Frequently Asked Questions

 

General

 

What is BitPrime?

We launched in March 2017 as a full-service OTC (over the counter) that trades many cryptocurrencies such as Bitcoin, Ethereum, Ethereum Classic, Litecoin and Ripple. We are also able to source many other cryptocurrencies as well as offering customer support and wallet advice. However, we are unable to offer financial or investment advice. 

Where are you based?

We are based in the Christchurch city centre but service the whole of New Zealand. We are locally owned and operated with around 15 staff members and are rapidly growing. 

What are your opening hours?

We are open between 9 AM and 10 PM, 7 days a week

Before you buy

Who can buy from BitPrime?

If you have a New Zealand bank account, are over the age of 16, have a New Zealand utility bill from within the last 3 months and can complete the verification process you can buy from BitPrime

How do I make my first order?

If you are new to BitPrime you will need to verify your identity and then register an account. Once this has been completed you can go to the buy tab and select the currency you are after, enter the amount you would like to purchase (either an NZD amount or cryptocurrency amount) and enter your wallet address. You will be asked to confirm that you have read and understood our terms and conditions. You will then be directed to choose the direct bank transfer or POLI pay option, once your payment has been received we will send the coins to your wallet. 

Can I source other cryptocurrencies that you do not list?

Under the buy tab on the home page the drop-down box will have an ‘other’ section, here you will be able to find a large list of other cryptocurrencies we can source and how to find wallets for these also. If there is still a coin that you are after that isn’t on the list please email us to see if we can source this for you. Please keep in mind that the order minimum is $250 NZD for ‘other’ coins and if you are requesting another coin that is not listed it might be slightly higher.  

Selling

Can I Sell You My Coin?

Yes of course you can! You will need to be a verified customer first which you can do here. If you are wanting to sell coin you will need to fill out this form here, we will then quote you a price and if you accept, you will transfer the coin to our wallet and we will transfer NZD to your NZ bank account.

Payment

What methods of payment do you accept?

We only accept payments via bank transfer from a New Zealand bank account. We are no longer able to accept cash deposits. Bank transfers are only accepted from accounts in the same name as your verified BitPrime account, we do not accept third party payments under any circumstances.

Third party payments are considered as any payments from an account that you are not a named signatory on. We cannot accept payments from your spouse/relative/friend’s bank account so please do not ask.

If you are paying from a business account, we will need proof that you are authorised by the bank to operate that account. If you are paying from a trust, every person in the trust will need to be verified. We recommend paying from a personal account to make it easier (or transfer funds from your trust to personal account and pay from there)

We don’t accept payments via:
-Cash
-Credit/debit cards
-PayPal
-Western Union
-International Money Transfer
-Prezzy cards/gift cards/iTunes gift cards

 

WE DO NOT ACCEPT ANY CASH DEPOSITS UNDER ANY CIRCUMSTANCES 

 

Where are your bank details?

Once you place an order you will receive a payment instruction form via email which will include our bank details. We are experiencing high volumes of orders currently so wait times can vary but for POLI payments this should be within the hour and for direct bank transfers, within the day. Reference details change for security purposes so please do not use previous details or accounts we have given you in previous orders. If you are using POLI this will link to your online banking and authorise the payment meaning that we can send your coin straight away. 

What are the order limits?

For Ethereum, Litecoin, Ripple and Ethereum Classic the order minimum is $100 NZD, we do not accept orders for less than $100 because transaction/network fees make it uneconomical. For Bitcoin, the minimum is $500 NZD due to very high fees. We do not have a maximum order limit however if you are wanting to spend over $25,000 on a single coin please email us at hello@bitprime.co.nz before doing so. For custom orders, the minimum is $250 NZD, see a full list of these coins here.

Verification

Why do I have to verify my identity?

 

Everyone must be verified before making any kind or order here at BitPrime. The verification process is in place to prevent scammers from paying us from hacked/phished bank accounts which presents a significant financial risk to us, and the victim. Since cryptocurrencies are borderless it is a popular method for scammers to try and move stolen funds out of NZ.

We are also required to ‘know your customer’ under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. We take fraud very seriously and have a policy of reporting any attempted fraud to the affected bank, and the Police as we are registered with the financial intelligence unit. 

What documentation do I have to provide?

You can view our verification process here. We require the following verification:

1. An image of either your NZ driver’s license or a passport (any country). It needs to be a photo, not a scanned image, and be clear enough to see all the security features. If you are submitting a passport it needs to include both the ID card page and the page above it. The ID must take up a majority of the photo but not have any of the edges cut-off.

2. A selfie with your ID. The reason we need this is otherwise people could upload any ID they like. We need to prove that the ID matches the person we’re dealing with. It is also very easy for people to obtain another person’s ID so we need to check it is really you that is verifying for not only our safety but yours too.

3. A selfie with you holding a piece of paper with the date, time, and “BitPrime” written on it. We need this to prove that the documents supplied are recent and not stolen of someone else’s hard drive. Many people have unencrypted ID documents stored on their devices that can be taken if the device is compromised by a hacker.

4. A utility bill or other form of proof of address. We will also accept letter/emails from IRD, ACC, NZTA, an employer, insurance etc. The document must be dated within the last 3 months.

5. A mobile number for SMS verification

If you would like to know how your personal information is stored and protected, please read our privacy policy.

 

How long does it take to verify?

 

If you have a smart phone and the documents handy it usually takes about 10 minutes to take the photos and upload them.

Once we receive your verification request we aim to process it as quickly as we can. You will receive an email confirmation once it is complete, or if we need you to provide additional information. We are currently receiving large numbers of verification requests, to check the status of your verification you can log into your account and see where you are in the queue..

 

Fees

What are your fees?

In terms of fees they are all included in our adveritsed rates, they are not static due to the price of cryptocurrency constantly changing, this means that the fees depend on the time that you buy the crypto. Our fees are based on supply and demand, international market rates, what currency you purchase and the low liquidity in New Zealand. Sometimes we trade at a loss, break even or get profit. We have experienced reasonable growth, which means we now have our own office space and several employees, so our expenses are generally higher than our competition. We also want to educate our customers as we recognise cryptocurrency is an unfamiliar market for a lot of people. So, we want to make sure customers have a reasonable understanding of the industry, wallets and coins they are interested in so they can feel comfortable placing an order. As far as we are aware no other cryptocurrency brokerage offers an educational service like we do. The ball park figure of fees that we would give you would be around 2-5%.

Why is your price different to the price displayed on Google?

The rate you will be looking at will most likely be from an international index in USD, then converted to NZD. It reflects the local price at some of the largest international exchanges in the US/Europe/China.  They are not representative of local prices, just as the price of petrol or dairy products will vary from country to country. NZ tends to be priced at a premium to these international indices, but this isn’t uncommon, with Brazil, Japan, South Africa, and Korea all in a comparable situation. The flip side of the pricing premium is that you will get an above market price for your coins if you then sell them in NZ later. The factors that determine our pricing are:

 

1. Local market prices

2. Local Supply/Demand

3. International market prices (correlated but tend be at a premium)

4. Low liquidity in NZ: small market + refusal of NZ banks to provide business banking services to cryptocurrency related businesses

5. Friction: 3-5 business days to get NZD to the international market and subsequent price ‘slippage’ and volatility over that time

6. Higher buying costs: If we are sourcing Ripple for example, we first must send NZD to the international market, exchange it for Bitcoin, and then send it to another exchange to change it to Ripple. All of this involves more time, fees, and effort than an XRP/USD trading pair at an international exchange

Is the price fixed or does it fluctuate?

The price you pay is fixed at the time of ordering and that set amount of cryptocurrency will be sent to your wallet. Our advertised rates are updated every 30 minutes throughout the day. However, if you place an order but do not proceed within 24 hours, it will time out and you will need to submit a new order.

Currencies

Bitcoin (BTC)

What is Bitcoin?

Bitcoin (BTC) is a form of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. This digital payment system was created in 2009 and was the first decentralised electronically held currency that nobody controls. The system is peer-to-peer, verified by network nodes and recorded in a public distributed ledger called the blockchain. Bitcoin can be exchanged for other currencies, products, and services with over 100,000 merchants and vendors accepting bitcoin as payment. Bitcoin can also be held as an investment.    

Ethereum (ETH)

What is Ethereum?

Ethereum (ETH) is a decentralised platform that is used to build decentralised applications (Dapps) and smart contracts through the blockchain technology, which can’t be censored, subject to fraud or any other type of third-party interference. The explosion in the number of tokens, smart contracts, and decentralised applications on the Ethereum platform has led to the widespread adoption and price appreciation of Ether. Ethereum has broad industry support due to the significant use cases for smart contracts. ETH is changing the way the world does business, and is being widely used as tool to raise capital through ICO’s (initial coin offerings / crowd sales).

Litecoin (LTC)

What is Litecoin?

Litecoin (LTC) is a decentralised online payment system almost identical to Bitcoin, a peer-to-peer cryptocurrency released under the MIT/X11 license by former google employee Charles Lee. Similar to Bitcoin, Litecoin uses the same blockchain technology to process transactions due to being a fork off the Bitcoin core unit. Litecoin has faster process times at 2.5 minutes compared to Bitcoins 10 minutes, it is also capped at 84 million units compared to Bitcoins 21 million units.

Ethereum Classic (ETC)

What is Ethereum Classic?

Ethereum classic (ETC) is a public, open-source, blockchain-based circulated computing platform featuring smart contract (scripting) functionality. Ethereum classic is the original Ethereum blockchain with Ethereum (ETH) being the fork, when the fork happened a group of people wanted to stay with the ‘classic’ version. The purpose of the hard fork was a more rational delivery of payments for resource-intensive calculations, which led to the removal of the favourable circumstances for occurrences that were formerly shown on ETH as well as ETC.

Ripple (XRP)

What is Ripple?

Ripple is a centralised network/cryptocurrency used mainly by large merchant banks like Wells Fargo and Merrill Lynch. It is used primarily to send funds in real-time and to provide liquidity. Investors can benefit from the widespread bank adoption of this network by purchasing Ripple (XRP). You can find the banks and other financial institutions that use the Ripple network here.

Wallets

What is a wallet address?

A wallet is essentially a bank account for your cryptocurrency and the wallet address is like your account number. The sender of the cryptocurrency needs a wallet address so they have somewhere they can send it from their wallet, much like a bank transfer. This wallet is giving you access to the blockchain where you can view your balance, send and receive cryptocurrency.

What wallet should I use?

 

For convenience and an extra layer of security we highly recommend purchasing hardware wallet such as a TrezorLedger, or KeepKey. We stock the Ledger Nano S however we are currently out of stock as there is a worldwide shortage.

There are many wallets available that support Bitcoin, Litecoin, Ethereum and Ethereum Classic. We normally recommend using Jaxx because it is simple to use, secure, and supports more than a dozen cryptocurrencies including the above listed. The wallet can be downloaded for free on PC, MAC and smart phone.

With Ripple you are somewhat limited in terms of choice of wallets but we suggest the Ledger Nano S. The Ledger Nano S is a hardware wallet that you would need to purchase and you use it a bit like a USB stick by connecting it to your computer when you want to use it. Gatehub is a free online web portal where you will need to sign up and verify (which can take up to a week) however we do not 100% recommend this option as there have been technical difficulties lately.

Where do I find my wallet address?

 

A wallet address is needed so that we can pay your coin, they are all around 30 characters long with a mix of numbers and letters (both upper and lower case).

 

This address can be found under the ‘receive’ button in all the downloaded wallets suggested.

 

For Bitcoin the wallet address starts with a ‘1’ or ‘3’

For Ripple the wallet address starts with an ‘r’

For Litecoin the wallet address starts with an ‘L’ or ‘3’ or ‘M’

For Ethereum and Ethereum Classic the wallet address starts with an ‘0x’

How can I secure my wallet?

When you set up the ledger there is a 24 word back up phrase and a pin that needs to be set up. If somebody was to steal your ledger they would be unable to get into it as a pin is required, they would just be stealing the value of the ledger as they can create a new wallet from it. Your coins will not be stolen, to get access to them again you will need to purchase another ledger and you can resync your back up phrase to the new ledger.

For the Jaxx wallet which you will need to make sure it is backed up with a pin and a 12-word password that you will need to keep on paper as opposed to digitally. Keep one copy in a secure place at home, and a second copy somewhere secure off-site. You will need this to regain access to your wallet if you lose or break your device. Never store any back-up phrases digitally unless you are an advanced user with knowledge of how to encrypt files correctly.

 

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We are Off now.

WARNING: Please don't use any wallets provided by freewallet.org. They have had numerous wallets compromised. Never use wallets where you don't control the private keys. Dismiss