Gold-backed cryptocurrencies are a type of crypto investment class, where each token is backed by physical gold. For the most part, tokens are ERC-20 stablecoins used on the Ethereum platform. The token price is linked to the current price of the precious metal gold, which is believed to make it less volatile than other altcoins. GoldExchange is a specialized gold-backed cryptocurrency platform. Its official website is https://goldexchange.com. Operating in a niche market, investors forgo the availability of unique altcoins that may only be available on large exchanges. The main tradeoff here is that by selecting a niche platform, services tend to be of higher quality since initiatives are very targeted and intentional. Customer support is typically also better since the volume of requests will be less than with a major exchange.
This review focuses on the company’s primary offering: exchanging and purchasing gold-backed cryptocurrencies.
Table of Contents
Easy signup process
The process to sign up for the exchange is easy and completely anonymous. This feature is often seen as desirable among cryptocurrency traders since more and more platforms are making Know Your Customer (KYC) a requirement. KYC guidelines require that the exchange verify the identity of the person, which may include information such as an address, birthday or other supporting legal documents. On large exchanges, verifying documents can be a lengthy process that requires days, if not weeks, to verify. This can prove frustrating for those looking to trade immediately. While there are pros and cons to whether KYC is advantageous and worth the time, traders who are looking for anonymity can look to GoldExchange as a potential option.
Trading on GoldExchange is also relatively easy, even for beginning users. This is indicated by the simple layout of the website.
Debit and credit card payment options
A major advantage of the platform GoldExchange is that stablecoins can be easily purchased with a debit or credit card. This makes purchasing the token as simple as making a purchase over the Internet. Many large cryptocurrency exchanges, such as Coinbase, don’t accept credit cards or may require that a user purchase another cryptocurrency which can later be exchanged for a gold-backed stablecoin. This isn’t problematic if a user has existing cryptocurrency holdings but can be costly if a user needs to pay fees twice: once to trade for the cryptocurrency and once to get the currency they were actually hoping to purchase. In this case, GoldExchange does get some points for having an offering that allows beginner traders to go directly from fiat to crypto.
The platform abides by a variety of security measures to safeguard its account holders. GoldExchange is also secured by cryptography, making counterfeit tokens and concerns around double-spending next to impossible. This platform provides a solid amount of security that is in alignment with industry standards in blockchain technology on other leading exchanges. The platform’s security is another reason GoldExchange is a superior offering for those looking to purchase stablecoins safely.
While the platform provides an easy entry into gold stablecoins, it is also important for investors to learn about the best practices around cryptocurrency security and storage, and to find suitable offline storage methods for managing large amounts of cryptocurrency.
Another interesting feature GoldExchange offers are their futures orders, including Buy Stop and Buy Limits. Buy stops allow users to select a stop price that is higher than the current market price. This protects investors against large losses for cryptocurrencies that they have sold short. Similarly, buy limits allow users to select a price that is lower than the current price to control how much they are paying for their stablecoins.
Users are also able to preset their stop loss and take profit limits when they enter a trade. This eliminates a lot of the time that would be spent on monitoring asset prices.
Is GoldExchange right for you?
Gold Exchange is considered one of the only premier exchanges for gold-backed cryptocurrencies. Therefore, investors interested in Goldcoin as an investment will likely find this platform valuable for its security protocols and ability to purchase future orders.