Bitcoin (BTC, XBT, or Ƀ) is a digital currency which uses cryptography to regulate the creation of currency, verify the transfer of funds, and operates independently of a central bank. Bitcoin is a peer-to-peer remittance system which uses a public ledger (refereed to as the blockchain) which is updated and maintained by a network of computer systems running the Bitcoin software. This network ensures that all Bitcoin transactions are valid and that no Bitcoins are spent more than once. To send Bitcoin to another person, one must supply the public and private keys to complete the transaction.
Bitcoin was created in 2009 by Satoshi Nakamoto, who remains unidentified to this day. Mr. Nakamoto's goal was to create a decentralized currency, unlike government-issued currencies which are controlled by the government and banks. Since the launch of Bitcoin, many other digital currencies have since been deployed and are collectively referred to as "Altcoins".
How it Works
Bitcoin uses peer-to-peer technology making payments virtually instantaneous. "Miners", independent individuals and companies who maintain and verify transactions are rewarded for their efforts by receiving Bitcoin. They receive these rewards from the creation of new Bitcoin and from transaction fees. The miners are the decentralized authority that manage the Bitcoin network, ensuring that all transactions are valid.
Bitcoin mining is the process through which new Bitcoins are created. Miner's must solve highly complex mathematical equations, using all previous transactions in the blockchain. A successful computation creates a new Bitcoin block which is then added to the blockchain and the miners then receive the reward. The block reward started at 50 new Bitcoins, back in 2009. This reward is decreased every four years up until the total amount of Bitcoin in circulation reaches the limit of 21 million. This limit was set by the inventor to create an artificial scarcity much like gold, platinum, etc. This limit should be reached by 2140. Although there is a limit, Bitcoin is divisible to eight decimal places (100 millionth of a Bitcoin or 0.00000001); the smallest amount of Bitcoin. An amount of 0.00000001 XBT is named after the inventor and referred to as a "Satoshi".
Transactions are stored with the following format: Payer A sends X bitcoins to Payee C. Once a transaction has been requested, it is then stored on the current network node and transmitted to other nodes and their copy of the ledger for confirmation of validity. What's more, transactions need to have the digital signature of every owner requesting a transaction.
If you would like to learn more about Bitcoin, please visit our guide page here: Cryptocurrency: Introduction.
Buying Bitcoin from us is a very simple process and is as easy as buying a product from your favourite online store. We have created this checklist to ensure a smooth buying process. Simply follow the below instructions and you'll be the proud owner of Bitcoin in no time!
Much like when buying a product online, we require an address to send you your Bitcoin. Instead of a mailing address however, we require your Bitcoin address. A Bitcoin address will look something like this: 3FHrcFi4MULthcbJ4W8zUJGHTDeGh4GWLi.
You can generate one of these addresses directly from your Bitcoin wallet. Please have this ready before you place your order on our site. If you don't currently have a Bitcoin address you can generate one from your wallet; if you don't have a wallet yet, please visit our guide here for a list of them. Please note that instructions on how to generate a new wallet may differ slightly from wallet to wallet so please follow their instructions on how to generate a new address.
You can find a quick guide on Bitcoin wallets by visiting here: Cryptocurrency Wallets.
Once you have your wallet address, you can add it to the Bitcoin Address field found on our checkout page. If you already have an account registered with us you can update or add it by following the instructions below:
- Click on "Login" at the top right-hand corner of the screen and enter your login credentials.
- Click on "Edit your account information" under the My Account section.
- Copy and paste your Bitcoin address into the "Bitcoin Address" field.
- Click on "Continue", at the bottom of the page.
- If it worked correctly, you will see a Success message at the top of the screen.
Important: We have no way of knowing if this address belongs to you, or if it is valid or not, so please ensure that it is the correct one. This is where we will be sending the Bitcoin to and we have no way of reversing the transaction once it has been sent.
We are required, by law, to collect certain details from you to ensure that we are dealing with the right person. This also helps us to identify that the person purchasing cryptocurrency isn't someone who stole your personal details and isn't committing fraud with your personal details. Also, this helps to identify any money launderers and/or someone who is funding terrorist activities. We may be required to ask for identification. This could be your driver's license, health card, or passport, for example.
Some of the details that are required are as follows: name, address, phone number, and email address. For a smooth transaction, please ensure that these details are correct.
Important: We cannot receive payments on behalf of a third party. This means that, when placing an order, you are the one that is paying for that order.
We offer clients a variety of ways to pay for their order, like, cash deposit, Interac e-Transfer, and cash in the mail. Some of these methods are quicker than others, please refer to the checkout page and/or the email sent after placing your order for further instructions. When using Interac e-Transfer, please note that there are limits to how much you can send (usually $3000 per 24-hour period), refer to your financial institution for further details.
- Cash Deposit - We offer cash deposit to pay for your order at the five largest banks in Canada: TD, RBC, Scotia, CIBC, and BMO. This method requires that you present yourself at the counter to deposit cash into one of our accounts, at the bank of your choice. Simply select where you plan to make the deposit so that we may know where to look for it. Keep your deposit receipt as proof of deposit; we may ask for a copy of it.
- Interac eTransfer - Upon submitting your order you will receive an email with instructions on how to complete your transfer. Please follow the instructions so that we may complete your order as soon as possible. The email will include our eTransfer details, such as, email address to send to and password so that we may deposit it.
- Cash in the mail - Since this method cannot be completed within the same day, it is recommended that you instead request the purchase of a voucher instead of placing an order. Once we receive your cash, we will convert the amount received into a voucher which can then be used to complete your order on the checkout page. You can request the voucher here: BuyXBT Voucher.
For fully detailed instructions on our payment methods visit the following page: Payment Methods.