Our guide to cashing out bitcoin and cryptocurrencies by converting into gold and precious metals!
Many online bullion dealers and trading platforms now accept Bitcoin and other cryptocurrencies as a payment method for converting crypto to gold bullion and other precious metals.
Now you can buy gold coins and gold bars with bitcoin easily with minimal amounts in transaction fees.
Why buy gold with crypto?
Some may have made cryptocurrency gains and would like to solidify some of those gains by buying one of the world’s most trusted reserve assets, gold.
Cryptocurrency investors can now easily diversify their portfolios and reduce volatility by investing in precious metals such as gold and silver.
Although Bitcoin and many other cryptocurrencies have had some dramatic gains recently, it is fair to say that crypto in general has very high volatility.
Buying gold or other precious metals can give crypto investors the ability to profit by taking from one highly speculative investment and thereby reducing their overall portfolio volatility.
Whilst Bitcoin and some other crypto’s undoubtedly present huge potential for profits, there is also a high probability of large losses due many reasons, such as being a new asset class with a short amount of history.
You could say that Bitcoin is a more speculative asset that can potentially make money in the short term, but long term, gold is a stable asset that has shown to be the ultimate store of wealth over long periods of time.
Brief history of Bitcoin.
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Bitcoin is a digital currency that was created in 2009 following the housing market crash.
A white paper was posted on the internet titled: Bitcoin: A Peer-to-Peer Electronic Cash System.
The paper was published by a mysterious pseudonymous calling themselves Satoshi Nakamoto. The true identity of this inventor, or potentially group of people, is still unknown.
Bitcoin works on a public ledger called a blockchain, which holds a decentralised record of all transactions that is updated and held by all users of the network.
New Bitcoins are generated through a process called mining. Bitcoin mining is performed by high-powered computers that solve complex math problems; these problems are so complex that they cannot be solved by hand and are complicated enough to tax even incredibly powerful computers.
Computers that run the network are used to monitor and verify both the creation of new Bitcoins through mining, and the transfer of Bitcoins between users. There are thousands upon thousands of these computers all over the world, therefore there is no centralised system prone to attack.
The easy way to get Bitcoin is to purchase bitcoins online via a Bitcoin exchange.
Although Bitcoin had somewhat of a rocky start with mainstream media trying to discredit it in the early days, Bitcoin has now grown to be medium of exchange and a digital asset used by millions of people worldwide.
More and more companies are now willing to accept Bitcoin and other cryptocurrencies after seeing its mass adoption and increase in value.
Bitcoin and bullion.
Bitcoin is a relatively new currency, it has only been around since 2009, therefore, there is very little history or track record. This can make many investors nervous.
Physical gold on the other hand, has been considered reliable store of value and a tool for wealth preservation for thousands of years.
Bitcoin may be the new kid on the block and has a lot of attention at the moment as a new type of currency, but if you are looking for a stable asset, then gold is undoubtedly the oldest and most reliable form of wealth preservation.
Gold, fiat and crypto.
Gold is not man made, it is not created by human hands.
On the other hand paper currencies depend on credit, they depend on a promise, be they another person, government or central bank.
These ‘money-substitutes’ have been created time and time again over centuries, e.g. pounds, euros, francs etc.
These fiat currencies are all based on credit and are forced into circulation by legal tender laws.
Cryptocurrencies need a coder, they need a computer network and vast amounts of electricity. And at the end of the day, although cryptocurrency is truly revolutionary, it is still man made and humans will eventually improve on man made things over time.
Crypto is a new, convenient way to store and move digital tokens online.
However, gold is a tangible asset you can hold in your hand. It cannot be easily destroyed and it will never lose all of its value as it is also a commodity.
Speculation vs preservation.
You can’t deny the fact that cryptocurrency is an exciting and potentially profitable place to be right now, and it is always good to have a diversified portfolio of assets.
However, currently crypto can be seen as more speculative due to its high volatility and lack of history.
Although Bitcoin has had a meteoric rise, it still remains somewhat of a gamble.
Bitcoin and other cryptocurrencies could still become subject to tougher regulatory interference as Central Bank Digital Currencies inevitably start being introduced, and no doubt governments will show little tolerance to competing financial instruments such as cryptocurrency.
If you have been lucky enough to make some considerable gains from crypto, then now could be a good time to cash out some of those gains into gold.
You can reduce your overall portfolio volatility by investing in physical gold using Bitcoin or other cryptocurrencies.
One of the easiest and quickest ways to buy gold with bitcoin is with Vaultoro.
Vaultoro is an online exchange based in the UK that allows it’s users to trade Bitcoin or DASH for physical gold and vice versa, without the need to use a fiat currency or a bank account.
Read our full Vaultoro review here.
For many people the allure of gold is hard to resist as the world’s oldest and best known reserve asset, if you have bitcoin or crypto gains that you would like to convert to gold, you need to get familiar with Vaultoro!
Trade from crypto to investment-grade bullion and back. Crypto can bring large gains, gold is to preserve those gains without dealing with banks or fiat. Vaultoro gives you easy access to professionally vaulted, fully insured gold bullion.
Claim half a gram of GOLD when you trade €100 worth of BTC. Visit Vaultoro