Bitcoin4U - Frequently Asked Questions

Bitcoin is a peer-to-peer digital currency. It can be transferred instantly and securely between people all over the world.  Bitcoin is like electronic cash, but it's different from traditional currencies because it is decentralized (does not use banks), in limited supply, semi-anonymous, and irreversible. 

It can be confusing because "Bitcoin" is the name of both the currency and the protocol of creating and using the currency. Usually people use Bitcoin (with a capital B) to describe the protocol/process and bitcoin (lower case b) to describe the units of currency.

The fastest way is online. Pay by Interac e-Transfer from your own bank account, or buy bitcoin by credit or debit card, and your bitcoin is sent instantly to your own wallet, day or night. For purchases of $25,000 or more, use a wire transfer. You can also buy with cash at one of our Bitcoin ATMs.

The first step to buying bitcoin is to set up a wallet. You need a wallet to store your bitcoin. See "What is a bitcoin wallet and how do I get one?" below to set up a wallet.

Six: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), USD Coin (USDC), Solana (SOL) and XRP. All six can be bought by Interac e-Transfer, by wire transfer ($25,000 or more) and with cash at every Bitcoin4U ATM. Card purchases (including Apple Pay and Google Pay) and Flexepin vouchers are for bitcoin only. Bitcoin4U buys back bitcoin only, online.

Bitcoin is stored in a wallet, which contains all the alphanumeric addresses you have.

A bitcoin wallet stores all the alphanumeric bitcoin addresses, the public and private keys, you have. It will also provide a bitcoin seed or mnemonic recovery phrase which is a list of the words needed to recover a bitcoin wallet.

Wallets can live on your mobile phone or computer, on a piece of hardware, or even simply on a piece of paper. Bitcoin4U does not make any specific wallet recommendations nor is directly affiliated with any companies who provide wallets. You should do research to find the option that works for you. 

Electronic wallets: this is software that will create and store your wallets for you on your phone, computer or other device. Search 'bitcoin wallet' on your device app store or web browser to download software.  

Hardware wallets: you can also purchase small devices that are designed specifically for storing private keys. 

Paper wallets: this is the simplest form of a wallet where you would use an online wallet generator and print out the address (private and public keys) onto a piece of paper. 

It is important to note that in all instances, if you lose a wallet or lose access to your wallet, you will lose the balance of bitcoin associated with that wallet, irreversibly. Anyone who access to the private key or the bitcoin seed has complete access to the bitcoin balance associated with that wallet.

Bitcoin4U buys bitcoin only, online, and pays you by Interac e-Transfer. To sell Bitcoin for Interac e-Transfer, enter your mobile number and the amount, verify your ID once, and send the bitcoin from a wallet you own or an exchange account in your own name. The e-Transfer is sent automatically, 24/7, once your bitcoin has one network confirmation, which usually arrives 10 to 20 minutes after you send it; occasionally a sale needs a manual check first. A sale is $50 minimum and $25,000 maximum. Our ATMs are buy-only. Our guide explains how to sell Bitcoin for cash.

No. Bitcoin4U ATMs are buy-only: they sell cryptocurrency for cash and do not buy it back. To sell bitcoin, sell it online and get paid by Interac e-Transfer.

A bitcoin seed, also sometimes referred to as a mnemonic recovery phrase, is a list of 12-24 words that store the information needed to recover a bitcoin wallet. A wallet will typically generate the phrase and the user will record it and store it separately. 

Anyone who has the bitcoin seed will be able to access the bitcoin balance associated with that wallet. Seeds should be stored securely.

The Bitcoin network is a shared public ledger called the blockchain. This ledger is a record of every transaction ever processed. Transactions are verified by digital signatures that are private keys corresponding to the unique addresses. This signature ensures that the transaction cannot be altered by anyone else. 

When you choose to transfer bitcoin, you will use your private key to create a transaction, which is a long string of numbers and letters. This transaction is broadcast to the Bitcoin network to be confirmed. 

The process of confirming the transaction is called mining. To be confirmed, transactions must be included in a block that fits with the cryptographic rules that will be verified by the network. Once a transaction is included in a block, that's the first confirmation. Any subsequent blocks created also further confirm the transaction. How many confirmations a recipient waits for is up to them: when you sell bitcoin to Bitcoin4U, your e-Transfer is sent after one. 

The process of confirmation usually takes about 10-20 minutes, although it can be longer depending on the activity of the network. While the actual creation of the bitcoin transaction is instant, the confirmation process takes time. 

No, you cannot buy or sell bitcoins to/from Bitcoin4U without a mobile phone.

Before you purchase online or at an ATM, Bitcoin4U will provide you with a rate that will be secured for that transaction. Our current rates and fees are listed for every payment method.

These are the most you can buy or sell with each method; your own limit may be lower, depending on your verification:

• Interac e-Transfer, buying: $50 to $25,000 per 24 hours.
• Interac e-Transfer, selling bitcoin: $50 to $25,000 per sale.
• Credit or debit card (bitcoin only): from $50 up to the card maximum on the fees page.
• Flexepin (bitcoin only): $1,000 per 24 hours and $2,500 per 7 days.
• Wire transfer: $25,000 to $100,000 per transaction, one wire per month.
• Bitcoin ATM (cash): up to $40,000 per 24 hours.

See our current limits and fees.

Yes! Increasingly, there are more and more businesses and individuals accepting bitcoin.

Yes. Buying, holding and selling Bitcoin is legal in Canada, but it is not legal tender. Businesses that exchange it, like Bitcoin4U, must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as money services businesses and follow Canada's anti-money-laundering rules. Our guide on whether cryptocurrency is legal in Canada explains who regulates what.

NO!   If you have been told to purchase bitcoin to send to a third-party or to pay a government agency, this is likely fraudulent. See "How can I protect myself from scammers?" below for a list of common scams.

Only send bitcoin to people you know and trust, as all transactions are irreversible.

In Canada, income on cryptocurrency transactions is generally considered as business income or as a capital gain. According to Canada Revenue Agency, possessing or holding cryptocurrency in general is not taxable but there could be tax implications if you:

• sell or make a gift of cryptocurrency
• trade or exchange cryptocurrency, including disposing of one cryptocurrency to get another cryptocurrency
• convert cryptocurrency to government-issued currency, such as Canadian dollars
• use cryptocurrency to buy goods or services 

See the Canada Revenue Agency's guide for cryptocurrency users and tax professionals.

Only send bitcoin to people you know and trust, as all transactions are irreversible. 

Common scams are:

• An individual or company claiming they have overpaid you and asking for bitcoin repayment
• An individual or company claiming you owe government taxes and asking for bitcoin payment
• An individual or company claiming you are in legal trouble and asking for bitcoin payment
• An individual or company asking for help in moving funds in exchange for a portion of the funds
• An individual or company asking for a bitcoin deposit for a new job offer
• An individual or company asking for a bitcoin deposit for a purchase that seems to be 'too good to be true'
• An individual or company asking for payment of a utility bill (such as hydro). This is often with urgency and threats of immediate service suspension.
• An individual or company asking for a bitcoin deposit for a prize won 

All transactions are recorded in the Bitcoin shared public ledger, although the identity of the buyer/seller is not necessarily known.

No. All bitcoin transactions are irreversible.

Bitcoin4U is registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a money services business. Canada's anti-money-laundering rules require businesses like ours to verify the identity of their customers for certain transactions, and we verify every customer so that bitcoin is not used for illegal purposes. This includes verification of your name, occupation, date of birth, address and identification details.

You cannot buy or sell bitcoin with Bitcoin4U without government-issued identification.

Your privacy is very important to us. For information on the collection and storage of your personal information see our privacy policy.

There is no username or password. You verify your ID once on our ID verification page, then place each order with your mobile number, and each order is confirmed with a code texted to your phone. Receipts are emailed; if we have no email address for you, or you need a copy, use our get a receipt page. My account also lists your full transaction statement and how to change the email address on file, each confirmed with a texted code.

No, Bitcoin4U can only sell to or buy bitcoin from residents of Canada.

Yes, and online is the fastest way. Pay by Interac e-Transfer from your own bank account and your bitcoin is sent instantly, day or night, as soon as your e-Transfer lands; the same checkout sells Ethereum, Litecoin, USD Coin, Solana and XRP. You can also buy bitcoin by credit or debit card (including Apple Pay and Google Pay), sent as soon as your payment goes through, with Flexepin vouchers, or by wire transfer for larger purchases of $25,000 or more. You can also buy with cash at any of our Bitcoin ATMs across Canada.

Yes. Every Bitcoin4U ATM sells Bitcoin, Ethereum, Litecoin, USD Coin, Solana and XRP for Canadian cash. There are 183 Bitcoin4U ATMs in six provinces: Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia and Ontario. The machines are buy-only and take cash only, up to $40,000 per 24 hours (your own limit may be lower). The rate is shown and locked when you start the purchase. Your ID is verified once, on your phone, before your first purchase, and you can verify your ID ahead of time. Bring your mobile phone and a wallet for the coin you are buying, then find a Bitcoin4U ATM.

Yes. Bitcoin4U accepts bank wire transfers for cryptocurrency purchases of $25,000 CAD or more. Wire purchases are arranged by request — submit a request on our wire transfer page and, after a quick identity verification, we'll email your wire instructions. Once your wire arrives we send a secure link where you lock your rate before any cryptocurrency is bought, and your coins are sent within minutes of the rate being accepted during business hours. When selling bitcoin to us online, payouts are sent by Interac e-Transfer.

If you lose a wallet or lose access to your wallet, you will lose the balance of bitcoin associated with that wallet. This is irreversible.  The bitcoin will be dormant forever, as there is no way for anyone to access it.

Buying online, your bitcoin is sent instantly, at any hour, as soon as your Interac e-Transfer lands or your card payment goes through; most banks deliver an e-Transfer within minutes and a few take up to 30. 99% of bitcoin orders paid by e-Transfer with the "Right now" send, by card or with a Flexepin voucher are sent within 20 seconds of the e-Transfer being deposited and matching your order, the card payment going through or the voucher being redeemed; an order held for a name, amount or address check takes longer, and when the network is busy the card and Flexepin pages show a longer expected wait. The lower-fee "I can wait" e-Transfer send goes out in a batch within the wait shown on the order form. A wire purchase is sent within minutes of the rate being accepted during business hours. Once sent, the bitcoin still needs to be confirmed, and while it is being confirmed it will show as pending. The process of confirming bitcoin transactions usually takes about 10-20 minutes, although it can be longer. See "How do bitcoin transactions work?" above, and our guide to the fastest way to buy Bitcoin in Canada.

No. All bitcoin transactions are irreversible. Always ensure you have the correct address and are sending bitcoin to a trusted individual.