- Bitfinex has announced that it now supports margin trading for Tether Gold (XAU₮), a new digital asset that is backed by physical gold held within a vault in Switzerland.
- Tether Gold holds the unique position of being the only digital token to charge no custody fees.
Hong Kong-based popular cryptocurrency exchange Bitfinex has announced that it now supports margin trading for Tether Gold (XAU₮), a new digital asset that is backed by physical gold held within a vault in Switzerland.
The margin trading pairs that Bitfinex supports are Tether Gold (XAU₮) against the US Dollar (XAU₮/USD), Tether (XAU₮/USD₮), and Bitcoin (XAU₮/BTC). The initial equity supported by Bitfinex is 20% with a maximum leverage of 5x.
Margin Trading is an asset trading technique of trading using funds from an appealing third party. This gives traders access to more massive capital to enter the trade, leverage positions and exit trades with more massive profits.
This is much more beneficial over traditional trading due to the enormous fund availability and the ability to increase leverage in the market. In the digital asset trading market, this also poses a slightly higher risk due to the high volatility of tokens.
Entering the digital asset market with more significant funds can result in potentially large losses too, in the case of a failed trade. Each Tether Gold token backed by one troy fine ounce of gold on a gold bar held within the Switzerland vault.
The symbol is based on an ERC-20 protocol on the Ethereum blockchain and as a TRC20 on the TRON blockchain. Tether Gold also holds the unique position of being the only digital token to charge no custody fees and allows the token holders to have direct control over the physical vault containing the gold in Switzerland.
Furthermore, the vault has the highest security standards with best-in-class anti-threat measures. The benefits of having a digital token that gives the holder the best of both worlds: of physical and digital ownership, is what makes Tether Gold token a very efficient investment.
It is a very modern way to hold ownership over gold hile still retaining all the benefits of a digital platform such as global accessibility without the hassle of high storage costs and limited availability that traditional physical ownership would pose.
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