One of the greatest arguments against crypto is that cryptocurrencies lack intrinsic value because they are not backed by anything of value. Crypto doesn’t seem to care though, because the industry is still growing nonetheless.
However, many have been put off by this argument and they avoid crypto like a plague. Well, that is about to change as you’re about to learn the best cryptocurrencies backed by gold, one of the most precious commodities in the world.
If you’re one of the skeptics, this guide should help you make up your mind about entering crypto. gold-backed cryptocurrencies are derivative assets that let you access purchases, trading, and holding of physical gold at will at any time and location.
This way, you don’t have to carry physical gold wherever you go because of its bulky nature, and also avoid dealing with physical gold. You can easily convert the cryptocurrencies to physical gold whenever you want, and that makes them superior.
You may also trade them on crypto exchanges for fiat or other cryptocurrencies. Tokens backed with gold vary in their ratios depending on the one you pick. For most, 1 gram of gold backs 1 token. Here’s the list of top ones you can buy in 2023.
Tether Gold (XAUt)
The number one on this list is Tether Gold. You can describe it as digital form of gold, but it’s easier to handle and use. The token provides you ownership of real physical gold, but it is a digitized version of gold on the blockchain, which unveils several characteristics peculiar to crypto assets.
Tether Gold has so many advantages over gold. The first is that it is fungible, that is it can be divided into smaller units. This is not possible with physical gold, and so places a limitation on how much you can do with it.
Since it is a digital asset, Tether Gold can also be easily transported using just your wallet. There’s also tether Gold specifically designed for institutions, so if you’re interested in investing as an institution, that is an option to consider to gain direct exposure to gold.
Pax Gold (PAXG)
Pax Gold is a gold-backed token issued by New York-based financial institution and blockchain technology company, Paxos. Through it, the company intends to provide customers with cost-effective access to investment-grade physical gold.
Each token is backed by a troy ounce of gold, stored in LBMA vaults in London, meaning you own the underlying gold if you buy the tokens. The gold is regulated and audited every month to ensure strict compliance with regulations. This makes it a trustworthy token.
There is no settlement of credit risk involved in buying this token, and there is near-instantaneous settlement. Moreover, it is the only gold token you can redeem for LBMA-accredited Good Delivery gold bullion bars.
Institutional customers can also redeem for unallocated Loco London Gold, and you can redeem for USD at current gold market prices whenever you want.
Gold Coin (GLC)
Gold Coin is a way to easily and securely buy, sell, and trade gold with you in full control. It is a gold-backed cryptocurrency that is built on the Ethereum network. By buying it, you instantly buy gold in a safe and secure manner.
GoldCoin is the first fractionalized gold-backed asset you can buy directly in national currencies or cryptocurrency. Because it is fractionalized, you can buy any amount of it at any time, making it affordable to anyone on a budget.
The token is secured with two-factor authentication and has very high liquidity so you don’t get stranded trading it. If you’re looking for direct access to gold without holding physical gold, Gold Coin is an option you should consider.
Conclusion
These gold-backed tokens are an easy way to gain access to gold. Even if you’re not comfortable trading crypto, these are simply digital forms of gold, which you should be comfortable buying.
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