Frequently Asked Questions

Bitcoin

What is Bitcoin?

Bitcoin is a new kind of currency. This is the first decentralized electronic currency that is not controlled by any organization or government. It is an open-source project, and used by more than a million people. Every single day, people from all over the world trade hundreds of thousands of dollars worth of Bitcoin without a broker and without credit card companies.

Bitcoin is the first fully digitized digital currency. The network is made up of users like you, so there's no need for a bank or clearing company between you and those who trade with you. This decentralization is the basis for the safety and freedom of the Bitcoin.Email let us send letters for free, anywhere in the world. Skype lets us make phone and video calls for free, anywhere in the world. Now there's bitcoin. Bitcoin lets you send money to anyone online, anywhere in the world for a few cents per transaction! Bitcoin is a community-run system, not controlled by any bank or government. There's no banker getting rich by standing between you and the people you want to send and receive money from.

Email allows us to send letters for free from anywhere in the world, Skype allows us to make free phone and video calls anywhere in the world, and now we have Bitcoin, which allows us to send money to anyone on the Internet, anywhere in the world, at a cost of a few cents only per transaction! Bitcoin is based on a communal system that is not controlled by any bank or government, and no banker who gets rich from the transactions between you and the people you want to send and receive money from/to.

Bitcoin is more effective than all competing currencies. This will drive its adoption in the same way that personal computers have been adopted - computers have made people more efficient in the market competition. Coins have value in their very use. Bitcoin is a currency at the beginning of its path and has a deflationary economy (a decrease in the amount of money, as opposed to inflation) that feeds itself. Its use is spread by providing an incentive for speculation.

In our opinion, Bitcoin is going to be the greatest opportunity for innovation that the world has seen since the Industrial Revolution. An idea whose time has come to boom!

 What determines the Bitcoin value in dollars?

The Bitcoin rate is determined by supply and demand on the global exchange market. Fundamentally, bitcoins are generated by consuming computer power, which costs money (electricity, computing system). However today’s price of bitcoin reflects much more the confidence of a large number of people in the bitcoin system. When the system experiences problems, either internal (software bugs) or external (attacks on exchanges), the price goes down. In contrast, as the economy grows and more users and merchants join, the price of bitcoin goes up.

Can I get rich-fast with Bitcoin?

We don’t speculate on the short-term changes in Bitcoin price.

Should I invest in bitcoin? What are Bits of Gold’s projections for Bitcoin?

Bitcoin is a risky investment with a potentially high payoff. The bitcoin system itself has proved robust against attacks for the past four years. However, before investing you need to consider factors such as the bitcoin/dollar price volatility, the changing regulation around the world and the security of your bitcoin wallet. At Bits of Gold we believe that bitcoin is becoming “the cash of the internet”, and we want to make it easier for you to join this new economy in a reliable and secure way. We do not offer projections for bitcoin prices, but if you do decide to buy or sell bitcoins in Israel, your best choice is indeed through Bits of Gold.

How do I buy bitcoins through Bits of Gold?

  • Select how many bitcoins you wish to buy here: “Buy Bitcoin”.

  • Tell us where to send the bitcoins (your wallet address).

  • Choose which form of payment you would like to use to transfer us the money (bank transfer, cash transfer, credit card). Below you will see these options and the instructions in order to execute the transaction with the payment option of your choice. 

  • After locking the rates, we require identification from clients when dealing with transactions of 1000 ILS or more. This is for regulation purposes, and is kept strictly private. More info on how to upload an ID is further explained below.

  • You will receive an email notification once your bitcoins have been purchased, as well as once your coins have been sent to your wallet. 

Does Bits of Gold take commission for each transaction?

Yes, every transaction done through Bits of Gold has a commission fee. All of our fees include Israeli VAT tax. Bits of Gold has its own Bitcoin rate, which is based on the Google rate for ILS to USD, and an average rate of all the main world leading exchanges. With no oficial Bitcoin rate, this method best reflects the accepted Bitcoin rates worldwide.

Additionally, there are third-party transaction fees that depend on the payment method used for each transaction (note - "others" is the fee that the third-party takes).

Currently, the credit card payment option and its fees are through and according to Coinmama.

The fee for the purchase of Bitcoin is 3.95%.

The fee for Bitcoin cash deposits is also 3.95% plus another 3% commission from the change house (or the amount that is specified in the "Cash Payment" Section below).

The fee for bank transfers depends on the fee each bank charges.

The fee for Ethereum is 4.5% in all the payment methods.

Our sell fee for Bitcoin is 4.95%. 

How do I transfer you the money in order to buy Bitcoin?

There are three payment methods: wire or bank transfer, cash payment and credit card. Each method has its advantages and disadvantages, you can choose the one that works best for you. We will thoroughly explain each one below. 

You must specify in each order the exact amount you are going to pay, and if it's for the purchase of Bitcoin or Ethereum. If you want to buy a certain amount of Bitcoin and a certain amount of Ethereum, you must open separate orders for each one and in each order specify if it's for Ethereum or Bitcoin and the amount you want to buy (the amount of money) of each.

How does the wire / bank transfer method work?

Bank transfers are currently our cheapest payment method, due to the fact that there is no third-party involvement. Currently, we only accept bank transfers for amounts over 5,000 NIS.

Bank Transfers can be done in a number of ways, depending on the bank you work with. 

For quick transfers, it is recommended to do an IBAN/WIRE transfer or an internal bank transfer (from Bank Leumi). These are usually the fastest way for us to receive the money, and the rate is locked the moment we see your transfer in our account.

 

For HaPoalim clients, you can do normal bank transfers to Moneynet - a money management company we use in order to take care of our HaPoalim Bank clients. It is important to note that in order for us to lock the rate, we need MoneyNet's approval and confirmation form for the transactions (which happens twice a day - at 10:30 and at 16:30). If we receive the money and confirmation form before 16:30 we will be able to send you the coins that day. If we do not receive the money before 16:30 we will only be able send the coins only the following day. On Fridays, we check with MoneyNet only at 10:30. Nevertheless, we will still be able to lock the price of your coins based on the confirmation document from the bank. Therefore, we ask haPoalim bank clients to upload a picture of the reference in order to be able to lock the rate before we get MoneyNet's approval, in order to speed up the process. The coins will be sent the moment we have MoneyNet's approval. 

For the rest of the banks, normal bank transfers will take one business day to be approved and appear in our bank account.

Once the money has been received (which will sometimes take one bussiness day, depending on the bank, as explained above) we will lock the market's coin price (rate) and send you the exact amount of coins you paid for. 

You will receive the relevant account information after making an order

How does the cash payment method work?

Cash payment is a popular method because of its simplicity. Cash Payments are limited to a maximum of 10,000 NIS.There are two ways to pay with cash:

1. Purchase using the first Bitcoin ATM in Israel located at the Bitcoin Embassy (Achuzat Bayit #1, Tel Aviv). You need to go into the Embassy, deposit cash and get Bitcoins sent directly to your phone's Bitcoin wallet. Ethereum is not available for cash payments through the ATM. The fee for the ATM is 5%.

2. The second way is through a cash deposit using one of the GMT branches. For this option, you must first open an order in our site. Then you have to physically go to one of the 222 GMT branches listen on the website, and request to deposit money to Bits of Gold / to buy Bitcoins. The clerk will ask for your email address (the one you registered in your order) and will ask for an ID. This is the way we recognize and associate this order to you. After depositing the money, we get a notification, identify your order and lock the Bitcoin rate in the next round hour. This process usually takes from a few minutes to an hour, and is relatively efficient. In addition to our commission, the change house (GMT) charges 3% (for payments under 1,000 NIS the commission is ₪ 29.90). 

See link for details of the various change branches: GMT branches.

How does the credit card payment method work?

Currently, it is important to know that the credit card payment option is done through Coinmama - a trading Bitcoin company. You need to register on their website and carry out the procedure as specified on their website. We are working hard on a direct credit card payment option through us, we hope it will soon be an option. We will update accordingly. In the meantime, please ignore the rest of this section.

This method is comfortable and familiar to most customers, and is carried out quicker than a standard wire transfer. Credit card clearing is carried out by a third-party called SimplexCC. The credit card clearing fee at this point is 5% or minimum 10 USD. This is in addition to Bits of Gold's fee which is 3% for Credit Card.

In order to pay with credit card you must first go through a full KYC: First Name, Last Name, Phone, ID upload. Note that the ID card must be uploaded to your profile page (even if previously submitted via email). User authorization is done once, takes up about half an hour and is done by us.

After you enter your credit card information, the clearing is done by the third-party, and the initial purchase is expected to take up to two hours (during working hours). The Bitcoin rate is locked automatically immediately after receiving clearing approval by third-party (no need to wait for the next round hour you would in wire transfer or cash!). After clearing approval, you will receive an email announcing the approval of the transaction.

It's important you pay attention to costs: the clearing is carried out in dollars and therefore the charge against the credit card company will be in dollars. According to the current amount restrictions, the order has to be: over $50 per order (~200 ₪), up to $5000 a day (~17,000 ₪), up to 20,000$ a month in total (70,000 ₪).

How do you send me the bitcoins? What rate do I receive?

We send the bitcoins to the bitcoin wallet address you specified when opening the order. The bitcoin rate is locked every round hour, between 10:00 till 18:00, Fridays between the hours 09:00 to 12:30, we don't lock rates nor work on Saturdays. You will receive the rate that was locked the moment your money is accepted in our system. When selling Bitcoins the rate will be locked automatically as soon as the bitcoins are sent to our wallet (may take up to 6 confirmations on the Blockchain).

How long will it take until I receive my bitcoins?

Once your money is accepted into our system, the rate will be locked in the hour following, and then we will send you the coins as soon as possible. The sending of the coins depends on the banks (both yours and ours), this may take between several hours to several days, depending on the time it takes the bank transaction to become final (irreversible).If it is urgent for you to get the rate and the coins fast, we don't recommend buying bitcoins/ethereum during weekends and holidays, since the majority of banks are closed. As an alternate solution, you can pay through credit card (subject to approval of the account during their business hours).

Can I sell bitcoins through Bits of Gold?

Yes, we currently offer both Bitcoin buying and selling services.

To sell Bitcoins, you must open a sell order, and send the Bitcoins to the Bitcoin (wallet) address that appears in the order. Once you have sent the Bitcoins, you will receive an email updating you on the amount you ought to receive after the sell. To sell Bitcoin, you must open a sales order and send the Bitcoin to the Bitcoin address that appears on your order. As soon as you send the Bitcoin, you will receive an email informing you of the amount you are likely to receive following the sale. The said sale is executed automatically and is executed after approval in the transaction block. Please note that the sale is at your own risk, and once you have made it you will not be able to cancel it, as we sell your Bitcoin to the free world, so please make sure that you understand all terms of use and conditions before the sell. The Bitcoin wallet to which you will send the Bitcoin is a one-time use wallet and will serve you only for one sale. For additional sales, open new sell orders. Our sales commission is 4.95%.

After you have sent the Bitcoins, you can receive the money of their worth through a wire transfer or by cash. The wire transfer will be sent directly to the account you entered when you opened the sell order. If the sell order is under 1000 NIS, we can either give you the money in cash or through a wire transfer( there is a 40 NIS cost for the wire transfer). The cash option is limited to 10,000 NIS a day. You can get the cash through all GMT branches across the country. When you open the sell order, instead of your bank account information, please write: "Cash" instead, your full name as it appears in the ID, your mobile number, social security number (ID number). In order to go to one of the GMT branches, you must first wait to receive a code from us. Then you provide the code to the GMT clerk in the branch, and they will give you the exact amount for your sell. Please note, this might be new to some clerks at the GMT branches, don't hesitate to call us or have them call their manager, and he will be directed.

How do you calculate the average rate?

To calculate the Bitcoin rate, we take the rates of all the major trading platforms in the world (such as Bitstamp, Bitfinex, BTCC), giving weight to each of their trading volume. The rate can be viewed in real time on the Tradeblock site. More information about how it's calculated can be found here and here.

The Ethereum rate is in accordance to Bitfinex: https://www.bitfinex.com/ 

What is my "wallet address"?

Think of it as your bank account number, but in the bitcoin system. It is made up of a long string of letters and digits, starting with the digit 1. It looks something like this: 1GmygGLkTFVP4unWCWFG4x89PY7ahXRKC. 

Most users install a Bitcoin Wallet software, which creates a wallet address for them. You can own as many bitcoin wallets as you wish. If you don’t own a wallet, you can create a free wallet using an online wallet solution from another website, called MyWallet in Blockchain.info (click here to open one). There are several wallet options to choose from. Please note wallets installed on your PC might take a few days to fully download all the data - don't use it until it's done.

Is bitcoin secure?

Yes, if you take the necessary steps: secure your computer, encrypt your wallet, save and protect your password. The Bitcoin system itself is extremely safe from currency forgery, double-spending, denial-of-service attacks, transport theft, and many other types of risks associated with currency and money transfer systems. However, in Bitcoin, the user holds the key to using his/hers own coins. If this key is lost, the coins are lost. If the key falls in the wrong hands, for example if your computer is hacked, the Bitcoins can be accessed and sent to other wallets. For that reason, we recommend that you keep your wallet encrypted, and your PC secured.

My computer has been hacked and I'm being extorted. Can you help me?

Yes, we have helped a lot of cases and can certainly try to help. Unfortunately, sometimes the anonymity of Bitcoin does not work for the best. Locking your computer and being extorted is one of the negative aspects of Bitcoin. We want to make your experience as comfortable as possible. First, if you indicate in your order that you are buying for the release of your computer, you will be entitled to a commission discount. Second, we will be happy to help you by phone if necessary.

I downloaded the Bitcoin-QT software, but it’s out-of-sync. What does that mean?

Bitcoin-QT downloads and verifies the entire history of bitcoin transactions, which may take up to a day. This helps the bitcoin network, but it means that transactions involving your wallet will only be recognized when the software downloads and verifies them. If you use this wallet, make sure you are in-sync before you sending coins to that address.

 

Ethereum

How can I buy Ethereum through Bits of Gold?

Our website is under construction, therefore when you press on "Buy Ethereum" you will be directed to the same page as "Buy Bitcoin". But as long as you register an Ethereum wallet address, you will receive Ethereum.

After placing your order and clicking on "I sent the money", you can also write "Bought Ethereum" in the comments section of your order.

How do I transfer the money to buy Ethereum?

You have two payment options: Bank transfer (over 5,000 NIS), or cash (up to 10,000 NIS a day). 

Which Ethereum wallet do you recommend?  

There are a number of Ethereum wallets available (although there aren't as much as the Bitcoin ones) and they are very easy to use:

1. Myetherwallet.com wallet, slightly different from what Bitcoin recognizes, must first be created with a password, and then download a JSON file, so please click on the following link.

2. A second option is to download Ethereun's 'original' wallet (and download Ethrium's blockchain). Download it here, in accordance to the type of computer you have. 

Who are you guys, and why should I trust Bits of Gold LTD with my money?

Bits of Gold LTD is a registered company, owned by its co-founders. We work as a small and enthusiastic team composed of:

  • Jonathan Rouach, founder, Technion EE, formerly IP manager & algorithm developer, experienced in competitive intelligence
  • Youval Rouach, CEO, Tel-Aviv Uni. BA in Economy and Communications, formerly Captain in the Artillery corps of the IDF
  • Chen Benjamin, Director of Operations, BA in Economy and Political Science, formerly Analyst at Presice, Captain in the Armored corps of the IDF
  • Meni Rosenfeld, Advisor, Bitcoin expert, Weizmann M. Sc. in maths, formerly Head of Research at SimilarGroup
  • Ruben Arnold, Strategy and Business Development, Technion EE, startup advisor, senior consultant at McKinsey 
  • Golan Shlomi, Legal Advisor, Money Regulation, Lawyer, regulation expert on money service businesses in Israel for the last 15 years

Ask us anything! Email us at info@bitsofgold.co.il .

The money left my bank account, but I still don’t see the bitcoins in my wallet, why?

If you send your money through a regular bank transfer, it takes one business day until Bits of Gold receives your money and the transfer is accepted into our system. When you order on weekends, holidays, or at night, the "one business day" count may vary - it depends on when you transferred the money (which time), from and to which bank, etc. We are working on a solution to this problem. If more than one business day has passed, please contact us by phone or email, and we will do our best to send the coins as soon as possible. We recommend placing an IBAN transfer for faster transfers.

How do I place an IBAN transfer (העברת זה”ב) to Bits of Gold?

Depending on your bank, you can either do it online or physically go to your bank branch.

I see you are based in Tel-Aviv. Can I come and buy bitcoins using cash?

Yes, of course. You can use our Bitcoin ATM or go to one of the 150 change houses (GMT) we work with. For more details see below.

Furthermore, you can deposit cash to our bank account at any Leumi Bank  branch. In both cases come with your ID card (תעודת זהות).

Can I get a receipt for my payment to Bits of Gold?

Yes. We send an electronic invoice for each transaction. The VAT tax is calculated on the transaction fee (עמלה), which is the price of our service.

I own an online business in Israel. Can I accept bitcoins using Bits of Gold?

Yes, of course! Please contact us at info@bitsofgold.co.il, or call: 03-613-3034 for details.

Can I place a Limit Order?

Not at the moment. We suggest transferring your bitcoins to a larger exchange, and use it for day-trading.

What are your working hours?

Sunday - Thursday: 10am to 6pm

Friday: 10am to 12:30pm (we don't come to the office though, so you can contact us by email or phone)

We are closed on Saturdays.

We’re in Israel, why is Bits of Gold’s website in English?

For simplicity and to make it a little easier for all our international friends.

All Israelis can read simple English. If you wish to have the Hebrew version, just click on the Israeli flag above.

How do you deal with anti-money-laundering regulation?

We closely follow all applicable laws, and consult with the best specialists in the matter. In particular, we have an obligation to report any suspicious activity and we can refuse an order if there is any doubt on the validity of the deal. We are also required by the Prohibition of Money Laundering Authority to obtain a signature for all transactions over 50,000 NIS (the client must physically come to our offices to sign documents for the Prohibition of Money Laundering Authority).

Where can I pay with cash?

Click here to see all the branches of GMT where you can pay with cash.

Here is a map of some of the branches where you can pay with cash:


View Bits of Gold - GMT in a larger map

I have other questions, where can I get support?

Our support team is here for you during working hours, by email and phone:
info@bitsofgold.co.il
03-613-3034