How to Buy Gold and Silver with Bitcoin

What is Bitcoin?

Bitcoin was created in 2009 as a new form of currency, kicking off a series of cryptocurrency creation (sometimes referred to as “bitcoin forks”) that is still being felt today. The idea was to be able to complete transactions devoid of any middlemen, like banks. The creator remains mysterious, officially named Satoshi Nakamoto, although there is no proof that this is the name of a single, actual person. If you translate his name literally, “Satoshi” means quick-witted or clever, and “Moto” means foundation. The figures behind bitcoin are shadowy, and at first, many investors seemed to think those were the only kind of people who would want to use bitcoin, for the anonymity and the lack of government regulations. Any transaction conducted through bitcoin only records the user’s wallet ID in a public log, never their name or address. However, as the cryptocurrency market has grown, governments have begun to discuss adding regulations.

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Setting up your Bitcoin Wallet

A Bitcoin Wallet is the intangible storage place for your bitcoins. You can set this up on your mobile device or limit it to your computer only. Once your wallet is set up, you can use it to send, receive and store bitcoins. You can choose between a software wallet, which you’d install as an app onto your computer and/or mobile device, or a web/hosted wallet, which is hosted by a third party. The web wallets are often simpler to use, but take the time to make sure that it is a legitimate site before trusting it with any of your personal information.

Once you’ve installed your selected bitcoin wallet, you will receive your Bitcoin Address along with a Security Key which will be your credentials for sending or accepting bitcoin payments. There are several ways of acquiring bitcoins:

  • Credit/Debit card –  use your credit or debit card to purchase bitcoins and see them instantly reflected in your wallet.

  • Bank Transfer – buy bitcoins by connecting your US bank account to your wallet. Unlike card transactions, bank transfers have a certain processing period, so funding your bitcoin wallet through this method could take up to 4 days, depending on your bank.

  • Incoming Payment – you can receive bitcoins as a payment from other holders of bitcoin wallets.

  • Cash – with cash,  you can use bitcoin ATMs to instantly fund your bitcoin wallet.

  • Exchange Platforms – you can buy or trade large amounts of bitcoins at the market rate on the existing exchange platforms.

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Pros of Purchasing Gold and Silver with Bitcoin

The main benefit of having bitcoin at all is the convenience of its transaction process, that allows you, the buyer, to bypass some of the hassles of buying online with a credit card. Because it functions as a single uniform piece of currency, bitcoin blurs the global lines, transcending languages, current exchange rates, and thousands of miles of geographical distance. You don’t have to concern yourself with the bitcoin exchange rate with specific currencies. Although the current price to buy into bitcoin is high, those who use it as a method of payment for gold and silver appreciate the lower processing fees added when compared to those added to purchases through other payments, but this will vary from seller to seller.

Cons of Purchasing Gold and Silver with Bitcoin

Because bitcoin is not government regulated, it is unable to promise you the same security and privacy that government regulated currencies offer. Additionally, there is the incredible volatility of the bitcoin value, if you’ve been following the bitcoin price history the last few weeks alone, you would have seen new record after new record being broken, often followed by a quick drop again. There’s always the risk that the “Bitcoin Boom of 2017” could turn into the “Bitcoin Bubble”, and pop, leaving its buyers with much less value for their investment. Finally, unlike purchases made through credit/debit, PayPal, or the like, bitcoin offers no guarantees. Any purchase made through Bitcoin is instant, irreversible, and unprotected. Of course, buying through an online merchant such as Bullion Exchanges negates this risk to an extent, as it is always possible to contact our customer service for assistance with a return or refund. However, purchases made through a non-reputable dealer could end in a big loss.

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Making your Precious Metals Purchase with Bitcoin

At Bullion Exchanges, we promise secure, convenient payment for all of your favorite gold, silver, and platinum products. Should you choose to make a purchase with bitcoin, we will add a 1.5% discount on the credit card price. For more information regarding payment options, take a look at our Terms & Conditions, or feel free to contact us through our live web chat feature, via email at info@bullionexchanges.com, or by calling 800.852.6884.