While most central banks don’t recognize cryptocurrencies across the globe, these digital currencies have still gone on to become an accepted means of payment. It’s because ever since hitting the market in 2011, cryptocurrencies have experienced tremendous growth that’s seen their value rise tremendously. All this is due to the increased mistrust by the general public in today’s financial system.
But can you buy gold bullion with crypto? Yes, you can. Because of this, many investors today find cryptocurrencies such as Bitcoin, Litecoin, Ethereum, Ripple, to name a few, are excellent payment methods and not just as an investment. If interested in knowing how you can buy gold bullion with cryptocurrency, look no further. Here’s a detailed article outlining the steps you should follow.
Why Buy Gold With Crypto?
Before you head to https://learnaboutgold.com or other similar sites, to know more about buying gold, it’s best to understand why use crypto to purchase this precious metal. The main push should be both these assets have experienced consistent growth in the past years. In addition, they share similar attributes, such as acting as a hedge against volatility, especially during times of financial and political instability.
While Bitcoin is the most popular crypto used when buying gold, you also have other options at your disposal. This includes;
- Litecoin (LTC)
- Ethereum (ETH)
- USD Coin (USDC)
- Dogecoin (DOGE)
- Pax Dollar (USDP)
- Bitcoin Cash (BCH)
- Wrapped Coin (WBTC)
- Gemini Dollar (GUSD)
Using any of these cryptos, you can also buy other precious metals such as platinum, palladium, and silver.
Steps To Buy Gold Bullion With Crypto
You need to follow several steps when buying gold bullion with crypto, and these include;
1. Set Up A Cryptocurrency Wallet
Before you can even buy gold bullion, you need to have the crypto to trade with your purchase. The best place to get yourself cryptocurrencies is a crypto exchange, which operates like other exchanges like the forex or stock market. You can trade cryptocurrencies on exchanges 24hours a day, and you can buy your preferred choice using a major currency such as the Pound, Euro, or Dollar.
However, you’ll first need a crypto wallet. It’s a digital platform to store your cryptocurrencies. There are numerous crypto wallets to choose from, including;
- Bitcoin Core
It’s best to work with these specific crypto wallets because they guarantee reliable and quick payments. Whichever crypto wallet you pick has a distinct address with a lengthy series of numbers and letters linked to your account. You don’t have to type this unique code but can use your smartphone to scan the generated QR code.
In addition to the crypto wallet, you’ll be provided with a set of security keys that you can use to accept or send crypto payments. After acquiring a crypto wallet, you need to load it, and the different ways of doing this include;
- Deposit cash on bitcoin ATM, and it’ll reflect on your wallet immediately.
- Use your credit or debit card to buy cryptocurrency.
- Receive cryptocurrencies from another crypto wallet as payment.
- Buy cryptocurrencies through bank transfer, and this typically takes between 1 to 4 days to reflect on your wallet.
With your bitcoin or crypto wallet loaded, you can now proceed to the next step.
2. Find A Reliable Gold Bullion Retailer
One way of buying gold bullion with crypto is by directly paying a trustworthy gold and precious metal dealer who accepts cryptocurrency payment. Some of these dealers include;
- Bullion Exchanges
- JM Bullion
- Sharps Pixley
- Treasure Islands Coins
- Best Bullion
- American Gold Exchange
- Global Vault Group
- Provident Metals
Any of these dealers is a reliable option that you should consider to ensure a smooth process of buying your gold bullion.
3. Buy Gold With Crypto
After loading your crypto wallet and picking your preferred gold dealer, buying the gold bullion is the next step. This shouldn’t be that difficult because you simply need to enter how much crypto you wish to spend to buy gold. And to make it easier to understand how much exactly you’re spending, most crypto wallets will convert the amount you’re spending either to your local currency or U.S. dollars. After confirming your order details, you’ll be redirected to a checkout page to finish your payment either by;
- Sending a payment: Access your wallet and enter the displayed crypto address and the exact amount you want to spend before sending this payment to Bullion Exchanges.
- Scanning a QR code: The invoice comes encrypted as a QR code that you can scan using your smartphone’s crypto app. Approve the invoice after it displays on your app, and the stated currency will be sent to the Bullion Exchanges.
4. Wait For Transaction To Process
Invoices are designed to be valid for 15 minutes to guarantee the security of Bullion Exchanges. However, even after the payment goes through, it might remain pending for 24 hours. This usually happens because payments go through numerous cryptocurrency ‘blocks’ before getting approved.
The total number of blocks is six, and each of them represents a confirmation by the cryptocurrency network. Once six confirmations have been done, you can be 99.9% certain that your payment transaction won’t be canceled.
Knowing this, you shouldn’t be stressed if you still haven’t received your payment confirmation email in less than a day. And while buying gold using crypto can take as long a business day, it’s still among the fastest payment methods. In addition to this, you get a 3% discount when buying gold bullion using bitcoin as payment.
It’s easy to assume as an investor that dealers selling gold bullion would be hesitant to accept payment in crypto. However, this isn’t the case because the great demand for cryptocurrencies among investors has made it to become an accepted payment method.
Therefore, you can buy precious metals such as gold bullion with crypto to diversify your investment during times of financial turbulence. While this process is easier than you’d think, this guide has helped ease your mind by stating the steps to follow when using crypto to buy gold bullion.