Can I Buy Gold with USDT?

Yes, you can buy gold-backed cryptocurrencies using USDT on regulated exchanges. Popular options include PAX Gold (PAXG) and Tether Gold (XAUT), pegged 1-to-1 with one fine troy ounce of gold. These assets are backed by physical gold stored in LBMA-approved vaults in London, providing a safe and convenient way to invest in gold with USDT.

How to Buy Gold with USDT

Investors can purchase gold-backed cryptocurrencies using USDT on regulated exchanges like Binance, the largest cryptocurrency exchange globally. Binance offers deep liquidity for the USDT/PAXG pair, making it accessible in over 150 countries. This pair averages over $4 million in daily trading volume, with an OTC desk available for better pricing on larger trades.

Here’s how to buy gold with USDT:

1. Register: Go to the Binance website, sign up, and verify your identity.
2. Deposit USDT: Transfer USDT into your Binance wallet.
3. Select Gold-Backed Crypto: Search for the USDT/PAXG pairs o the platform.
4. Execute Trade: Enter your USDT amount, review the market price, and order PAX Gold (PAXG).

Fees for Buying Gold with USDT

When purchasing gold-backed cryptocurrencies with USDT, you’ll face trading fees, along with potential deposit and withdrawal fees. Trading fees on major exchanges like Binance and OKX generally range from 0.1% to 0.2%.

Binance offers a competitive fee structure, charging 0.1% for spot trading. High-volume traders or those using BNB to cover fees may receive discounts. Additionally, there are no fees for USDT deposits from external wallets, making Binance an efficient choice for buying gold-backed crypto.

Tether Gold (XAUT) vs Pax Gold (PAXG)  

Tether Gold (XAUT) and Pax Gold (PAXG) represent one troy ounce of physical gold stored in LBMA-approved vaults. While XAUT is popular for trading, PAXG typically offers deeper liquidity, averaging 3-4 times more than XAUT, and is more cost-efficient with no storage fees. 

PAXG also allows redemption for physical gold and is regulated by the New York State Department of Financial Services, making it a flexible and secure option for investors.

Bottom Line

In conclusion, buying gold-backed cryptocurrencies with USDT is a practical and secure way to invest in physical gold. Platforms like Binance provide easy access to different tokenized gold tokens, each offering different benefits and drawbacks. PAXG, with its deeper liquidity and cost-efficiency, stands out as a particularly strong option for those seeking both flexibility and security in their investment.