Investing in safe-haven assets is the most reliable way to keep funds safe when economic conditions are unstable. Gold has a safe-haven value that allows many investors to put their funds in gold and gold-related assets. In this way, gold backed cryptos have become a reliable investment opportunity but finding the most reliable crypto tokens is challenging.
The following section will see the list of five gold backed cryptos that are reliable to invest in 2022 with a detailed analysis.
Best five gold backed crypto coins to buy in 2022
The gold backed crypto aims to work as a derivative where the price of the trading instrument is equivalent to gold. As the asset is backed by physical gold, it offers less volatility and high stability where making money is possible in an easy way. The price change of the gold backed crypto comes from gold’s price change where some instrument offers a 1:1 or 1:100 ratio between the asset and gold.
We will see the list of crypto tokens before proceeding further to the best five crypto coins to buy:
- Tether Gold (XAUT)
- Digix Gold Token (DGX)
- Perth Mint Gold Token (PMGT)
- GoldCoin (GLC)
- Paxos Gold
Tether Gold (XAUT)
Market cap: $468,330,550
A crypto derivative backed by gold offers an investment opportunity in real-time trading. Investors can quickly transfer the asset from their crypto wallet. According to the London good delivery bar, one XAUT is equivalent to one ounce of gold in this investment method.
According to the latest report, the TetherGold market cap has reached the market cap at $468,330,550 with a total supply of 246,524 XAUT. One user can purchase a maximum of 50 XAUT from the official website after completing some verification steps.
Is TetherGold has the potential to grow?
Its price has a 99% positive correlation with the traditional XAU/USD. Therefore, the possibility of future growth is strong for this instrument, particularly after the Covid-19 pandemic that pushed central banks to print money with a rising interest rate. In that case, the possibility of inflation is high, pushing the gold price up.
Digix Gold Token (DGX)
Market cap: $1,243,565
Digix Gold Token is a trading instrument issued by DigixDAO (DGD), a decentralized autonomous organization (DAO). The company aims to create tokenized physical assets so that investors can take part in the crypto market without having the issue of volatility. This company uses the Proof of Provenance (PoP) to verify the asset’s existence through the chain of custody.
Digix is available to trade in most top-tiered crypto exchanges like Hotbit, Indodax, KULAP, and ProBit Global. Moreover, users can connect other apps and websites to this platform through APIs.
Is Digix Gold Token has the potential to grow?
It showed strong bullish momentum at the beginning of 2022 but rebounded immediately. However, as it is backed by physical gold, investors can consider it a buy based on the current demand for gold, which came from higher global inflation.
Perth Mint Gold Token (PMGT)
Market cap: $2,214,647
It is a gold backed crypto-asset built on the Ethereum blockchain. Each of these tokens represents one ounce of gold stored in the vault of the Perth Mint. Users can have peer-to-peer transactions in this asset through the smart contract of this token, where making a transfer with maximum security and safety is possible.
Is Perth Mint Gold Token has the potential to grow?
PMGT price remained stable for a long time allowing investors to keep them safe from the unexpected price volatility of the crypto market. However, buying an asset needs stable fundamental events, which are currently unavailable for the PMGT. However, the price of this token might get momentum after a massive user presence in this network.
Market cap: $1,669,279
GoldCoin offers trading in the peer-to-peer crypto, created by an anonymous person, which operates like Bitcoin with no company or person behind it. Users can make a transfer within two minutes through this network under the ERC 20 format. Moreover, it offers to convert crypto to physical gold.
Is GoldCoin has the potential to grow?
Like other cryptos on this list, the price of GLC/USD depends on how gold’s price changes in the spot market. Based on the current economic situation of 2022, the rising inflation rate, interest rate hikes, and the possibility of recession are signs that gold may soar with an upside pressure on all gold-backed assets.
Pax Gold (PAXG)
Market cap: $610,670,440
It is a gold backed crypto created by Paxos International. It runs through the ERC 20 token under the Ethereum blockchain and has become a reliable way to make money online with an aim to profit from gold.
The primary objective of this project is to make gold more attractive to investors as the physical commodity is not easy to divide among people. As per the Pax Gold whitepaper, investors are allowed to buy unlimited gold through this crypto.
Is PAXG has the potential to grow?
Based on the last year’s price action PAXG has a higher possibility of showing a rebound following the strong demand for physical gold from the global economic uncertainty.
Pros and cons
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Finally, we have seen the top five gold backed cryptos that are the potential to grow in 2022. Besides, there are some other assets, like gold backed ETFs, where you can expand the trading portfolio to minimize the market risk.