New asset classes have been appearing within the past couple of decades, paving the way for a new era of currency. No longer confined to physical (or fiat) form, they have now turned digital. From this interesting emergence has come a surge in interest from investors looking to earn ideal returns on their portfolios. What better way to do that than with these new asset classes?
Precious metal-backed cryptocurrencies are among these assets, and like other digital currencies, it needs a solid trading exchange platform. GoldExchange is one such platform.
Gold Exchange is a crypto exchange that specializes in crypto trading that is backed by precious metals. The exchange assures its users that they can trade with confidence because it is the largest trading platform of its type and its developers have over 20 years of experience.
An additional feature is that users can establish profit and loss levels ahead of time by either taking profit limits when trading or incorporating stop loss. They can determine the maximum amount that they are willing to risk when it comes to price speculation. Alternatively, they can set a price at which they want to make a profit. Other things that are available are future orders such as Big Stops and Buy Limits.
Some examples of the assets that Gold Exchange typically trades include Gold Coin, Silver Coin, and PalladiumCoin. Gold Coin is described as being the world’s first “Hard Money,” acting as a secure system for value storage and cash payment. It is a pure, open-source proof-of-work cryptocurrency that draws its foundation from the original Bitcoin protocol.
Silver Coin is a coin created specifically to enter the global market. It was created using a decentralized smart contract Ethereum. The coin can be used in all sectors to replace cash, be it privately or in groups. Silver Coin is built to improve the public economy technologically.
PalladiumCoin is a fractionalized asset that is available for purchase with other cryptocurrencies or money. The fractional nature of the cryptocurrency means any amount can be purchased at any time. With PalladiumCoin, any buyer with any amount of money can digitally invest in the cryptocurrency backed by palladium and then redeem it for physical bullion.
Precious metal-backed crypto
Precious metals are rare metals with a high economic value stemming from an array of factors. These include their overall scarcity, frequent use in industrial procedures, and enduring role as a store of value. Historically speaking, precious metals play a pivotal part in the global economy due to many currencies either mined physically using precious metals or backed by them. This was the case for the once commonplace gold standard. Nowadays, investors opt to purchase precious metals primarily as a financial asset.
Precious metals as an investment are often coveted as a way for investors to diversify their portfolios and store value, specifically, as a hedge against inflation and during periods of financial uncertainty. When it comes to commercial buyers, precious metals could serve as a vital component for various products like jewelry or electronics.
Out of all the precious metals utilized for investment purposes, the most popular of the bunch is gold, with silver following it. Meanwhile, in industrial processes, the precious metals typically used include palladium (commonly used in electronics and chemical applications) and iridium (incorporated in specialty alloys).
Virtual currency being backed by such metals as gold and silver is not exactly a new idea, having been attempted numerous times in the past. However, only recently has it gained some steam without issues. The quintessential stablecoin of the modern-day should have the ability to carry out main functions and be capable of functioning as an exchange medium to allow holders to buy and sell goods. Moreover, it should act as a saving asset (without value loss) and should serve as a unit of account to initiate a comparison of the cost of goods and services.
Stablecoins that are backed by precious metals are unique for several reasons, with one of them connected to crypto that is backed by fiat currency (ex. Tether’s USDT). These cryptocurrencies are the most popular stablecoin type, but many people are understandably concerned about fiat currencies’ stability in the long run. This wariness is beneficial for precious metal-backed because they are backed by desirable metals, meaning a serious drop in value or stability is unlikely to occur. At the very least, the odds of it happening are slim compared to fiat currency.