If you’ve been wanting to invest in gold or cryptocurrency, there’s now a way to do both. There are stablecoins – cryptocurrencies – tied to the value of gold. This prevents the traditional volatility associated with these digital assets and streamlines the investment process.
This post will break down how to buy a gold-backed cryptocurrency on a platform like Gold Exchange, for example.
Investing in Gold-Backed Cryptocurrency
To start, you’ll want to create an account on Gold Exchange. This should be simple, requiring just an email and a password. Keep in mind that the platform has designers and experts with 20 years of experience in the trading world.
From there, you’ll need to link a funding method. This platform supports debit and credit cards, which most exchanges don’t. Otherwise, you can link a bank account as well if you’d prefer.
Then, head to the platform and pick how much Gold Coin you’d like to buy. Keep in mind that you can invest in fractional amounts on this platform. This means you can invest as little or as much as you’d like. For new investors, this is a great way to get involved.
Keep in mind that if you don’t want to invest right away, you can set up buy stops and limits. This allows you to wait to buy until the asset reaches a certain price and have Gold Exchange automatically buy or sell. The automation here allows you to trade whenever you’d like – even if you’re away from the platform.
Either way, the transaction should only take a couple of minutes. Once you buy, the price is locked in. Then, you’ll have to store the asset in a wallet. This platform, among others, should provide you a wallet. Otherwise, you can acquire a third-party desktop, mobile, or hardware wallet to store them.
Why Invest in Gold-Backed Cryptocurrency?
You might wonder why you should invest in a gold-backed cryptocurrency vs. the traditional precious metal. The answer is simple: cryptocurrencies are faster and cheaper.
For one, you can purchase a cryptocurrency almost immediately. Once purchased, you’ll automatically have the asset, and your investment has been validated. If you buy a traditional precious metal, there are more hoops to jump through. You’ll have to find a broker, validate your identity, and pay various additional convenience fees. It’s more expensive than the crypto investment and more time-consuming.
However, it does have the benefit of you actually holding the physical asset. Some investors might prefer that to digital currency. That said, you’ll have to store that physical gold somewhere. This could be in a vault or safe in your house, though that’s an expensive additional purchase. If you don’t want to buy a vault, you can place the gold in a monthly deposit box, though that’s a monthly fee.
Cryptocurrencies are cheaper due to decentralization. There’s no intermediary to pay, nor any company to hold your funds, among other issues. Traditional currencies and precious metals take much longer to acquire, and they’re more expensive at that.
As mentioned, there are also fractional benefits. Investing in fractional amounts of gold makes the asset fairly accessible as well. That’s the biggest idea behind gold-backed cryptocurrency – ensuring anyone can invest in gold as the world moves more digital.
Plus, some platforms even allow you to redeem that crypto for physical bullion. That way, these platforms are catering to both types of investors.
Conclusion
Now you’re aware of how to buy gold-backed cryptocurrency. There are various platforms and exchanges to do so, such as Gold Exchange. You’ve also learned about the benefits of gold-backed cryptocurrency. Just know that these stablecoins do make it so you can’t hold your physical investment. Long-time traders may want a physical representation of their funds.
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