Bitcoin Frequently Asked Questions


  • No, bitcoin balances in your NYDIG bitcoin account are not insured by the Federal Deposit Insurance Corporation (FDIC), National Credit Union Association (NCUA), the Securities Investor Protection Corporation (SIPC), or any other public or private insurer.

  • First Foundation Bank has partnered with NYDIG to make bitcoin trading services available through our online and mobile banking applications that allow you to buy, sell, and hold bitcoin. It provides a 24/7, seamless experience to access bitcoin.

  • NYDIG is a Bitcoin company that provides regulated, audited, and insured custody solutions for banks, fintech companies, and nonprofits. https://nydig.com/about-us

  • To open a NYDIG bitcoin account, log into your online banking or mobile app and locate the bitcoin menu. Click the bitcoin menu option to begin the enrollment/account opening process. If you have any questions when opening your NYDIG bitcoin account, please contact our customer support team.

  • NYDIG has certain eligibility requirements, further detailed in NYDIG’s Terms and Conditions. Eligibility criteria include, for example, the requirement that individual users be at least 18 years of age, reside in an eligible state, and not be subject to backup withholding. You must also agree to necessary terms, including NYDIG’s E-Sign Consent and Terms and Conditions.

  • Bitcoin trading is not allowed on accounts owned by businesses, trusts, or estates.

  • No, you are unable to add a beneficiary directly to your NYDIG bitcoin account at this time, however, NYDIG may honor death beneficiaries associated with any linked bank account or otherwise pay out your account in accordance with applicable law or court order.

  • You may request to close your NYDIG bitcoin account at any time by contacting us. Your NYDIG bitcoin account will not be closed until NYDIG has had a reasonable time to act on the request. You can only close your NYDIG bitcoin account if you have sold all bitcoin in your NYDIG bitcoin account, meaning you have a balance of zero. If you have a bitcoin balance, you must sell all of your bitcoin holdings and then request to close the NYDIG bitcoin account.


  • Your bitcoin account balance is securely held in cold storage with no internet connection by NYDIG as the custodian. This provides you with more protection than a digital wallet or exchange that relies on “hot wallets,” wallets that have been connected to the internet – which can be more vulnerable to hacking attempts. Most wallets opened on other exchanges are held in hot wallets.

  • The quantity of your bitcoin will not decrease, but the market value of your bitcoin (in U.S. dollars) may fluctuate (up or down).

  • NYDIG safeguards your bitcoin using its proprietary custody solution, which utilizes a multi-layered security system with 100% cold storage to secure your bitcoin.

  • While no financial service can be completely safe from fraud, the only way to access your bitcoin with NYDIG is through our online banking portal, and we take the same measures to secure access to your online banking account that we always do. In addition, the fact that funds can only flow through your linked bank accounts (instead of bitcoin being transferred to third parties) serves as additional fraud protection.

  • Your NYDIG bitcoin account is an individual account, not a joint account. Because NYDIG’s bitcoin trading services are linked to your eligible online banking accounts, please be aware that any other owners or authorized users on those bank accounts will have access to your bitcoin sale proceeds deposited into them. If you do not wish for such owners or authorized users to have access to your sale proceeds, you should not link that bank account at enrollment or direct proceeds from sell orders into it.

  • If you suspect that your NYDIG bitcoin account was compromised, reach out to our customer support team. We will work with NYDIG to freeze your bitcoin account while we investigate your claim.

  • Please send us the details of your inquiry through Online Banking using a secure message or email us at onlinebanking@ff-inc.com.



  • If you sell any bitcoin from your NYDIG bitcoin account, you will receive IRS Forms 1099-B from NYDIG, and NYDIG will also report the information to the IRS. Any Form 1099-Bs you receive from NYDIG will only cover bitcoin sale transactions.

  • You may have tax liability that arises from selling bitcoin. It is your responsibility to determine whether, and to what extent, you have tax liability and to report and remit the correct amount of taxes to the appropriate tax authorities.


Bitcoin services are provided to you solely by NYDIG Execution LLC (“NYDIG”) upon opening an account with NYDIG. Bitcoin trading involves risks, including possible loss of value. Not insured by the FDIC or SIPC. See Terms for detail, including eligibility, risks and licenses.

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