Why trading BTC with Gold, Silver, and FX on an exchange is a cool move

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vector21Full Member
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#1May 20, 2020, 04:03 PM
Trading BTC together with Gold, Silver, and Forex on a centralized exchange is a pretty awesome way to mix things up. Yeah, I know CEXs catch a lot of flak (sometimes it’s justified), but honestly being able to trade BTC, Gold, Silver, and major currency pairs all in one spot is kinda underrated. A few years back, if you wanted to check out different markets, you needed a bunch of platforms, brokers, accounts, and a ton of hassle. Now you can just pull up one dashboard and keep an eye on: BTC swings during crypto-heavy times Gold reacting instantly to macro updates and risk aversion Silver moving with inflation trends and industrial need Forex pairs changing with interest rate moves and central bank policies BTC isn't just “crypto” anymore. It's trading alongside global liquidity now. Gold still acts as that safe haven. Silver has its own specific trends. And Forex is basically the foundation of everything. Having access to all this makes it way easier to hedge, diversify, and avoid getting locked into one market story. Sure, risk management matters (using leverage across multiple assets can get tricky), but all in all, I think trading multiple assets on a good CEX is a powerful option if you’re willing to learn a bit (you can check out Bingx, Bybit, or Bitget, whatever floats your boat). So, anyone else here trading both crypto and metals/forex? - Do you actually use metals or Forex to hedge against BTC movements? - Noticed any correlations happening in real time? - You into multi-asset platforms or keeping everything separate still? - Got any strategies that work well across these different markets?
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mike.chadSenior Member
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#2May 21, 2020, 11:39 AM
How do you mean with your question. I don't quite understand it or how you can use metal trades to hedge crypto trade They are different markets though can be understood with same technical charts but their indices and instruments are quite different. Remember also that metals are regulated and under absolute control of governments, so there market actions will be different. Yeah it is more convenient to have all tradable pairs in a single trading platform. Although it is not only crypto CEX that provide such convenience, there are other brokers that provide them together. Only technical analysis and charts. Fundamentals or sentiment is not the same.
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stack_2017Senior Member
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#3May 22, 2020, 04:22 AM
Not a metals guy myself, but if I were to buy them, I would definitely go with the physical thing rather than trading Tether's gold on an exchange for example. The same way I wouldn't trust holding WBTC (wrapped bitcoin) or buy Bitcoin ETFs.
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bridge100Senior Member
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#4May 22, 2020, 07:03 AM
I have never invested into anything aside from real estate and crypto before, so I would probably not care, but I do understand if people would want this at all. I mean trading bitcoin and gold with each other doesn't sound like a bad thing to offer to people and makes sense. Not that I would use it, but remember that it would require a lot more than just legal groundwork to make this happen. Legally speaking, if you are a place that offers gold then it means you have to have it, you can't just trade gold that doesn't exist, and you can't just deposit gold as users neither, hence this is not going to be easily do legally. Sure there could be some scam places who will do it, but that won't matter on the long run at all because they will all scam and go away.
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cobra_2015Full Member
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#5May 22, 2020, 07:26 AM
Hedging and diversifying with gold and silver involves owning them or at least having them in an accessible location, as they would be impossible to access in the event of a crisis or disaster. Adding gold and silver to the trading options is a good idea, but they have been around for a while and haven't seen significant growth. Tether Gold (XAUt) is available for trading on many platforms, but it ranks #33 in market capitalization despite the high price of gold. This is a gold price chart, not shitcoin. Even the yellow metal safe-haven has become easy to manipulate.
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coin_sigmaLegendary
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#6May 24, 2020, 05:14 PM
It seems other metals in crypto CEX just added recently. I was only able to trade with XAUUSDT, or gold, in the past month, but after reading your post and checking today, it seems this silver was just added 3 days ago. I have a separate account to trade with gold and other currency pairs. I don't trade them on crypto exchanges. I use the XM broker with an ultra micro account. Since I am just a small player, I can only deposit a small amount to trade and to have some experience trading currency pairs. What I like about currency trading on the XM broker is that they don't have trading fees but mainly use spread, but it's not far from the breakeven on crypto exchanges. I think I want to make them separate instead; at least I could learn how things works on the other side because I am mainly trade crypto.
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k3vin4peSenior Member
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#7May 24, 2020, 09:35 PM
Gold and silver is not among my favorite pairs, I have never traded silver before but gold I have traded a few times on a frex broker not on cex, I I'm trading Bitcoin and XRP alone, not yet very profitable but soon to be. Trading is risky and if you are trading so many pairs, you will not have full concentration on all those pairs, I think Bitcoin is enough or not more than 2 pairs.
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shard_minerSenior Member
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#8May 25, 2020, 03:33 AM
I see it as a great way to maximize profit if one has the right knowledge and technical know-how of how to trade BTC alongside gold, silver on a CEX. While I absolutely agree it is a great innovation that is sweeping the online market, the risk of a flash crash in one asset can clean out ones holdings in the other. Even though trading BTC, gold and silver on a single CEX is a great innovation that has risk too, it has some tactical advantages in the aspect of proper management and control of one's capital, wherein a trader can flip instantly and not be constrained in anyway by settlement lag.
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p1x3l365Senior Member
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#9May 25, 2020, 06:13 AM
Diversification is a good strategy to meet your financial goals because one source of income might not be reliable. But excuse me, do you mean one can actually trade on bitcoin, gold silver and the restrest mentioned? Isn't that weight too much to diversify understanding how risky trading is? That definitely going to require the trader to undergo studying about the markets individually which to me is too much to bear. Well, I hope we don't make such risky decisions out of greeds. Diversifying with such numerous assets could be best for investment and not trading. That basically is a reason to save mental stress and financial management while it's buyable for those who can actually bear the risks. Don't be biased, the CEX is basically disliked due to it mode of custodial and users broken privacies while it does offers usability service for real.
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paulyieldSenior Member
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#10May 27, 2020, 01:08 AM
It's great if you don't get uncomfortable with the fact that you are only buying market price exposure and NOT the real gold. You can't redeem it, you don't really own it, and you certainly not buying spot. It's more feasible and beneficial for average users if the exchange provide RWA with real physical gold backing it up like XAUT. If it's just a contract for price exposure, meh, I pass on that thing. I don't want to be forced to pay funding rate on something that supposedly long term.
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tony69Senior Member
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#11May 27, 2020, 05:28 PM
Of course you are right as jumping from coin to other coins just to chase profits could even creates a channels for easy losses, that’s why it’s not advisable to be trading with more than 3 pairs as you could lose so easily while trying to regulate your trades from different pairs. If is one single pair you could control very then I Must advise such person to fully stick to their pairs instead of jumping into different pairs or even trading Gold/BTC and Silver/BTC there are no assurance of profits. Of course I haven’t traded on Gold before or even silver but bitcoin could be more better and preferably.
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alex_shardSenior Member
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#12May 28, 2020, 12:38 PM
The is exactly my point, if I want to invest in gold or other precious metal, it will definitely not be in CEX but I will buy the real thing and store privately. Physical gold is safer than buying in exchanges since I will be require to hold them there and the value displayed by the excchage will only be the worth of my investment, not that I own anything I can lay hands on in the event of the CEX packing up. So this concept of CEX listing gold and other stocks does not really make much sense to me.
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jake_gweiSenior Member
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#13May 29, 2020, 06:42 AM
Always prefer physical gold. Read the recent China's gold trading scandal. It was a company offering retail to take digital gold position without proper backing and when things go south, $1.4 billion just vanished like that. It's what happen when random platform suddenly offer gold perpetual market without proper auditing and approval. In a nutshell, you're doing yourself a favor holding physical gold and not the fake digital ones because who knows if the company issuing the digital gold gonna collapse in the future.
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rocket2014Full Member
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#14May 29, 2020, 06:49 PM
Now more than ever, CEXes hate is on spot, we have DEXes such as Perpmate and other where you can trade all (crypto, gold, forex, stocks) on one spot, with no KYC. Obviously CEX is good for people who are fine doing forms and selfies on those platforms or if they are institutional investors with a lot of money, but eventually this also shifts to DEXes now, they just dont know right tools yet, but once they figure it out they wont have a need to go on CEX.  In terms of strategies I do not have good strategy for trading, I just longed gold and silver while crypto stay sideways, because it was boomin, never hedged one ore another to each other, just trade what you understand the most, for example I trade google stock because I use their AI products a lot and I can see firsthand improvements. Same goes with Bitcoin...
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the_satMember
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#15May 31, 2020, 09:33 AM
This is why never "stablegold" idea took off, it was never a good one. We have seen stablecoin ended up being this much high, because it's digital and digital is trusted when it's fiat, people believe it is backed and that is how hundreds of billions of dollars got this big. However, when it comes to gold for stablecoin style, where you would have gold as a stable currency in crypto and somewhere would be backing it up, nobody trusted that any company would back that up and that is the reason why it never took off and never will take off either.
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mr_satoshiSenior Member
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#16May 31, 2020, 03:14 PM
It will be very tasking keeping up with all the markets. As a trader, your chances of getting saturated are higher, and when you become saturated or overwhelmed, there is always the chance of making an error in judgment. You could become more profitable as a trader by stacking trades or positions on a single pair or crypto that you trade than by trading multiple options.  It is possible for a more skilled trader to do so, but for you, a newbie in trading, that could be the beginning of the end for you.   When BTC is dropping in value, XAU seems to be buying because the attention of investors shifts there. Who else has noticed this?
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jake_gweiSenior Member
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#17Jun 1, 2020, 01:50 PM
There are genuinely good stablegold being backed by gold stored in swiss or singapore that exist. The problem is figuring out which is legitimate and which is not. The average joe don't really want to spend time reading about the asset they are trading, they just go in and trade that fake digital gold without doing proper research and assessment. That is why it's advisable to buy physical gold, at least you can be sure you got the gold in front of you and there is no risk of it being illiquid.
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HyperGweiSenior Member
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#18Jun 1, 2020, 01:55 PM
That is correct, physical gold is the only way to hodl gold in a decentralized way. And it is best for long term storage. Short term hodlers on the other hand would choose paper gold, basically because it has higher liquidity than physical gold and they would be able to sell it very fast, unlike physical gold. That said, the buyer would have the decide what is top on their priority list. Physical gold is also more expensive, there is storage and insurance cost too. Counterparty risk is the biggest risk when it comes to paper gold, the financial institution could collapse and so would your investment. Personally, i would prefer physical gold because i like to hodl assets for the long term.
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0xK1ngMember
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#19Jun 1, 2020, 04:46 PM
We are on a crypto/Bitcoin forum, so I suppose that all or the majority already knows how to deal with Bitcoin, although I think that gold and silver were also easy to understand and they can in fact be more simple than on Bitcoin. They are much older, more known, and more stable. Flash crashes should be prone only in Bitcoin but as long as we don't panic and only invest what we can afford to lose, then all is only going to be well. I would say that proper management stems only on the individual and not really about the exchange that can have this kind of innovation. We must not be deceived by numbers but to have a better focus still matters the most.
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0xR4v3nSenior Member
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#20Jun 1, 2020, 08:34 PM
That's not even an exchange that OP is really talking about but a broker. I guess I know these days all these terms don't matter as everything works like an exchange and exchanges work like brokers but you're absolutely right. I still until today don't get why people buy fake gold, fake btc, when you can actually get the real thing quite easily these days. I guess I have to be a real trader to understand
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