BitPrime Review

BitPrime Summary

• BitPrime is a popular New Zealand based platform, registered as an NZ financial services provider, to buy or sell various cryptocurrencies, including Bitcoin.
• The company explicitly differentiates itself from exchanges and brokers by defining itself as a cryptocurrency retailer. What this means is that BitPrime does not act as a wallet, as most other platforms do.
• To use BitPrime, you’ll need to make your own cryptocurrency wallet first. When you complete your purchase with BitPrime, you’ll need to nominate an address where your cryptocurrency should be delivered.
• Under this model, BitPrime does not have the responsibility or risk of being the custodian of clients’ money.
• To use BitPrime, you’ll need to make your own cryptocurrency wallet first.

The important details:

• Payment methods: Bank transfer, POLi and debit/credit card via third-party payment provider Simplex
• Order Fees: Fees depend on the payment method and order size. For card payments, the fee is 5%. For bank transfers below NZ$20,000, the fee is 2.9%; for larger transactions, discounts are available. 
• Coin prices: Quotes for buying and selling are updated every five minutes and are quoted in NZD
• OTC: BitPrime offers a low-fee over-the-counter service, where it acts as a broker between buyer and seller. It states that these transactions are in the region of $50,000 to $500,000. We have not reviewed the OTC fees and functionality in this guide as we focus on BitPrime's core retail market.
• Ongoing account Fees: None
• Minimum order size: NZ$100
• Settlement: Private wallet
• Coins available: 89 different coins, including Bitcoin. Almost all coins are able to be sourced through the BitPrime's custom order page. You can use CryptoSpot for live rate comparison.
  
• Learn more: BitPrime

 
To explain BitPrime in detail, our guide covers:

• Setting up a BitPrime-Compatible Wallet and Buying and Selling
• BitPrime's Safety
• ​Pros and Cons
• Alternatives to BitPrime - Easy Crypto vs Binance vs LocalBitcoins
• Frequently Asked Questions

Warning:

1. By publishing this guide, we are not recommending or suggesting in any way or form that Bitcoin or any other cryptocurrency is a suitable investment.
2. We published and update this guide to help people understand the BitPrime platform - MoneyHub is conservative, and our publisher, Christopher Walsh, has zero Bitcoin or other cryptocurrency investments.
3. We present this information in good faith and remain objective at all times. ​By including this guide under our Investing and Saving section, we are not advocating that cryptocurrency is an investment. We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.​​

Payment methods supported by BitPrime are as follows:

• Bank transfer
• Account2Account
• POLi
• Credit card.

Fees: BitPrime's fees are simple to understand for simple retail purchases. These are:

Purchases made by Bank transfer, Account2Account and POLi:

• $100 – $20,000 + 2.90%
• $20,000 – $50,000 + 2.0%

Purchases made by Credit Card:

• Any amount $100 + 5.0%

Why are the BitPrime quotes different from what I see on Google or on other retailers?
BitPrime makes it clear upfront that the coin rate you see on Google is not what BitPrime offers. This is due to many factors, including:

1. Google converts USD coin prices into NZD, which does not take into account the FX fees imposed by banks. 
2. Coins in New Zealand are typically priced at a premium given the lack of supply (as is the case in other countries such as South Korea and Brazil).
3. BitPrime's process to source coins on the overseas markets involves a lot of slippage given it takes 3-5 working days to convert NZD into USD.
4. BitPrime makes it clear that they fluctuate because they're based on supply and demand, international market rates, what currency you purchase and the low liquidity in New Zealand. 

Fractional and Set Dollar Amount Purchases

• BitPrime allows you to buy or sell one particular cryptocurrency based on fiat amount (e.g., $100 worth of bitcoin), or in units of crypto (i.e., 0.1 bitcoin). 
• For buy orders, you will need to enter your wallet address for BitPrime to send you the purchased crypto. For sell orders, you will need to send your crypto to BitPrime's wallet. The settlement is in NZD and is sent to your bank account within 24 hours of sending your coins to BitPrime.
• Prices: Once you receive the quote and hit buy, the prices are locked in. There is no fluctuation as you're buying for a fixed price given BitPrime is a retailer.  
  
• Minimum order: There is a minimum order amount of $100 NZD, which applies to both buy and sell orders. BitPrime sends purchased coins directly to your existing wallet or a hardware wallet.
• The time it takes for crypto to arrive on your wallet will vary based on the network activity at the time; we believe, based on market movements, that this can range from a few minutes to around an hour.

Important: You can only buy and sell cryptocurrencies using a market order. As BitPrime is a retailer, you will buy at the rate they display. If you sell, BitPrime offers a quote that you can accept or decline. BitPrime does not support buy or sell limit orders.

​Many exchanges allow you to keep your purchased cryptocurrencies in an account on their platform. The idea is to make it convenient for active users to buy and sell cryptocurrencies, and to avoid the network costs of withdrawing currencies into your wallet.

Unlike these exchanges, your NZD (fiat) and crypto do not get stored in an account on BitPrime's platform. Instead, when buying crypto on BitPrime, your fiat is sent directly to your wallet. 

Further to this, no funds are stored on BitPrime. BitPrime is a retailer, which means you pay to purchase coins and take them into your wallet - none of your money is held by BitPrime after the transaction takes place. Conversely, if you're selling coins to BitPrime, your money is deposited into your bank account <24 hours after you've sent the coins to BitPrime's wallet. No funds are sent to your BitPrime account. 

Know this: Delivering your purchases into your wallet is arguably the most secure way of buying and selling crypto because it avoids having your money stored on an intermediary platform (such as an exchange), which has a risk of getting hacked. Hackings of platforms are not uncommon in the crypto world - Christchurch-based Cryptopia is one example of many. When exchanges are hacked, the investors can lose some or all of their crypto. 

BitPrime isn't the only option for New Zealanders - we compare three popular and trusted options below.

BitPrime is user-friendly and transparent, but there are still some must-know facts to be aware of. We answer common questions below:

Yes - BitPrime highly recommends purchasing hardware, giving examples such as Trezor and Ledger. They also recommend using Jaxx Liberty or Exodus. 

Yes - BitPrime's process is straightforward. Users wanting to sell request a quote by clicking the Sell button on the All Coins page. BitPrime then quotes a price - if you accept the quote, the next step is to transfer the coins to BitPrime's wallet. Once received, BitPrime transfers the agreed NZD amount to your bank account within 24 hours.

BitPrime makes it clear in its terms and conditions that is is "the responsibility of the customer to manage any taxable income resulting in the buying and or selling of cryptocurrency". To understand more about tax on cryptocurrencies, visit the IRD's website here.