Digital gold from Tether Gold (XAU)

Gold has always been considered one of the best options for long-term capital storage, but storing physical bullion has many disadvantages.

With the advent of cryptocurrencies, an alternative to physical gold appeared - tokens tied to the price of the precious metal.

True, previously existing versions of such altcoins did not inspire much confidence, but the company Tether Limited, which released the most popular stablecoin, announced the launch of a gold cryptocurrency.

Digital gold Tether Gold (XAU) is a cryptocurrency pegged to the value of physical gold.

According to the company, each XAU token is backed by one troy ounce of gold, stored in secure vaults. This makes Tether Gold an attractive choice for investors looking to preserve capital in times of economic uncertainty.

Brief History and Concept Tether Gold began with the idea of ​​creating a stable and reliable asset that would combine the benefits of cryptocurrencies and precious metals. First introduced in 2020, XAU immediately attracted the interest of potential investors.

Thus, Tether Gold (XAU) combines the best qualities of traditional gold and modern cryptocurrencies. Backed by physical gold, this cryptocurrency offers users a high level of security and stability, as well as accessibility and liquidity , making it an excellent choice for investors looking to protect their funds and earn a stable income.

However, despite all the advantages, there are also disadvantages of XAUT. These include:

• Limited liquidity compared to other cryptocurrencies, while the asset is quite difficult to find in cryptocurrency wallets or on trading platforms.
• Dependence on physical storage of gold, storage costs may be included in trading fees.
• Possible legal and regulatory risks, accusations of lack of a license to carry out transactions with commodity futures .
• High commission when buying or selling due to low liquidity.

But despite some shortcomings, Tether Gold (XAU) is an interesting and promising instrument for investors seeking to protect their assets from market volatility . The fact that XAUT is backed by physical gold makes it a reliable and stable long-term investment option.

Unfortunately, cryptocurrency exchanges are just starting to add XAUT as a feature; it is currently only available on some trading platforms.

While Tether Gold has not yet achieved high liquidity, you can trade regular gold through precious metals brokers .