Gold has long been considered a safe haven asset and a hedge against inflation. However, owning and trading physical gold can be complicated and expensive. This is where Tether Gold (XAUt) comes in as an innovative solution, combining the advantages of physical gold with the ease and liquidity of digital assets. This article will discuss XAUt in depth, its benefits, and how it works.
What is Tether Gold (XAUt)?
Tether Gold (XAUt) is a digital asset that represents ownership of physical gold, allowing investors to buy, store, and transfer gold easily through blockchain technology. Each XAUt token is equivalent to one troy ounce of London Good Delivery gold stored in Swiss vaults. Thus, owning XAUt is the same as owning gold without the hassle of storing or securing physical gold.
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Advantages of Investing in XAUt Compared to Physical Gold
XAUt offers a number of advantages over traditional gold investment:
- Easy and Affordable Access: XAUt can be bought and traded on crypto exchanges 24/7, allowing easier access compared to the physical gold market which has limited operating hours. In addition, XAUt can be purchased in small fractions (up to six decimal places), making it more affordable for investors with limited capital.
- High Liquidity: XAUt is traded on various crypto exchanges, so it has high liquidity. Investors can easily buy and sell XAUt without worrying about finding buyers or sellers.
- Security and Transparency: The physical gold backing XAUt is stored in secure vaults in Switzerland, which is known for its political stability and security. Tether also provides transparent information about the gold ownership underlying each XAUt token, so investors can verify the existence and authenticity of their gold.
- No Storage Fees: Unlike physical gold which requires storage and insurance costs, XAUt does not incur storage fees. This reduces the overall cost of gold investment.
- Ease of Transfer: XAUt can be transferred easily and quickly via blockchain, unlike physical gold which requires a complicated and expensive shipping and insurance process.
- Hedge Against Inflation: Gold has long been considered a hedge against inflation. By owning XAUt, investors can take advantage of the potential increase in gold prices to protect the value of their assets from inflation.
How Does XAUt Work?
Each XAUt token is backed by one troy ounce of London Good Delivery gold stored in a vault in Switzerland. This gold serves as collateral for the token, ensuring its value remains stable. XAUt tokens can be broken down to six decimal places (0.000001 troy ounce), allowing for the purchase, sale, or trade of gold in smaller amounts easily.
Ownership of XAUt tokens is directly correlated with ownership of specific gold bars in Swiss vaults. To increase transparency, Tether provides a tool that allows users to verify which gold bars correspond to their XAUt tokens. In addition, Tether Gold allows tokens to be exchanged for actual physical gold, which can be delivered to a specified address in Switzerland. Or, the gold can be sold into USD, facilitated by Tether.
XAUt Tokenomics
- Market Capitalization: $711,426,444.
- All-Time High Price: $2,933.01, reached on February 11, 2025.
- All-Time Low Price: $1,447.84, reached on March 19, 2020.
- Circulating Supply: 250,000 tokens.
- Total Supply: 250,000 tokens.
How to Buy XAUt on Mobee
Follow these steps to buy XAUt through the Mobee app:
- Registration and Verification: Register and complete the account verification (KYC) process first.
- Deposit Funds: After verification, deposit some funds into your Mobee wallet to facilitate the purchase.
- Open the Trade Menu: Access the Trade menu at the bottom of the app.
- Select XAUt: Find XAUt in the asset list or search by keyword "XAUt".
- Select Trading Pair: Select a trading pair, such as XAUt/USDT.
- Transaction Method: Determine the transaction method:
- Market Order: For the current market price.
- Limit Order: For a price you set yourself.
- Enter Amount: Enter the amount of XAUt you want to buy and check the transaction information.
- Confirmation: Click "Confirm" to process the purchase.
After a successful transaction, you can find the XAUt asset in the Wallet section.
Is XAUt the Right Investment?
For investors who want to own gold but don't want the hassle of physical storage and additional costs, XAUt is an attractive option. With high transparency, ease of transactions, and flexibility in investment, Tether Gold offers a modern solution to owning gold without conventional limitations.
However, like any investment, it is important to understand the risks and do your research before buying XAUt. Make sure you choose a trusted platform and have an investment strategy that suits your financial goals.
Read also: Understanding Layer 3 Crypto: A New Level of Blockchain Scalability
With the growing crypto ecosystem, XAUt opens up new opportunities for investors to access safe-haven assets in a more efficient and secure way. If you want to diversify your portfolio and protect the value of assets from inflation, Tether Gold could be the right choice!
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