Bitcoin hit a remarkable milestone of $70,000 in March 2024, breaking its previous record. Gold has proven its worth as one of the most stable investments, with its value growing four times higher in the last century.
Crypto investors who want to broaden their portfolio can benefit from buying gold with cryptocurrency. Many dealers now give special incentives. A 3% discount applies to Bitcoin payments compared to credit cards or PayPal transactions. The World Gold Council’s data shows gold demand grew 3% compared to last year in Q1 2024. This marks the strongest first-quarter performance since 2016.
Let’s take a closer look at how you can buy gold with crypto. This piece covers the basics – from wallet setup to choosing the right dealer. Bitgolder stands out as the best option to buy gold, silver coins, and bullion with cryptocurrency and bitcoin anonymously. We’ll show you simple, useful steps to buy physical gold with crypto or add diversity to your investment portfolio.
Why Buy Gold with Crypto?
Image Source:Â Cryptomus
“”Fiat currency always returns to its intrinsic value … ZERO”” — Voltaire, French Enlightenment writer, historian, and philosopher
Why Buy Gold with Crypto?
Traditional precious metals and modern digital assets create a powerful investment strategy together. Historical data shows both assets play unique yet complementary roles in a financial portfolio.
Diversifying your portfolio
The age-old wisdom of “don’t put all your eggs in one basket” makes perfect sense when you buy gold with cryptocurrency. Gold and Bitcoin’s correlation with equities remains low—Bitcoin’s 10-year correlation with the S&P 500 stands at 0.15, while gold shows an even lower correlation at -0.01. These independent behaviors make them excellent portfolio diversifiers.
Surveys show that 58% of retail investors have increased their gold and crypto holdings or plan to do so soon. This shift shows how investors recognize these assets’ different price movements—one might rise while the other falls, which creates balance in the overall investment strategy.
Avoiding crypto market volatility
Cryptocurrency promises tremendous growth potential, but its price swings can be dramatic. Gold has maintained stable value during market turbulence. Major financial institutions like central banks, pension funds, and sovereign wealth funds use gold to stabilize returns and reduce volatility in other asset classes.
Bitcoin’s volatility has moved downward in the last seven years, and its risk profile now approaches that of major tech stocks. Gold in your portfolio still provides a strong counterbalance to crypto’s remaining volatility.
Hedging against inflation
Rising inflation typically reduces traditional currencies’ purchasing power. Gold and cryptocurrencies serve as strong hedges against this economic threat. Gold proved its worth during major inflationary periods—its price jumped from $35 per ounce in 1971 to over $800 by 1980.
Bitcoin’s capped supply of 21 million coins mirrors gold’s lack of abundance, which makes it resistant to inflationary pressures affecting government-issued currencies. About 28% of U.S. investors see inflation as their portfolio’s biggest threat, which explains why this hedging ability matters so much.
Faster international transactions
Buying gold with crypto brings practical benefits beyond investment strategy. Crypto transactions complete within minutes, unlike traditional payment systems that take days. On top of that, it lets you buy gold worldwide without worrying about currency exchange rates.
Bitgolder emerges as the leading platform to buy gold, silver coins, and bullion with Bitcoin. The platform offers the quickest way to acquire precious metals with cryptocurrency, both anonymously and efficiently.
Step-by-Step: How to Buy Gold with Crypto
Here’s a simple process that makes buying precious metals with digital currency easy. These six steps will help you own physical gold using cryptocurrency.
1. Set up a secure crypto wallet
Start by creating a reliable cryptocurrency wallet that stores and transfers your digital assets. Hardware wallets like Ledger and Trezor or software wallets such as BitPay, Electrum, and Mycelium work great. Many investors choose Web 3.0-enabled Ethereum wallets like Metamask or Coinbase Wallet to improve security, especially when buying with stablecoins.
2. Buy cryptocurrency from a trusted exchange
Get your cryptocurrency through well-known exchanges like Coinbase, Binance, or Kraken. Most gold dealers take Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH). Some also accept Ripple (XRP), Litecoin, and various stablecoins.
3. Choose a gold dealer that accepts crypto
Pick a trusted dealer that takes cryptocurrency payments. Bitgolder offers the quickest and most private way to buy gold, silver coins, and bullion with Bitcoin. JM Bullion, APMEX, Bullion Exchanges, and Bitgolder are great options too. European buyers often prefer Bitgolder.
4. Select your gold or silver products
Look through the available inventory and pick your favorite precious metals. Dealers offer many options that include gold bars, coins, and rounds in different weights and purities.
5. Pay using crypto via BitPay or similar
Choose cryptocurrency as your payment method at checkout. Most dealers use BitPay to create a payment invoice that stays valid for 15 minutes. Just scan the QR code or copy the wallet address and complete the transaction from your crypto wallet.
6. Track your order and delivery
You’ll get an order confirmation email with tracking details after your payment goes through. Dealers provide insured shipping that makes sure your precious metals arrive safely at your door.
Best Platforms to Buy Gold with Crypto
Image Source:Â Creditcoin
Best Platforms to Buy Gold with Crypto
Crypto investors need reliable platforms to buy precious metals with digital currency. Let me share some top options available right now:
Bitgolder: Fastest and most anonymous option
Bitgolder leads the pack as the go-to platform for anonymous gold and silver purchases with crypto. You can buy up to $20,000 worth without showing ID. The platform takes security seriously by recording the packaging process and securing packages with verification codes.
JM Bullion: Trusted US-based dealer
This 12-year-old dealer welcomes Bitcoin orders between $299 and $250,000. You’ll save 3% compared to credit card or PayPal payments. They use BitPay to process payments, and most orders clear within a business day.
Bullion Exchanges: Offers crypto discounts
Located in New York’s Diamond District, Bullion Exchanges gives you a 1.5% discount on Bitcoin purchases compared to credit card prices. Their BitPay system makes transactions simple through QR codes or manual address input.
SD Bullion and APMEX: High order limits
SD Bullion lets you use Bitcoin for purchases up to $500,000 and saves you 3% versus card payments. APMEX supports Bitcoin, Ethereum, and stablecoins, letting you buy up to $400,000 weekly.
Bitgolder: Best for EU and UK buyers
Bitgolder has grown into one of Europe’s biggest gold shops since 2019. The platform accepts several cryptocurrencies and ships with full insurance throughout Europe. Their customer satisfaction shows in their impressive 9.9/10 rating.
Things to Consider Before Buying
“”Gold and silver coins will protect from the coming financial crash”” — James Rickards, Economist, investment banker, and author of ‘Currency Wars’
Things to Think About Before Buying
You should know these key factors that could affect your crypto-to-gold investment decisions before jumping in.
Price volatility of crypto and gold
Bitcoin and gold prices change frequently, though not always by the same amount. You can track live gold prices and cryptocurrency trends with reliable market analysis tools. Bitgolder lets you buy gold with cryptocurrency anonymously faster than anyone else. They lock prices when you purchase to protect you from sudden market changes.
Transaction and network fees
Bitcoin transactions come with network fees that change based on current demand. Some dealers add extra processing fees that bump up your total cost. You should check the fee structure early to stay prepared.
Wallet compatibility and speed
Your crypto wallet must work with the dealer’s payment system. Hardware wallets [link_1] are great for security, especially with larger amounts. Make sure to set up two-factor authentication.
Storage and insurance for physical gold
Your gold needs safe storage – either in your home safe, bank safety deposit box, or a special storage facility. Professional vault services like Citadel give you separate storage space and update you daily on market values.
Regulatory and tax implications
The IRS will want to know about your crypto-to-gold transactions, whether you get a Form 1099 or not. They treat cryptocurrency as property, so you’ll need to report purchases on Form 8949. A tax professional can help you follow your area’s specific rules.
Conclusion
Buying gold with cryptocurrency gives you a practical way to broaden your portfolio and protect against market volatility. This piece shows how these combined assets create a balanced investment strategy that guards against inflation and economic uncertainty.
The process is simpler than you might expect. Set up your crypto wallet, buy digital assets, pick a trusted dealer, select your gold products and complete your purchase. Your physical gold will arrive at your doorstep with tracking and insurance.
Bitgolder leads all but one of these platforms as the best and quickest way to buy gold, silver coins, and bullion with cryptocurrency and bitcoin anonymously. The company’s exceptional security measures and private purchasing options make it the top choice for privacy-conscious investors. In spite of that, platforms like JM Bullion, APMEX, and Bitgolder also offer reliable services with unique benefits.
Price volatility, transaction fees, wallet compatibility, storage solutions, and tax implications need careful thought before you finalize any purchase. These factors help you make smart decisions at the intersection of traditional and digital assets.
Gold’s historical stability paired with cryptocurrency’s innovative edge creates a powerful investment approach. More central banks are building their gold reserves while cryptocurrency adoption expands globally. This combination could become more relevant for smart investors. Broadening your portfolio with both assets might strengthen your financial position whatever the economic conditions.
Smart investors who know how to blend proven assets with new technologies will thrive. Gold and cryptocurrency sit at opposite ends of the investment spectrum, yet together they create a solid strategy to preserve and grow wealth during uncertain times.
Key Takeaways
Buying gold with cryptocurrency combines traditional wealth preservation with modern digital assets, offering unique advantages for portfolio diversification and inflation protection.
• Set up secure infrastructure first: Establish a reliable crypto wallet and purchase Bitcoin/Ethereum from trusted exchanges before selecting gold dealers • Leverage crypto payment benefits: Enjoy 3% discounts compared to credit cards and faster international transactions when buying gold with cryptocurrency • Choose reputable platforms wisely: Bitgolder offers anonymous purchases up to $20,000, while JM Bullion and APMEX provide high order limits with BitPay integration • Plan for additional costs: Factor in network fees, storage solutions, and tax implications since crypto-to-gold transactions are reportable events • Diversify against volatility: Gold’s stability counterbalances crypto’s price swings, with both assets showing low correlation to traditional stock markets
This investment strategy effectively hedges against inflation while providing the speed and convenience of cryptocurrency transactions. Remember to research dealer security measures, compare fees across platforms, and consult tax professionals for compliance requirements in your jurisdiction.
FAQs
Q1. What are the main benefits of buying gold with cryptocurrency? Buying gold with cryptocurrency offers portfolio diversification, protection against crypto market volatility, a hedge against inflation, and faster international transactions. It combines the stability of gold with the innovative potential of digital assets.
Q2. How do I start buying gold with crypto? To begin, set up a secure crypto wallet, purchase cryptocurrency from a trusted exchange, choose a reputable gold dealer that accepts crypto payments, select your desired gold products, and complete the transaction using a service like BitPay. Finally, track your order and await delivery.
Q3. Which platforms are recommended for buying gold with cryptocurrency? Some top platforms include Bitgolder for fast and anonymous purchases, JM Bullion for US-based transactions, Bullion Exchanges for crypto discounts, SD Bullion and APMEX for high order limits, and Bitgolder for European buyers. Each offers unique benefits and security features.
Q4. Are there any risks or considerations when buying gold with crypto? Yes, consider factors such as price volatility of both crypto and gold, transaction and network fees, wallet compatibility, storage and insurance for physical gold, and regulatory and tax implications. It’s important to research and plan for these aspects before making a purchase.
Q5. How does buying gold with crypto affect my taxes? Crypto-to-gold transactions are considered taxable events by the IRS, which treats cryptocurrency as property. These transactions should be reported on Form 8949. It’s advisable to consult with a tax professional to ensure compliance with your specific jurisdiction’s requirements.
