Bitcoin made its debut as a cryptocurrency in 2009, and since then, it has become a very popular mode of financial transactions.
It came with many advantages, making it a convenient payment method. Soon enough, many businesses adopted it as a payment method.
If you are a crypto fan interested in gold and other precious metals, you might want to know if you can buy gold with Bitcoin.
Yes, you can buy gold and other precious metals with Bitcoin if you have a functioning cryptocurrency wallet funded with Bitcoin.
Like other businesses, precious metal dealers have also adopted Bitcoin for their transactions. It is also a great way for buyers to hedge the volatility associated with cryptocurrency while growing their collection of precious metals.
I have created this guide to give you all the necessary information on buying gold with cryptocurrency.
What Is Bitcoin?
The concept of cryptocurrency is not a new one. In fact, the concept of creating a currency that has no central authority was documented in 1998. But it was in 2009, almost 11 years later, that Bitcoin was created as the first cryptocurrency.
Bitcoin is a digital, decentralized payment method that allows for peer-to-peer financial transactions. The implication is these transactions occur between the two people involved without needing a middle person.
All transactions are recorded in a blockchain that can be viewed by everyone making Bitcoin transactions one of the world’s most secure transactions.
Pros And Cons Of Bitcoin
Over the years, Bitcoin has become popular as a payment method, with an average of 250,000 transactions daily. But why are Bitcoin payments popular? Why do many people, you inclusive, prefer using this payment method?
The truth is it is quite convenient and offers the users freedom that is not seen with other payment methods. You can carry out transactions anywhere and at any time as long as you have a funded Bitcoin wallet.
It is faster and more secure than most other payment methods. You do not need to use intermediaries, and you do not run the risk of identity theft. It is accepted around the world by most businesses.
If you do not like spending unnecessarily, then Bitcoin is a great way to prevent the high transaction fees that come from using other payment methods.
However, as amazing as Bitcoin sounds, it still has certain disadvantages. For one, it is volatile, experiencing more price fluctuation than any other form of currency. This is why keeping your savings as Bitcoins is not a great idea.
Bitcoin transactions might be secure, but they are not private. Since every transaction is recorded on the blockchain, everyone can see what you do with your account and how much is left in it.
While most people do not care about the transparency and irreversibility of bitcoin transactions, they are worried about the volatility.
Why Buy Gold With Bitcoin?
Bitcoin and cryptocurrency have seen massive growth over the years. However, gold has been around for many years, and its value has slowly but consistently risen.
It might not perform as well as other investment options, but it is valued globally and stable even in financial uncertainty. Gold also has a liquid market where you can exchange it for fiat.
All these contribute to gold’s stability and are why it is used as a hedge against volatility. So why buy gold with your Bitcoin? Simply because it offers you a way to bypass the volatility of Bitcoin.
Buying gold with Bitcoin means you do not have to worry about price fluctuations even when the market is facing a downturn.
How Do You Go About Buying Gold With Bitcoin?
The best way to buy gold with Bitcoin is to find a trustworthy Gold IRA company that accepts Bitcoin as a payment method.
Here are a few steps to take to achieve this.
Step 1: Create Your Bitcoin Wallet
This is assuming you do not have one already. If you do, you can continue reading.
A Bitcoin Wallet is an application or platform that allows you to manage your bitcoin and other cryptocurrencies. It is like having a bank account that allows you to send, spend, receive, and hold your Bitcoin.
If you do not have an address, don’t jump into creating one. Take your time and research. Ensure you only create your wallet on the official platforms recognized by Bitcoin.
After you have set up your address, you should receive your Bitcoin address and a safety pin. These are both essential for transacting using your Bitcoin Wallet. Once you set up your wallet, you have to fund it.
Step 2: Funding Your Bitcoin Wallet
There are different ways you can fund your wallet. You can acquire Bitcoin by purchasing with your credit card, making bank transfers, buying from exchange platforms, or using a Bitcoin ATM.
You can also receive Bitcoin from others with a functioning wallet with Bitcoins.
Each of the methods has its downsides. For some, the purchase is instant, while it might take a few days to complete your purchase with other methods. Each Bitcoin transaction you make comes with exchange and transaction fees.
Consider all these as you look for ways to fund your wallet. Once you have Bitcoins in your Bitcoin Wallet, you can buy gold with them.
Step 3: Buying Gold With Your Bitcoin
The first step toward buying gold with your Bitcoin is to find a trustworthy gold IRA company that accepts Bitcoin as a transaction method.
After this, the process is as easy as pie. Let’s break them down into simple, easy-to-follow steps:
- The first step would be to add as much gold as you want to your cart. Because Bitcoin has no limitations, you can buy as much as you want. Add as much gold as you want to buy, then proceed to check out.
- The next step is checkout. While checking out, choose cryptocurrency or Bitcoin as your mode of payment. You will receive an invoice that contains a QR code and a Bitcoin address.
- Log into your Bitcoin Wallet to complete the payment. Ensure that the wallet you are using supports the payment protocols stipulated by Bitcoin. If it doesn’t, transfer the Bitcoin to a wallet that does.
- You can make your payment using two methods. The first method is to scan the code on the invoice you generated. This is quicker and more accurate. You can also make the payment manually. Fill in the Bitcoin address on the invoice and the amount of Bitcoin you need to pay into your wallet and send. That’s all.
A FEW THINGS TO NOTE: When making payment for your gold with Bitcoin, there are a few things you need to note. The most important thing to note is that the invoice you get will be valid for 15 minutes. If you do not make payment before this time elapses, you will need to generate a new invoice.
The reason for this is to ensure exchange rate accuracy. As you know, Bitcoin is volatile, and price fluctuations might mean you have to pay more.
Another important detail is that your payments need 6 confirmations on the Bitcoin network to complete your order. Each of these confirmations is a block on the blockchain, and a block is a set of unique transactions using Bitcoin.
These confirmations can take up to 24 hours, so do not fret if you still see your order in a pending status hour after you have made payment.
After 24 hours, you should receive a confirmation in your email. “Isn’t 24 hours too long?” you ask. Bitcoin remains one of the fastest ways to purchase gold.
Remember, you have to pay a transaction fee for your purchase. This is usually automatically included in your payment, so do not be surprised if you notice that you are paying a little more than what is stated on the invoice.
Is Bitcoin The Only Cryptocurrency You Can Buy Gold With?
Bitcoin isn’t the only cryptocurrency available, and if you hold some other cryptocurrencies, you can still buy gold with them.
Some companies allow you to make purchases using other cryptocurrencies like Ethereum and Bitcoin Cash. However, if this is not possible, you can easily swap the cryptocurrency you have for Bitcoin and make your purchase this way.
Another way is to sell the alternative coins you have for US dollars and then purchase the Bitcoin through a bank wire, credit card, or bank wire.
Whichever method you use, ensure you buy your gold from a trusted dealer.
This guy in this video shows you how to purchase gold with bitcoins:
Why Should You Invest In Gold And Cryptocurrency?
Gold, and indeed all precious metals, share certain similarities with Bitcoin. They are all forms of money. They are mined and are not infinite, which is why they are valuable.
They also offer protection against the risks that accompany fiat currency. Gold and cryptocurrency have become popular as alternatives to many currencies. You can invest in them or use them in transactions.
I can tell you that investing in Gold is a great idea. How much Gold you buy with your Bitcoin is up to you, but purchasing gold is too great an opportunity to ignore. It offers a form of wealth you can control outside a banking system.
Can I Buy Other Precious Metals With Bitcoin And Cryptocurrency?
You can buy other precious metals with cryptocurrency as long as a legal dealer of that metal allows it.
The most common precious metals to trade your cryptocurrency for include gold, silver, palladium, and platinum. You can also purchase other precious collectibles like bars, bullion, and pressed coins.
If you are a fan of these precious metals and collectibles, Bitcoin and cryptocurrency are great ways to purchase them.
There are many reasons why buying gold with your cryptocurrency is a great idea. It offers the perfect hedge for the volatility of Bitcoin. It is also stable and a great investment vehicle.
However, before you make your purchase, ensure you have done your research. Use only official Bitcoin wallets and only make your purchase from trusted and legal businesses.
Hopefully, this guide is all the help you need to make your Bitcoin to gold transactions. Do not fail to contact me if you need further help.
Martin Thomas, the owner of Sutter Gold Mining, is a true gold investment aficionado. With decades of experience and a wealth of knowledge, he is the go-to source for anyone navigating the vast world of precious metals. Martin has dedicated decades of his life to understanding the intricacies of the precious metals market and the best strategies for maximizing returns. His expertise in this field is unmatched, and his commitment to helping others make informed investment decisions is unwavering. With him as your guide, you’ll gain a deeper understanding of the gold market and learn how to make smart investment choices that will benefit you for years. With his guidance and wisdom, you will never have to worry about taking the wrong investment step again.