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Bitcoin is a valuable and convenient means of investing in precious metals. That said, it’s still in its development phase, and you may want to learn more about how it and other cryptocurrencies work before using them to buy gold.
This article will discuss how to buy gold with bitcoin, the potential risks, and what you should be aware of before you invest in bitcoin cash.
What Is Bitcoin?
Although many investors assume the crypto revolution began in recent years with cryptocurrency’s explosion in popularity, the concept of crypto dates back to 1998.
At that time, technical engineers designing cryptocurrency envisioned this digital payment system as having no central authority. However, by 2009, a new online payment system had rolled out as open-source software, offering investors a new kind of digital currency: bitcoin.
Bitcoin is both a currency and an electronic payment method. Following its big boom in the last several years, investors have come to appreciate bitcoin’s convenience, integrating its use into many businesses — including the precious metals market. Gold bullion and precious metals dealers have started to accept bitcoin, offering a bitcoin payment option for investors making purchases.
Other digital currencies have also increased in popularity and use. However, before you purchase bitcoin or another digital currency, you should familiarize yourself with the transaction process.
Can You Buy Precious Metals With Bitcoin Cash?
The short answer is yes. Investors can buy gold and silver with bitcoin and other cryptocurrencies.
However, doing so requires that you find sellers that accept bitcoin payments. If your chosen seller includes crypto in their payment options, and you’ve purchased digital coins for your bitcoin wallet, you can use that currency to buy gold and other precious metals.
Once you buy bitcoin, the transactions occur online, and the process is fairly simple. Add gold, silver, or other precious metals to your online shopping cart. Then, select bitcoin as your payment method.
From here, you’ll visit the checkout page, where you can confirm your payment details and complete your transaction through one of two methods:
- The first option is scanning the QR code in your bitcoin wallet through the bitcoin app. You’ll need only to approve your payment.
- The second option also involves your bitcoin wallet. To complete this payment method, open your bitcoin wallet and enter the corresponding bitcoin address and the amount in bitcoin.
The app will only keep your invoice active for 15 minutes to guarantee an accurate exchange rate. You’ll need to complete bitcoin transactions quickly to avoid unnecessary complications and delays if any additional conversion occurs.
After you enter your wallet address and complete the payment, the bitcoin network may take up to 24 hours to confirm bitcoin transactions.
Merchants That Accept Bitcoin as a Valid Payment Method
You’re in luck if you’re looking to buy gold with bitcoin. Due to the growing popularity of digital currency, many gold and silver sellers accept bitcoin payments. Investors can purchase gold, platinum, palladium, and silver with bitcoin from the following precious metals sellers:
- American Gold Exchange
- Bullion Exchanges
- Global Vault Group
- JM Bullion
- One Gold
- Provident Metals
- SD Bullion
- Sharps Pixley
Buying gold with bitcoin has never been easier. If you’ve begun investing in a gold IRA and wish to expand your portfolio, bitcoin may provide you with a unique investment opportunity.
How to Fund Your Bitcoin Wallet
Your bitcoin wallet is essentially a mobile or digital bank account that stores your digital currency. To acquire bitcoin for your wallet, you can use one of the following methods:
- Use a Credit or Debit Card: You can obtain bitcoin, which will instantly appear in your wallet.
- Bank Wire: This method lets you acquire bitcoin by connecting your bank account. Because this kind of transfer usually takes longer to process, it may take one business day or longer to fund your bitcoin wallet.
- Exchange Bitcoin: You can purchase or exchange bitcoin online for its regular price. You can sometimes engage in a pair trade and exchange other cryptocurrencies for bitcoin, like USD coin, for example.
Using a Hardware Wallet in Bitcoin Transactions
If you’re new to buying gold with bitcoin, it’s critical to familiarize yourself with bitcoin wallets.
Two types of bitcoin wallets exist: software “hot” wallets and hardware “cold” wallets. Bitcoin experts suggest that hardware wallets are the more secure of the two, allowing you to store your bitcoin on a physical device.
Popular wallets include Coinbase, Exodus Crypto Wallet, and Electrum Crypto Wallet.
Risks That You Should Know About
If you want to buy gold with bitcoin and place a gold or silver order online, it’s essential to be aware of the potential risks of digital payments. Before you make any bank transfers or pay for digital currencies, consider the following points:
Bitcoin Can Be Volatile
One significant issue with bitcoin and other digital currencies is the likelihood of price fluctuations. The value of crypto depends entirely on investors’ confidence and the state of the market. If trust in bitcoin decreases, its value may also suffer, making it a less stable value store than other investments.
The Network Has Limited Capacity
When its creators first introduced bitcoin, the bitcoin protocol had plenty of capacity to host users. Over time, more users have joined, and this increase can create delays when you send payments. Your order may get stuck in “pending” status as a result.
You can pay an additional amount to ensure that your payments pass more quickly, but doing so would essentially defeat the purpose of the cost-effective, convenient aspect of the platform. At this point, the speed of completing transactions via a debit card outclasses bitcoin.
The Transactions Are Final
This issue is nuanced. On one hand, bitcoin transactions being irreversible is a positive feature, as it prevents fraudulent chargebacks. You pay for your goods, the bitcoin network charges your wallet, and sellers receive payments in a straightforward transaction.
However, this setup also means that if you make a mistake or do business with a less-than-forthcoming seller, you have few options beyond asking for a refund.
Should You Buy Gold With Bitcoin?
Buying physical gold and buying bitcoin are different but similar processes. Both the number of sellers and the price of each depend on the state of their respective markets.
The current price of both is subject to change on any given day. What you pay for gold or bitcoin now may increase or decrease drastically depending on various economic circumstances.