Posted 24th April 2020

How to trade crypto for precious metals

Trade silver and crypto app kinesis money

In an ever-changing crypto market, the stable value of the gold price presents cryptocurrency investors with a welcome opportunity to stabilize or diversify their existing investment portfolio.

How to buy gold with Bitcoin, Ethereum or cryptocurrency?

Many Bitcoin (BTC) and Ethereum (ETH) investors remain undecided on the best crypto exchange for trading between cryptocurrencies and precious metals.

With Kinesis, it’s easy and low-cost to buy precious metals with Bitcoin and other cryptocurrencies. Whether you want to buy gold with Bitcoin or buy silver with Ethereum, you can trade between any of the 20 – and growing – trading pairs available. 

Bitcoin (BTC) and Tether (USDT) are now available for trading with Kinesis. The Kinesis Exchange makes it as simple to trade crypto for precious metals as trading between cryptocurrency on any Bitcoin exchange.

The Kinesis Exchange offers a gold and silver price competitive with the world’s leading physical bullion dealers, by offering the lowest price across our extensive network of vaulting hubs.

When the time comes to re-enter the crypto market, simply exchange gold for Bitcoin (BTC/KAU) or silver for Ethereum (ETH/KAG), or whichever trading pair meets your needs.

How does it all work?

It’s simple:

1 KAU = 1 gram of gold
1 KAG = 1 ounce of silver

The purchased physical gold and silver bullion behind the Kinesis currencies is stored securely across Kinesis’ state-of-the-art vaulting network – with no storage costs. It’s also important to note, we are not tying the price to 1oz of gold. In making units of gold available on the exchange by the gram, we make it easy for anyone to buy and sell gold.

How much will it cost to store my gold or silver?

There are zero charges for the storage of the physical gold and silver bullion behind Kinesis currencies.

How can I access my gold bullion or silver bullion?

Kinesis digital currencies combine the stability of the price of gold and silver, the flexibility of a cryptocurrency and the everyday convenience of a traditional fiat currency.

As shown in the 4 ways to access your gold and silver:

Kinesis asset-backed currencies combine the stability of gold and silver, the flexibility of a cryptocurrency and the everyday convenience of a traditional fiat currency.

With Kinesis, there are 4 ways to access your gold and silver:

  • Kinesis Exchange: Exchange gold for Bitcoin (BTC) or Ethereum (ETH) or Tether (USDT), or vice versa, at any time.
  • Kinesis Virtual Card: Spend Kinesis gold and silver-based digital currencies, as well as cryptocurrencies, anywhere in the world with the Kinesis Virtual Card, which works just like a debit card. You can also use the card to withdraw funds in the local currency.
  • Convert your gold back into your currency and withdraw it into your bank account.
  • Redeem your physical bullion directly (subject to minimum withdrawal requirements, charges apply)

Access a unique yield with Kinesis gold bullion and silver bullion

Holders of KAU (1 gram of gold) and KAG (1 ounce of silver) receive a unique monthly yield on their gold and silver, based on a proportionate share of 15% of global transaction fees. This is known as the Holders Yield.

One of five unique yields available to Kinesis users, the Holders yield entitles holders of Kinesis digital gold and silver-based currencies to a passive monthly income of KAU or KAG deposited into their Kinesis account, for as long as they hold gold or silver with us. 

For more information about the Kinesis Yield System, you can check out our article on our rewards.

How do I know my gold or silver is there?

The physical gold and silver behind the Kinesis gold and silver bullion-based digital currencies are:

  • Fully allocated: Every KAU and KAG is backed by a 1:1 allocated quantity of gold and silver bullion stored in the Kinesis vaults.
  • Fully audited: The gold and silver bullion behind Kinesis digital currencies is audited on a quarterly basis by leading independent global auditor Inspectorate International.
  • Fully redeemable: All gold and silver bullion is fully redeemable, with legal title remaining with the holder, at all times, which minimises counterparty risk.

Why use the Kinesis Exchange?

  • Low fees: A small 0.22% trade execution fee.
  • Easily manage your portfolio: Buy gold with Bitcoin, Ethereum or Tether, all in one easy-to-use interface.
  • Exchange 24/7: No matter the time or place, all you need is a phone and internet connection, we are open 24.

How to exchange crypto for precious metals

  1. Open a Kinesis account.
  2. Deposit your choice of either Bitcoin (BTC), Ethereum (ETH) or Tether (USDT) to your Kinesis account.
  3. Purchase either KAU or KAG from the Kinesis Exchange interface.

The Kinesis Exchange makes it simple and low-cost to access the stable value store of gold and silver prices. When it’s time to exchange gold for Bitcoin (BTC) or Ethereum (ETH), it’s only a click away. 

With the value, efficiency and ease of use of the Kinesis platform, any crypto investors looking for the best crypto exchange to trade crypto for precious metals, need look no further.

The benefits of trading crypto for precious metals

Low risk and market volatility

Historically, precious metals, particularly gold, have been viewed as a safe haven investment. They tend to keep their value during recessions, times of market uncertainty and political turmoil. 

Tangible assets

Trading crypto for a tangible asset like physical gold or silver can help to stabilize your portfolio.

Diversify your portfolio 

Investing in precious metals is a great way of diversifying your investment portfolio and building wealth. 

The value of gold and silver in 2023

The start of 2023 looked promising for precious metals investors. Market uncertainty and geopolitical tensions continued into the new year, leading to an increase in the value of gold. 

In Q1 of 2023, the value of gold increased by 9.2% to USD $1,980 per ounce. Many people look to invest in gold during times of economic uncertainty and high inflation, so 2023 is an exciting time for gold investors. 

On the other hand, silver ended 2022 on a high note. The precious metal climbed from a low of USD $17.77 per ounce to finishing the year at $23.97. Most forecasts suggest the value of silver will continue to rise throughout 2023. 

The value of silver in the future is heavily supported by the increasing demand for electric energy sources such as cars. As governments press for greener energy sources, the demand for silver will continue to increase. 

Join Kinesis today

Do you already trade metals and want to find out more about precious metal-backed crypto? Or are you new to the world of precious metals investments and want to find out more? 

Join Kinesis today and discover how you can make your money work for you.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.