How to buy gold with Bitcoin in 2023
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
If gold is the traditional hedge against inflation and a long term store of value, then Bitcoin is the digital equivalent. Both represent bets against the modern financial system and can gain value during periods of economic trouble. This guide shows how you can use Bitcoin to buy gold and compares the trading platforms that offer this service.
Can you buy gold with Bitcoin?
You can buy gold with Bitcoin on a few specialist trading platforms. Those platforms let you connect your Bitcoin wallet to the trading account and use the funds in there to buy physical gold. However, this can be quite expensive.
Another option is to sell your Bitcoin back into USD and then use that to buy a gold CFD. This is a much easier method, as it doesn’t require you to take delivery of the gold and store it somewhere safe. It’s possible to transfer Bitcoin into a gold CFD quite easily on a multi-asset trading platform like eToro.
We recommend that as the best way to turn Bitcoin into gold for most casual buyers. If, however, you want the gold as a long term store of value and as physical security that you control, then a specialist gold bullion broker is the only option.
Where can you buy gold using Bitcoin?
The trading platforms listed below let you transfer your Bitcoin into gold. Sign up by clicking a link in the table to start buying gold now. Otherwise, this could be an area where more services pop up over the next few months, so check back regularly to see what’s available.
How to buy gold with Bitcoin – a step-by-step guide
Follow the steps below to swap your Bitcoin for gold for the first time. This process applies to any platform that asks you to connect a crypto wallet to the service in order to buy physical gold.
1. Buy Bitcoin
If you don’t already own Bitcoin, then you need to buy some as the first step. Find a Bitcoin broker or exchange and buy some coins. Note that you are likely to need at least £1,000 worth in order to buy gold bullion, as physical gold is sold according to its weight and a single ounce of gold can cost between £1,000 and £2,000.
2. Transfer Bitcoin into a crypto wallet
Set up a Bitcoin wallet and transfer your coins into it. You will have to pay a blockchain fee (effectively a transaction fee) in order to move your money. Compare the best Bitcoin wallets to find one that works for you.
3. Sign up to a gold broker that accepts Bitcoin
There are a handful of gold brokers that accept crypto payments. Find one and create an account. Consider the fees that each platform charges before you sign up, as the cost of the transaction (as well as the delivery costs) can add up to more than £100. Finding a cheaper platform can result in a significant saving.
4. Search gold products to find what you want to buy
Buying gold coins or bullion is like any other form of online shopping. Browse the products available and decide which option suits you. You can choose from small gold coins, which are more affordable, or heavier gold bars that are worth a lot more. Add the products you want to your basket.
5. Enter order details and delivery address
You must provide some personal information as part of the order process. Some platforms ask for a form of ID, and you may have to go through more checks or speak to a member of staff over the phone if your order costs more than £25,000. The delivery address is very important as you want to make sure the gold is sent to a secure location.
6. Enter your wallet address to pay for the gold
When you reach the payment screen, choose the relevant payment method. This might be a third-party crypto payment service, like BitPay, or it might simply mean entering your wallet address. For very high value orders you may have to provide proof-of-funds in advance.
7. Confirm the order
When you’re happy with all the details, go ahead and place the order. It’s always worth checking the details thoroughly, particularly the wallet and delivery addresses, as you don’t want to make any mistakes. Then sit back and wait for your gold to arrive.
Top platforms that accept Bitcoin
We have picked out the best platforms that let you buy gold with Bitcoin. The list below is a mixture between brokers where you can buy gold CFDs and platforms that offer the real thing.
1. eToro
eToro is a CFD trading broker and a hugely popular trading platform. You can buy gold CFDs on eToro, which makes it a great option if you want to speculate on the price of gold over a relatively short time frame.
You can also buy Bitcoin on eToro as well as store it in your trading account. All you need to do to transfer that into gold is to sell Bitcoin into USD and then invest the USD back into gold. This only takes a few minutes and is the easiest way to switch between the two assets.
Another advantage of using a broker like eToro is that you can use leverage when you buy CFDs. That means you can make much larger bets on the price by borrowing extra money from the broker.
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
2. Sharps Pixley
Sharps Pixley sells physical gold and accepts payment in Bitcoin, as well as a range of other cryptocurrencies. It sells gold coins and bars, which weigh from 1 oz all the way up to 1 kg.
You can buy gold with Bitcoin from your crypto wallet or direct from your crypto exchange account. Two partner exchanges are Coinbase and Kraken, which means the feature is highly accessible.
Just go through the online shop and choose a crypto payment method at checkout. Then you can deposit money through a wallet like Ledger or Trezor, or from one of the partner crypto exchanges.
3. Chards
Chards is another gold bullion dealer that has recently started to let customers pay with cryptocurrency. You can choose to pay in Bitcoin, or in two other leading cryptos; Ethereum and USDC.
It’s free to register with Chards although you have to provide some ID in order to verify your account and add the option to pay with crypto. As soon as the verification process is completed, an option to pay with crypto is added to your checkout screen and you can pay for your gold with Bitcoin.
One thing to note is the cost of doing business. Every purchase with Chards comes with a £100 minimum transaction fee and larger orders are subject to a 1% fee. This can add up to a significant amount if you plan on making a large purchase.
Should I use Bitcoin to buy gold?
It depends on what you want the gold for and how highly you value Bitcoin’s potential. It’s certainly not the easiest payment method, and Bitcoin has more scope to increase in value than gold. If you buy gold bullion when Bitcoin is worth $30,000 and the BTC price subsequently doubles, you may have lost out on a significant sum.
However, if you have Bitcoin to spare or want to move some of it into a more stable asset then it may be worth the time and effort. Gold has been a valuable commodity for thousands of years and that’s not going to change any time soon. It offers the chance to store some of your wealth off-grid and a way to diversify your portfolio to protect it against inflation or economic shocks.
The other option is to use CFDs to swap between the two assets and try to capitalise on price swings. This is far easier to manage than purchasing bullion and significantly cheaper as well. If you aren’t as interested in storing the gold, then this offers an interesting alternative investment opportunity.
What are the fees for buying gold with Bitcoin?
The fees can be in excess of £100. It varies depending on the broker, and it’s a lot more expensive to buy physical gold than it is to get a gold CFD. You also need to take the delivery fees into account as well, as the gold needs to be transported securely.
Buying gold CFDs, on the other hand, often comes with no charge. CFD traders normally offer free trading, or at most charge a small commission on every trade.
Why don’t more brokers or exchanges let you buy gold with Bitcoin?
One reason is that there aren’t many brokers that let you buy gold bullion to begin with. Crypto is also still relatively young, particularly as a means of payment. That means the industry is still a little behind when it comes to crypto payments.
Alternative payment methods
There are plenty of other ways to buy gold if the Bitcoin option isn’t for you. Learn how to buy gold with any major fiat currency, or find out more about how to trade it if you don’t want to have to store the gold yourself.
FAQs
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >