A Beginner's Guide: Investing In Bitcoin Gold

Gold is a stable investment that has proven to be valuable since antiquity. In recent years, the crypto revolution has led to an explosion in the number and value of digital currencies, including Bitcoin. As a result, many people are interested in investing in Bitcoin gold. This involves buying gold bullion, such as bars and coins, or luxury items made of gold, such as jewellery and watches, with Bitcoin. There are several online shops that allow you to do this, including Bitgild, JM Bullion, APMEX, and Crypto Emporium. The process is similar to buying any other product with Bitcoin and typically involves registering an account, selecting the desired products, choosing Bitcoin as the payment method, and completing the payment.

Gold-buying platforms that accept Bitcoin

There are several online platforms that allow you to buy gold with Bitcoin. Here are some reputable options:

• Bitgild: Bitgild is a large European gold and silver internet shop that has been in business since 2013. It offers a wide range of gold and silver products, including coins and bars, and accepts various cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more. Bitgild provides insured worldwide shipping and has positive reviews from over 20,000 satisfied customers.
• Crypto Emporium: Crypto Emporium is a unique online store that specialises in selling luxury products made of gold, such as jewellery and watches from elite brands. They offer worldwide shipping and a rewards program that allows you to earn their native cryptocurrency, Emporium Cash. Crypto Emporium is a good option if you're looking for gold items beyond bullion, bars, or coins.
• JM Bullion: JM Bullion is a leading online retailer of gold, silver, platinum, and palladium bullion, coins, and bars. They have been in business since 2011 and are known for their excellent customer service and user-friendly website. JM Bullion offers low shipping costs within the United States and accepts Bitcoin as a payment method, with a maximum order value of $500,000.
• APMEX (American Precious Metals Exchange): APMEX is one of the leading gold dealers online, offering over 46,000 products, including gold, silver, platinum, and palladium bullion, coins, and rounds. They accept various cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Litecoin, and stablecoins. APMEX ships to more than 30 countries worldwide and is a good option if you're looking for a diverse selection of products.
• BGASC (Buy Gold And Silver Coins): BGASC is a top gold dealer specialising in gold coins, offering a wide range of options from various mints around the world. They also provide gold bars and some jewellery. BGASC offers free shipping within the United States for orders over $199 and provides a 3% discount on purchases made with Bitcoin and other supported cryptocurrencies.

How to set up a crypto wallet

Setting up a crypto wallet is a crucial first step if you want to start investing in cryptocurrencies like Bitcoin Gold. Here's a detailed guide on how to set up a crypto wallet:

Choose the type of crypto wallet that suits your needs:

There are three basic types of wallets for virtual currency. Software wallets, also known as hot wallets, store your crypto on an internet-connected device. Cold wallets, on the other hand, are hardware devices that keep your crypto offline, offering added security. Custodial wallets leave your crypto in the control of a trusted company, such as a crypto exchange.

Pick a wallet provider and download the app:

If you choose a software wallet, select a reliable wallet provider such as Exodus, Electrum, or Trust Wallet. Download the wallet app to your phone or computer to ensure easy access to your crypto assets. Be sure to download the app from the official app store or the wallet provider's website to avoid malicious software.

Create your account:

Fill in basic information such as your name, email address, and a strong password to create your account. Some wallet apps may also require identity verification, which involves submitting a government-issued ID and a selfie. It's recommended to use two-factor authentication (2FA) for added security.

Transfer your crypto assets:

Once your account is set up, you can start transferring assets into your wallet. You can deposit funds from a bank account, exchange cryptocurrencies, or receive them from another wallet. Most software wallets support multiple cryptocurrencies, so you can transfer various assets. Be sure to obtain the wallet address or use QR codes to facilitate the transfer.

Set up security measures:

It's crucial to secure your crypto wallet to protect your assets. Enable security features such as two-factor authentication, multi-signature support, and backup options. Create a recovery phrase or seed phrase, which is typically a random 12-word or 24-word phrase. Keep this phrase in a secure location, as it will be essential if you ever need to recover your wallet or access your funds on another device.

Purchase or transfer cryptocurrency:

After setting up your wallet, you can purchase cryptocurrency using traditional currencies or transfer coins from another wallet or exchange. If you're using a custodial wallet, you can purchase coins directly on the exchange by linking your bank account or using a credit/debit card.

The benefits of buying gold with Bitcoin

Gold has been a stable investment for centuries, and Bitcoin has seen explosive growth since its introduction in 2009. Here are some reasons why buying gold with Bitcoin can be beneficial:

• No banks necessary: You can buy gold without using a bank or money transfer account. Bitcoin is a peer-to-peer system where money passes directly from one account to another, with no intermediaries.
• Speedy transactions: Transactions can be processed in seconds, although speeds vary depending on the crypto used. In contrast, payments through the conventional banking system can be slower due to multiple intermediaries.
• No tricky exchange rates: You can make transactions across borders without currency conversions, regardless of your residence or the gold dealer's location. This saves you money on conversion fees.
• Low fees: You can avoid wire fees and other charges associated with traditional payment methods when buying gold with crypto. Crypto transactions typically involve low, transparent fees.
• Security: Paying with crypto is generally considered safer than using credit cards, as it does not expose you to common risks associated with credit card transactions. Additionally, the decentralized nature of Bitcoin means that even if half the nodes in the network go offline, it will still function.
• Anonymity: Bitcoin transactions maintain your anonymity, as the only identifying criterion is your Bitcoin address. This ensures that your purchases remain private.
• Borderless transactions: Crypto transactions are not limited by geographical boundaries and can be made in rural areas with limited banking infrastructure. All you need is an internet connection.
• Growing acceptance: More merchants are accepting cryptocurrencies as a form of payment, making it a more convenient means of payment.

While buying gold with Bitcoin offers these advantages, it is important to remember that the price of cryptocurrencies is highly volatile and subject to market sentiment. Therefore, it is crucial to carefully consider your investment goals and risk tolerance before deciding to invest in Bitcoin or gold.

The risks of buying gold with Bitcoin

While buying gold with Bitcoin is possible and easy to do, there are some risks to consider. Here are some key points to be aware of before making any purchases:

• Volatility: Bitcoin is a highly volatile asset, and its value can fluctuate rapidly. This means that while it has the potential for high returns, it is also a risky investment as it can lose value just as quickly. Gold, on the other hand, has proven to be a stable investment over centuries, with a steady growth in value that matches economic inflation.
• Liquidity: Gold is not a particularly liquid asset, making it difficult to buy or sell quickly. In contrast, Bitcoin is highly liquid, allowing for fast transactions. However, this liquidity also contributes to its volatility, as rapid buying and selling can cause significant price swings.
• Regulation: Buying and selling gold is subject to government and regulatory oversight, which can make the process more cumbersome. Bitcoin, being a decentralized currency, is not controlled by governments or financial institutions, and transactions are generally not subject to regulatory bodies. This lack of regulation can make it more flexible but also increases the risk of scams and fraud.
• Security: While both gold and Bitcoin are considered relatively secure investments, they have different security considerations. Gold requires secure storage and insurance, whereas Bitcoin relies on cryptographic code and the security of the devices used to access it. Weak physical security surrounding your Bitcoin wallet can result in unauthorized access or theft.
• Taxation: Gold and Bitcoin are both subject to taxation, but the specifics vary. Gold sold within one year of purchase is typically taxed at the regular income tax rate, while gold sold after one year is subject to capital gains tax. Bitcoin sales are taxed as short-term or long-term capital gains, allowing for rapid transactions without significant tax liability.
• Market Forces: Gold has shown resilience to market forces and is a hedge against inflation, retaining or growing in value when fiat currency declines. Bitcoin, being a newer asset, is still unproven as an investment and is subject to media effects, investor sentiment, regulatory actions, and hype, which can impact its price.
• Selling Gold for Bitcoin: While buying gold with Bitcoin is relatively straightforward, the reverse process is more complicated. Selling gold for Bitcoin requires finding a willing buyer, meeting legal requirements, and performing due diligence to prove authenticity and purity. This process provides fewer protections than traditional methods of selling gold or purchasing Bitcoin.

In conclusion, while it is possible to buy gold with Bitcoin, it is important to carefully consider the risks involved. These include the volatility of Bitcoin, liquidity concerns, regulatory and tax differences, market forces, and the complexities of selling gold for Bitcoin. A diversified investment portfolio that includes both gold and Bitcoin can offer benefits, but it is essential to understand the risks associated with each asset.

How to make a payment with Bitcoin

To make a payment with Bitcoin, you'll first need to set up a Bitcoin wallet. This will be where you store, pay, and receive your Bitcoin. There are many free crypto wallets available online, and they work on both desktop and mobile devices. Simply create an account using your personal details.

Once you have a wallet, you can buy some Bitcoin. You can do this through a cryptocurrency exchange service—be sure to shop around to get the best possible price for Bitcoin at the moment. You can buy Bitcoin using your credit card or bank account. Just provide the exchange service with your Bitcoin wallet address, and the transaction will be completed in minutes.

Now that you have a Bitcoin wallet and some Bitcoin, you can start paying for goods and services online. If a merchant offers Bitcoin as a payment option, simply copy their Bitcoin address and paste it into a designated field in your wallet. Type in the amount of Bitcoin you want to send, and click 'send'. Make sure you always type in the exact amount displayed in the payment window. The transaction should be completed in a few seconds.

Bitcoin is accepted by most top stores and services online. It's a good idea to check out some of the best companies that are Bitcoin-friendly today.

Using Bitcoin is easy, and all future transactions will be a breeze once you've learned the ropes. Payments are also safe and anonymous.

Frequently asked questions