Is volatility a disadvantage for Gold?
In the cryptocurrency market, volatility is a problem, when the investor uses regular cryptocurrencies, they usually end up having unsatisfactory results, and they end up speculating that cryptocurrencies are just bubbles, however, they invest their price later. In the case of gold-backed cryptocurrency futures they have protected cryptocurrency traders their assets in times of indecision for manipulation. They have also opened a new trading system that allows cryptocurrency traders to access physical gold. Gold has had a significant demand in exchanges, it should be noted that the price of gold is on the rise due to the fundamental threat of Covid 19 and the liquidations of the world markets.
So how to avoid losing on an investment?
Gold, a stablecoin, is a safe way to invest capital without risk. Each Gold is equivalent to 1 gram of 99.99% fine gold, so you can be sure that its price is not a bubble or will plummet over a period of time. Throughout history, humanity has faced severe economic crises due to a myriad of fundamentals. Gold being the only safe haven to maintain the value of investors' assets.
In other words, when buying Gold, you are indirectly investing in gold with the benefits of cryptocurrencies, but without the disadvantages that they can have. If he wishes, the investor can practice trading in the GOLD / BTC pairs which have very interesting variations but will not lose large sums of money due to a slip.
As we see this graph in Days taken from: https://www.bitforex.com/en/spot/gold_btc
We observe that the Gold / Btc pair has a minimum oscillation range, it is easy to locate a support on this graph, it can also be seen that regardless of supply and demand the price does not vary too much, of course it can be seen that in one day possibly In a matter of minutes this range was broken by a shadow this happens when a trader buys many tokens and makes demand levels rise for the price to rise uncontrollably, but he quickly responded by putting it in the controlled stabilization range.
2020/07/29 to 2020/09/2020
We see that there is clearly a range in which the red box is the sellers area and the green box is the buyers area, clearly these prices are faithful to stabilization. Many of the shadows that exist are because of the btc, let's not forget that this is the GOLD / BTC pair. If we compare with the Gold / usd chart we see that:
We precisely see that the price varies for gold, even by the trend it can be seen that Gold is closely related to gold, the green support is the buyers area, and currently the red resistance is the sellers area, it is expected that this break by the trend of gold.
To conclude this speculation, we can directly review the gold, making use of some tools such as Bolinger Bands to measure volatility and the 200 ema:
You can see the clear similarity of both currencies and, without a doubt, gold / usd being better because it has greater volatility inherited from cryptocurrencies, its price is more prone to rise, currently gold is in an important resistance already overcome, On the way to new highs, this is very beneficial for the Gold / Btc pair. Likewise, we see the price above the ema 200, with a considered volatility and the indecisive stochastic but prone to rise, they are confirmations that the price continues to trend.
In that sense, bad streaks are common in the subject of trading, however, you can survive with good risk management, in times of indecision and market uncertainty, the gold token provides a hedge to isolate and maintain the value of assets to survive losses. In the long term, Gold Token helps reduce the volatility of a pair of assets that you have. The gold token has grown during these two years, but so far only the benefits have been seen without deepening, the stablecoin markets are several times larger than the spot markets. The growth of the gold token will attract the demand to trade beyond the rest of altcoins, as it is the best way to manage volatility risk for professional investors and traders.
For more information visit: https://gold.storage/es/home
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