Buying gold with crypto: how does it work and what are the rules?

Buying gold with crypto in the Netherlands can be done at a specialized precious metals dealer by paying with Bitcoin (BTC), Ethereum (ETH) or stablecoins; the payment is processed via a crypto payment gateway and the physical gold is then delivered insured or stored. While Bitcoin is often called "digital gold", physical gold remains the tangible safe haven. More and more investors are converting part of their digital gains into precious metals. 

But how exactly does this work? Why is the exchange rate between the two assets so important, and which regulations, such as KYC and taxes, will you encounter? In this article you will read the main considerations, risks and a step-by-step guide for buying gold with crypto.

What are the advantages and disadvantages of buying gold with crypto?

Buying gold with crypto offers practical benefits: transactions are fast, unaffected by bank hours or national borders, and occur without the involvement of a traditional bank. The blockchain records every transaction transparently and immutably, making the payment process auditable and resistant to fraud. Complete anonymity does not exist: identification requirements apply just like with a bank payment, and that combination of transparency and oversight makes the purchase secure.

The advantages 

• Diversification: the crypto market is highly volatile. By converting part of your crypto gains into physical gold, you spread the risk in your portfolio.
• Borderless payments: Cryptocurrencies are not bound by national borders or traditional bank hours. You can easily and quickly make international payments.
• Transparent and direct: blockchain technology records transactions immutably and enables payments without the involvement of a traditional bank.

The disadvantages 

• Price risk: Cryptocurrencies are volatile. When cryptocurrencies fall and the gold price in euros or dollars rises, it becomes less attractive to pay with crypto.
• Transaction fees: Depending on the network, fees can increase during busy periods.
• Irreversible transactions: a crypto payment cannot be reversed. Always carefully check the wallet address and the provider before you confirm.

Timing is essential: the gold-crypto exchange rate

When you buy gold with euros, you only look at the gold price. If you buy with crypto, you must take two rates into account. The relative relationship determines your purchasing power.

In the ideal scenario the crypto market is high and the gold price consolidates or falls slightly. Your crypto then has relatively high purchasing power; you get more grams for your digital currency.

It is less attractive if the crypto market is in a dip while the gold price is at or near record highs. In that scenario it is often wiser to hold your crypto and temporarily buy gold with fiat money.

A useful tool here is the bitcoin-gold ratio: how many grams or troy ounces of gold you get for one bitcoin. If that ratio rises, your crypto has relatively more purchasing power against gold; if it falls, you pay relatively more bitcoin for the same amount of gold. So, in addition to the crypto price, keep an eye on the current gold price chart, and remember that gold is quoted internationally in dollars, so the euro-dollar exchange rate also matters.

Curious about Bitcoin's long-term role in the monetary system? Read our article Can Bitcoin become a new world currency?

How does buying gold with crypto work?

Buying gold with crypto happens in three steps: you choose a wallet, select your cryptocurrency and pay for the order via the merchant's payment environment. Via our sister company Bitgild it works as follows:

• Step 1: Create a wallet: You can use a software wallet on your smartphone, tablet or computer. Another option is to create a hardware wallet. This provides higher security.
• Step 2: Choose which currency to pay with: You can buy gold with different types of cryptocurrencies. Bitcoin is the most popular and well-known, but you can also choose Ethereum or Litecoin, for example. Select the cryptocurrency with which you want to purchase gold.
• Step 3: Purchase gold: Gold dealers each have their own purchase process when it comes to buying gold. You place your order by following the instructions of the chosen gold dealer. Then select the cryptocurrency of your choice to pay for the order. In most cases this means you must enter your wallet address, after which you must confirm the transaction.

Create an account with a payment processor 

Depending on the merchant, the payment is processed via an external payment processor or via an in-house crypto payment environment. Bitgild has developed its own crypto payment gateways, which means the transaction is processed without an external intermediary and you pay directly from your own wallet or exchange.

By buying gold with crypto you can convert digital gains into physical precious metal.

Physical gold or gold tokens? Watch what you buy

Not every provider that offers "gold with crypto" actually delivers physical gold. There are also gold tokens: digital coins on the blockchain that represent a claim to gold. These can be practical, but you then hold a claim against an issuing party. You do not receive tangible precious metal in your own hand or your own safe. 

If you want actual physical possession without counterparty risk, check whether the provider delivers genuine gold bars or gold coins, with insured shipping or professional storage.

Want to know more about the fundamental differences between the two worlds? Read our article gold versus Bitcoin: are they comparable?

Legislation and privacy: When is KYC mandatory for crypto purchases?

Invoice details are required for every order; in addition, legal verification obligations apply and vary by situation. Gold dealers such as The Silver Mountain must comply with the Wwft (Dutch Anti‑Money Laundering and Terrorist Financing Prevention Act).

• Regular orders: invoice details are required for every online order (name, address).
• Record-keeping requirement for investment gold: for transactions in investment gold above €10,000 the dealer is required to record and retain the customer's identity. 
• Customer due diligence (KYC): separately, the Wwft mandates a risk-based customer due diligence. Even for smaller amounts, additional checks or explanations about the source of funds may be necessary when a transaction is unusual. 
• Crypto platforms: crypto payment platforms and exchanges also apply their own identification processes, regardless of the purchase amount.

What changes because of MiCAR and crypto reporting?

The rules around crypto are becoming stricter and more transparent in Europe. Since late 2024, the European MiCAR regulation governs the supervision of crypto service providers; in the Netherlands the AFM issues licenses and DNB co-supervises. In addition, from 1 January 2026 crypto providers are required to collect and share user data with the tax authorities of EU member states, even when crypto is used for a purchase. 

For you as a buyer, this mainly means that crypto is increasingly tied to your regular administration. Therefore always keep the purchase invoice, the order number, the transaction data (wallet address and blockchain hash), the exchange rate used and the value in euros at the time of purchase. That documentation supports your Box 3 tax return and any questions about the origin of your assets.

How do you declare gold and crypto to the tax authorities?

In the Netherlands both cryptocurrency and physical gold fall under Box 3 (savings and investments) in the income tax. You do not pay tax on immediate exchange gains at the moment you convert crypto into gold. Investment gold is also exempt from VAT.

However, the Tax Authorities look at the reference date of January 1. The combined value of your crypto wallet and your physical gold on that date counts towards the calculation of your total Box 3 assets.

For completeness: gold investment coins are considered "other assets" for Box 3, not as cash

After the purchase: delivery or storage

After payment, your gold is handled like any other order at The Silver Mountain. You can choose insured home delivery, via our own in-house courier or registered shipping, or professional insured storage via Edelmetaal Beheer Nederland (EBN). Pickup by appointment is possible at our offices in Baarn and The Hague.

If you want to sell your gold later, you can do so via our sister company Inkoop Edelmetaal, with bid prices linked to the current market rate.

Conclusion: buying gold with crypto

Buying gold with crypto is an accessible way to convert digital gains into physical precious metal. Pay attention to three things: timing (the bitcoin-gold ratio and current prices), costs (network fees and exchange rate margins) and the rules (identification requirements and the Box 3 declaration).

Those who buy via a specialised platform like Bitgild can be sure that the payment is secure and that physical gold is actually delivered.