Tether Gold (XAUT) has revolutionized how people invest in gold. For the first time, you can invest in physical gold through crypto. Tether, one of the largest crypto companies, backs XAUT, providing credibility and security to investors. Gold has always been a solid investment, but now it is even easier to access. In this guide, we will dive into everything you need to know about Tether Gold, its features, and how you can use it.
What is Tether Gold (XAUT)?
Tether Gold (XAUT) is a cryptocurrency backed by physical gold. This stablecoin is pegged to London Good Delivery gold bars, offering a unique way for users to own gold digitally. Unlike traditional methods, Tether Gold lets you invest in gold without physically storing it.
Tether Gold is issued by Tether, the same company behind the USDT stablecoin. Each XAUT token represents one troy ounce of gold, which is securely stored in Swiss vaults. By combining blockchain technology with physical gold, XAUT provides a safe and accessible way to invest.
How Does Tether Gold Work?
It works by allowing you to own gold in a digital format. Here’s how it operates:
- Gold-backed Tokens: Each XAUT token represents one troy ounce of gold stored in a Swiss vault. The physical gold is identifiable with serial numbers, weight, and purity.
- Blockchain Technology: XAUT exists as an ERC-20 token on the Ethereum blockchain and a TRC-20 token on the TRON blockchain. This makes it easy to transfer and trade on digital platforms.
- Transferable Ownership: XAUT tokens can be transferred between on-chain addresses, making gold ownership easy to trade or move. You can send tokens to anyone and retain ownership of the corresponding physical gold.
- Redemption: If you prefer to hold physical gold, you can redeem your XAUT tokens for gold delivered to a Swiss address. Alternatively, Tether Gold can sell your gold in the Swiss market.
- Fractionalization: You can own fractions of an ounce of gold, as XAUT tokens can be divided into smaller parts, down to six decimal places. This makes it accessible for smaller investors.
- Real-Time Reallocation: Each time an XAUT token is transferred, the gold backing it is reallocated, ensuring that every token matches the correct physical gold.
- Security: XAUT tokens are stored in digital wallets with high-level security, including encryption and multi-sig protection, ensuring the safety of your assets.
- Trading on Exchanges: XAUT tokens can be traded on various exchanges, such as Kraken, KuCoin, and Binance, making it easy for investors to buy or sell.
How to Store Tether Gold (XAUT)
Storing your Tether Gold tokens safely is essential. There are several secure options available:
- Ledger Hardware Wallet: A Ledger device, such as the Nano S Plus or Nano X, is a great choice for safely storing your XAUT tokens. The Ledger Live app allows you to track your gold holdings easily.
- Trust Wallet: This popular mobile wallet lets you store XAUT by simply adding it to your wallet as a custom token. Trust Wallet is user-friendly and provides excellent security.
- Guarda Wallet: Guarda Wallet is another option that supports Tether Gold and over 400,000 tokens. It offers fingerprint authentication and strong protection measures for your assets.
These wallets provide a safe and convenient way to manage your crypto-backed gold investment, ensuring your tokens are secure.
How to Buy Tether Gold (XAUT)
Purchasing Tether Gold is easy and straightforward. Here’s how you can do it:
- Choose an Exchange: To buy Tether Gold, you’ll need to use a centralized exchange like Binance , Bybit or MEXC. Alternatively, you can use decentralized exchanges like Uniswap.
- Create an Account: Sign up for an exchange and verify your account. This usually involves submitting identification documents and setting up payment methods.
- Deposit Funds: Deposit your chosen currency, whether it’s fiat money like USD or a cryptocurrency like Bitcoin. Be aware of any transaction fees.
- Buy Tether Gold: Once your funds are deposited, you can buy XAUT tokens. You can either buy them instantly or set your price on the open market.
- Transfer to a Secure Wallet: For added security, transfer your XAUT tokens to a personal wallet instead of leaving them on the exchange.
Trading Gold on Perpetuals
Some platforms, like Bybit, offer the option to trade the digital gold on perpetual contracts. These contracts let you leverage your investment up to 50x, giving you more opportunities for profit, though with higher risk.
Always trade with caution, and study our series of trading guides to improve your skills.
Why Choose Tether Gold?
1. Hedge Against Inflation
Gold has always been an excellent hedge against inflation. Its price typically rises when the cost of living increases. In times of economic uncertainty, such as during excessive money printing by central banks, gold remains a reliable store of value. Tether Gold offers a way to benefit from this protection, but in a digital format.
2. Diversification
Diversification is essential for managing risk in any investment portfolio. Gold historically has a negative correlation with other assets, like stocks and bonds. This means that gold tends to rise when other assets fall. By adding gold to your portfolio, you can reduce overall risk and protect yourself against market volatility.
3. Long History as a Store of Value
Unlike fiat currencies, gold has stood the test of time. It has maintained its value throughout history, making it a trustworthy asset for wealth preservation. With Tether Gold, you can access this timeless value through modern digital technology, ensuring your investment is both secure and future-proof.
Final Words
Tether Gold (XAUT) offers a convenient way to invest in gold, combining the best aspects of cryptocurrency with the stability of physical gold. Whether you’re looking to hedge against inflation, diversify your investment portfolio, or preserve your wealth, Tether provides an innovative and secure solution. By owning XAUT tokens, you gain exposure to gold without the hassle of physical storage or high fees.
Interested in learning more about it? Visit the official site for further details.
If you enjoyed this blog, you may want to check out our guide to the best crypto exchanges of 2025.
As always, don’t forget to claim your bonus below on Bybit. See you next time!
