Is trading the BTC/GOLD pair safer than trading an altcoin pair?
While some alts are legitimate, a lot of alt coins are scam pump and dump schemes and it takes constant research to make sure they are still being actively developed or have a real community behind them.
The small amounts of alts that are legitimate tend to move with the bitcoin price but are even more volatile. This always gives one the question, where do I park my money when I want to sleep?
Whales are people, companies or usually the ‘developers/cloners’ themselves with huge holdings in a certain coin. This means they can dump their coins on a market creating panic, watch the panic drive the market down and then buy up a massive holding at low prices or getting an organised syndicate together buying all at the same time. As soon as everyone else tries to jump on the perceived bandwagon, they dump all at once, classic market manipulation.
Gold is relatively stable, globally recognised at a similar value and offers major security and auditability. This gives traders both confidences in value, relative stability while focusing on playing the bitcoin volatility without ever having to touch fiat again. When trading in and out of gold you can be sure that the value you lock in isn’t going to change drastically from day to day. The difference to alt-coin markets is, that the global gold price is dependend on a lot of markets and can not be easily manipulated.
A great thing about gold is that there are a lot of communities and analysts discussing about the gold price, what is happening in the industry and how the geopolitical landscape will affect the price.
This gives people a broader perspective on the gold market.
Transparency on exchanges
Vaultoro is leading the way in transparency within bitcoin exchanges by publishing an anonymised list of all accounts and their holdings.
Holdings: Members can check their holdings, the sum of all bitcoin and gold held by all Vaultoro users and then check that against the published cold wallet addresses and the gold audit.
Gold audit: Vaultoro published a statement from the vaulting company with the volume of gold stored for Vaultoro members, as well as the auditing certificate from one of the largest auditing firms in the world (BDO) and insurance certificates from the gold insurance company (Helvetia).
The auditing process has been structured in a way that there are multiple levels of auditing to ensure provable solvency and full reserves. This was really important for us, as we wanted to create the most transparent exchange possible where I would be confident to trade and invest my bitcoins.
We at Vaultoro.com think that this level of transparency will have to become standard on all exchanges.