Bitcoin is easily lost — when a storage device is misplaced or stolen, through a scam or phishing attack or when an exchange crash wipes out your investment.
BitDirect is a platform that enables Bitcoin investors to manage their cryptocurrency investments through a shared custodial, 2-of-3 multi-signature wallet structure coupled with an offline private key stored on a Bitcoin hardware device.
Conceived by Andrew Field, an entrepreneur and investor in the Bitcoin space, BitDirect was developed as a direct response to the growing global concern over the loss or theft of Bitcoin and provides a local solution to a universal problem. Developer Oliver Shepherd brought the concept to life over two years.
“We recognised a global problem and need for a secure and reliable storage solution that could protect investors’ funds from the countless scams, exchange hacks, confiscation and freezing of funds that are taking place more and more frequently in the cryptocurrency industry,” Field says.
BitDirect’s innovative technology comes at a time when the need for secure Bitcoin storage is more critical than ever. With the collapse of crypto exchanges like FTX, where many investors lost their money as their cryptocurrency could not be attributed to them, BitDirect’s much-needed solution is a game-changer for the South African financial and tech markets.
The platform is BIP48 compatible, allowing investors to move their Bitcoin via a third-party wallet provider, such as Electrum, without any direct involvement from BitDirect. One of the most remarkable aspects of the platform is that investors can log in to BitDirect and restore a new hardware device if they lose their hardware wallet and seed. BitDirect and the investor’s advisor will co-sign a transaction to move the funds to a new hardware device, ensuring that investors never lose their Bitcoin.
“Unlike other Bitcoin storage solutions, advisors can’t enter a third-party address to send investor clients’ funds elsewhere. The advisor can only approve or deny transactions, process fees and help restore a new hardware device with BitDirect in the event of a loss,” explains Shepherd.
Additionally, investors can move their funds through the BitDirect platform and BitDirect will co-sign the transaction to transfer the funds to either an external wallet or a new advisor.
Field and Shepherd point out that many people are hesitant to invest in cryptocurrency as they do not fully understand the technology. “That’s why we’ve created a platform that is easy to use and easily accessible to everyone. We want to empower South Africans to take advantage of this technology and all the advantages that come with it,” concludes Field.