Since January 1, 2023, gold has outperformed many cryptocurrencies, rising 78% from $1,823.91 to $3,250. While some crypto assets may and have* underperformed in these uncertain times, gold continues to show resilience and be the ‘real’ store of value.
This brings us to the following question: how can we crypto fans invest in Gold with crypto, or in a way that is crypto native? Please follow along.
Why Consider Gold and Crypto Together?
First of all, if we take a look at the markets we see that in these turbulent times of trade wars Gold, Bitcoin (not always), and the US Dollar remain strong. For that we can take a look at Gold-backed tokens like XAU₮ that combine the best of both worlds – offering the stability of gold and the flexibility of crypto.
Tether Gold (XAU₮)
Tether Gold (XAU₮) is thus one of the digital tokens that represents physical gold ownership and is available as an ERC-20 token issued by Tether, the same company behind USDT.
XAU₮ represents real gold and is backed 1:1 by one fine troy ounce of gold on a physical bar that meets the London Bullion Market Association (LBMA) Good Delivery standard.
Similar as crypto, this crypto variant of gold has become more divisible than ever where anyone can can own a fraction of a gold bar divided into increments as small as 0.000001 fine troy ounces.
How to Buy Gold with Crypto?
What is good for anyone interested, these crypto that represent real world assets, in this case physical gold can be bought and holden onto, to keep your stack in green in these times. To buy XAU₮ tokens you can follow this guide:
- Sign Up and Verify Your Account:
Create an account on Bybit and complete the identity verification process (KYC) as required. - Deposit Funds:
Fund your Bybit account using your preferred deposit method, such as crypto or fiat currency. - Search for XAU₮:
Navigate to the trading section and search for XAU₮ in the list of available trading pairs. - Place Your Order:
You can choose between a market order (buy instantly at the current price) or a limit order (set a specific price you’re willing to pay). Specify the amount of XAU₮ you’d like to purchase. - Confirm and Finalize the Purchase:
Review your order details and confirm the purchase. Your XAU₮ tokens will be credited to your Bybit wallet once the transaction is complete.
Owning gold or at least an instrument that represents it can bring some security to your holdings, especially during these extreme market volatility. And with gold been reaching new all-time highs consistently, it shows a strong momentum. And perhaps if gold can continue to climb, some believe Bitcoin could follow the same path.
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