Most Popular Stablecoins by Market Cap: Cryptocurrency List

Investing in gold is an age-old way of preserving and increasing capital. Thanks to digital technologies, it is now possible to adapt it to modern realities. Stablecoins with a gold hedge combine the stability of the precious metal with the convenience of cryptocurrencies. Unlike volatile digital assets such as Bitcoin, these instruments have a reliable anchor in the form of physical gold. In times of economic crisis and inflation, they are especially important for preserving funds.

What are gold-backed stablecoins?

Gold stablecoins are a synthesis of traditional precious metals and digital technologies. To understand their value, it is necessary to understand the key characteristics and operating principles of such assets.

Gold-backed stablecoins are cryptocurrencies backed by physical gold. Each token is equivalent to a certain amount of precious material stored in specialised storage facilities. This allows you to stabilise the value of digital assets and avoid sharp exchange rate fluctuations, which are characteristic of most cryptocurrencies.

Details:

1. Fixed price. A stablecoin is equivalent to a certain amount of gold, e.g. 1 gram or 1 troy ounce. This makes them resistant to volatility and provides a reliable tool for preserving capital.
2. Physical backing. Behind each token is real gold, stored in certified vaults. Major platforms such as Bitrue offer storage guarantees and the ability to verify collateral via the blockchain.
3. Transparency and verification. Regular audits confirm the availability of physical media. This increases user confidence and reduces the risk of fraud.
4. Digital accessibility. Investors can store gold assets digitally without having to store physical gold or coins. Transfers take place via the blockchain, making them fast and cheap.
5. Ease of change. Stablecoins can be easily exchanged for other digital assets or fiat currency on crypto exchanges.

Advantages of gold-backed stablecoins

The advantages of gold stablecoins make them an attractive tool for investors and traders. Let’s take a look at how they protect capital and offer ease of use.

Protection against inflation and market instability

Gold stablecoins offer protection against inflation and financial crises. Unlike traditional crypto-currencies, their value is linked to a real value that has a long history of stability. This makes them a reliable means of preserving capital in times of economic instability.

High liquidity on platforms

Trading in gold stablecoins is actively supported on major cryptocurrency trading platforms such as Bitrue and Binance. This allows investors to easily enter and exit transactions and exchange stablecoins for other crypto assets or fiat money.

Ease of international transactions

Transferring gold stablecoins is fast and with minimal fees. Traditional bank transfers are time-consuming and expensive, while digital assets allow people to bypass borders and bureaucratic restrictions.

Easy to store and use.

Storing stablecoins with gold coverage does not require vaults or special conditions. All storage takes place digitally in secure wallets, allowing easy access to your investments.

Popular gold stablecoins

There are several well-known gold-backed stablecoins on the market. Each of them has its own features, benefits and methods of application:

1. Tether Gold is one of the most popular stablecoins of its kind. Each XAUt token is equivalent to one troy ounce of gold (31.1 grams). The tokens are issued by Tether, also known as the USDT stablecoin. The collateral is held in Swiss vaults and users can request a physical delivery of the gold.
2. PAXG is another popular gold stablecoin that is kept in vaults in London. Each token has a unique identifier, allowing its origin to be traced. PAXG has high liquidity and is available for trading on many exchanges.
3. Digix Gold (DGX) is linked to one gram of gold. The token is fully backed by bullion stored in certified vaults in Singapore. Investors can exchange tokens for physical gold bars.

How do you choose a gold-backed stablecoin?

Making the right decision requires careful analysis of many factors. Let’s take a look at the main aspects to consider when making a decision.

Reputation and reliability of the issuer

The first step in choosing a stablecoin is to check the reputation of the issuing company. Reliable projects undergo regular audits and provide gold storage reports. For example, Tether and Paxos have a transparent audit system, which increases trust among users.

Storage conditions for gold

Physical security should be stored in certified, high-security storage facilities. Pay attention to the location of storage facilities and the ability to verify asset availability. Vaults in Switzerland, London and Singapore are considered a benchmark in terms of security.

Commissions and fees

Check storage, withdrawal and transaction fees. Some projects charge low rates but charge fees for shipping physical gold. Consider all costs before buying.

Liquidity on trading platforms

Choosing stablecoin with high liquidity on popular crypto trading platforms makes it easier to exchange assets for fiat money or other crypto currencies.

Risks of gold stablecoins

Every investment vehicle has its own risks:

1. Fraud and unscrupulous issuers. Even with high blockchain transparency, there is a risk of fraud. Some projects may not be backed by real gold. Always check periodic audits and read reviews on the project.
2. Changes in the gold price. The exchange rate of gold stablecoins depends on the gold price on the global market. Although gold is considered a stable investment, its value can fluctuate depending on economic conditions.
3. Technical risks. Using blockchain carries risks of technical failures and cyber attacks. By securing digital wallets and using trusted platforms, you can minimise these risks.

Conclusion

Stablecoins linked to gold provide a reliable tool to protect funds from inflation and economic shocks. These tokens combine the stability of gold and the convenience of digital assets, giving investors a wide range of options. By choosing a reliable issuer, understanding the storage conditions and analysing the risks, you can ensure safe and effective investments.

Cryptocurrency technology is rapidly changing the financial world, opening up new horizons and opportunities. However, the plethora of complex terms such as ‘coins’ and ‘tokens’ is often a source of confusion. To understand these terms and their role in today’s cryptocurrency world, let’s start with the basic question: What is a coin?

What is a coin?

Cryptocurrency is a digital currency created on the basis of blockchain technology. It exists as part of a distributed ledger and is used for financial transactions, the purchase of goods or services, or as assets. The best-known example is Bitcoin, the first and most popular currency that paved the way for digital money. But what is cryptocurrency in general? It’s a decentralised system of currencies that enables secure transactions without the intervention of banks.

The currencies operate on their own blockchain, making them truly independent. Bitcoin, Ethereum and Lightcoin are examples of these crypto-currencies. They can perform similar functions to conventional money, except that they are independent of a central government body and exist only in digital space.

The difference between coins and tokens

To understand the differences between coins and tokens, we need to look at their functionality and structure. Coins are digital currencies in their own right, existing on their own blockchains. Tokens, on the other hand, are created on existing blockchains, such as the Efirium platform. They represent assets or rights to use a service.

An analogy can be drawn with real estate: a token is like a house on its own plot of land, while a token is a flat in a building. Tokens have their own system and can be used for payments, while their counterparts often represent rights to participate in a project, access to services or digital assets within a platform.

How do I buy coins?

The buying process starts with the creation of a crypto-currency wallet in which you store your money. This is a digital safe in which you can manage your assets securely. Once the wallet has been created, you need to register on one of the crypto-currency exchanges where you can buy coins in exchange for fiat currency or other crypto-currencies.

The most popular exchanges on the Russian market are Binance, Exmo and Huobi. On these platforms, you can buy coins safely and easily and have access to a wide range of crypto-currency assets.

How to store coins

There are two main methods: hot wallets and cold wallets. Hot wallets are online wallets that are connected to the internet and allow quick access to funds, making them convenient for regular use. Cold wallets, on the other hand, are offline devices, such as hardware or paper versions, and offer maximum security.

The latter type is considered safer because it is not susceptible to cyber attacks, unlike hot devices. For long-term storage, it is best to use a combination of hot and cold methods.

What are the different types of coin?

There are all sorts of variants, and they have different objectives. Bitcoin, for example, is the first and most popular currency created for financial transactions without the intervention of banks. Etherium offers not only the ability to carry out transactions, but also to use smart contracts, making it the basis for many decentralised applications. Ripple (XRP) is aimed at fast and cheap international transfers.

Next come Lightcoin, designed for faster transactions, and Monero, which values privacy. Each of these crypto-currencies has unique features that make them suitable for different tasks.

Where can I buy coins in Russia?

In the Russian Federation, it is possible to buy coins through a variety of sources. The most popular options are crypto-currency exchanges such as Binance and Exmo, as well as P2P platforms that allow you to buy crypto-currencies directly from other users without an intermediary. These platforms offer flexibility and sometimes more favourable exchange rates.

It is important to remember that buying via P2P requires greater caution and verification of the reliability of the counterparty. Exchanges, on the other hand, offer greater security thanks to built-in security mechanisms.

The future of currencies

The outlook is promising, as currencies become increasingly important and are used in a variety of areas. Investments in crypto-currencies are becoming increasingly popular, especially in the context of the instability of traditional financial markets. The development of blockchain technology makes it possible to create new types of currencies focused on specific tasks, such as protecting privacy or supporting decentralised finance.

Future development scenarios include the integration of crypto-currencies into government and commercial structures. In some countries, central banks are already considering issuing digital currencies that could become direct competitors to existing currencies. The possibility of using crypto-currencies for micro-payments and as part of smart contracts will also open up new horizons for development.

Conclusion

What are coins? Coins are a fundamental part of the new digital economy that is already changing the way we think about finance. Coins enable fast and secure transactions, investments in promising projects and access to entirely new opportunities. The future of crypto-currencies looks bright, and now is the time to dive into this world and explore its peculiarities.