HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

The gold paradigm vs crypto's fresh "new thunder": OctaFX does both


18 February 2022

There appears to be regular competition between gold maximalists and their blockchain counterparts. The one side has its impenetrable record of history to its name. The other has technological innovation, progress, and huge gains to offer. But with great gains comes great responsibility. If you lack the latter, you are in for a grim surprise, even permanent loss.

Many have wondered how the domains of gold and crypto might intersect with each other. Is there any common ground? Does it have to be one over the other? Not necessarily if you take a closer look. 

The industry’s experts always considered gold a safe-haven asset that withstood the test of time and rightly so.  It is the usual pick for conservative investors who are patient and resilient towards the emotionality of the financial markets. While glancing at the bitcoin-initiated blockchain industry, it shows a sheer endless potential for novel application and invention. The booming NFT market alone is a potential ‘gold mine’ (pun intended). But with gold, there simply can’t be quite as steep and hefty changes, extensions, and surprises, for better and for worse.

Why not do both?

Exactly. Why, indeed?  You can trade both gold and crypto on Foreign Exchange. Reliable platforms like the international Forex broker OctaFX allow you to participate in several markets, staying in touch with national fiat currencies and the famous yellow metal or the most established cryptocurrencies on the market.

The currency pair XAUUSD (gold and U.S. dollar) is a popular option for traders who want to apply their know-how of market dynamics and specifically have gold involved in the profit equation.

As already mentioned, gold as a store of value is quite resilient, but it can be like a sponge concerning the market’s trust in fiat currencies. If it goes down, capital flows into gold, weakening fiat in turn. When fiat regains market trust, gold is usually squeezed again.

The synergy of both worlds: Gold existing on the blockchain

Some might be unaware that companies use the blockchain to make gold an accessible asset to crypto investors while simultaneously providing an entry point for traditional investors to access the blockchain. One such company is Paxos Gold, which issues special stablecoins on the Ethereum network called PAXG. One PAXG equals one fine ounce of gold, which the token holder can physically redeem in many places worldwide.  You can even earn interest on your ‘blockchain gold’, so to speak. Many platforms offer this as an incentive to keep your gold stablecoins as liquidity on their networks.

Vast options

Don’t get caught up in this unnecessary stand-off between these two asset classes and their communities. Both have their strengths and can amplify a wisely diversified portfolio. If you settle on one monolithic asset, you restrict your mobility to act as an investor. Gold proved its use case and keeps storing value long-term as an inflation hedge. It’s just the way it is. On the other hand, cryptocurrencies allow multiplying initial investments, draw significant profits, and move the new capital to more static and resilient assets. Another approach is buying back those cryptocurrencies once they hit a substantial low again.

In any case, stay educated and widen your horizon on these markets. Remain flexible and open-minded. As always, calculate your cost-benefit ratio to be as balanced as it gets without missing opportunities.

And another note: Cryptocurrencies and their futures—as opposed to more conservative futures trading—are available during weekends as well. More and more brokers tend to provide this option to their clients. The earlier mentioned fintech player OctaFX just recently introduced this, as well. It started on the first weekend of February.

OctaFX is a global broker that provides online trading services worldwide since 2011. It offers a state-of-the-art trading experience to over 7.5 million traders worldwide. The company is well-known for its financial expertise, analytics, and educational programme. It maintains a high emphasis on financial literacy in its trading community. OctaFX has also won more than 45 awards since its foundation, including the 2021 ‘Best Forex Broker Asia’ award and the 2020 ‘Most Transparent Broker’ award from Global Banking & Finance Review and Forex Awards, respectively.
#source

Share: Tweet this or Share on Facebook


Related

FP Markets Partners with Industry-Leading Platform Provider TradingView
FP Markets Partners with Industry-Leading Platform Provider TradingView

FP Markets’ customers around the world can now gain access to TradingView's advanced charts and analysis, powerful trading tools and interact with the world's largest social network of traders...

22 Jan 2024

FxPro Unveils a Lucrative Global Affiliate Program
FxPro Unveils a Lucrative Global Affiliate Program

FxPro, a leading online broker, is thrilled to introduce its new and highly anticipated global Affiliate Program, promising partners an enticing opportunity to earn substantial commissions...

22 Jan 2024

Introducing the ModMount VIP Account: Elevate Your Trading Game
Introducing the ModMount VIP Account: Elevate Your Trading Game

In the world of trading, success often depends on having the right tools and conditions to navigate the markets effectively. With the ModMount VIP Account, traders...

19 Jan 2024

Unlock the World of Copy Trading with BlackBull CopyTrader
Unlock the World of Copy Trading with BlackBull CopyTrader

Copy trading, a revolutionary way to engage in the financial markets, has reached new heights with BlackBull CopyTrader, an award-winning platform designed to seamlessly...

19 Jan 2024

Unlock a World of Trading Opportunities with Errante
Unlock a World of Trading Opportunities with Errante

Errante is not just your typical online broker - we are your trusted partner in the world of trading. Our commitment to providing top-tier services and building long-lasting relationships sets us apart...

18 Jan 2024

Why Choose Errante for Your Trading Needs
Why Choose Errante for Your Trading Needs

At Errante, we believe in upholding the highest standards of integrity, transparency, and honesty. Our passion for what we do, coupled with our unwavering commitment to our clients...

17 Jan 2024


Editors' Picks

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

The Impact of EAs on Forex Trading: A Double-Edged Sword

By enabling continuous, algorithm-based trading, EAs contribute to the efficiency of the Forex market. They can instantly react to market movements and news events, providing liquidity and stabilizing currency prices through their high-volume trading activities.

MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.