The cryptocurrency market has seen some major disruptions since early 2018. With stricter rules and closer scrutiny, the trade of digital assets is growing at a more stabilized pace. Popular cryptocurrencies, such as Bitcoin and Ethereum, have seen their values drop as investors have become increasingly concerned about their reliance on peer-to-peer computer transfers and a lack of physical backing. These shortcomings have prompted the cryptocurrency community to innovate, creating new digital assets that avoid the volatility inherent in cryptocurrency trading. One of these new asset classes is gold-backed cryptocurrencies.
Asset-backed cryptocurrencies, or stablecoins, are digital tokens whose values are tethered to a tangible holding. This could be a currency like the U.S. dollar, another digital currency, or an exchange-traded commodity, such as gold. While these hybrid assets are less attractive to risk-hungry investors, they are more stable and experience far less volatility which makes them ideal investments for periods of economic uncertainty.
Today, the majority of stablecoins on the market are dollar-backed assets. USD tethered tokens currently account for 75% of stablecoins’ values, but the market for gold-backed coins is rapidly expanding.
Gold has always been seen as a safe haven in investing. Its stability and value outside of fiat currencies have made it an investor favourite in times of financial turmoil and economic downturns.
The Motley Fool highlights that 90% of the demand for gold is based on its intrinsic value. This is why as part of a larger, diversified investment plan, gold provides value even as other assets struggle. Gold remains strong through economic cycles, as its sheer liquidity is such that anywhere you go, its values is recognized. As the shadow of financial uncertainty continues to grip investor sentiment this year and into 2020, gold-linked assets will continue to grow in demand.
In the case of gold-backed cryptocurrencies, their minimum value will always be pegged to current gold prices. As a coin is equivalent to a gram of gold, your investments will remain valuable even if your gold-backed cryptocurrency fails to take off and capture greater market share. On the other hand, if your gold-backed stablecoin climbs in value, it can far exceed the price of gold, making it both a safe financial haven and a speculative investment.
Popular Gold-Backed Cryptocurrencies
If you are thinking about investing in gold-backed cryptocurrencies, here are some of the most traded gold-backed stablecoins available:
DGX Token – The Digix gold token was launched last year and is now the most popular gold-backed cryptocurrency on the market. The DGX token was developed by Singapore-based DigixDAO and since its launch, has doubled its gold holdings. As it’s tokenized gold, investors can withdraw their tokens with the equivalent amount in gold. DGX can be traded in Kryptono, Ethfinex and Kyber Network among others.
OGC Coin – UAE based OneGram is a sharia-compliant digital asset popular in the Middle East. Gold trading platform GoldGuard is just one backer behind this gold-backed cryptocurrency. Seventy percent of OGC’s revenues are invested into additional gold shares, adding to its value.
ZGC Coin – Chinese ZenGold coin is the first tokenized gold launched in the Metaverse blockchain. This blockchain is considered in close competition to Ethereum and NEO as an environment to develop dApps and smart contracts. Similar to others on this list, one ZGC coin is equivalent to a gram of gold currently being stored at the Shanghai Gold Exchange Vault.
PAX Gold Coin – Lastly, New York-based asset manager Paxos recently launched its own gold-backed cryptocurrency Pax Gold. The stablecoin issuer highlights that PAXG coins can be exchanged for a gram of gold in trusted institutions like Bullion Exchanges in New York.
As the cryptocurrency market matures, stablecoins are enjoying a much more noticeable presence in the digital asset world. New investors seeking to enter the crypto market with reduced risk would be wise to consider gold-backed cryptocurrencies as a way to stabilize their portfolios and as a safe haven in case of severe market downturns. With big players swooping into the stablecoin market like Paxos and OGC, the popularity of gold-backed cryptocurrencies will undoubtedly continue to grow.
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As with any asset, investing in cryptocurrencies involves the risk of substantial loss, including the loss of your entire investment. SolidTrust Pay is not an investment advisor or fiduciary and this content is provided for informational purposes only. Before purchasing cryptocurrency, please evaluate whether the investment is suitable for your financial situation and personal risk tolerance.
October is Cyber Security Awareness Month. At SolidTrust Pay, we want to help you, our valued members and merchants, be more secure online by staying informed and knowing the simple steps you can take right now to protect yourself, your families, your workplaces and the devices you rely on every day.
It’s believed that by the year 2021, cybercrime will cost $6 trillion annually, making it more profitable than the global trade of illicit drugs. In 2018, nearly a quarter of Americans (23%) reported that they or someone in their household fell victim to a cybercrime attack. The figures are almost identical in Europe, with major studies in the UK, France and Spain revealing that just over 25% of respondents have been a victim of computer crime. Today, you are 20 times more likely to have money stolen from you by a criminal living in another country through the internet than by being robbed in the street.
You may think that cybersecurity is a challenge to be solved by the government, financial institutions and corporations, but the truth is that cybersecurity is a shared responsibility and there are many simple steps that you can take to protect yourself. If you would like to learn which 10 Internet Safety Rules You Should Never Break, please click the link.
To test your cybersecurity knowledge, we have adapted a short 10 question quiz from the Pew Research Center. If you score above 6 correct responses, congratulations, you’re well on your way to being a savvy online user. Scores below 6 indicate that you could benefit from improving your cybersecurity knowledge. Answers to the quiz can be found at the bottom of this post.
What does the “https:” at the beginning of a URL denote, as opposed to “http:” (without the “s”)?
- That the site has special high definition
- That information entered into the site is encrypted
- That the site is the newest version available
- That the site is not accessible to certain computers
- None of the above
Which of the following is an example of a “phishing” attack?
- Sending someone an email that contains a malicious link that is disguised to look like an email from someone the person knows
- Creating a fake website that looks nearly identical to a real website in order to trick users into entering their login information
- Sending someone a text message that contains a malicious link that is disguised to look like a notification that the person has won a contest
- All of the above
- None of the above
A group of computers that is networked together and used by hackers to steal information is called a:
- Operating system
- None of the above
Which of the following four passwords is the most secure?
- None of the above
Criminals access someone’s computer and encrypt the user’s personal files and data. The user is unable to access this data unless they pay the criminals to decrypt the files. This practice is called:
- None of the above
“Private browsing” is a feature in many internet browsers that lets users access web pages without any information (like browsing history) being stored by the browser. Can internet service providers see the online activities of their subscribers when those subscribers are using private browsing?
Turning off the GPS function of your smartphone prevents any tracking of your phone’s location.
If a public Wi-Fi network (such as in an airport or café) requires a password to access, is it generally safe to use that network for sensitive activities such as online banking?
- Yes, it is safe
- No, it is not safe
What kind of cybersecurity risks can be minimized by using a Virtual Private Network (VPN)?
- Use of insecure Wi-Fi networks
- De-anonymization by network operators
- Phishing attacks
- All of the above
When browsing online, a new window pops up stating that a virus has been found on your computer. The window provides a button to click offering to resolve the issue. Your best course of action is to:
- Click on the button to remove the virus
- Place your cursor over the button and check the link’s website address (URL). If the address looks legitimate, click on it. If it looks like a scam link, close the window
- Close the original browser window and the new “pop-up” window. Do not return to the site
- Hit the back button and see if it goes away
- None of the above
We Will Never Compromise Your Security
At SolidTrust Pay, protecting your privacy is our top priority. Our corporate-grade anti-virus and firewall protection is continuously monitored by our network of global security personnel. We are PCI compliant and use 256-bit SSL certificates to keep your data safe and secure. Unlike other e-wallet providers and payment processors, we have instituted a dual password system to better safeguard your personal and financial information. We require that all passwords be routinely updated and they must adhere to strict parameters. In addition, all SolidTrust Pay transactions require a secondary password, a TrustCard code or a Two-Factor Authentication (2FA) text message as an added security measure.
By requiring a secondary password for all payments and transfers sent from your e-wallet, we adopted Two-Factor Authentication (2FA) security protocols before they became best practice. We are continually striving to remain one step ahead of cybercriminals and cyberthreats, a mandate that guides our Corporate Philosophy. When you choose SolidTrust Pay for your payment processing needs, you’re getting more than a convenient and secure e-wallet – you’ll enjoy complete peace of mind knowing that your personal and financial information is securely stored, encrypted and only accessible by you.
Question 1 = 2 (That information entered into the site is encrypted)
Question 2 = 4 (All of the above)
Question 3 = 1 (Botnet)
Question 4 = 2 (WTh!5Z)
Question 5 = 2 (Ransomware)
Question 6 = 1 (Yes)
Question 7 = 2 (False)
Question 8 = 3 (No, it is not safe)
Question 9 = 1 (Use of insecure Wi-Fi networks)
Question 10 = 3 (Close the original browser window and the “pop-up” window. Do not return to the site)
Fall has arrived and that means Thanksgiving is right around the corner. Thanksgiving is a time to reflect on the many blessings that have come into our lives during the past year. It’s also an occasion to celebrate our connections to those we love as we take the day to enjoy the company of good friends and family. We hope that you will take some time to do the same.
Please be advised that our office will be closed on Monday, October 14, 2019, in celebration of Thanksgiving. Our Customer Support and Verification departments will be unavailable on this date. As this is also a Canadian banking holiday, please allow additional processing time for deposits, withdrawals and e-currency exchanges. If you require assistance, you may leave a Support Ticket for us at any time and we will promptly respond to your inquiry when our office reopens on Tuesday, October 15.
The short answer is there isn’t. There will always be a degree of risk inherent in any investment you make. However, with some tips, you can minimize loses and make market volatility work in your favour.
It’s been 10 years since the creation of the world’s first cryptocurrency. What began as an attempt to create a “trust-less” cash system, whereby costly third-party intermediaries would no longer be needed, has grown to include more than 1,600 different cryptocurrencies. Of course, not all cryptocurrencies are equal and the method by which they are created is surprisingly easy, making it possible for anyone with some basic coding knowledge to create their own. It’s believed that only 20 cryptocurrencies account for 89% of the total digital currency market. This means that the vast majority of cryptocurrencies will never have values above a few cents, with many disappearing altogether as more established digital currencies increase their market capitalization.
For many of us, the price volatility of cryptocurrencies discourages us from purchasing them. In less than 4 months, Bitcoin dropped from a high of nearly $20,000 to less than $7,000. This volatility continues to define the cryptocurrency landscape with the value of many altcoins rising and falling as quickly as the ocean’s tides. Despite this instability, not all digital currencies are risky investments. Stablecoins are cryptocurrencies that are secured to an asset with a stable value, such as gold or the U.S. dollar. Notable examples include Tether and Facebook’s new Libra cryptocurrency which will be introduced in early 2020. These coins have a fixed valuation and present themselves as safer investment options than more volatile cryptocurrencies like Bitcoin and Ethereum. Stablecoins are ideal for conducting routine transactions and are quickly growing in popularity among people who live in nations with unstable monetary systems.
Minimize Your Risk With Dollar-Cost Averaging
If you’re like most investors, you want to join the multitude of individuals who are actively buying, selling and trading popular cryptocurrencies, the 20 or so that make up nearly 90% of the digital currency market. Fortunately, there is a simple strategy you can use to reduce potential loses and make the volatility of the cryptocurrency market work to your advantage: dollar-cost averaging. Dollar-cost averaging allows you to build up your assets over time while helping you to avoid making emotionally driven decisions. The strategy is surprisingly easy to use; instead of purchasing all your cryptocurrency at a single point in time, you divide up the total amount of money you would like to invest in digital currencies and make smaller purchases over an extended time period. For example, instead of purchasing $500 of Bitcoin in one day, you would buy $100 worth of Bitcoin every 4 weeks for 5 months, or purchase $50 worth of Bitcoin every 2 weeks for 5 months.
Your $100 investment will purchase more Bitcoin when the market is down and this increases the potential for gains if the market turns around. Likewise, when the market is up, your $100 purchase will buy less Bitcoin which will reduce the risk of loss should the market turn the other way. Dollar-cost averaging has been successfully shown to reduce the risk of buying volatile asset classes. It also helps dissipate the anxiety of committing a significant amount of your capital to a single asset purchase while simultaneously giving you the freedom to reevaluate your investment strategy, opting to invest more or less as time goes on.
Buying Cryptocurrency with SolidTrust Pay
Buying cryptocurrency is easy with SolidTrust Pay. Currently, you can purchase 12 different cryptocurrencies using your STPay e-wallet: Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Binance Coin, Dogecoin, Litecoin, NEO, OmiseGO, Tron and Ripple.
Before you can make your initial cryptocurrency purchase, you must first create a secure SolidTrust Pay account and set up an external cryptocurrency wallet. Popular cryptocurrency wallets include Coinbase, Mycelium and Electrum, but there are dozens of options to choose from. Always research your chosen wallet and make sure that it possesses excellent security features.
Once you’ve created your STPay account and external cryptocurrency wallet, buying digital currency with SolidTrust Pay is fast, easy and most importantly, secure. We have been a leader in the online payment industry since 2006 and our corporate-grade anti-virus and firewall protection is continuously monitored by our network of international security personnel. To buy cryptocurrency with your SolidTrust Pay account, follow these simple steps:
Step 1) Create your SolidTrust Pay account by clicking HERE.
Step 2) Verify your account to the Standard Verified level. For more information about our 4 account verification levels, please click HERE.
Step 3) Set up two-factor authentication (2FA) using your smartphone or desktop/laptop. For detailed instructions, please click HERE.
Step 4) Create a cryptocurrency wallet and connect it to your SolidTrust Pay account. If you are using a desktop application, click HERE for detailed instructions. For smartphone instructions, please click HERE.
Step 5) Deposit the amount you wish to spend on bitcoin into your SolidTrust Pay account using a bank transfer, a credit card or a transfer from another STPay member.
Step 6) Log in to your SolidTrust Pay account and navigate to My Money > Withdraw Funds. Next, click on the Altcoins option.
Step 7) Select the amount of money you would like to withdraw to your bitcoin wallet. It may take up to 24 hours for your deposit to appear in your cryptocurrency wallet.
Steps 1 through 4 only need to be completed once. You will then be able to easily buy bitcoin by following Steps 5, 6 and 7. Once your account has been Standard Verified and connected to a cryptocurrency wallet, you may withdraw up to $2,500 per day from your SolidTrust Pay e-wallet (Bank Verified members may withdraw up to $5,000 every 24 hours).
As with any asset, investing in cryptocurrencies involves the risk of substantial loss, including the loss of your entire investment. SolidTrust Pay is not an investment advisor or fiduciary and this content is provided for informational purposes only. Before purchasing cryptocurrency, please evaluate whether it is suitable for your financial situation and personal risk tolerance.