LUMPUR, MALAYSIA – Media OutReach – 17 February 2022 – Many have wondered how the domains of gold
and crypto might intersect with each other. People may ask questions like “Is there any common ground?”, “Does it
have to be one over the other?” International
Forex broker OctaFX will answer
all these questions.
appears to be regular competition between gold maximalists and their blockchain
counterparts. The one side has its impenetrable record of history to its name.
The other has technological innovation, progress, and huge gains to offer.
with great gains comes great responsibility. If you lack the latter, you are in
for a grim surprise, even permanent loss.
industry’s experts always considered gold a safe-haven asset that withstood the
test of time and rightly so. It is the
usual pick for conservative investors who are patient and resilient towards the
emotionality of the financial markets.
glancing at the bitcoin-initiated blockchain industry, it shows a sheer endless
potential for novel application and invention. The booming NFT market alone is
a potential ‘gold mine’ (pun intended).
with gold, there simply can’t be quite as steep and hefty changes, extensions,
and surprises, for better and for worse.
Trade both gold and crypto on Foreign Exchange
Users can actually trade both gold and crypto on Foreign Exchange.
platforms like the international Forex broker OctaFX allow users to participate in several markets, staying in touch with national fiat
currencies and the famous yellow metal or the most established cryptocurrencies
on the market.
currency pair XAUUSD (gold and U.S. dollar) is a popular option for traders who
want to apply their know-how of market dynamics and specifically have gold
involved in the profit equation.
already mentioned, gold as a store of value is quite resilient, but it can be
like a sponge concerning the market’s trust in fiat currencies. If it goes
down, capital flows into gold, weakening fiat in turn. When fiat regains market
trust, gold is usually squeezed again.
synergy of both worlds: Gold existing on the blockchain
might be unaware that companies use the blockchain to make gold an accessible
asset to crypto investors while simultaneously providing an entry point for
traditional investors to access the blockchain.
such company is Paxos Gold, which issues special stablecoins on the Ethereum
network called PAXG. One PAXG equals one fine ounce of gold, which the token
holder can physically redeem in many places worldwide. You can even earn interest on your ‘blockchain
gold’, so to speak. Many platforms offer this as an incentive to keep your gold
stablecoins as liquidity on their networks.
get caught up in this unnecessary stand-off between these two asset classes and
their communities. Both have their strengths and can amplify a wisely
diversified portfolio. If you settle on one monolithic asset, you restrict your
mobility to act as an investor. Gold proved its use case and keeps storing
value long-term as an inflation hedge. It’s just the way it is. On the other
hand, cryptocurrencies allow multiplying initial investments, draw significant
profits, and move the new capital to more static and resilient assets. Another
approach is buying back those cryptocurrencies once they hit a substantial low
any case, stay educated and widen your horizon on these markets. Remain
flexible and open-minded. As always, calculate your cost-benefit ratio to be as
balanced as it gets without missing opportunities.
And another note: Cryptocurrencies and their futures—as opposed
to more conservative futures trading—are available during weekends as well.
More and more brokers tend to provide this option to their clients. The earlier
mentioned fintech player OctaFX just recently introduced this, as well. It
started on the first weekend of February.