Decentralized gold trading, what is it exactly? Discover the principle of decentralized trading applied to gold, including concrete examples.
Decentralized gold trading refers to the process of buying and selling gold in a decentralized manner, using a blockchain network or other peer-to-peer (P2P) technology, without the need for a centralized intermediary or authority.
In a decentralized gold trading system, buyers and sellers can interact with each other directly without the need for a traditional exchange or brokerage. Instead, they can use a decentralized platform or smart contract to exchange gold assets, such as gold bullion, gold coins, or gold-backed tokens, in a secure and transparent way.
Decentralized gold trading can offer several benefits over traditional gold trading systems, such as lower transaction costs, faster settlement times, greater privacy and security, and more accessibility to a wider range of investors. Additionally, decentralized gold trading can help to eliminate counterparty risk, as all transactions are recorded on a public blockchain ledger, and the gold assets are usually stored in secure, audited vaults.
Decentralized gold trading, practical examples:
Aurus: Aurus is a blockchain-based platform that allows users to trade physical gold-backed tokens. The Aurus platform is powered by the Ethereum blockchain and allows users to trade gold assets directly without the need for a centralized authority. Aurus provides its users with real-time gold prices, secure vault storage, and the ability to redeem their tokens for physical gold.
Tether Gold: Tether Gold (XAUt) is a gold-backed token that is pegged to the price of gold and traded on the Ethereum blockchain. Each XAUt token is backed by one troy ounce of gold, held in a secure vault in Switzerland. Tether Gold allows investors to buy and sell gold in a decentralized manner, with the added benefit of being able to trade fractional amounts of gold.
DGLD: DGLD is a gold-backed token that is issued by CoinShares in partnership with MKS (Switzerland) SA. Each DGLD token is backed by one-tenth of a troy ounce of gold, held in a fully-audited vault in Switzerland. DGLD allows investors to buy and sell gold in a decentralized manner, while also providing the ability to redeem the tokens for physical gold.
Paxos Gold: Paxos Gold (PAXG) is another gold-backed token that is traded on the Ethereum blockchain. Each PAXG token is backed by one troy ounce of gold, held in a secure vault in London. Paxos Gold allows investors to buy and sell gold in a decentralized manner, with the added benefit of being able to redeem the tokens for physical gold.
The technical analysis in weekly, fast and practical:
We can see that the price of gold is in a range that started in early 2020.
It is between $1600 and $2000.
We can see that the 20 moving average has just crossed over the 50, which is bullish and confirms that the price is looking to move higher.
The price is currently between the two red lines. For an exit by the top, it is absolutely necessary to break it with volume, that means, to exceed clearly the 2000$ so that this resistance becomes a support or is largely exceeded directly.
The bottom red line should not be crossed if we want to remain bullish in the short term.
The price of gold remains bullish, while remaining within the range shown above, so watch out for any sudden reversal in price.
On the downside, there are three supports to watch for: $1906 – $1866 – and the $1800 area.
Information and conclusion:
We can also talk about a decentralized trading platform that allows you to trade without a broker, without registering, always remaining in possession of your money, which perfectly meets the standards of true decentralization, this is the gains.trade platform that allows you to place trades easily with your Metamask account, for example.
In summary, these decentralized gold trading platforms allow investors to buy and sell gold assets in a secure, transparent, and efficient manner without the need for a centralized intermediary. By utilizing blockchain technology, investors can enjoy lower transaction fees, faster settlement times, and increased accessibility to gold investments.