Connect with us

Cryptocurrency

Where One Can Buy Gold Backed Crypto Tokens In 2022

Avatar of Freelancer

Published

on

Where One Can Buy Gold Backed Crypto Tokens In 2022

Gold Backed Crypto –  Bitcoin, which is without a doubt a famous currency amongst all others, has sometimes been referred to as digital gold.

To describe it as gold is because it is treated as a storehouse of wealth, but certain price fluctuation in its value has led many new investors to think about digital assets but probably those that have stability in their value.

It is a known fact that cryptocurrencies are very volatile in their existence, hence, the volatility factor is preventing new investors from retaining or buying digital assets.

But what if cryptocurrencies could imitate the cost of gold while yet enjoying the benefits of being digital? What if individuals could get the rewards of owning gold without having to carry about and safeguard huge bricks of the gold? The real price of gold serves as the collateral for gold-backed, or “gold-pegged,” cryptocurrencies. For better trading experience, you may also consider knowing about Guide For The Traders.

How Gold Backed Tokens Works

Cryptocurrencies that are backed by gold are formulated similarly to that stablecoin. By linking the derivative asset to a physical asset, gold-pegged tokens try to avoid price fluctuations.

A specific gold-pegged cryptocurrency must have the required quantity of gold in gold reserves, which are often maintained at banks and other third-party organisations.

Tokens that are tied to gold have different backings. For instance, some tokens have a backing ratio of 1:1, meaning that 1 token is worth the same as 1 gram of gold, while other tokens have a different backing ratio.

Upsides Of Gold-Pegged Tokens:

  • Without actually holding any gold, you may own a token with the equivalent worth.
  • The value of gold is less susceptible to price changes.
  • It’s a simpler way to enter the commodities market.

Its Downsides:

  • Gold can offer downside protection, but historically, it hasn’t offered gains comparable to those of cryptocurrencies like BTC or ETH.
  • Compared to certain other digital currencies, market growth is often gradual.
  • Digital assets lack many of the same safeguards as physical assets and come with new inherent dangers that the latter do not.

Perth Mint Gold Token

This token is among the few such currencies that are verified by the government. All gold acquired at PMGT is exchanged and kept at The Perth Mint rather than being owned by a private company.

The ratio by which this token is backed is the 1:1 ratio. Each time a buyer purchases a token, he/she gets the certificate for owning such digital gold. These certificates can be traded for gold bullions.

Gold Coin

The next one on the list is the gold coin. This token is developed by Digital Gold LTD which is an ERC-20 token. Those volunteers who trust in the development of an economy are the formulators of this token.

It has a backing of 1000 GLC for every ounce of gold. Investors in GLC may take advantage of special features including two-minute confirmation times, which makes this the quickest transfer among all gold-pegged tokens.

This token also has a wallet to offer to its users, which grants some additional benefits to them such as zero transaction fees, which makes the users get them very easily.

The exchanges where this token is available are cryptoExchange.com as well as Goldcoin.com. Also, this token can be bought with the help of any credit as well as a debit card.

Conclusion

The article here refers to the gold-backed crypto tokens. Since cryptocurrency are not stable when it comes to their price, many investors who look for stability in investing in cryptocurrency can go for these tokens that are backed by gold and have a stable value.

Related CTN News:

How Central Banks’ Intervention Can Stabilize the Forex Market?

Ethereum Is One of The Best Cryptocurrencies to Buy for the Long-Term

What is Crypto-Economics?

Continue Reading

Recent News

Beat the Odds

Volunteering at Soi Dog

Learn Spanish Now

Learn Spanish