Bitcoin and other cryptocurrencies which are also called Altcoins have been known to have price spikes and dips which can be risky for crypto investors and traders. However, these fluctuations are essential for you to make a profit in the cryptocurrency market as most investors will likely buy for the dips and profit when they HODL long enough to sell when the price is high.

This has been a common cycle for crypto investors to avoid and mitigate the short-term volatility of Bitcoin and Altcoins that is not backed by a fiat currency or high-value commodity in the finance market. As most of these cryptocurrencies have decentralized networks which means there is no central authority that dictates and governs the digital currency. 

Bitcoin and Altcoins that have high volatility

Bitcoin is currently having a soaring price of almost $60,000 and a trillion market capitalization. Which means, the investors and traders that buy the dips will make a hefty profit if they wanted to sell BTC at the current high price spike. These are the advantages of investing in Bitcoin and Altcoins that have massive volatility spikes. 

But the disadvantages are the massive volatility dips as well which can be risky for amateur and half-hearted cryptocurrency investors. That is why there are organizations that innovate the crypto systems which can be an alternative for those who don’t want massive volatility risks and these are called “stablecoins”.

Stablecoins that is backed by Fiat or High Value Commodities

Stablecoins are also Altcoins which are backed by fiat currency or other high-value commodities. These coins can have decentralized systems like the DAI cryptocurrency and others also have centralized systems just like the Tether (USDT) cryptocurrency.

Other types of stablecoins which are called “archorcoins” as they have been backed by high-value commodities such as gold, silver, and other high-value commodities in the finance market. There are advantages for investing in anchorcoins such as the avoidance of the massive volatility which happens commonly on Bitcoin and popular Altcoins.  

Anchorcoins have become popular for investors these days due to the unpredictability of the risks from the fluctuation of prices in popular cryptocurrencies. Many of these anchorcoins are often backed by Gold’s market value, which means the current value of the digital anchorcoins have the equivalent value of gold in the market.

Best Cryptocurrencies That are Backed by Gold

If you are curious which of these anchorcoins that are backed by Gold for you to invest, we prepared a list that you can use for your personal due diligence.

AABB Gold Token (AABBG)

The Asia Broadband, Inc. is a publicly-traded company with $100 million listed assets which offers Mine-to-Token backing of gold from the company’s physical gold assets. AABBG is different and more accessible compared to other stablecoins that are backed by gold as they support gold in terms of grams instead of ounces. 

It is accessible to buy, you can buy tokens backed by gold with a minimum of 0.1 grams spot price of gold using your mobile phone on both Android Play Store and iOS Apps Stores. 

Tether Gold (XAUt)

Tether Gold is created by the most popular stablecoin pegged to USD, the USDT or Tether. However, XAUt has a high barrier of entry of 50 XAUt which has the equivalent amount of about $87,000 USD at the time of writing which is quite high for regular investors. A single Tether Gold token has an equivalent of one troy ounce of gold and its gold reserves are in the Swiss vaults.

Tether Gold was introduced in 2020 which already amassed a $160 million worth of market capitalization. There are perks that only AUXt token holders have, they have an option to choose their own gold by entering their wallet address that holds their AUXt. 

Perth Mint Gold Token (PMGT)

This government-backed project has been around 2018 which attracted many crypto savvy investors. The PMGT has the equivalent gold validated by the Australian government in terms of weight and purity. Other perks given for the token holders are certificates that prove their holding that is backed by PMGT tokens with a ratio of 1:1.

The advantages may outweigh the few caveats that investors must need to know before taking the plunge into buying PMGT tokens. Just like Tether Gold, PMGT is not yet available on recognized exchanges or even with the world’s most popular exchanges. This can be a red flag for potential investors that aspire for a little less volatile crypto investment.  

The People’s Reserve (TPR)

Another option for crypto investors that don’t want high price transaction fees, volatility, and slow transaction speed is The People’s Reserve. This type of stablecoin is also anchored to gold’s highest value and supported with Proof-of-Stake blockchain technology for faster transaction times with reduced transaction costs.

You can compare TPR’s live market price with Bitcoin and Altcoins on The Top Coins Australia. TPR has been established in The Land Down Under with the goal of becoming not just a crypto where you can benefit through long-term HODL as well as to be scalable, usable, and people-forward token to be used worldwide.

Final Thoughts – Bitcoin vs Gold cryptocurrency

If we compare Bitcoin and Gold cryptocurrency, the benefits of using cryptocurrency backed by Gold may outweigh the risk of high volatility. The long-term stability of gold has long been a competent alternative to fight the yearly market inflation. 

These anchored coins backed by gold or “gold cryptocurrency” is the answer for most savvy crypto investors that also want the gold equivalent and stability. The benefits and perks of owning gold in the form of digital currency is an asset for most investors that can help shield against the common market woes like inflation and sudden dips of volatility.

Source:Plato Data Intelligence