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How to Speculate on the Price of Gold Using Cryptocurrencies

How to Speculate on the Price of Gold Using Cryptocurrencies

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Earlier this week, gold spiked to over $2,000 for the first time in history.
The precious metal has been on the climb for more than two years straight, during which it has almost doubled in value, generating an incredible return for investors. 

Earlier this week, gold spiked to over $2,000 for the first time in history. The precious metal has been on the climb for more than two years straight, during which it has almost doubled in value, generating an incredible return for investors. Now, thanks to a cross-over between the traditional finance and cryptocurrency industries, investors can speculate on the value of gold using cryptocurrencies instead of fiat. Litecoin: Could 2019 be the end of LTC? : BTC Surprises Everyone Again (December 2019)Bitcoin: BTC Bulls Have othing To Worry About Yet (October 2019)

Invest in Gold-backed Tokens

Arguably the simplest way to speculate on the price of gold is by purchasing gold-backed tokens. In essence, these are tokens that are backed by a fixed allocation of gold, such that owning each token is equivalent to owning a fixed amount of gold. The amount of gold each token represents varies from provider to provider, but most stick with a ratio of 1 token equals 1 gram of pure investment grade gold. As such, the value of each token is usually roughly equivalent to the gold spot price, though it can fluctuate based on the economics of supply and demand, and several other factors. These tokens can usually be bought directly from the company or from third-party exchange platforms and can be traded or redeemed for real gold whenever the holder chooses. 

Though there is a wide range of gold-backed tokens available, it’s important to ensure that the ones you’re investing in meet certain basic criteria. The platform should offer a system to easily verify that it has sufficient gold in reserves to back the circulating supply 100%. CACHE Gold (GCT), for example, allows users to easily check how much gold it has in each of its vaults, with its GramChain® asset tracking system. Other platforms typically rely on irregular allocation reports to demonstrate their gold reserves. Beyond this, you should also consider the minimum redemption amount — or the minimum number of tokens that can be redeemed for physical gold. For CACHE Gold, this is 100 tokens (100 grams), whereas for Tether Gold (XAUt) this is 430 tokens (430 troy ounces). 

Trade Spot and Derivatives

For those looking to profit from the day-to-day fluctuations in the price of gold and gold-backed tokens, there’s also the option of trading gold derivatives and gold-backed tokens on a variety of cryptocurrency exchanges. Gold-backed tokens can be traded on most popular cryptocurrency exchanges. (Image: Huobi Global) Trading gold-backed tokens is no different from trading any other cryptocurrency. Once purchased, these tokens can be transferred to any cryptocurrency spot exchange that supports the cryptocurrency, where they can be traded against other cryptocurrencies or against fiat (where supported). Traders will then be able to capitalize on fluctuations in the token value as a result of changes in supply and demand, and the gold spot price. 

It’s also possible to trade a variety of gold derivatives using cryptocurrencies. These are essentially contracts that allow traders to speculate on the price of gold without actually purchasing or holding any gold or gold-backed tokens. These are typically considered more advanced financial instruments, however, since they can usually be traded with leverage — which can dramatically improve profits (or losses). 

Buy Gold Using Cryptocurrencies

Arguably one of the simplest ways to invest in gold and other precious metals is by simply purchasing physical gold bullion — essentially investment gold in the form of bars, ingots, and coins, using cryptocurrencies. Depending on where you live, the range of gold products available to you can vary considerably. Some of the more popular websites, including Money Metals and European Mint, offer a range of investment gold, ship worldwide, and accept payment in Bitcoin (BTC). Others, such as Bitgild and JM Bullion ship to a restricted range of countries. 

Though buying physical bullion with gold is a relatively simple endeavor in 2020, there are some downsides to the practice. For one, you’ll usually pay above spot price for the gold. This can range from just 1-2% above spot, to potentially much more depending on the vendor you choose. You will also likely need to pay shipping and insurance costs, which can become quite costly if you’re shipping large quantities of gold internationally. Physical gold also isn’t particularly liquid. This means you want to be able to liquidate your holdings easily, such as for trading purposes, or to capitalize on a temporary decline in value before buying back in. This is part of the reason why gold-backed tokens have achieved such popularity as an alternative. 

Article Produced By
Adrian Barkley

Adrian has been leading teams in the finance sector for over a decade. He is highly experienced, and is responsible for ensuring that the latest news is delivered to you as it is breaking. He has a keen interest in virtual currencies, and has even made investments himself, so is incredibly passionate when it comes to writing about this topic.

https://cryptodaily.co.uk/2020/08/how-to-speculate-on-the-price-of

Heiko Closhen, Entrepreneur

How Casinos Are Embracing Cryptocurrency

How Casinos Are Embracing Cryptocurrency

Digital currencies and blockchain technology have had an immense impact on kasinot across the globe.

One of the areas where this impact has been very profound is in the gambling sector – which has also been known for embracing the latest technologies. Gaming operators have always been at the frontlines when it comes to trying out new and innovative technologies all in a bid to keep their customers happy and interested. That said, it was only a matter of time before cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ripple, and Litecoin among many others made their mark in the gambling industry. All of the features that these digital currencies promise are, without a doubt, very desirable features for gamblers across the world. The result is a mutually beneficial arrangement where digital currencies get the necessary boost to go mainstream while the gaming operators get a front-row seat as the world ushers in the new age of next-generation digital payments. Naturally, there has to be a framework for this and thankfully its already being implemented in both land-based casinos and in online gambling platforms. 

Crypto in Land-Based Casinos

Cryptocurrencies, since their conception, have always been digitized forms of payment. However, nearly everything is digitized nowadays. Still, brick-and-mortar casinos rely greatly on existing systems all of which are based on traditional payment options and fiat currency. Thankfully, there is a solution to this. Lots of land-based casinos have embraced digital currencies. It is quite common to be able to pay with Bitcoin, Bitcoin Cash, Ethereum or any other digital currency at several dozen land-based gaming facilities. However, this does not mean that these casinos shove them down people’s throats.

Instead, the cryptocurrencies are used alongside other traditional forms of payments. As such, in most of these casinos, your digital currency will be converted to fiat currency which you will then use to play your favorite casino games. It is that easy! Now, this might not necessarily be the future that most die-hard digital currency enthusiasts envisioned. However, the integration will certainly be a great way for the industry to market itself. Eventually, we might finally get to see mainstream crypto-online retail gambling space being made available but the existing solution is certainly acceptable. The wait might be rather long but thankfully the gears are already in motion which means that we certainly need to get ready for that future.

Crypto in Online Casinos

Online casinos are among the biggest beneficiaries of the digital currency revolution that is currently underway. In fact, it extends beyond just the digital currencies themselves to several other aspects including blockchain applications like smart contracts. The potential of these technologies can be said to be exponential especially because new use cases come up very often. Initially, online casino sites that accepted digital currencies were considered to be underground gambling sites. This is true to some extent.

However, things have since changed and legitimate Bitcoin casinos in the USA especially, have grasped all of the benefits that cryptocurrencies come with. Today, there are tons of crypto-only casinos that give players a whole new online gambling experience. On the same note, online gaming destinations that existed long before crypto took off have also joined the bandwagon. These ones allow you to convert your cryptocurrencies into fiat which you can then use to bet on the platforms. Just like in the case of most land-based casinos, while there is indeed a growing number of digital currency users, the number of people who still use good old fiat is still pretty hard to downplay.

What the Future Holds

One thing is for sure – the future looks very bright for the world of crypto and payments as a whole. A good number of people and businesses including casinos are quite happy with waiting. Still, it is very impressive that we have gotten to a point where you can participate in this development. Now, if you have any type of digital currency you are assured of finding a gambling facility or platform that will allow you to use it. There are a few things that, of course, need to be ironed out along the way which is expected of any nascent technology. Its rapid growth should, however, make up for this.

Article Produced By
Globalcoin

Independent ICO Research and Reporting on the Biggest Cryptocurrency Winners From a Top 10 Crypto News Site.
 

Heiko Closhen, Entrepreneur

Better Mobile Trading with vTrader’s New Cryptocurrency App

Better Mobile Trading with vTrader’s New Cryptocurrency App

The crypto trading company, vTrader, introduces its new mobile app to bring the smartphone crypto trading to a new level.

Traders can now buy bitcoin with euro, transfer their assets between them free of charge, in a safe and instant environment, and make use of the reliable wallets offered within the app. Just as Revolut innovated online banking, vTrader brings to cryptocurrency the concept of transferring crypto assets to the users’ phone contact list. The app works on both Android and iOS and can be used to buy Bitcoin and other cryptos. Unlike exchange platforms, where you to create an order then wait for someone to fill in, vTrader allows you to trade directly with any of your contacts in a matter of seconds.

App Features

Although simple to use, vTrader’s cryptocurrency app comes with well-rounded features like:

  • Sending, receiving, trading, and requesting cryptos from your friends in the contact list;
  • Supports Bitcoin, Ethereum, XRP, Litecoin, Cardano Monero, and Dash;
  • Consulting and managing wallets for every supported cryptocurrency;
  • Depositing and withdrawing fiat in Euro;
  • Cryptocurrency funding in Bitcoin and Ethereum;
  • Mobile app and desktop fully synchronized.

Are there any Fees?

Sending, receiving, trading, and requesting cryptos from your phone contacts is completely free of charge. The only fees are for the buy or sell orders (0.85%) on the desktop platform, and withdrawals or deposits (1.8% fee plus a 0.99 EUR).

Where Can I Find the App?

vTrader mobile app is developed for both Android and iOS devices. You can download the app for free from Google Play and App Store. As all legitimate financial services must ensure that all transactions are legally executed, vTrader’s requires its users to complete a KYC, before using its platform and trading services. This procedure can be completed from both desktop and mobile app.

Customer Support

vTrader’s support team is available 24/7 to answer and solve all platform and trading-related issues for all their users.

About vTrader

The liquidity problem is an issue most crypto exchanges are faced with. Therefore, three experienced Romanian programmers – Vlad Sas, Alex Gherghe, and Codrin Rareș – developed vTrader platform. With a system in which the orders are filled automatically close to market prices, placing the orders on Bittrex, the liquidity is always ensured. Furthermore, the co-founders created vTrader as a particularly safe and secure exchange by implementing strong security measures such as storing all the assets in cold wallets. Also, the fiat transfer services are enabled through a collaboration with the Globitex (NexPay UAB) company.

Article Produced By
Bitcoin Garden

This content is brought to you by the Bitcoin Garden staff

https://bitcoingarden.org/better-mobile-trading-with-vtraders-new-cryptocurrency-app/

Heiko Closhen, Entrepreneur

Best Cryptocurrency Trading Platforms With Leverage Trading 2020

Best Cryptocurrency Trading Platforms With Leverage Trading 2020

Best Crypto Margin Trading Exchanges

Margin trading is a type of investing which gives individuals a chance to increase their investment by adding leverage to it.

This practice lets you borrow someone else’s cryptocurrency and invest it as you see fit. Margin trades are usually made by investors who are certain that the market will move in one or the other direction in the near future. You’re basically accepting the added risk of betting loaned money because you feel that the odds are that your bet will pay out.

So, for example, you have $100 worth of Bitcoin and you are certain the market price will go up through the upcoming days. Let’s say that you are so certain that this rise in price will happen that you want to invest more than you are currently holding. You can borrow additional $100 percent from the market to invest a total of $200 in your “long” position (also known as the buy position, a market position investors take when they expect the price to go up). With this, you have now made a leverage trade of 2:1. Your loan of $100 worth of BTC will eventually have to be repaid; once the loan amortization period expires, the person who loaned you the money will have received its $100 along with a pre-arranged interest.

In order to make sure that the loaning party receives his money back, the platform can margin call your trade if its total value falls beneath a certain threshold (one that would lead to you losing borrowed money). In this case, if your investment’s value were to fall beneath $100, you’d end up margin called and your trade would be liquidated. To avoid going into too much detail (check out this link for a more in-depth look into the practice), margin trading has been a mainstay of traditional investing for quite some time and has successfully made the transition into crypto markets as well.

Leveraging someone else’s capital against a highly likely market outcome can be an extremely efficient way of multiplying your own holdings, especially when you go for higher margins like 4x, 5x, 8x or even 100x (the highest margin currently allowed on existing trading platforms). Modern crypto landscape is definitely a good place to learn about and master margin trading. Constant crypto volatility requires savvy market observers to predict future price movements and margin trading exchanges are a perfect playground for them to cash in on their skills. As a significant portion of these savants will want to test out their skills on the mentioned playground, we’ll give them a solid and list out some of the top margin trading exchanges in the market.

Top Cryptocurrency & Bitcoin Margin Trading Exchanges

BitMEX

BitMEX is one of the best margin trading platforms for bitcoin allowing its traders to leverage their positions. Co-founded and ran by the charismatic Arthur Hayes who achieved somewhat of a meme-like status in the community due to his unrelenting smile which beamed at us even as Bitcoin tumbled down from its 2017 all-time-highs, the exchange has offered margin trading services since 2014. This platform is not a beginner-friendly exchange – some knowledge of traditional futures and options will be required before you can start safely using the trading environment.

BitMEX offers a whole host of different contracts, including traditional futures (for Bitcoin, Bitcoin Cash, Cardano, EOS, Ethereum, Litecoin, Ripple, and Tron), perpetual contracts (Bitcoin and Ethereum), and BitMEX upside/downside contracts for Bitcoin. It accepts only Bitcoin deposits and offers a maximum leverage of 100x. While never hacked so far, the exchange has somewhat of a negative history of going down “for maintenance” just before/after strong Bitcoin movements. The exchange also seems to have a real problem with bugs and trading interface freezes that can cost you money. Is that Arthur nicking your money with a characteristic maniacal smile on his face or just a coincidence? We’ll probably never find out. Overall BitMEX remains by far the market’s leading margin trading platform in terms of volume that will satisfy the needs of most advanced users looking to trade crypto with leverage. That is if they manage to avoid the infamous “order submission error”.

Article Produced By
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

https://captainaltcoin.com/margin-trading-crypto-exchanges/

Heiko Closhen, Entrepreneur

5 reasons why you should use a brokerage exchange service to buy and convert cryptocurrencies

5 reasons why you should use a brokerage exchange service to buy and convert cryptocurrencies

It is considered that the best place to buy cryptocurrencies exchanges.

But this is a mistake. Let’s think about why we don’t buy fiat currencies on stock and currency exchanges or on the interbank market. Because it takes a lot of time, you need to have quite large amounts, and trading licenses are also a problem. The situation is similar in the cryptocurrency market. Exchanges require a lengthy KYC verification process. the process of withdrawing funds through a merchant can take up to 5 banking days. It should also be remembered that before withdrawing funds, you must conduct trading operations.

What are the advantages of the brokerage service 365Cash.co?

1. You don’t need to go through a lengthy KYC verification process. This is a crucial aspect for those who worry about their anonymity.

2. Low limits and fast execution of the exchange order. If you need a small amount quickly – 365Cash.co is the best choice.

3. The ability to use payment systems like Perfect Money, Payeer, AdvCash to buy cryptocurrencies at the market rate. Exchanges do not provide this opportunity.

4. Low commission. They do not charge customers a fixed fee for the exchange. They work at the market rate and are completely dependent on the spread.

5. Quick support service. Their operators will solve any issue within 2 minutes, while on the big exchange, you will need to create a ticket to the support service and wait for hours for a response.

Briefly about 365Cash.co

Exchange service 365Cash.co appeared in 2015. For 5 years of existence, they have become not only the largest exchange service in the CIS countries but also conducted more than 1,500,000 exchange operations. The service has more than 20,000 positive reviews from customers and more than 45,000 customers who trust them. They have a profitable referral program where partners can earn up to 30% of their profits. There is also a wide loyalty program.

Article Produced By
Bitcoin Garden

This content is brought to you by the Bitcoin Garden staff.

https://bitcoingarden.org/5-reasons-why-you-should-use-a-brokerage-exchange-service-to-buy-and-convert-cryptocurrencies/

Heiko Closhen, Entrepreneur