kiosks.

Regular maintenance ensures the machines’ smooth operation and reliability.

Marketing

Promotion for Bitcoin ATMs involves several strategies to enhance visibility and attract customers.

Custom wraps for machines, which cost between $400-600 per unit, make them visually distinct.

Software customization options, provided by manufacturers, allow operators to update UI elements to reinforce their brand.

Listings on Bitcoin directories and sites like Coin ATM Radar can drive traffic, with free and paid options available.

Press releases, costing $150-300, can also boost public awareness

Factors Affecting Profitability

Location Selection

The location of the Bitcoin ATM significantly contributes to its success.

Shopping malls are popular because they stay open longer and feel safer. This builds trust, especially for larger transactions.

However, negotiating lease terms with mall management can be tough. Operators often end up in long-term contracts that could hurt profits during slow times.

On the other hand, negotiating with smaller businesses, like liquor stores, allows for more flexible leases. This can help reduce financial risks.

Cost Considerations

The cost of the location correlates with foot traffic.

Shopping malls offer great visibility but often come with higher rent than smaller businesses.

Negotiating better lease terms, like monthly rent or profit-sharing, can help ease financial pressure, especially during slow months.

Being able to negotiate with store owners in busy areas allows operators to create lease deals that work in their favor

In turn, this could reduce fixed costs and increase profitability.

Marketing Strategies

Marketing efforts come in handy to attract users to Bitcoin ATMs.

Leveraging online platforms that specifically advertise Bitcoin ATMs enhances visibility to potential customers.

Social media helps businesses connect with their audience. By promoting special offers, they can attract more visitors.

Providing exceptional customer service fosters positive experiences, encouraging repeat business and word-of-mouth referrals.

Fee Structure

The fees charged per transaction significantly impact the profitability of Bitcoin ATMs.

Operators will often charge a fee that is a percentage of the transaction cost. It typically ranges from 10% to 12% of the transaction amount.

Maximizing transaction volume is key to profitability. Operators aim to achieve monthly transaction totals upwards of $30,000.

Changing fees and trying new pricing methods can improve profits and increase revenue.

One-way vs. Two-way

One-way machines only allow users to purchase crypto, while two-way machines enable both purchases and sales.

While one-way machines are typically more affordable, two-way machines offer additional functionality, potentially appealing to a wider range of customers.

Operators must weigh the machine’s cost against its functionality.

The crypto market is constantly evolving. Hence, operators must consider the machine’s ability to adapt to new demands.

Host an ATM: Make Money With Zero Effort

Hosting a Bitcoin ATM in your store is a hassle-free way to generate additional income and attract new customers.

With CoinTime, you can have a Bitcoin ATM installed in your store with minimal space, and all you need is a power outlet. Here’s what’s included:

1. Delivery and Setup: We handle the delivery and setup of the Bitcoin ATM, so you don’t need to be concerned about installation.
2. Regular Maintenance: Our team takes care of the maintenance of the Bitcoin ATM, ensuring it runs smoothly and without interruption.
3. Cash Management: We manage cash and deposits, giving you peace of mind knowing that your funds are handled securely.
4. Dedicated Support: Our team is available to provide support whenever you need it. That way, your Bitcoin ATM operates seamlessly.
5. Flexible Payment: Choose a payment option that suits your business needs.
6. Free Advertising: Hosting a Bitcoin ATM can attract new customers and increase foot traffic to your store, providing you with free advertising.

Getting started is easy

1. Connect with Our Team: Reach out to us to learn more about hosting a Bitcoin ATM at your business and ask any questions you may have.
2. Submit Documentation: Complete a host location questionnaire. It will help us understand your business and ensure it’s the right fit for hosting a Bitcoin ATM.
3. Receive Your Bitcoin Kiosk: Once ordered, your Bitcoin ATM can be delivered in as little as 10 days. This makes the setup process quick and straightforward.

Bitcoin ATMs are a Good Business Opportunity

Bitcoin ATMs present a lucrative business opportunity in the rapidly expanding cryptocurrency market.

The global Crypto ATM market is projected to grow at an impressive CAGR of 62.5% from 2024 to 2031. It is expected to reach a value of USD 5451 million by 2031. Hence, investing in this sector offers significant potential for profitability.

Currently, there are over 37,615 crypto ATMs worldwide, a number that continues to increase steadily.

This growth can be attributed to the rising popularity of cryptocurrencies and their increasing adoption for day-to-day transactions.

As more individuals seek convenient ways to access and transact with cryptos, the demand for Bitcoin ATMs is expected to soar.

Final Thoughts

When operating a Bitcoin ATM business, keep in mind that you need to choose a good location. This is because most customers search for the keyword “Bitcoin ATM Near Me“

With Bitcoin ATMs, there is no need for day-to-day manual maintenance or software upgrades on each machine.

You don’t have to worry about constantly driving to your machines so you can expand to remote areas as well.

This gives you time to pursue other channels and invest time in marketing—making a Bitcoin ATM even more profitable.