Vaultoro is an online exchange which allows you to purchase gold with bitcoin. The physical gold is purchased in your own name and stored in a high-security vault in Switzerland.
Not only is your gold fully insured, but you can also withdraw it, or sell it at any time, converting it back to bitcoin using the same exchange.
The trading fees are low, ranging from 0.5% down to 0.2% on volume. The minimum amount you can purchase is tiny, at just 0.001 gram (approx. CAD$0.54). So if you have never owned gold before and were thinking about making your first purchase, you can start with a very small amount.
If you leave your gold in Vaultoro’s storage facilities, the fee is a very reasonable 0.034% of your gold balance per year.
How to Purchase Gold with Bitcoin
In this tutorial, we will review the easy 3-step process of signing up at Vaultoro and making your first purchase.
Step 1 – Sign-up
The first step is to register for an account at Vaultoro. Visit the registration page in a new tab, so you can stay following this tutorial.
Once you have registered an account and confirmed your email, you can sign in and configure your User Settings. We advise adding two-factor authentication (using Google Authenticator) and switching on email notifications.
Step 2 – Account Verification
The next step is to verify your account, which is required. When you login, you will see a notice asking you to begin the verification process. Alternatively, click into the User Settings tab and follow the instructions shown.
As you can see from the screen above, the verification process is fairly standard. It shouldn’t take any more than a few minutes to complete.
To prepare, here is a list of documents you will need for the verification process:
- ID document (Passport, national ID card or Driver’s License)
- Address verification (e.g. bank statement or Hydro bill, etc.)
That’s it—pretty straightforward. Once you have completed the form and uploaded these two documents, you can click Submit button. Verification is a manual process and can take a few days. So be patient and simply wait for the confirmation email from Vaultoro.
Step 3 – Deposit Bitcoin
Once your account has been verified, you are now free to trade on the exchange. You will first need to deposit bitcoin so you can have a balance to trade with.
Click the Deposit/Withdraw tab in the sidebar menu to load the Deposit options screen, as shown below.
As well as depositing bitcoin, you have the option to deposit altcoins using Shapeshift. For this tutorial we are going to deposit bitcoin.
Once the transaction receives the 6 confirmations required, your funds will be available in your account to begin trading.
Note: If you would like to create an instant market order as soon as the bitcoin is confirmed, you can switch that option on using the available toggle.
Step 4 – Trading
Now that you have some bitcoin funds in your account, you can start to trade. Click the Trade tab in the sidebar to view the trading screen.
The Vaultoro trading screen is very similar to most cryptocurrency trading platforms, so you will probably feel at home right away. You can click through the tabs to view Volume, a Price chart and the Order Book—as well as view any Open Orders you currently have in your account.
The purchase box is automatically set to Limit order, but you can change this to a Market order if you like. However, make sure you check the Open Orders and are comfortable that there are enough sell orders available within your desired price range to fill your order.
To initiate a Limit order, make sure the indicator shows ‘Limit‘, and then enter the amount of Bitcoin you would like to spend, followed by the price you would like to pay per gram. The small text under the purchase box will show you rough estimates of the amount of gold you should receive, based on your inputs.
When you are ready, click Place buy order to set your order.
Your order will now be shown in the Your open orders tab. You can view the order details, as well as Cancel the order at anytime before it is filled.
When your order fills, you will see your balance update in the dashboard under the Holdings tab.
So that’s it. Vaultoro is an excellent option for converting your bitcoin into gold in order to diversify your investment portfolio. Vaultoro has a public audit page, where anyone can audit their precious metal holdings.
Bitcoin balances are held in multi-sig cold storage, and as mentioned, your gold is insured and can be converted back to bitcoin at any time.