Crypto or tokenized precious metals? Which do you prefer?

[Abiky]

If you had to choose between crypto and tokenized precious metals (such as Tether Gold or Paxos Gold), which one would you choose? I, for one, would choose both for complete peace of mind. Precious metals are often less-riskier than crypto, but gains are slower than usual. Crypto is more of a "high-risk, high reward" kind of investment where you can either win big or lose it all in an instant. Some Bitcoin holders add Gold to their portfolio as some sort of diversification strategy. Personally, I buy and hold BTC, Gold, and Silver to build generational wealth.

What's your choice and why? Your input would be greatly appreciated. Thank you.

[Charles-Tim]

Investing in gold is good but traditional means of buying gold is better than going for what are not gold but just backed by gold or pegged with gold.

Investing in crypto is like gambling, I do not recommend most of the coins becusee they are shit coins, but you can invest in bitcoin which is volatile also but far less volatile than most other coins. If you get the investment right, bitcoin will get to all-time high, unlike most altcoins that will not.

[TastyChillySauce00]

I do the same, holding both asset, but I find the price between gold and bitcoin deviates so much so there are times when I rotate between the two.

Overall I actually prefer whatever got the most opportunity since I consider both investment to be pretty stable for my risk appetite. As long as i don't convert it to fiat, I don't lose my wealth to inflation simple as that.

[bitzizzix]

As I do, I only hold Bitcoin for the very long term. And the only way to avoid high risk is to hold it for the long term. While declines are inevitable, the price will eventually recover and even continue to rise beyond its all-time high. Because I believe Bitcoin's track record will continue to repeat itself, driving its price upwards, which will benefit me in the long run.
Gold is certainly good, but I'm not one to settle for returns I find unsatisfactory. Unlike Bitcoin, when the price goes up, I'm happy, and when the price goes down, I'm also happy because I was able to accumulate at a discount.

[justinlamode]

I will chose bitcoin over tokenized stock or any other cryptocurrency. This is because Bitcoin is safer, and have better liquidity. Bitcoin will even give more profits than these new tokenized stocks, so  will go with Bitcoin. If I have to chose between tokenized stocks and altcoins, I may go for tokenized stock because most of the altcoins are shit coins that are not worth holding as most of them vanishes after a short period of time.

[nelson4lov]

Bitcoin and crypto for me. Never going back on that.

The problem I have with tokenized precious metals is that often times, there is no real underlying backing the tokenized asset so  I find that to be very concerning. At least with crypto, all the data is publicly available and you can make informed decisions. Not with tokenized assets because you have to trust the issuer to have the said asset.

[passwordnow]

If you had to choose between crypto and tokenized precious metals (such as Tether Gold or Paxos Gold), which one would you choose? I, for one, would choose both for complete peace of mind. Precious metals are often less-riskier than crypto, but gains are slower than usual. Crypto is more of a "high-risk, high reward" kind of investment where you can either win big or lose it all in an instant. Some Bitcoin holders add Gold to their portfolio as some sort of diversification strategy. Personally, I buy and hold BTC, Gold, and Silver to build generational wealth.

What's your choice and why? Your input would be greatly appreciated. Thank you.

I think it's also good to have those tokenized precious metals. They're also crypto but at the same time their value is pegged to those metals that we also want to invest. If someone buys that PAXos gold, he can claim that he's also a gold investor but at the same time crypto investor as well. I have no problem in diversifying into those gold because I can also hold them in my wallets and monitor it at all times, no need to carry the heavy weight.

[shinratensei_]

Precious metal such as gold is overvalued as of now. Some people might disagree with me but $4k+ is too damn high compared to just few years ago so I'm refraining from buying it.
In this case I prefer bitcoin, better edge for me to win and better upside potential. Although gold is proven to be resilient, I just can't help but worry if it gonna dump, just don't like this kind of risk.

So I choose bitcoin 100%.

[o48o]

Between those, it's traditional cryptos.

But why would i want tokens that are pegged to precious metals value, when i can buy actual physical precious metals and have actual ownership? Or just commodities from traditional exchanges.

I feel like all pegged tokens are way more shadier then anything traded on oldschool markets.

[uneng]

If I had a lot of money I would go for a safer and more stable route, like precious metals, but since I don't have a huge portfolio, I have to take higher risks, otherwise returns are going to be too low and worthless. Bitcoin seems the preferable choice, as it's profitable at same time it's not that risky like other cryptocurrencies. My personal experience with Bitcoin has been very positive, so naturally the tendency is that I choose Bitcoin instead of another crypto alternatives.

I like the idea that there are precious metals as collateral of altcoins, though. It seems an attempt from developers to build something solid and trustable, unlike most crypto projects developed so far.

[tsaroz]

If you had to choose between crypto and tokenized precious metals (such as Tether Gold or Paxos Gold), which one would you choose? I, for one, would choose both for complete peace of mind. Precious metals are often less-riskier than crypto, but gains are slower than usual. Crypto is more of a "high-risk, high reward" kind of investment where you can either win big or lose it all in an instant. Some Bitcoin holders add Gold to their portfolio as some sort of diversification strategy. Personally, I buy and hold BTC, Gold, and Silver to build generational wealth.

What's your choice and why? Your input would be greatly appreciated. Thank you.

I'd chose both. Gold has been appreciating and holding the value for centuries. It's a thing everyone trust in. It has been tried and tested for longer than the fiat itself so it should be a part of your portfolio however small.
Crypto on the other hand is the new digital gold. The current time is a crypto rush like the old gold rush where all people go crazy into getting crypto. It might become more stable in the future but at current time, it has higher potential to double you investment in a small time like no other investment could provide you. Gold is still a safe and secure while Crypto is a good potential investment for high gains.

[Merit.s]

Instead of buying these tokenized metals, it's good to buy the traditional one whereby, you have physical access to it and use it for whatever purpose, you need it for.

I still still to only bitcoin and very little quantity of shitcoin I can afford to lose instead of something pegged to gold. Having both natural gold and bitcoin is a good way to save your money from inflation.

[Abiky]

I think it's also good to have those tokenized precious metals. They're also crypto but at the same time their value is pegged to those metals that we also want to invest. If someone buys that PAXos gold, he can claim that he's also a gold investor but at the same time crypto investor as well. I have no problem in diversifying into those gold because I can also hold them in my wallets and monitor it at all times, no need to carry the heavy weight.

Well, the list of available tokenized precious metals is quite limited. AFAIK, there are only two options for Gold: Tether Gold and Paxos Gold. Not heard of any tokenized version of Silver. I guess companies haven't tapped into this yet. Probably out of skepticism or fear from the regulators. The best thing about tokenized precious metals is that they get the same benefits as Bitcoin on the Blockchain (portability, and cross-border transfers). That doesn't mean they'll replace Bitcoin, though. Each has their own advantages/disadvantages over the other.

I know some people prefer to hold only Gold because it has been around for centuries. Bitcoin is fairly new to the world, with a smaller number of supporters around it. Whichever asset class you choose, make sure to diversify your investment to help protect yourself against the risk of loss. An "amateur" mistake, could cost you your fortune. Just my two sats.

[TastyChillySauce00]

Between those, it's traditional cryptos.

But why would i want tokens that are pegged to precious metals value, when i can buy actual physical precious metals and have actual ownership? Or just commodities from traditional exchanges.

I feel like all pegged tokens are way more shadier then anything traded on oldschool markets.

I actually liked these pegged coin more than phyiscal ones, it's convenient and liquid. But everybody can have their own preference.

These pegged tokens aren't shady as long as there's proper audit, just like PAXG that got regularly audited. After all I don't plan on holding onto gold for eternity but just trading to the value exposure.

[Hispo]

Cryptocurrency is better, at least with it one is the actual sole owner of those assets. With tokenized precious metals there is always the risk of insolvency and depending of the value of the token relative to the actual price of gold or silver.

Being the only person with the power over private keys and the value kept in them is one of the most important fundamentals in cryptocurrency, and that does not apply to tokenized precious metals, for obvious reasons.

[asriloni]

I choose both caused by i'm holding both of tokenized assets right now. I hold crypto as a high-risk, high-return tokenized asset. Meanwhile, i also use PAXgold to hedging against the inflation too.

It's always good by having some assets instead of concentrating your money in the one basket. I meant we must be also fully aware about how going all in one basket is a very risky decision.

When we lose it, we're also losing our life too.

[Trobbio]

I choose both caused by i'm holding both of tokenized assets right now. I hold crypto as a high-risk, high-return tokenized asset. Meanwhile, i also use PAXgold to hedging against the inflation too.

It's always good by having some assets instead of concentrating your money in the one basket. I meant we must be also fully aware about how going all in one basket is a very risky decision.

When we lose it, we're also losing our life too.

Exactly. The panic selling during downturns is what kills most people. If you can't stomach watching your portfolio tank 50%, you have no business in crypto. I stick with the portfolio split: 70% crypto, 30% in traditional assets like gold or bonds. That way I can sleep at night knowing I won't be forced to sell at the worst time.

[Abiky]

I actually liked these pegged coin more than phyiscal ones, it's convenient and liquid. But everybody can have their own preference.

These pegged tokens aren't shady as long as there's proper audit, just like PAXG that got regularly audited. After all I don't plan on holding onto gold for eternity but just trading to the value exposure.

Pegged tokens may be regulated (most of them), but that's doesn't mean your investment is safe. I mean, there's no insurance or guarantees of any kind that would make investors whole in the case of a market price crash (peg loss) or bankruptcy. Audits are just there to prove "x" amount of the stablecoin supply matches the issuer's Fiat currency reserves. Stablecoins are issued by companies, not banks (which have stricter regulatory compliance). I think that's why some people prefer physical cash (Fiat) instead. The same goes for precious metals such as Gold and Silver. Why trust a custodian with your investment, when you can truly hold it in your hands and own it forever? Tokenized precious metals are new and widely unproven.

Both PAXG and XAUT have been around for quite some time, so they're trusted by investors and traders alike. But like I've said before, they can lose their peg the same way as stablecoins because of the aforementioned reasons. I'd prefer a combination of both tokenized precious metals and crypto to minimize the risk of loss. Just play it safe, and there should be nothing to worry about.

[FinneysTrueVision]

Tether Gold and PAXG are cryptocurrencies, technically, but they are backed by real world assets. Gold doesn’t have extreme volatility and correlation to the overall crypto market. I consider the two major tokenized versions more sound investments than memecoins and tokens with no real use case. I would prefer XAUt over dollar backed stablecoins, but liquidity and cross chain support hasn’t reached the level where it can be widely adopted.

[atookz]

If I had to choose between crypto and tokenized precious metals, I would definitely choose crypto. Personally, I think physical precious metals (e.g., gold) are better than tokenized precious metals. Because precious metals will be more meaningful and have an impression if held physically. Since both are digital, I would definitely choose crypto, especially those with strong growth, such as Bitcoin or Ethereum. Although crypto has high volatility and therefore carries greater risk, well-developed cryptos will consistently grow and be profitable, so choosing crypto is better for digital investments. Perhaps if the choice were between crypto and physical precious metals, I would choose both. Choosing both would provide good portfolio diversification, as it consists of two distinct investments.