Frequently asked questions

General

Do I have to be a financial advisor?

The platform is open to everyone. You can make a friend or family member your advisor.

Will you offer other coins on your platform?

BitDirect only offers BTC services and plans to build other products and services in this space.

Is it essential for me to know my advisor?

While it is not possible for your advisor to move any funds without you co-signing the transaction, it is essential that the client knows and trusts their advisor to prevent them from restricting access to your funds for whatever reason. Should the advisor limit access to your funds, you can change advisor.

Are there user guides on how to use the platform?

Yes, please click here to view and download our user guides.

Fees

How much does BitDirect charge?

BitDirect charges 0.25% per annum (accrued daily) of the bitcoin under management.

How much does the advisor charge?

The advisor can charge between 0% to 8% per annum (accrued daily) of the bitcoin under management. These fees are in addition to the funds set by BitDirect mentioned above.

Can the advisor change the fees they charge the client?

The advisor can charge each client customized rates. The client is notified of each rate change if the advisor amends their rate.

Who pays the blockchain fees?

Blockchain fees are incurred by the client whenever fee payments or withdrawals are processed.

How much are the blockchain fees?

Blockchain fees vary depending on how much demand there is for block space. The norm is in the region of a few US Cents up to a few dollars. Below is a calculator where live blockchain fees can be estimated: https://bitcoiner.live/

How often are fees processed?

The advisor can process the fees on an ad-hoc basis. However, if there has been an extended period when the fees have not been processed, certain functionality of the advisor’s platform might be restricted until the outstanding fees are cleared. BitDirect will provide 7 days notice prior to restricting any services. The client is also prompted to settle any outstanding fees whenever they perform a transaction on the platform.

Regulation

What regulations do I have to abide by?

Each advisor and each client must abide by regulations in their jurisdiction. BitDirect is a SaaS platform that manages financial relationships between advisors and their clients.

Is there KYC?

KYC is the responsibility of the advisor.

Referrals

What are accrued referral fees?

BitDirect will pay 0.05% of bitcoin under the management of the referred advisor to the referrer. Fees are only paid when BitDirect has received our fees. Referral fees are paid by BitDirect and are not included in the fees section.

How often are referral fees processed?

The referral bonus is paid when the accrued bitcoin referral fee exceeds 0.05 BTC

Can I add a referral code after an advisor has registered?

Unfortunately, once an advisor has registered, there is no method to update the account or alter the referral link. The client must delete their account and re-register with the correct referral link.

Why can I not view who I referred?

To maintain privacy, we do not publicize an advisor’s referral fee information to the referrer.

Advisor

What is the Advisor setup process?

All an advisor needs to do is register with BitDirect and register their hardware device on the platform, and they can begin to add clients.

How does the Advisor register their clients?

After the advisor has registered their hardware device, they must send their client registration link to all interested parties. The link is in the “Client” section. A new wallet is created when their clients have registered and have added their hardware device.

What is the role of the Advisor?

  1. Set up Clients on the BitDirect platform.
  2. Set up Clients with their Hardware Devices and provide information on how the device works, security best practices, and general bitcoin information. 
  3. Buy / Sell Bitcoin, either done by:
    a) A corporate account at an exchange and conduct the transactions on the client’s behalf.
    b) Talking the client through setting up an exchange account in their name and how to perform the Buy / Sell function. 
  4. Approve transactions when a client wishes to move or sell their funds.
  5. Restore a new Hardware Device in the event of a loss.
  6. Set the fees they charge their client. 
  7. Provide bitcoin advice.

What happens if an Advisor loses their hardware wallet and seed?

BitDirect operates a “one strike and you’re out policy regarding advisors losing their hardware device and recovery seed. The advisor initiates the lost device procedure on the BitDirect platform in the event of a loss. This will allow the client to withdraw their funds to an alternative advisor. BitDirect and the Client will co-sign the transaction.

Can an Advisor buy and sell bitcoin through Bitdirect?

BitDirect is a custody-only platform, and all advisors are encouraged to set up a corporate account at their local exchange, or if you are a Client, set up a regular client account at the local exchange to buy and sell bitcoin.

Can an Advisor initiate a withdrawal request on behalf of their client?

The client initiates all withdrawal requests. The advisor co-signs transactions for approval as a secondary step.

Clients

Is it possible for my advisor to make off with my funds?

No it is not. There is no ability for the advisor to enter a third-party address to send your funds elsewhere. The advisor can only approve or deny transactions, process fees and help restore a new hardware device with BitDirect in the event of a loss.

Where can I find an advisor?

Prospective clients need to speak to people that could be advisors in their immediate circles of influence. BitDirect will launch an Advisor Directory at a later stage.

How can I suggest a fee change with my advisor?

You need to discuss this with your advisor through your usual communication channels. The advisor will be able to amend the fee, and you will be notified when the fee is altered.

Is there KYC?

KYC is the advisor’s responsibility, and there is no KYC on the BitDirect platform.

Can I change advisor?

It is possible to change your advisor directly through the BitDirect platform. BitDirect will co-sign your transaction to move your funds to the new advisor.

What happens if my advisor loses their hardware device?

You can move your funds to a new advisor through the BitDirect platform. BitDirect will co-sign the transaction to transfer the funds to either an external wallet or a new advisor. 

Can I cancel my withdrawal before my advisor has approved it?

Yes, this can be done from the Withdrawals section on the website. Your advisor can also cancel the transaction before it is approved if there is an error.

What happens if I lose or change my phone?

It is essential that you update your new device with your new 2FA as soon as possible. You will need your hardware device to do this.

Why is it essential to conduct a small test transaction before funding my wallet?

This to ensure that your wallet is configured correctly and there is no malware on your PC or you have received a spam email. Please also confirm with your advisor. This task needs to be only completed once.

How does Inheritance Planning work?

Once BitDirect has been notified that a client has become deceased, the estate executor needs to provide BitDirect with all the required documentation relating to the deceased’s estate.

Required Documentation:

  • Death Certificate
  • Last Will and Testament & Probate Documents (if applicable)
  • A letter signed by the beneficiaries named in the Probate Documents instructing us on what to do with the balance of the account.

Once approved, BitDirect and the Advisor will sign a transaction to distribute the funds to the beneficiaries.

Hardware Wallets

Where can I buy a hardware wallet?

Purchase a hardware wallet from each of the three main wallet providers:

  1. Trezor.io
  2. Ledger.com
  3. ColdCard.com (coming soon)

How does a hardware device work?

The hardware device stores your private key and makes sure that the key is never exposed to the internet. The transaction is passed into the hardware device for signing. Your private key remains safe within the hardware device at all times. Please view the Trezor.com and ledger.com websites, there are also YouTube videos explaining how the devices operate. 

Can I have an additional passphrase added to my hardware device?

Specific hardware devices provide the option for an additional 25th seed word to be included for added security. This operation is not compatible with BitDirect. If you have performed this operation, please complete the “Lost Device” function again, and set up the device without the 25th seed word.

Is it possible to read my private key from my hardware wallet?

No, it is not. Once your private key is created within your hardware device it is impossible to extract the private key or the seed phrase.

Can I use my normal hardware wallet or do I need a new one?

You can use your existing hardware device and do not need to purchase a new one. Your funds that are held in your “single signature hardware account” will still be visible and operate as normal. Multi-signature wallets are not visible with Ledger or Trezor software.

Can I use a single hardware device for both my advisor and client logins?

Yes you can. BitDirect plans to introduce the ability for additional users can be added by the advisor. If this is something that you think you would use, then please use separate devices — a single device for the Advisor role, and a different device for the Client role. If you do not plan to have multiple advisor users, please use the same device for the Advisor and Client logins.

Do you advise me cloning my hardware device?

Yes. We advise that people purchase 2 hardware devices, and insert the recovery seed into each device. The second device should be stored securely, separately from the recovery seed. You would have three backups (2 hardware devices and one recovery seed).

What happens if I lose my hardware wallet and my recovery seed?

For Clients there is the ability to log in and restore a new device. BitDirect and the Advisor will co-sign a transaction to move your funds to a new hardware device.

Can I use the same hardware device on multiple accounts?

It is one hardware device per account.

How can I be sure that you have set up a 2 of 3 multi-sig and not some other structure?

It is advisable to setup your wallet in Electrum as well as BitDirect, to ensure your wallet is configured correctly. In addition, performing a small test transaction through the BitDirect platform to be 100% sure your wallet is working is also recommended. 

There is an alternative check where you place your redeem script for each of your public addresses here: https://coinb.in/#verify

The output should show that the setup is a 2-of-3 multi-sig, and your public addresses should match those within BitDirect.

Security

How are your keys stored?

Please view our security policy here

What happens if BitDirect disappeared?

Bitdirect only holds a single key of the 2-of-3 multi-signature relationship. This makes it impossible for BitDirect to make off with or freeze client funds.

BitDirect is BIP-48 compatible, which means the Advisor and the Client can withdraw their funds through a third-party wallet (like Electrum) without any involvement from BitDirect