Is investing in Bitcoin safe? Can you buy gold with Bitcoin? How to use Bitcoin?
In this article, we provide answers to these questions and more.
Cryptocurrency, and especially Bitcoin, has come a long way from when it first entered the market. Where the blockchain mechanism is still a mystery to many, Bitcoin and many other cryptocurrencies are now widely used as an electronic currency.
You can now not only send and receive payments through the digital decentralized banking system but also use Bitcoin to make purchases, investments, and trade online.
- 1 What is Bitcoin?
- 2 Can You Buy Gold with Bitcoin?
- 3 Why Would You Want to Divest of Bitcoin?
- 4 Can You Exchange Bitcoin for Gold Online?
- 5 How to Buy Gold With Bitcoin?
- 6 Benefits of Using Bitcoin to Buy Gold Online
- 7 Is it Possible to Buy Physical Gold with Bitcoin?
- 8 Where to Buy Gold with Bitcoin?
- 9 Should You Buy Gold with Bitcoin?
What is Bitcoin?
Bitcoin is a cryptocurrency that operates using blockchain technology. Essentially, each Bitcoin is a computer file stored on a remote digital wallet on an online system. You can use bitcoin to make payments, book hotels, make investments, and much more.
All transactions using bitcoin are peer to peer transactions, meaning there is no middleman or bank regulating the system, making it the first-ever decentralized banking system to exist.
The crypto currency’s value rose to thousands in the year 2017. Thus, many people even purchase bitcoin as an investment.
Can You Buy Gold with Bitcoin?
Yes! You can use Bitcoin to buy gold. As mentioned earlier, Bitcoin has come a long way since its establishment in 2009.
Even though its functionality was virtually unknown in the initial years after it went live, you now use the electronic currency for various purposes, including the purchase and trade of bullion and other precious metals.
In fact, recently, an increasing number of investors are divesting of bitcoin and using it to purchase gold instead. More and more bullion trading companies are now offering the option to purchase bullion using bitcoin.
Why Would You Want to Divest of Bitcoin?
The pandemic has brought with it a recession. In fact, economists predict that we may very well be on our way to a global recession.
In unpredictable situations, such as that of COVID19, investors use past performance records of their investments to decide whether to hold onto it or to let go of it to minimize losses.
Amid the pandemic, investors are divesting of bitcoin and switching to safe-haven assets like gold for multiple reasons.
Bitcoin has a really high volatility rate. In fact, between 2017 and 2018, the price of bitcoin exhibited an 8% volatility rate, which is a record high for the cryptocurrency.
The high volatility rate is partly because the value of bitcoin depends upon the number of investments in the cryptocurrency, which is directly linked to its perceived value.
Currently, investors are focusing on securing their investments to minimize losses during the economic downturn.
The fluctuating price and value of bitcoin do not offer much in terms of investment security.
Can You Exchange Bitcoin for Gold Online?
As Bitcoin grew in popularity and value, so did its functionality and acceptance.
You can exchange it for various other cryptocurrencies or use it to make investments. It is both a currency and an online banking or payment system. You can even use it to purchase gold online.
In fact, an increasing number of investors are using bitcoin to purchase gold to hedge their investments and minimize their losses during the on-going economic downturn.
Gold is a safe haven asset with very low price volatility rates and a set worth and demand in the market.
How to Buy Gold With Bitcoin?
Purchasing gold using Bitcoin is easy and simple. It’s a three-step process from the start to the end.
Set Up a Bitcoin Wallet
Before you buy Bitcoin or use it to purchase gold, you have to get a web or mobile application that allows you to manage your cryptocurrency.
Keep in mind that not all applications support bitcoin. You will have to visit Bitcoin.org to find the list of platforms that support bitcoin.
Make sure you do your research and choose one that is safe and secure with adequate protection and antivirus software in place.
You can buy Bitcoin through debit or credit card transfer or bank transfer.
You can even use cash or exchange platforms to purchase Bitcoin. Some other Bitcoin wallet holders can also pay you in Bitcoin, and you can use the bitcoin received to make future transactions.
Make sure you keep the Security key and Bitcoin address you receive upon account creation safe. You will need it to make transactions later. Do keep in mind that not all Bitcoin transactions are instant.
Some may even take a day or two to process as the system runs background checks to ensure authenticity and keep user information safe and secure.
Once you have the money in your Bitcoin wallet, you can use it to buy gold online. There are many bullion trading companies that allow you to purchase gold using Bitcoin and other cryptocurrencies.
Even if they don’t recognize other cryptocurrencies, you can exchange them for Bitcoin and use them to purchase bullion.
Add as much gold as you want or can purchase into your cart and choose the Bitcoin option at checkout. There are two ways to complete the transaction.
You can either scan the QR code, and the invoice will be sent to your wallet, you can complete the transaction by approving it.
Or you can scan the invoice and upload it on your wallet, fill in the payment amount and send it to the Bullion Trading Exchange to complete the payment process.
Both payments are completely online and may take up to 24 hours to complete the transaction. Make sure you operate fast here as the invoice is only visible for 15 minutes after the transaction, and you have to initiate the fund transfer within that time to secure the deal.
Generally, you have to wait for six confirmation blocks to ensure your payment won’t get canceled. As mentioned above, it takes around 24 hours to get those six confirmation blocks that mark transaction completion.
You will also have to keep in mind that bullion purchase using Bitcoin comes with transaction or processing charges as well.
The rates vary by company and the type of cryptocurrency you use to make the purchase. Make sure you check out the transaction and processing rate before you make the purchase, so you make the purchase accordingly.
Benefits of Using Bitcoin to Buy Gold Online
Bitcoin rose to popularity fast, and its value blew up in 2017.
With over 250,000 daily transactions, it’s no surprise that the cryptocurrency is now a widely accepted form of payment even in international markets. Here are just some of the reasons why Bitcoin became so popular so fast.
- Convenient – Not having to wait in line, filling out paperwork to open a bank account and make payments is perhaps one of the biggest advantages offered by Bitcoin. With it, you can send and receive payments all over the world from your home.
- Uninterrupted service– You no longer have to take into account holidays and weekends when drafting your payment or purchase plan. There are no off-days with Bitcoin as the system is operational 24/7 all year round.
- Fast – Where traditional international transactions can take up to a few business days, Bitcoin transactions take a maximum of 24 hours to ensure transaction completion, providing a fast and reliable online payment method.
- Security – Bitcoin operates on blockchain technology, ensuring identity protection for each user. On the blockchain network, each user is essentially just a block whose identity is secured and protected using a heavy encryption system.
- Low transaction fees – traditional international transactions come with a hefty price tag. However, Bitcoin transactions do not. You can send and receive money from anywhere in the world at very reasonable rates. However, rates vary by application systems, so make sure you do your research before you choose one.
- International recognition – Not every country accepts all currencies, but because the Bitcoin is a cryptocurrency based on a digital model, it is recognized worldwide. Basically, it is a global currency that you can use anywhere in the world.
Though the currency is volatile and lacks transparency, it is one of the most functional currency forms, allowing you to make purchases worldwide from the comfort of your own home. Its straightforward system and exceptional ease of use also add to its functionality.
Is it Possible to Buy Physical Gold with Bitcoin?
You can not only use Bitcoin to partake in bullion exchange and trade, but you can also use it to purchase physical gold.
You can use online platforms to purchase gold bars, biscuits using Bitcoin, and the seller will have it shipped to your address once the online Bitcoin transfer is complete.
Here you have to make sure the company you purchase from has an excellent market reputation for eliminating the possibility of scams.
You will also have to look at their security system. Make sure you read reviews about the service to ensure they do not have a track record of security breaches.
You may end up losing all your investment if they do not have an adequate security system to prevent hackers from getting access to your personal information, such as your transaction password and account name.
Where to Buy Gold with Bitcoin?
There are various online websites that allow you to buy bullion and physical gold using Bitcoin. GoldSilver, Vaultoro, Money metals, JM Bullion, Bitpanda Metals, APMEX, and Gold Money, are just some of the companies that accept payment if Bitcoin.
However, not all of these are trustworthy sites, and some of these offer more value than others. We recommend you look into Vaultoro.
Vaultoro is a multinational company with headquarters in Berlin and London.
The company claims to be the first bullion trading company that accepts cryptocurrency as payment for physical gold. We don’t know for sure whether their claim is true or not, but we do know that they do offer their customers exceptional service and benefits.
Vaultoro first began operations in 2015 and has fast grown into a multinational company. Its online trading mechanism allows it to develop global reach.
The company offers peer to peer transactions, allowing it to provide lower listing prices than other services by removing the brokerage or middle man fee.
The company also ships physical gold internationally. Currently, they ship to the European Union, the United States, Canada, parts of Asia, and Mexico. However, the company plans to expand operations and provide global shipping services.
They also wish to expand their asset classes by providing their customers with other investment options besides gold.
When you sign up for Vaultoro, you also get access to a secure vault provided and maintained by the company Brink’s service provider. If you decide to hold your gold in a Vaultoro vault, you will get a monthly statement so you can stay on top of your tax payments and maintain a record of your investment.
Should You Buy Gold with Bitcoin?
Yes! And a double Yes! The pandemic has resulted in substantial market instability, which is why people are turning towards safe have investments such as gold.
Though Bitcoin does not operate traditionally, it is known to be quite volatile, which is why many are divesting of the cryptocurrency during the pandemic and investing in gold instead.
Buying gold with Bitcoin not only helps you hedge your investment, but it also eliminates the risk of incurring heavy losses in case Bitcoin loses its value.
If you aren’t comfortable buying bullion and storing gold online, you can even use Bitcoin to purchase physical gold without having to visit traditional markets and shops amid the pandemic.
Bitcoin is easy to use, functional, widely recognized cryptocurrency that offers multiple benefits. Most importantly, it allows you to safely and securely manage your investments from the comfort of your own home.
You can use it to make investments, and payments with low transaction rates, anytime and anywhere, making it one of the most functional forms of currencies to ever exist.