I stumbled upon XAU derivatives recently. Only knew about PAXG and XAUT before. So, XAU seems like digital gold without any actual tokens, right? It has a supply of 0, which is kinda odd. I saw it on some random exchanges too, but its derivatives are on bigger ones. Is this a smart move to diversify gold investments, or is it just super risky?
XAU is basically like an overarching label for gold derivatives that don’t have any token issuance. Think of it like how XBT was for BTC on BitMex, mainly for trading purposes. But honestly, if there’s no spot market, it raises some red flags. Feels more like a mistake or even potential scam.
From what I've seen, XAU is just for derivatives and forex trading, not actual spot trading, at least not on popular exchanges. Like on Bybit, it's mainly just XAUT trading on spot. Personally, I find it risky. I'd just bet on the price movements and trade futures rather than dabble with such a token. For me, buying physical gold and diversifying that way is way better.
Yeah, I won’t touch that token either if I’m looking to get into gold. Physical gold is where my money's going. I need to understand my investments, not just throw cash at random tokens. XAUT is more my speed, at least I know what I'm getting into.