While decentralized cryptocurrencies like Bitcoin have seen a surge in popularity in recent years, many remain on the fence about trading the virtual tokens due to their high volatility and associated risk of loss. For this reason, some prefer their virtual currency to be backed by a concrete asset like gold or dollars. This type of cryptocurrency is commonly known as “stablecoin” and is lauded for its reliability.
Because stablecoins are linked to assets like precious metals or dollars, they are subject to less market volatility than cryptocurrencies like Bitcoin. Stablecoin traders are less likely to suffer a significant loss when trading as stablecoin never falls below the underlying asset price.
Popular precious metal-backed coins include the Perth Mint Gold Token (PMGT), PAX Gold (PAXG), and gold-backed coins from stablecoin behemoths like Tether.
Gold-backed virtual currency is nothing new. Before the advent of the ubiquitous Bitcoin came E-gold, a type of virtual coin backed by gold. While E-Gold is now defunct, many companies have followed in its steps, and precious metal-backed crypto is now widely available on multiple platforms.
The most popular platform for exchanging bullion-backed crypto, Gold Exchange, allows users to easily purchase gold-backed crypto coins using a debit or credit card. Users remain entirely anonymous, and the trading network is one of the safest and most secure.
Users can set a maximum amount they are willing to risk by pre-setting profit and loss margins. Gold Exchange also offers a crypto wallet app where users can store purchases safely. Unlike real gold, virtual gold-backed coins are near impossible to counterfeit, and the cryptography used to secure them makes it difficult to double-spend coins.
CoinGecko offers dozens of virtual coin purchasing options, including precious metal-backed stablecoins. The platform is no-frills and allows users to assess market value and fluctuations with ease.
The website boasts several precious metal-backed cryptocurrencies, including gold-backed crypto from Tether and Paxos Standard. Coingecko offers learning resources like newsletters, reports, and quick guides to help users hone their trading skills. They also curate their podcast to share insight on crypto trading.
Kraken is ideal for folks new to crypto trading, as it is incredibly user-friendly and offers options tailored to first-time traders, traders with unique needs, and traders looking to level up their game. Kraken offers round the clock virtual support for users who require assistance, along with guides, videos, and a podcast to help users develop trading skills.
Advanced clients can utilize Kraken’s one-on-one account management services via email, phone, and text messaging apps. Kraken is not only an excellent tool for new traders but an invaluable asset for corporations like investment banks and insurance firms wanting to invest in cryptocurrency.
Coinbase offers several precious metal-backed stable coins, including PMGT, a stablecoin backed by gold from the Perth Mint and managed by the Australian government. Coinbase allows users to create a custom portfolio to help them track their investments.
Through a portfolio, users can keep an eye on different assets in one place. The portfolio combines various assets into a total portfolio value for easy visualization of earnings. Coinbase also offers a scheduling tool whereby users can schedule daily, weekly, or monthly purchases, allowing for slower investments into stablecoins over time.
Coinbase offers vault protection for added security where users can store funds in an account with time delayed withdrawals. Users can stay on top of investments with the Coinbase app for Android or IOS.
The better choice for people who get overwhelmed by too many options to choose from is Trust Wallet is it makes it easy to trade popular and trusted stablecoins like PAXG and Tether Gold. The virtual wallet is simplistic and a great jumping-off point for those new to crypto trading.
Trust Wallet boasts over 5 million users, and like Coinbase, offers an easy-to-use app to help users track investments. Users can join the Trust Wallet community, which features discussion boards on projects, news, and trading tips. The app is free to use and allows for safe and easy storing of various crypto, all in one place.