Gold-Backed Cryptocurrencies in 2022 [Updated List
Gold-Backed Cryptocurrencies in 2022 [Updated List

Gold-Backed Cryptocurrencies in 2022 [Updated List

Compare and choose the best gold-backed cryptocurrencies based on this in-depth gold-backed cryptocurrency review:

All gold-backed cryptocurrencies are derivative assets that allow you to buy, trade and hold physical gold anytime, anywhere. They eliminate the transportation inconveniences, illiquidity, transferability and volatility associated with physical gold trading.

Modern gold-backed tokens provide access to the gold futures market. They are based on blockchain technology.

As digital cryptocurrencies, most gold-backed cryptocurrencies can be converted into physical gold. They can be traded with fiat or other cryptocurrencies on crypto exchanges. Depending on the project, they are backed by gold in varying proportions. For example, one gram of gold or one certificate supports 1 token.

This article explains what gold-backed cryptocurrencies are, how they work, and lists the top cryptocurrencies of this type.

ryptocurrencies in 2022 [Updated List]

What Is Gold Backed Cryptocurrency

  • Gold-backed cryptocurrencies are derivatives whose value is derived from the price equivalent of gold. Gold backing is meant to link derivative assets to tangible assets, thus preventing excessive price volatility, as is the case with most cryptocurrencies.
  • For example, the amount of gold used to back this cryptocurrency should be held in gold reserves in banks or third-party institutions called custodians.
  • However, the supported types vary by cryptocurrency. A single crypto unit is equivalent to a specific golden unit. Some are backed at a 1:1 ratio, with 1 token equal to 1 gram of gold.
  • Investors in the token get higher returns from the gold pricing. Investors can exchange tokens back to gold.

List Of Top Gold Backed Cryptocurrencies

  1. Tether Gold (XAUT)
  2. DigixGlobal (DGX)
  3. PAX Gold (PAXG)
  4. Gold Coin (GLC)
  5. Perth Mint Gold Token (PMGT)
  6. Meld

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