Gold-backed cryptocurrencies are a type of stablecoin that derives their value from being backed by gold. The backing by a tangible asset is believed to make it less volatile than other cryptocurrencies like bitcoin. With these coins quickly gaining popularity, many are now asking the question, “where do I buy them?”
Many gold-backed cryptocurrencies are available on exchanges but can also be purchased directly from the creator. With so many exchanges and so many gold-backed cryptocurrencies, it can be hard to know where to look without first viewing the token website’s instructions on how to buy and sell.
This article will consider some of the larger exchanges that sell at least one gold-backed stablecoin.
Based in the United Arab Emirates, CBX is an exchange that has been around since November 2018. Fees for using CBX are 0.20%, which is on par with the rest of the industry. There is also a maker discount of 0.10%, which can be very cost-efficient for investors who do not want to pick up a trade from the order book. CBX is not primarily a gold-backed stablecoin exchange but does offer the cryptocurrency, AurusGold (AWG).
Blockchain.com has been around since 2013 and is now said to be trusted by over 68 M wallets. The exchange is led by the CEO and co-founder Peter Smith. The exchange is known for having a variety of trading pairs, including many of the newest cryptocurrencies available. The maker fee is 0.20%, and the taker fee is 0.40%, slightly higher than the industry average. Like CBX, the exchange is not primarily a gold-backed stablecoin exchange but does offer the currency DGLD.
Coinsbit is a cryptocurrency exchange registered in Estonia. The country itself is trying to position itself as one of the go-to European countries for cryptocurrency and allows companies to apply for exchange licenses similar to the system in New York.
The platform itself offers fiat-to-crypto pairs in USD and EUR and several crypto-to-crypto options. Trading fees to use Coinsbit are 0.20% in alignment with the industry average. The platform is said to specialize in offering the main coins, which happens to include the stablecoin GoldFinX (GiX) out of Singapore.
Bitfinex is known as a cryptocurrency exchange for advanced traders and has high trading volume and reputability as a result. The exchange is known for offering features such as marginal trading, limit and stop orders and over-the-counter (OTC) desks. Trading fees are on par with the other exchanges mentioned at 0.20% as a taker fee and 0.10% for makers. That said, the rates can vary depending on the trading volume, which may make fees as low as 0.0% or as high as 0.055%. Bitfinex offers the gold-backed stablecoin Tether Gold (XAUt).
GoldExchange.com is a platform for buying, selling, and trading GoldCoin and has been around for over 20 years. As the largest platform of its kind, features have been added to Stop Loss and Take Profit limits for investors. The platform is also fully anonymous, so any user can easily purchase GoldCoin with a debit or credit card.
HitBTC is a cryptocurrency exchange targeted at seasoned traders who are interested in investing in altcoins. The exchange offers high liquidity and gives users the option to verify their account using Know Your Customer (KYC) measures but does not enforce it if users want to conduct transactions anonymously. Trading fees are a little higher than comparable exchanges with a 0.1% Maker Fee and a 0.25% Taker Fee. However, with an upgraded account, trading fees are believed to be even lower. The exchange offers the gold-backed stablecoins Xaurum (XAUR) and USGold (USG).
This list is intended as an initial look into some of the options for purchasing gold-backed cryptocurrencies. Before buying, investors are encouraged to do their own research on each coin’s details and the exchange they are available on.
Related Article: All You Need to Know About Stablecoins