Frequently Asked Questions
What is Bitcoin?
Bitcoin is a peer to peer digital money that is decentralized, meaning that is not regulated by any bank or government. Bitcoins are sent and received through the Internet for goods and services to other people or businesses for relatively no transaction fee. All you need to start transferring bitcoins is a free digital wallet.
What are the other types of Digital Money?
There are several types of digital money available today, such as bitcoin, litecoin, feathercoin, and dodgecoin. These are also known as Cryptocurrencies.
What Is The Blockchain?
Because Bitcoins are an open-sourced digital money, all transactions are public. At any time, you can view thousands of Bitcoin transactions in a public ledger called the blockchain. Each transaction is encrypted by a Bitcoin address, which is a combination of letters and numbers that acts as your personal address for sending and receiving bitcoins. Check your transaction on the blockchain at blockchain.info.
What Are Miners?
Miners are considered the Auditors of the whole system. Bitcoin Miners keep Bitcoins safe by approving transactions into the open sourced Bitcoin network. Miners run computer programs that group bitcoin transactions into a block of transactions, and then process the block safely into the bitcoin network. These blocks usually generate a very small transaction fee for the miners, that eventually over time turns into newly created bitcoins.
How many Bitcoins are in circulation
Unlike USD and other currencies that can be created out of thin air, the Bitcoin network is programmed to never exceed 21 million bitcoins. The cost of one bitcoin fluctuates within the market. There is a very small transaction fee to send, store, and receive bitcoins, and other digital money, however it is much lower than traditional financial institutions.
How is the price of Bitcoins determined and why does it change so frequently?
The value of a Bitcoin as well as other digital money fluctuates on a very regular basis, much like the stock market. BTC buying and selling prices are set by our members, and the current up to the minute value of BTC or LTC can be found on our main page.
Where can I learn more about digital money and how it works?
Here is a good series of videos to help you better understand what bitcoin is:
Beginner : http://www.youtube.com/watch?v=XaIxTjGjkBQ
Different Types of Wallets: http://www.youtube.com/watch?v=JQTGmaDa39s
How do I choose a Bitcoin Client?
A Bitcoin client is a ground level technology that is used to store keys and conduct a Bitcoin transaction. Depending on the type of technical knowledge you possess, each platform will cater to you differently.
How do I choose a Bitcoin Wallet?
There are three types of wallets that are available to store your digital money: a web wallet (like your BitSource.org wallet), a software wallet which is downloaded to your computer harddrive, and a mobile wallet, which is an app for your mobile phone. Here is a good video to watch about wallets:
Where are Bitcoins Accepted?
Here is a list of places that accept digital money such as bitcoin. There are also many brick and mortar businesses like restaurants etc. that are accepting them now. Overstock.com now accepts bitcoins for payment as well!
Who do I sell my Bitcoins to?
You will be selling to our members. Click on the Sell option from the home page to begin selling your digital asset.
How can I profit from trading?
Some people buy and hold hoping that the price will go up like gold coins or any other property or collectable. We suggest doing your research, as the market may go up or down and there are many variables to consider.
What payment methods can I use to fund my account with fiat currency?
We accept VISA, Mastercard, Maestro, and ACH transfer/eCheck.
What are the transaction fees?
We charge 1% per crypto-currency exchange transaction, which is standard in the crypto-currency exchange industry. For funding your account with fiat currency using a credit card, the credit card networks charge a interchange rate (2.99% + .30), and we deduct a $5 handling fee from the deposit amount. For example, on a $100 deposit, the total fees would be $3.29, for a total charge of $103.29, and your account would be credited with $95 upon funds verification. For eCheck/ACH deposit, the total fees are $.25 per transaction, and the same $5 handling fee would be deducted from the deposited amount.
I tried to buy bitcoin on your site, but received an error code. What am I doing wrong?
In most cases, this is because you do not have any funds in your account to purchase bitcoin with. Click on 'deposit money' then follow the instructions therein to add fiat currency to your account. Once your account is funded, you may then purchase bitcoin without any problem.
Why was my credit or debit card declined?
Unfortunately when the payment processing company declines a transaction on behalf of your bank or card issuer, it does not tell us why.
Here are a few of the most common reasons a card may be declined or a transaction may fail:
-Prepaid cards and gift cards (i.e. any cards that are temporary and without your personal information) may or may not be accepted.
Some prepaid card and gift card issuers allow you to register your card, typically through their website. In some cases, registering your card and entering your name and mailing address will enable the card to work. Information on how to register the card is usually listed on the back of the card or the packaging the card came in.
-Some electronic cards may work, but others may not.
This will depend on the issuer of the card and whether our payment processing company supports that card type. Unfortunately not all electronic cards are supported.
-Your bank has aggressive fraud detection measures and is blocking the transaction.
Some banks and card issuers will block any transaction they feel is not normal for your spending habits. This is usually based on what you have purchased in the past and what they expect you to purchase in the future. You would need to contact your bank or card issuer and explain that you are trying to make a purchase and request they remove the block.
-The card is issued for "domestic use only" or does not allow international transactions.
Some cards that are marked for "domestic use only" or something similar usually won't work because those types of cards are typically not connected to the international payment network and only work locally. Some banks offer two cards; one that can only be used locally, and one that works worldwide. Ask your bank or card issuer if your card can be used internationally for internet transactions.
-Your card issuer or bank has disallowed internet transactions.
Some card issuers and banks disable internet transactions. Contact your bank or card issuer to make sure you can use your card for internet purchases. Sometimes all you need to do is request that it be enabled. Other banks issue more than one card with different features and may ask you to upgrade to a different card type.
-Your bank or the payment processing company's network may be experiencing technical difficulties or be down for maintenance.
This does not happen very often, but it does happen from time to time, often when there are large numbers of transactions flowing through the system, such as during the holidays. If the payment processing company cannot reach your bank to approve the transaction, they will typically decline the transaction in the bank's place. In this case, the only thing to do is try again later when the system is back up.
These are only some of the possible reasons why your card was declined. Since the bank or card issuer did not tell us why, you will need to contact them for the reason your transaction failed.
If you have any questions, please feel free to contact us today.