E Point Perfect

Here’s How “Blockchain-based Gold” Projects Precious Metal’s Upcoming Movement


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Arman Shirinyan

Exposure to precious metal via blockchain has its advantages


Blockchain-based gold is not the most popular solution among retail and institutional investors outside of the cryptocurrency industry. Considering all the existing drawbacks, sometimes it is indeed easier to buy CFDs or physicals instead of worrying about the safety of your assets. However, there are some opportunities that crypto gold holders can use to gain the upper hand.

Non-stop trading schedule

First of all, decentralization allows blockchain-based assets to be traded 24 hours without any stops or servicing hours. Assets are available for every investor on numerous trading platforms. Technical analysts who mostly trade cryptocurrencies prefer decentralized assets for higher accuracy of indicators, thanks to the continuous exchange process.

Cardano chart
Source: TradingView

Apart from convenience, around-the-clock trading makes technical indicators behave differently and they provide way more data. Moving averages, for example, have more data to work with, which leads to the formation of patterns that we would not see on a CFD trading pair.

Golden cross

Thanks to the aforementioned reasons, we can see a strong technical signal on blockchain-based gold that is only yet to happen on a CFD. The golden cross between 200 and 50 moving averages happened on PAXG back in the beginning of December 2022, while it is only about to happen now on a CFD pair.

Unfortunately, the independence of crypto gold is questionable, considering the imbalance between the trading volumes and liquidity on the two assets. Institutions still prefer more regulated and time-tested gold exposure solutions rather than a token that simply represents gold holdings.

At press time, PAXG trades at $1,822, while spot gold changes hands at around the same price at $1,825.


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