FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
HFM information and reviews
HFM
89%

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

OctaFX broker invites everyone on a festive trading journey
OctaFX broker invites everyone on a festive trading journey

This winter, the global Forex broker OctaFX invites every trader on a four-week trading journey aboard its Festive Express. A massive New Year campaign will appeal to all who love lucrative offers. It is the perfect opportunity to start celebrating the coming year...

29 Nov 2022

ActivTrades: Infinitely scalable investing solutions
ActivTrades: Infinitely scalable investing solutions

Innovative and robust investment technology by industry leader for the most demanding institutional partners. We serve a wide range of organisations delivering first-class investment and brokerage solutions...

24 Nov 2022

Join Libertex for a chance to win 500 BTC
Join Libertex for a chance to win 500 BTC

November marks a momentous month for the Libertex Group as the veteran broker gears up to commemorate its 25th anniversary. After surviving and thriving a full quarter century...

24 Nov 2022

AMarkets increases the leverage for cryptocurrency pairs
AMarkets increases the leverage for cryptocurrency pairs

AMarkets has increased the leverage to 1:100 for BTC/USD and BTC/EUR pairs, and to 1:10 for other cryptocurrency pairs. There are now 27 cryptocurrency pairs...

23 Nov 2022

Olymp Trade’s 8th birthday event results
Olymp Trade’s 8th birthday event results

Our celebration for Olymp Trade’s eighth birthday turned out to be one of the most spectacular events of the year. We held a series of online and offline events, all connected by the theme of freedom...

21 Nov 2022

XM Traders in Davao Learned How to Trade Crypto
XM Traders in Davao Learned How to Trade Crypto

XM completed yet another successful seminar in Davao on 22nd October, titled How to Choose and Trade Cryptocurrencies. Investors can face challenges with the rapidly changing and evolving cryptocurrency market...

17 Nov 2022


Editors' Picks

FXCM information and reviews
FXCM
87%
ActivTrades information and reviews
ActivTrades
86%
RoboForex information and reviews
RoboForex
85%
MultiBank Group information and reviews
MultiBank Group
84%
FxPro information and reviews
FxPro
83%
Vantage information and reviews
Vantage
83%

© 2006-2022 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.