Gold has always been rated as one of the safest investments in the world. It is available in a limited amount and its price keeps going up – much safer than flat currencies that come and go every few decades. On the other hand, these flat currencies have an apparently stronger competitor these days – the digital currency.
Whether it comes to Bitcoins or other digital currencies, these digital options are not centralized, meaning taxes and fees are extremely low and they can circulate freely across the world – with a few exceptions, of course. Now, you might ask yourself – should I invest in gold? Should I keep going for Bitcoins? How about mixing them up? You can now buy gold for Bitcoins, but make sure you know what it involves.
Before digging into deeper details, why would you invest in gold?
Gold is a trendy investment these days. Just like any other asset, it features its fair share of volatility. Its value fluctuates and goes up and down, but in the long run, it seems to keep growing. More and more people turn to gold, rather than flat currencies – whether it comes to longterm investments or retirement solutions.
Why you should consider gold investments
Flat currencies tend to dominate the world for around three decades on average. Different countries or unions may go up, while others go down. What has happened to the Deutsch mark? Most Europeans rely on the Euro these days, meaning less developed countries of the European Union benefit from the same standards. On the same note, the American dollar has lost its power in front of the Euro.
Things change every few years – who knows what might be by the time you retire? On the other hand, gold is different because it is available in a limited amount. In other words, there will never be more or less gold, hence it’s constantly growing price. Its stability makes it a worthy investment – the more people turn to it, the more its value grows.
With this aspect in mind, there is an amazing potential upside for gold. Look at the price history. In 2011, the gold was rated at $1,367. In the summer of 2020, gold was rated at $2,048.2. By the end of 2020, a slight fluctuation took it down to $1,877.1. It goes up and down over a few years, but it grows over long periods of time.
From another point of view, gold is a preferred investment option because it is easily accessible too. It does not mean that you have to go out and buy gold jewelry – the price would be outrageous for the actual gold, as you also need to pay for fees, taxes and the actual design. Instead, you can buy coins and bars, which are easily accessible everywhere.
Owning and possessing gold is also satisfying. Besides, you can buy it without actually storing it – have it kept safely in vaults and other deposits. On the other hand, you can also store the physical gold, meaning you will always have a source of cash should any unexpected situations arise. You can sell gold coins or bars within minutes only.
Still not convinced? The list can go even further:
- Gold is money
- It is a tangible asset that water, fire and time cannot destroy
- There are no counterpart risks
- Liquid and portable
- It does not require any specialized knowledge
- Protected against nefarious governments and corrupt politicians
- Excellent during financial crises
Gold has fairly large liquidation spreads. It is unclear how much the price could appreciate. Sure, you have a good history on your side, as well as relative stability. But then, there are various theories about the future of gold and some of them could be quite confusing. While seen as a safe investment, it is hard to tell how much extra money you will make in the long run.
Reasons wherefore you may not want to own gold
The most common options involve gold bars and coins. Most dealers will charge extra prices when it comes to gold coins. Fees will also add up. While it is much easier to buy gold coins, you will most likely spend more than the actual market price. On another note, verifying rare and old gold coins is a bit of a challenge.
Now, think about storing gold too. It could be a hassle – store too much gold and you will most likely be a target. Insuring gold is also a problem – plus, it is not cheap at all. Sure, you could store it in vaults and various deposits, but you will still have to pay fees for this kind of service – you might want to shop around.
All in all, the pros tend to outweigh the cons. You are set on investing in gold. What should you know then?
Buying gold with the one and only purpose to make an investment is not necessarily about getting your hands on old coins. Unless you are a collector, this option is out of discussion. Sure, you can get quality coins with extra value from reputable dealers and auction houses, but other options will increase your expenses. Purchasing from a reputable dealer will also give you the option to liquidate gold if you need to. Never overlook the physical aspects related to gold – a secure vault for storage and insurance.
What to know if you decide to invest in gold
Many investors also discover the opportunity to get gold coins or bars from a mint. Different options come with different prices. A minted gold bar is perfectly smooth and expensive to make, so it will cost more than the actual material. A gold cast bar is better to purchase, while coins go on a hit and miss rate. Practically, you must evaluate the price over the spot price at the moment. If the difference is more than 10%, this is not the best choice for you.
Another consideration involves liquidating gold. Doing it through a professional dealer will not be a cheap option. You have to find out more about the liquidity if the commission goes to 10% or more. It might pay off going for coins in sheer numbers because fluctuations are not too big. They have a specific market, so the spread will be narrow. There are more categories of coins out there, hence the necessity of some research.
Back to digital currencies, there are certainly a few benefits associated with the possibility to buy gold for Bitcoins – rather than use flat currencies. While the digital market has settled a little since 2009, the landscape still faces a series of changes. Such changes tend to regulate the market even better, meaning things are going in the right direction. Now, while many investors use flat currencies to get gold, why would you buy gold for Bitcoins? What are the benefits of paying with digital currencies?
Paying with Bitcoins has numerous advantages and the user autonomy is one of them. This is actually one of the main reasons wherefore so many people turn to digital currencies. You gain autonomy over your money and investments – much better than over flat currency.
Gain some extra autonomy
Simply put, you have full control over how your money is spent. Your money will not have to go through a bank, face restrictions, rules or consequences. Intermediary authorities like governments are also out of discussion.
Bitcoins are peer to peer – all other digital currencies work in the same manner. You will be able to send money, receive payments or make transactions all over the world. Anyone in the network will be able to do it – peer to peer operation.
Focus on the other party
You can forget about external sources, approvals, waiting times, fees and taxes. There are no authorities, so you can simply focus on the other party only.
So, you want to buy gold for Bitcoins. You find a reputable dealer and you start purchasing it. Most people use their bank accounts or cards, which also come with extra fees. If you buy it abroad, get ready to spend even more on fees.
Enjoy the low fees on transactions
Bitcoin transactions do not rely on intermediaries – no involvement from governments or various institutions. From this point of view, transaction fees are kept to a minimum, which is a great advantage if you want to buy gold from abroad.
Bitcoins are easily accessible and you can buy gold for Bitcoins anytime, anywhere. While you can do it in person too, many reputable dealers will allow purchasing gold over their websites as well. Whether you use a computer or your smartphone, you can easily do it within minutes.
Embrace the accessibility
You do not need access to a classic banking system, credit or debit cards or online payment platforms.
Bitcoin transactions and purchases are secret and discrete. Unless you choose to publish your transactions, they are less likely to be associated with your actual identity. From many points of view, Bitcoin transactions are like cash purchases.
Keep it discrete
While Bitcoin is not 100% anonymous, secret investments are not to be overlooked at all. They are simply less readily connected to one's personal identity when compared to other payment solutions. This type of anonymity is great for those living in countries with corrupt governments.
When looking to buy gold for Bitcoins, chances are you want a reputable dealer in your area. You want someone who you have easy access to in case something goes wrong – after all, gold is not a bottle of wine or a load of bread. It could involve large amounts of money.
Bank with the unbanked
But on another note, traveling around the world may also expose you to good prices for gold, whether you buy from local mines or gold hunters. Believe it or not, more than 25% of the world's population does not have access to a bank account, but many of these people have mobile phones.
Bitcoin allows people who cannot get a bank account to move on with their financial transactions and overcome such limitations. Whether you buy gold from a Chinese mine, a Russian collector or a Ghanaian reseller, Bitcoin could be the way to go.
Bottom line, paying for gold with Bitcoins brings in convenience, freedom, speed, security, access to international markets, low transaction fees and insurance. Now, what are the steps to buy gold with Bitcoins and what do you need to do?
Bitcoins are not stored in bank accounts or overcards. Therefore, you will need storage for your money before making payments. From this point of view, you will need a crypto wallet. The good news is there are plenty of options out there. You can research them online, get some reviews about them, check out fees and potential features.
Set your Bitcoin wallet
A Bitcoin wallet could also be referred to as a web or mobile application. You can manage all your coins over the Internet. It can be described like a bank account, so you can send, receive or spend digital coins. Interfaces are usually user friendly and intuitive – it will usually feel like managing your flat money over a banking application.
Once you decide on a Bitcoin wallet, you will get a Bitcoin address. This address also features a security key. You will need to store these things in a safe place because they represent your credentials, whether you want to send money, receive money or buy something. Once the wallet is set, it is time to fund it with Bitcoins.
There are a few different ways to do it.
Unless you are planning to mine Bitcoins or sell something, there are more ways to make digital money – pretty much just like flat currencies. You might as well offer a service and get paid in Bitcoins. However, if none of these things is on your list, there are a few more accessible ways to fund your crypto wallet with digital money.
How to fund your crypto wallet with Bitcoins
Debit and credit cards represent the most popular options out there. You can buy Bitcoins just like you buy other goods – clothing, a hosting server or perhaps your groceries. Enter the card information and the transaction will be instant. Once the payment has been made, you will see the respective amount of Bitcoins in your wallet.
Then, you have the bank transfer option, which is just as simple. You can connect your bank account to the crypto wallet. However, unlike a card payment, a bank transfer will not be instant. It may take hours or even days. If you are planning to buy gold for Bitcoins in the future, it might be worth the wait if this is the most convenient way to do it.
You can also use cash to fund your crypto wallet with Bitcoins. While not available all over the world, you might have Bitcoin ATMs in your area. You get to an ATM, you put the money in and your Bitcoin wallet will be instantly loaded with the amount in digital coins. On a similar note, you can also purchase Bitcoins from various sellers or dealers in real life.
Last, but not least, exchange platforms are not to be overlooked either. There are many reputable platforms out there and they provide excellent deals – they vary widely, so a bit of research is mandatory. You can trade or buy large amounts of digital coins at the local rate – some of them may even provide some discounts too.
It is worth noting that some of the above mentioned methods are instant. Some others will take hours, not to mention having to wait for days. Furthermore, there might be transaction fees and taxes, as well as exchange fees. Double check each of these aspects in order to ensure you get the best possible deal for your digital money.
Bullion refers to precious metals like gold and silver, among others. Such metals are sold as coins, ingots or bars. Since precious metals maintain their worth way better than flat currencies, they are often kept as emergency currencies by governments. On the same note, more and more people involve in bullion for the exact same reason.
How to buy gold for Bitcoins
In other words, when interested in to buy gold for Bitcoins, you will need to find a bullion company. Your options are more diversified and some options provide plenty of extras, as well as access to international markets and customers. It is up to you to make a good decision regarding the ideal bullion dealer for your needs, but here are some of the features you could find:
- Professional vaults in safe and stable countries
- Good pricing methods
- International shipping
- Paperwork and statements for tax purposes
The process to buy gold for Bitcoins is similar for most companies and implies high security standards. Once you have your Bitcoins in your wallet, it is time to go shopping. Choose the bullion items you are interested in and process to the checkout. Go through the available payment solutions and you can usually complete payments in two different ways.
You can scan a QR code that encodes your invoice. Use the wallet application to scan it. Once loaded, approve the invoice and the Bitcoin amount will be sent to the respective dealer.
You can also make a payment the manual way, meaning you have to go inside the wallet, fill in the Bitcoin address and amount and make the payment. Triple check everything in the address – send money to the wrong place and chances are you will never recover it.
Most invoices are available for a short amount of time – they usually expire within 15 minutes or even less. The short time frame is chosen to ensure accurate exchange rates given the market volatility.
It is worth noting that while some bullion companies accept cryptocurrency payments, they face some restrictions. Such payments may only be available for certain countries. If you live in a country that does not accept or support digital currencies, you may not be able to make a payment in Bitcoins.
As a short final conclusion, you can easily buy gold for Bitcoins from multiple companies and dealers. It takes a bit of research to set your account up and choose the right provider, but it can be done without too much hassle.
Bitcoins operate outside of governmental laws and regulations, yet there are a few rules out there. With all these, digital money might feel a bit more risky than dealing with flat currencies or banking systems. With all these, it is not hard to make purchases, yet markets tend to fluctuate.
On the other hand, gold is a proven asset. It is a safe and stable investment. Sure, it does have fluctuations in price, but it tends to go up in a slight manner and over long periods of time. After all, it represents the emergency currency backup for many governments and investors.
While not every gold dealer in the world will allow you to use digital currencies, some of the most reputable names on the market do. It is not just encouraging, but also a step forward that might stabilize the cryptocurrency market a little.
The steps to buy gold for Bitcoins are straightforward and easy to follow. Whether you want to buy Bitcoins separately or you sell products or services for Bitcoins, gold makes a good and stable investment in the long run.
Meta: Find out the reasons to buy gold for Bitcoins and discover the steps to start from scratch and diversify your portfolio.