As the world steadily moves towards a cashless society, one of the most exciting financial developments has been the intersection of cryptocurrency and traditional assets like gold. For centuries, gold has been considered a “safe haven”, and store of value in times of economic uncertainty.
With the rise of digital currencies, where 1 in 10 Brits now own cryptocurrency in 2025, buying gold with crypto has become a reality, offering a new way to diversify your portfolio.
In this comprehensive guide, we’ll cover everything you need to know about buying gold with crypto, from the basics, benefits, and risks to tax implications and the steps on how to make your first purchase.
What is crypto?
Before diving into the details of buying gold with crypto, let’s take a closer look at what crypto actually is. In simple terms, crypto (also known as cryptocurrency) is a digital or virtual currency designed to work as a medium of exchange.
Unlike physical coins or notes issued by banks, cryptocurrencies leverage cryptography for security. It involves using complex mathematical algorithms to secure and verify transactions, as well as control the creation of new units, all without the need for a central authority or intermediary—one of its key characteristics.
Every transaction across a vast network of users is recorded via a shared, immutable public ledger called the blockchain. The decentralised nature of blockchain technology makes it incredibly secure and transparent because no single entity controls the network.
Examples of popular cryptocurrencies
Since the launch of Bitcoin back in 2009, thousands of cryptocurrencies have come into existence. Many altcoins (i.e., ones that are not Bitcoin) have their own unique traits and uses, ranging from improved transaction speeds to enabling smart contracts. Some of the most popular cryptocurrencies include:
Bitcoin (BTC)
Launched in 2009 by an anonymous person or group known as Satoshi Nakamoto, Bitcoin is the first-ever cryptocurrency. It operates on a decentralised, peer-to-peer network using blockchain technology.
Miners validate transactions and add them to the blockchain, securing the network and earning newly created Bitcoin as a reward. It has a fixed supply of 21 million coins, which could make Bitcoin even more valuable in the long run.
Ethereum (ETH)
Ethereum was created in 2015 by Vitalik Buterin, and it takes the concept of Bitcoin further by allowing developers to build decentralised applications (dApps) on its platform.
It is used not only for transactions but also for smart contracts (self-executing contracts with terms written into code), decentralised finance (DeFi) and NFTs (non-fungible tokens), making it a highly versatile cryptocurrency.
Tether (USDT)
Launched in 2014 by Tether Ltd., Tether is a stablecoin, meaning its value is pegged to a reserve asset like the US Dollar to maintain a stable price. For example, 1 USDT is worth $1 US Dollar.
Tether works by holding reserves in cash or equivalents to back USDT in circulation. So, if you wish to avoid volatility, this is a reliable option for stable value storage, quick transactions, and seamless trading.
USD Coin (USDC)
USD Coin, created in 2018, is another stablecoin and is managed by a consortium called Centre, which includes Circle and Coinbase. Like Tether, it aims to maintain a 1:1 peg with the US dollar and claims to be backed by cash and short-term US Treasury bonds.
The benefits of USDC include its reliability, transparency, and widespread use in DeFi applications, making it an easy option for moving money quickly and safely within the crypto ecosystem.
The benefits of buying gold with crypto
So, why would someone want to buy gold with crypto? Well, there are a few compelling benefits that make it an attractive option, including faster transactions, lower fees and greater privacy.
- Diversification: Combining gold and crypto offers diversification within your investment holdings. These assets often have different price movements, so if one is down, the other might be up, helping to balance your overall portfolio.
- Accessibility: Buying gold with crypto can be significantly easier than traditional methods. All you need is a digital wallet, WiFi, and access to a reputable gold dealer that accepts cryptocurrency, eliminating the need for banks, credit checks, or lengthy approvals.
- Speed and efficiency: Cryptocurrency transactions are processed quickly, often within minutes, unlike conventional payment systems that can take days due to bank processing times. Once confirmed on the blockchain, the transfer is complete, allowing you to secure your gold swiftly.
- Security: While the crypto space has its own security concerns (which we’ll discuss later), the blockchain technology underpinning cryptocurrencies is inherently secure. Transactions are recorded on a public ledger, making them nearly impossible to alter, counterfeit or tamper with.
- Potential for appreciation: Both gold and cryptocurrencies have the potential to appreciate in value over time. While past performance is never a guarantee of future returns, many investors see the combination of these assets as a lucrative, long-term strategy.
The risks of cryptocurrency
While buying gold with crypto offers users many advantages, it’s crucial to be aware of the potential risks involved.
Just like any other asset, cryptocurrencies can be highly volatile, with prices fluctuating rapidly in short periods due to factors like market sentiment, speculation and supply and demand. The value of your crypto could change significantly between the time of purchase and the transfer, potentially affecting the cost of your gold.
Unfortunately, the crypto space is also rife with scams, hacks, and phishing attempts, which could result in the loss of your investment. Therefore, it’s important to use trusted exchanges like Coinbase or Binance, and secure wallets such as MetaMask and Ledger Nano S/X, while being extremely cautious about sharing your personal information.
Moreover, the regulatory landscape surrounding both cryptocurrency is constantly evolving, creating uncertainty for investors and may impact the tax implications of buying gold with crypto.
Understanding the tax implications
The tax implications of buying gold with crypto can be complex and will vary depending on your location and specific circumstances. In the UK, there are two main asset classes with their own tax rules. Here’s a breakdown of the key points:
Capital Gains Tax (CGT):
- When you use cryptocurrency to purchase gold, the transaction is considered a “disposal” of your crypto. This means any gain or loss you make from the sale of crypto or the gold you purchased (unless it’s a CGT-free coin) is subject to Capital Gains Tax.
- For the 2024/2025 tax year, the annual allowance is £3,000, and the Capital Gains Tax rate depends on your income level, with rates of 10% for basic-rate taxpayers and 20%+ for higher-rate taxpayers.
Value Added Tax (VAT):
- Gold is considered a “VAT-exempt” asset in the UK, so when you buy gold bars or coins with crypto, there’s no VAT on the purchase itself—making gold an appealing investment option.
- However, any fees associated with exchanging crypto to buy gold may be subject to VAT. This is because, under UK VAT law, digital currency transactions and related services are usually treated as taxable.
Important to note: The HMCR requires requires you to keep records of any cryptocurrency transactions, including the amount of crypto used, the value at the time of purchase, and any associated fees.
It’s always best to consult with a qualified tax advisor to understand how these rules apply to your specific situation. They can help you optimise your investment strategy and ensure you comply with HMRC regulations.
See guidance on cryptoasset taxation on their website.
5 Steps to buy gold with crypto
With a clear understanding of what crypto is, as well as its benefits, risks, and tax considerations, you’re now ready to take the next step. Here’s a simple, step-by-step guide on how to buy gold using crypto:
1. Choose a reputable crypto exchange
The first step is to select a secure and reliable cryptocurrency exchange. Look for exchanges with a good track record, strong security measures, and a user-friendly interface. Popular exchanges like Coinbase and Binance are known for their reliability and ease of use.
When researching exchanges, look for features like two-factor authentication (2FA), insurance against theft or hacking, and positive user reviews. Tip: Take the time to compare the exchange’s fees, supported cryptocurrencies, and available trading options before making your choice.
2. Acquire cryptocurrency
Once you’ve chosen an exchange, the next step is to buy the cryptocurrency you’ll use to purchase gold. You’ll need to deposit funds into your account, and most exchanges offer a variety of payment methods, including bank transfers, credit cards, and debit cards.
If you want to minimise volatility risk, consider purchasing a stablecoin like Tether (USDT) or USD Coin (USDC). As mentioned previously, these coins are pegged to a stable asset like the US dollar, meaning their value doesn’t fluctuate as much as other cryptocurrencies. You can then transfer it to a secure wallet for extra security.
3. Select a trusted gold dealer
Next, it’s time to select a platform or service that allows you to buy gold with crypto. You have a few options here:
- Physical Gold: Some companies, like Bullion Giant, allow you to buy 99.99% pure physical gold bullion, such as gold bars or coins, using cryptocurrency. This gives you direct ownership of tangible assets that you can hold and store securely. Tip: Read customer reviews and look for transparency in their policies and certifications to ensure you’re dealing with a trustworthy dealer.
- Digital/Tokenised Gold: This involves buying digital tokens that represent ownership of a specific amount of gold. These tokens are usually backed by physical gold stored in a secure vault, and they can be easily traded or redeemed.
4. Make a purchase
Now that you’re ready to make a purchase, you can choose from a variety of gold sizes and weights. Whether you’re looking for smaller 1g or 5g bars, or larger 500g to 1kg gold bars, there are plenty of options to suit your investment needs.
Once you’ve selected your gold, simply add the items to your basket and proceed to checkout. Choose the ‘Pay with Crypto’ option and transfer the required amount from your digital wallet, such as Trust Wallet, MetaMask, eToro or Binance. After the payment is confirmed on the blockchain, your order will be processed and completed.
If you prefer to purchase gold over the phone, just provide your cryptocurrency transaction details. Once verified, we will send you an email link or provide a wallet address to complete your crypto payment.
5. Secure delivery and storage
Finally, all that’s left to do is arrange for delivery and storage of your gold. Luckily, the majority of reputable gold dealers offer insured delivery options, including tracked or signed-for services, to guarantee that your gold arrives safely and in perfect condition.
For long-term gold storage, gold can be stored in a secure, insured vault managed by the dealer or a third-party service, and is fully protected against theft, damage, or loss. However, this level of security often comes with higher costs due to the insurance and maintenance fees required.
If you prefer to store your gold at home, you can opt for home storage with a secure safe. Be sure to choose one that’s high-quality, fireproof, and theft-resistant. Tip: Consider adding insurance coverage to your home storage plan to further protect your investment.
Meanwhile, if you’ve purchased digital gold, ensure your crypto wallet is secure and familiarise yourself with how to access and manage your gold tokens.
For more advice on how to buy gold, read our full guide on gold investments.
Is now a good time to buy gold with cryptocurrency?
This is the million-dollar question, and unfortunately, there’s no straightforward answer. Market conditions are constantly changing, and several factors can influence both gold prices and cryptocurrency prices, including:
- Inflation: When inflation is high, the value of traditional currencies tends to decline, leading investors to seek assets like gold, or “digital gold” such as Bitcoin, that can preserve their purchasing power as a hedge against inflation.
- Economic Uncertainty: During economic uncertainty, like recessions or financial crises, gold demand rises as investors seek safe-haven assets. Cryptocurrencies, however, are more volatile; some see them as a store of value, while others view them as risky during downturns.
- Interest Rates: If rates rise, fixed-income investments like bonds become more attractive, potentially reducing demand for gold and crypto. Conversely, lower rates often lead to higher gold prices and increase risk appetite for crypto investments.
- Geopolitical Events: Global events, such as wars or political instability, can also influence investor sentiment and drive demand for certain assets like gold and cryptocurrencies. The latter can viewed as an alternative financial system that operates independently of governments and traditional banking systems.
It’s crucial to do your own research, stay informed about market trends, and consider your own financial goals and risk tolerance before making any investment decisions.
Buy quality gold with crypto at Bullion Giant
If you’re looking to buy LBMA-approved, high-quality gold at competitive prices, then you’ve come to the right place! Bullion Giant is one of the first gold bullion dealers in the UK to offer a payment option that enables you to buy gold with cryptocurrency.
We’ve partnered with Radom, a transformative crypto payments platform, to give our valued customers more flexibility when purchasing gold bullion. At Bullion Giant, we accept crypto payments from a variety of blockchains, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and USD Coin (USDC).
If you’re paying with Ethereum or USD stablecoins, be sure to use an Ethereum wallet and a Web3-compatible browser like MetaMask, Trust Wallet, Coinbase Wallet, Puma Browser, or Opera Browser for a smooth and hassle-free transaction.
With secure payment methods, insured shipping, and expert advice available, you can confidently invest in gold knowing you’re in good hands at Bullion Giant. Contact our friendly team today with any queries and we’ll be on hand to assist you.
