Jump to: What is Bitcoin? | Buy Gold with Bitcoin | Wallet Compatibility | Why Buy Gold with Bitcoin? | FAQs
Online purchases using bitcoin or other forms of cryptocurrencies have become a common option nowadays. Many wholesalers and retailers now accept bitcoin as a payment method worldwide. And that is not different when it comes to precious metals dealers. SD Bullion, for instance, collects millions of dollars in crypto currencies every year in exchange for gold bullion, silver bullion, platinum bullion, and palladium bullion.
This article will discuss how and why this 'buy gold with bitcoin' phenomenon is growing. You will learn how this peer-to-peer electronic transaction process works and why the crypto revolution has affected how people invest in gold and silver.
What is Bitcoin?
Bitcoin (BTC) is both a currency and an online payment system. In other words, it is a cryptocurrency, a cryptographed form of money that is decentralized, meaning it is not regulated by any central authority (e.g. a bank). It was the first digital currency of its kind. It debuted in 2009 and has essentially become an international currency with over 13 million users worldwide.
Other digital currencies include Bitcoin Cash (BCH), which is a fork of BTC, Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and many more.
How does Bitcoin work?
Every bitcoin transactions occur online and are encrypted in a blockchain, which is, in simple terms, a digital and public ledger.
You store your Bitcoin holdings and other digital coins in your wallet, which is similar to a bank account. You can use it to send and receive payments with cryptocurrencies by simply providing your wallet address. You can also buy bitcoin and keep track of the daily price fluctuations of cryptocurrencies.
How to Buy Gold with Bitcoin at SD Bullion
Step 1 ➤ Add gold bullion products to your SD Bullion cart and proceed to checkout
Simply browse through our inventory and add the product and quantity you would like to your shopping cart. Note prices will vary for bank wire, bitcoin, or credit card. You can continue shopping for other products or proceed to checkout. Then, add your SD Bullion account information and shipping address.
Step 2 ➤ Select the Bitcoin payment option (bitpay)
Take note of potential discounts you can get by using cryptocurrencies, such as bitcoin or Ethereum, as your payment method. Only a small fee may be charged by your online payment system, so you can usually get better rates on bitcoin transactions than by paying with a credit card, for instance.
Step 3 ➤ Order and immediately pay for your gold products with a bitcoin payment invoice
After selecting bitcoin as your payment method, our website will generate an invoice with our bitcoin address for you to pay in under 15 minutes. You can provide your bitcoin wallet app info directly on the browser or simply scan the QR Code on the screen with the wallet app on your phone to make the payment. You will receive the confirmation of your purchase in your email.
Note that your gold for bitcoin order can be in a pending status for as long as one business day. Your payment has to go through a bitcoin protocol before approval. During high congestion periods, it can take as long as 24 hours for your payment confirmation email to arrive. Although it's not instantaneous, bitcoin is still one of the quickest forms of payment for gold or other precious metals that we process and accept.
Gold for bitcoin payments are also one of the cheapest options we offer. As previously stated, SD Bullion currently offers Bitcoin customers a 3% discount on our credit/debit card price on all orders. Do take note, however, that the bitcoin network charges a transaction fee.
Gold for Bitcoin Payment Invoices & Bitcoin Wallet Compatibility
The price of bitcoin is always moving and fluctuating (see bitcoin's current value here).
To prevent bitcoin price swings from hurting bitcoin-accepting merchants or users, BitPay requires transactions currently to be sent within 15 minutes of invoice issuance. The majority of bitcoin exchanges cannot send payments that quickly. Late gold for bitcoin payments will be canceled and need to be refunded. This will cost everyone time and potentially capital. Thus BitPay now requires all gold for bitcoin payments to be made with a payment protocol compatible software or hardware wallet.
The image below shows various wallet logos which are currently compatible with BitPay.
This updated information can be verified right here on BitPay's website.
Bitcoin (BTC) Wallets
Currently, you can use the following payment protocol-compatible wallets to buy precious metals, such as gold bars and gold coins, with bitcoin via SD Bullion and BitPay, respectively:
- BitPay Wallet
- Copay Wallet
- BTC.com Wallet
- Mycelium Wallet
- Edge Wallet (Formerly Airbitz)
- Electrum Wallet (Desktop only, PayPro not supported on Mobile)
- Bitcoin Core Wallet
- Bitcoin.com Wallet
- BRD Wallet (breadwallet)
- Bitnovo
- Blockchain Wallet
- Exodus (Desktop only, PayPro not supported on Mobile)
- HODL Wallet
Bitcoin Cash (BCH) Wallets
All Payment-Protocol-compatible BCH wallets are fully compatible with BitPay. The list includes:
- BitPay Wallet
- Copay Wallet
- BTC.com Wallet
- Edge Wallet (Formerly Airbitz)
- Bitcoin.com Wallet
- Bitcoin Cash Wallet (Uses old address format, recommend converting to Cashaddr)
- Electron Cash Wallet
- Cointext
- Exodus (Desktop only, PayPro not supported on Mobile)
- Badger Wallet
If you don't have one of these bitcoin wallets yet, simply create one from the list above (be sure to use the current release version). Then send some bitcoin to it, likely at least the amount you intend to use in your gold for bitcoin purchase at SD Bullion.
Here is a short educational video on the subject of paying BitPay invoices with various bitcoin wallets.
Why Buy Gold with Bitcoins?
To answer that question, we can first understand why many experts now believe buying gold is essential in a diversified portfolio at all! Gold and silver have been around for millennia. They were used as currency in the form of coins and, even before that, in ancient civilizations, as bartering items.
Gold and silver are noble metals. As such, they do not tarnish nor corrode with ease. There are countless examples of gold items, including gold coins, found in archaeological sites that date back thousands of years. They are a store of value that will not depreciate, even in the event of a widespread economic crisis.
In fact, data has shown that in the last 100 years, gold has outperformed every form of fiat currency system created by mankind.
Therefore, many financial advisors now see bullion as a safe haven asset against inflation and fiat currency devaluation. By using crypto currencies to purchase gold, you are less prone to the volatility risks of the crypto market.
Additionally, as previously stated, you immediately qualify for a 3% discount by using digital coins to purchase our products.
Finally, remember that bullion like gold and silver has been and will be around far longer than any other non-precious currency project mankind has or will continue to undertake.
Bullion will Outlast Bitcoin
Perhaps this is but one reason why so many BTC holders are selling bitcoin for gold nowadays.
Of course, there are also trillions of other reasons for this physical gold for BTC buying trend.
These two asset classes are independent of one another. Many investors choose to buy and hold portions of their wealth in gold, bitcoin, other physical precious metals, and cryptocurrencies, likely for many of the same reasons.
If you would like to buy gold bullion with bitcoin, our traders can help you personally during open market hours. You can reach us in the U.S. at 1(800)294-8732 or through our live web-chat feature on the bottom right of your screen.
FAQs About Buying Gold with Crypto
What is the Exchange Rate for Bitcoin transactions?
You can usually find the exchange rate for bitcoin on your wallet app or websites such as crypto.com. You may also be charged a service fee when transacting with cryptocurrencies. They usually range from 0.5% to 4.5%
What Bitcoin Wallet Works Best for Making Payments in Bitcoin?
You can use any wallet that has a compatible protocol with BitPay. The list includes BitPay Wallet, Copay Wallet, BTC.com Wallet, and many others. You can find the full list here.
What precious metals can I buy with crypto?
You can buy any of our precious metal products with crypto currencies through BitPay. That includes gold, platinum, palladium, and silver coins, bars, and rounds, among others. BitPay currently accepts payments with Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum, and many other cryptocurrencies.
What Are Your Shipping and Processing Times?
Orders are shipped within 1-3 business days after BitPay fully clears the transaction. BTC is one of the quickest forms of payment that we accept, but it may take as long as one business day for the payment protocol to be approved by BitPay.
Can I Cancel an Order?
When placing an order with Bitcoin via Bitpay for physical gold bullion items, your order and price is locked in at the time of your order. Because the gold price is constantly changing, orders cannot be canceled after they are locked in.
Can I Change a Payment Method to Bitcoin After the Order is Completed?
Because Bitcoin is an online, automated payment method, you will not be able to change it after it is locked in. Once BitPay settles your cryptocurrency payment, your order will be marked as payment received and sent to our shipping queue.
