Buying Gold & Silver With Bitcoin

bitcoin-jm

Since its establishment in 2008, the online payment system known as Bitcoin has enabled millions of customers to make and receive payments without the involvement of any banks or credit/debit card companies. The popularity of this payment method stems not only from the convenience of its transaction process, but also from the currency it uses, the bitcoin. The bitcoin serves as the single uniform piece of currency within the system, and enables people from different nations to make their purchases without having to concern themselves with current exchange rates. Understandably, it has become a popular means of payment among businesses that deal internationally, including precious metals dealers. You can see the bitcoin price here.

Yet, before customers commit to using this form of payment for their precious metal purchases, it is important to understand some of its potential risks and consequences. Bitcoin is still in the development phase and has many security and privacy issues it needs to resolve before it can be considered a reliable form of payment. In its present state, customers may want to consider more established forms of payment for their gold and silver purchases.

Set Up

Prior to making any purchases through BitCoin, customers must accomplish two steps: select a “wallet” and acquire bitcoins. In the context of Bitcoin, “wallets” refer to any website or desktop/mobile application where customers can hold their currency. You can find a number of these listed on the Bitcoin Wallet Page. After you have installed one of these applications, you will be provided with a Bitcoin address as well as a security key or password. You will require both of these to send and accept payments.

The next step will be to acquire some bitcoins to fill your account. There are a number of ways for an individual to obtain bitcoins. They can receive them as payment. They can exchange them with another person. They can even earn them by providing a bitcoin encryption service known as “competitive mining.” However, the simplest and most popular method is to simply purchase them at a reputable bitcoin exchange site. However, please be advised that due to the processing period, it can take as long as 4 business days for your purchased bitcoins to show up in your wallet. Some sites may also require an exchange fee based on how much money you are converting to bitcoins and vice versa.

Process

Once the bitcoins arrive in your wallet, you can begin making your purchases. Start by finding precious metals dealers who accept bitcoin. Add items to your shopping cart as you normally would and then, proceed to checkout. When you are asked to select a form of payment, indicate the option marked Bitcoin. Be sure that you have already logged on to your wallet app and that your wallet is opened to the payment submission page.

At this point of the transaction, your precious metal dealer will provide you with an invoice containing its Bitcoin address, which you will use to fill out the portion of the form marked, “recipient.” In some cases, merchants will try to save you the effort of typing the address by encoding it in a QR code that you can scan with your wallet app. Underneath the address, will be a space where you must also fill in the appropriate payment out. Please note that in addition to the cost of your purchase, you will be required to pay a transaction fee. When you’ve completed the form, simply press, “send” and wait for a confirmation indicating the receipt of funds.

It is important to note that there will be several verifications or “blocks” that your payment must pass in order for the funds to be approved. The number of blocks is entirely dependent upon the dealer. Customers are asked to keep in mind that there can be as many as 6 blocks in a single transaction, each of which can take as long as 10 minutes to clear, so they must be prepared to wait a while before their payment fully clears. The total clearance time can range anywhere between 10-60 minutes.

Advantages

The primary advantage to using Bitcoin is the convenience it offers. Because all transactions occur online, customers are not confined to the hours and location of any particular establishment. They can make their purchases at anytime from the comfort of their own home or office. Customers also appreciate that Bitcoin provides them with a single internationally accepted form of currency that can be used across the globe without the need for any additional conversion.

In addition to its convenience, many customers prefer this method of payment due to its affordability; Bitcoin transactions incur lower processing fees for merchants than those made with PayPal or credit/debit cards. As a result, customers end up paying lower premiums rates for their precious metals purchases.

Buying Copper & Platinum With Bitcoin

Because of the growing popularity of using Bitcoin to pay for their gold and silver purchases, many online dealers are extending this privilege to their copper and platinum bullion as well. The process of buying copper and platinum with Bitcoin is exactly the same as with other precious metals: simply select the item and transfer the funds from your wallet to the provided address. As with other purchases, there will be a transaction fee that accompanies the cost of payment. Customers are also warned that when using Bitcoin to pay for their copper and platinum products, they are opening themselves up to the same privacy and security risks that they would encounter on their gold and silver orders.

Buying Gold & Silver With Bitcoin at JM Bullion

JM Bullion is proud to offer a Bitcoin payment option to our valued customers. You will now find a Bitcoin payment option at checkout. Those who make purchases using Bitcoin will receive a 3% discount, just as those who pay by bank wire and check do. To learn more about our other accepted forms of payment, please visit our Payment Methods Page or contact us directly at 800-276-6508.

All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.