Gold is a historical hedge against economic turmoil and inflation. Here’s how you can get exposure through cryptocurrencies, without having to worry about storage.
There are numerous cryptocurrencies that are pegged to gold in one way or another, and they are backed in different ratios, depending on the project itself.Pros and Cons of Investing in Gold-Backed Cryptocurrency Gold-pegged tokens also carry some other benefits, widely associated with cryptocurrencies – they are easily stored and transferable – unlike physical gold.
Because most of them are ERC-20 Ethereum-based tokens, each purchase or transfer of the token might carry high gas fees. At the time of this writing, in March 2022, PAXG is the biggest gold-pegged cryptocurrency by means of total market cap, which sits at around $550 million. It also boasts the highest daily traded volume.