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 has emerged: tokens tied to the price of the precious metal.

While previously existing versions of similar altcoins weren't exactly credible, Tether Limited, the company that issued the most popular stablecoin, has announced the launch of a gold-based cryptocurrency.

Digital gold Tether Gold (XAU) is a cryptocurrency pegged to the price 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 seeking to preserve capital during economic uncertainty.

A brief history and concept of 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 seeking to protect their funds and generate a stable income.

However, despite all the advantages, XAUT also has some disadvantages. These include:

• Limited liquidity compared to other cryptocurrencies, making it difficult to find the asset in cryptocurrency wallets or on trading platforms.
• Dependence on physical storage of gold, storage costs may be included in trading fees.
• Potential legal and regulatory risks, accusations of not having a license to operate commodity futures .
• High commission when buying or selling due to low liquidity.

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

Unfortunately, cryptocurrency exchanges are just starting to add XAUT as a quality, and it is currently only available on a few trading platforms.

Until Tether Gold becomes highly liquid, you can trade regular gold through precious metals brokers .