When we think of currencies, crypto is arguably a new asset. More and more people are becoming interested in cryptocurrency as each year passes. Another area of interest is the digitizing ownership of gold that only continues to grow in popularity.
All gold-backed crypto are derivative assets that enable you to access purchases, trading, and hold physical gold at will regardless of time or location. As digital cryptocurrency, most gold-backed cryptocurrencies can be converted to physical gold too. Here we will dive into the most popular gold-backed cryptocurrency for 2023 that we recommend investing in.
Tether Gold (XAUT)
Tether Gold gives investors the opportunity to invest in gold, as well as gain direct exposure to the physical gold price. This is brilliant news for smaller retail investors as it can be sized to the individual’s requirements. This gold-based cryptocurrency is the same company that brings you Tether stablecoin. However, rather than being pegged to the US dollar, Tether Gold is pegged to gold.
Token holders will have ownership rights to gold on particular gold bars. The allocated gold can be identified by its purity, weight, and unique serial number. There are plenty of websites token holders can use to check on the gold bars they own, as well as ounces of gold possessed by bar. You can also use TradingView to check the latest on XAUUSD and find out how many US dollars traders may need to purchase an ounce of gold. They are a social network and charting platform used by over 50 million traders and investors around the world.
GoldCoin (GLC)
GoldCoin peer-to-peer cryptocurrency aims for decentralization and economic freedom. Their development group believes transactional confirmation speed is crucial to payment systems. With a confirmation speed of just two minutes, this beats many major currencies around the world. You can store and send ERC-20 coin from any Ethereum wallet.
When compared to other cryptocurrencies, GoldCoin is far less volatile as it boasts a ratio of 1000 GoldCoin per ounce of gold. It also provides numerous benefits of a digital asset, physical gold, and is easily portable, transportable, and easily divisible. Tokens are able to be redeemed back into physical gold whenever you wish. You can find GoldCoin at exchanges and on their business website. What’s more, you can buy GLC from a system of ATMs.
DigixGlobal (DGX)
For anyone who wants to invest in physical gold but doesn’t have the means for storage, DigixGlobal is for you. They allow you to invest in fractional tokens, transfer, and redeem them too. You can use this gold-backed cryptocurrency to accumulate gold in minute positions. Also, you can effectively manage it 24/7 with minimal limitations.
As the buying process is transparent, this means users aren’t as at risk of fraudsters. DigixGlobal keeps the physical gold backing the cryptocurrency, in Canada and Singapore. What’s more, their custodians are fully insured and members of the Bullion Association.
Paxos Gold (PAXG)
Paxos Gold is another popular gold-backed cryptocurrency that’s issued by the company Paxos. They are behind a Singapore-central cryptocurrency exchange (itBit). Being a legal or regulated custodian through a trusted charter issued by the NYDFS (New York State Department of Financial Services) Paxos branched out to provide gold-backed cryptocurrency or token.
Their ERC-20 token allows users to access high-quality gold from traditional markets. Using this token, users are able to own, store, transfer, and bet on gold simply and quickly. Paxos Gold can be traded as future too. This is where a user can either trade perpetual or quarterly futures contracts on exchanges such as FTX.
Perth Mint Gold Token (PMGT)
Perth Mint Gold Token (PMGT) is the founding gold-backed digital token that’s also backed by a state government. What’s more, the physical gold is under the custody of The Perth Mint, otherwise known as Western Australia’s biggest exporter. They distribute precious metals worth billions of dollars to over 100 countries each year.
By partnering with InfiniGold (a precious metals digitization business) Perth Mint can issue digital tokens backed by physical gold. Perth Mint Gold Token is also fungible. You’re able to convert or redeem a variety of Perth Mint products like London Good Delivery gold bars. Also, you’re able to trade this cryptocurrency against traditional gold products. Alternatively, you can convert it back to flat.
Kinesis (KAU)
Kinesis is a cryptocurrency ecosystem that issues both gold and silver-backed tokens. Such tokens can be pegged to the price of precious metals and function as stablecoins. Essentially, the purpose of the Kinesis team is to drive the adoption of crypto through transaction velocity.
Known as movement, Kinesis are all for using the currency for transactions, rather than hoarding. Besides cryptocurrency, Kinesis has an array of products including a debit card that provides plenty of rewards and cashback.
When merged with cryptocurrencies, gold becomes easier to transact. Gold can also become portable and less likely to be stolen. Some would suggest the two are a perfect match. If you’re interested in investing in gold-backed cryptocurrency, we recommend checking out any of the ones listed above.
