Account Access
Live Metal Prices

Buying Precious Metals with Bitcoin and Ethereum

Digital currencies known as “cryptocurrencies” allow millions of people all over the globe to buy and sell things without having to use fiat currencies or go through financial institutions, credit cards, or governments. The two biggest cryptocurrencies are bitcoin and ethereum, and they have a combined market cap of around $50 billion. Both bitcoin and ethereum are coming off a tremendous rally with bitcoin rallying 65% in the month of May and hitting an all-time high of $2,700 before correcting to around $2,250. Ethereum rallied over 160% in May and now rests at $207 – only a few dollars away from its all-time high of $212.

Bitcoin and ethereum are popular because they allow people to store wealth outside of what many believe are corrupt financial systems. But these cryptocurrencies are volatile and dangerous. Investors who want to lock in their profits are turning to precious metals like gold and silver as a way to store their newfound wealth in a more stable and long-term monetary asset.

Transacting in Bitcoin and Ethereum

If you want to use cryptocurrencies, you will need to first get a digital “wallet” to store them in. These wallets are desktop or mobile applications that allow you to store digital currency - bitcoin and ethereum use different wallets, but any site that offers one will generally offer the other as well. The most popular cryptocurrency wallet is called Coinbase. Coinbase is a website that lets you securely link up your bank or credit card and buy and sell cryptocurrency for a small fee on each transaction.

Bitcoin and ethereum wallets come with “addresses” - this is digital code that identifies each wallet and allows you to transact in cryptocurrency by sending the currency from your address to another address. If someone wants to send bitcoin or ethereum to you, they simply open up the wallet app and type in your address code. Likewise, if you want to send coins to someone else, you simply enter their address into your wallet and specify the amount you want to send.

To buy precious metals with bitcoin and ethereum, you must first find a dealer that accepts these cryptocurrencies as payment. When it is time to pay for your purchase, they will give you their digital address. And all you have to do is simply send the specified amount of coins from your wallet to the address they provided. Bitcoin transactions are verified several times to make sure they are legitimate, and it can take a long time for the payment to be received. However, ethereum is much faster than bitcoin.

Conclusion

Bitcoin and ethereum are popular cryptocurrencies that are changing the way people do business on the internet. These methods of payment are growing in usage and investment potential, and many people have become wealthy by investing in them. However, despite the usefulness of cryptocurrencies, they are very volatile assets that are risky to hold long term. Investors who want to hold a safer way to store wealth outside of the financial system can use bitcoin and ethereum to buy precious metals.