Bitcoin doesn’t have to be complicated.
We’ll show you how
New to Crypto?
If “blockchain” and “coin” are still a mystery to you, that’s ok! Our Buy and Sell Bitcoin tool in Digital Banking also features helpful videos to answer those popular questions, like “What is it?” and “How does it work?” Learn more about crypto in our Bitcoin 101 section below!
Bitcoin services you can count on
NYDIG is FRFCU’s select Bitcoin partner. Its platform is built to the highest security, regulatory, and operational standards.
Bitcoin
101
FAQs:
For many, Cryptocurrency (and Bitcoin in particular) is a new financial concept. Here are quick FAQs that should help you understand what it is, and how FRFCU can help you take advantage of it.
What is Bitcoin?
Bitcoin is an open-source monetary system for storing and transmitting an asset of value and is the world’s largest and most recognized digital asset. Bitcoin is managed by its users and enables financial transactions on a peer-to-peer network basis. Transactions are verified, recorded, and secured on a public ledger called a “blockchain.”
What Bitcoin capabilities will FRFCU make available?
Members will have the option to buy, sell, and hold Bitcoin through Online or Mobile Banking, as well as trade and view their current Bitcoin balance through a user-friendly process.
How secure is the Bitcoin network?
Bitcoin relies on previous innovations in computer science, such as digital signatures and cryptographic hashing, and combines them in a unique manner that is reinforced by economic incentives. Digital signatures provide strong control of assets, while cryptographic hashing and the economic incentives of mining assure that no one entity controls the network and that transactions between users are valid. These features give Bitcoin unprecedented security and transparency.
Is Bitcoin federally insured?
No, Bitcoin balances in your NYDIG Account are not insured by the Federal Deposit Insurance Corporation (FDIC), National Credit Union Share Insurance Fund (NCUSIF), the Securities Investor Protection Corporation (SIPC), or any other public or private insurer.
Does FRFCU plan to make available any digital currencies other than Bitcoin?
At this time, Bitcoin is the only cryptocurrency available to buy through FRFCU. Based on future offerings and member interest, other cryptocurrencies might be considered.
How are the prices of Bitcoin determined for buy and sell orders?
For the Bitcoin Trading Product (except with respect to recurring/scheduled buys, if available), the Price is based on (i) what NYDIG believes is the market price of bitcoin, at the time the financial provider submits the order, which is typically related to the price of bitcoin on large United States exchanges, plus (ii) a Spread. The Price may be different from any price an end user may see on any bitcoin exchange or trading value. The Spread may differ based on volatility, the amount of time the specific Price is available to trade, and the volume of bitcoin that an end user is attempting to buy or sell, among other factors. NYDIG will not separately calculate or disclose the Spread earned on each Transaction. The Spread is separate and distinct from any Transaction Fee. FRFCU does not set or determine pricing.
Can I use my Bitcoin purchased through Online Banking to transact?
Not at this time; to start, you will be able to buy, sell, and hold Bitcoin.
What account information will be available to me to view?
You’ll see your balance and transactions in both Bitcoin (BTC) and U.S. Dollars. And we show you all transaction fees before you place a trade, so you are never surprised with hidden fees.
Can I get documentation for my taxes?
You won’t have to request or track down your Bitcoin activity. We’ll provide your transaction receipts and tax documents automatically.
How secure is a Bitcoin account?
NYDIG utilizes cold storage for the safekeeping of Bitcoin, adhering to the highest security, regulatory, and operational standards.
More Educational Resources
New York Times – From Barter to Bitcoin: Charting 10,000 Years of Currency Evolution
Where did Bitcoin come from? The same place all money comes from: the need for a tool that lets people store, trade, and count value. Start your Bitcoin education with this interactive tour of the history of money.
TechCrunch – Bitcoin Fundamentals: What to Know Before It’s a Part of Your Everyday Life
Want to understand how Bitcoin is kept secure? The difference between “hot wallets” and “cold storage?” An inside look at the Lightning Network? This article explains some of the most important technologies behind Bitcoin’s success.
Business Insider – How to Explain Bitcoin Like a Boss
Excited about Bitcoin but need a way to explain it to other people? This article gives you easy ways to explain Bitcoin, including as a form of money, a tool that uses energy, and a growing global network.
Bitcoin 201
Go deeper into Bitcoin’s history, development, and design. Learn the terms and technologies behind “Blockchains”, “Proof of Work” and “Hash Functions.”
Bloomberg – Bitcoin Goes Pro: How BTC Fits Into Institutional Portfolios
While consumers were the first to see Bitcoin’s value, large institutions such as pension funds, corporate treasurers, and insurance companies are increasingly making it a part of their investment strategies. Go inside how institutions are thinking about Bitcoin.
