Crypto/Gold

Crypto/Gold

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What is gold?

Gold has cultural, industrial and financial value and has been the most highly desired of the world’s precious metals since ancient times. It was integral to valuation of the world’s currencies well into the 20th century, linked to the price of the US dollar until the early 1970s.

Top four tips for trading gold

Make a plan

Gold tends to evoke a powerful emotional reaction in traders, leading them to large trades or add to a losing position. Remove this from the equation and try to think of the commodity only in terms of price movements. Here is how you do it. A goal without a plan is just a wish. Develop a trading strategy with a set risk-reward ratio, and stick to it.

Do your homework

Use charts to get an idea of how gold behaves over different time periods. Backtest, look for patterns, wait for breakouts and trade with the trend. Trend is your friend.

Learn what rocks the boat

Gold has its own price drivers that you’ll need to watch when trading. Dollar, inflation and the anticipation of financial or political crises are among the major ones to follow.

Consider buying a crypto gold

Virtuse Exchange leverages Digital Asset Collateralized Contracts (DACCs), a model that allows to convert your cryptocurrencies into commodities, without having to move money from one wallet to another. The DACCs act rather like a stablecoin whose value can be pegged with a reliable price feed to the value of USD. You can buy and sell gold seamlessly and hold it on your private keys.

There are lots of reasons for buying gold now, we break this down to five:

  1. Hedge against event risk
    There is barely any lack of turmoil in global affairs, and it’s almost certain that geopolitical events are going to dominate the markets in the near future as well. If we add natural disasters, economic crises, trade wars, market glitches, and black swans, we can safely declare that the only certainty in the markets is uncertainty. It all boils down to this, the event risk affects equities and bonds negatively, but gold thrives in such an environment and may act as a potential hedge.
  2. Diversification — zig when stocks zag
    Gold returns are usually inversely proportional to the returns of both stocks and bonds. So often, when other major asset classes fall, gold rises.
  3. Liquidity
    Compared to other asset classes like real estate, gold trading is highly liquid. You can trade it in physical form, in the paper as futures or CFDs, and in crypto form as DACCs. The result? It is easy to buy and sell gold and you can liquidate your position whenever required.
  4. Protection against Inflation
    Gold is directly proportional to the government debt which means that it will move with debt. The US government’s debt has reached 108% of GDP and other developed countries are no better. Here is what we mean. Money-printing usually results in inflation and commodities are one of the few asset classes that benefit from inflation.
    Adding gold in your portfolio will definitely help you to beat the market.
  5. Potential for more returns
    And on top of all that, there is the “trend-following” argument. How does this work? You can take advantage of the volatility to earn huge profits. Just look at the chart of gold and you realize that this might be the best timing for buying gold.

Open an account

To trade on oil prices with Virtuse Exchange, you’ll need to open an account.  It takes a matter of minutes, can be done entirely online, and there’s no obligation to fund once you’ve finished your application.

However, you will need to fund before you place your first trade. Funding a wallet account is simple – you can use send USDT, Bitcoin, ETH to your wallet or soon will be able to fund it with a debit or credit card.

TRADE

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