Top cryptocurrencies backed by gold and silver (2023)

cryptocurrencies backed by gold A3Techworld

Over the last few years, Bitcoin and other decentralized digital currencies have become more popular. But there’s still uncertainty around trading these online coins. People are hesitant mainly because cryptocurrencies are known for their unpredictable value changes and the risk of losing money. So, some folks prefer their digital money to be tied to something steadier, like dollars or gold. This kind of digital currency is called a “stablecoin,” and it’s well-liked for its reliability.

Stablecoins are connected to different things like dollars or valuable metals. These metals include gold, silver, platinum, and palladium. These partnerships create brand-new digital currencies, similar to Platinum Coins or Silver Coins. For more crypto-related articles, read our guide on Common Crypto Scams and How to Avoid Them.

Because stablecoins are linked to these metals and dollars, they don’t experience the wild ups and downs that cryptocurrencies like Bitcoin often do. People who trade stablecoins usually don’t face big losses since stablecoins never go lower in value than the asset they’re tied to.

Cryptocurrencies that have precious metals backing them are getting more attention and respect. This means it’s important to grasp what they are all about.

overview of stablecoins

A ‘stablecoin’ is a special kind of cryptocurrency that’s designed to tackle the roller-coaster-like price changes that investors often deal with when they’re into cryptocurrencies. Stablecoins usually have their value linked to another dependable asset, but they can also be supported by a certain mathematical formula. This is great news for people who want to buy or sell things using these digital coins because they won’t suddenly see their values changing a lot during or after the transaction. Stablecoins level the playing field for everyone, so both parties don’t need to go back to regular money (fiat).

Stablecoins come in different types, and here are some of them:

  1. Fiat-backed stablecoins: These stablecoins get their stability from regular money, like the Chinese yuan. Crypto holds a certain amount of that currency as a guarantee. They can also be backed by precious metals (think silver and platinum) or even everyday things like oil and corn.
  2. Crypto-backed stablecoins: Here, one cryptocurrency backs another, creating what’s called crypto-backed stablecoins. The coin behind it is kept in a more secure position to counteract the higher ups and downs that can happen when you link stablecoins to cryptocurrencies.
  3. Commodity-backed stablecoins: These stablecoins stay steady because they’re tied to valuable, physical things. Some examples are gold or real estate. Gold is the most popular choice to back stablecoins, but sometimes a mix of precious metals is used.

So, stablecoins are like the calm in the storm of the cryptocurrency world, and they come in different flavours to suit different preferences and needs. For more crypto-related articles, read our guide on AI-Powered Crypto Tools to Help You Trade Smarter.

Best Gold-Backed Cryptocurrencies

In the world of cryptocurrencies, there are many types that have their value tied to gold. Some examples include Tether Gold (XAUT), DigixGlobal (DGX), and Gold Coin (GLC). Gold Coin is a bit different—it’s like having a piece of gold, but it’s divided into smaller parts. So, you don’t need a lot of money to get started with Gold Coin, unlike other types of gold.

cryptocurrencies backed by gold

Another one to mention is Perth Mint Gold Token (PMGT). This crypto is like a digital version of gold from Perth Mint in Australia. People like it because it’s considered one of the best gold-backed cryptocurrencies. The Australian government also checks and confirms that the gold is real and pure, so PMGT is trusted.

Here is the list of well-known cryptocurrencies backed by gold:

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

Best Silver-Backed Cryptocurrencies

Silver might not be as famous as gold, but it has its place, especially in the world of cryptocurrencies. There are a good number of cryptocurrencies linked to silver. Silver Coin, Silverlinks (LKNS), and Silver Token are the major players.

Silver Coin is a cryptocurrency that’s divided into smaller parts. It’s known for being very secure and open to all kinds of investors. Many people prefer it for these reasons. People who invest in this type of cryptocurrency can trade it in for real silver whenever they like.

LKNS tokens are interesting. Each of them is worth the same as 1 gram of certified silver that’s really pure. The idea behind this cryptocurrency is to let investors easily buy digital silver, just like any other kind of cryptocurrency.

Now, about Silver Token. Each coin represents ownership of silver in the same amount as a single ounce of high-quality silver. The people who created this cryptocurrency have real silver that’s 99.9% pure and they follow the rules of the London Bullion Market Association.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.