Vaultoro is a UK based cryptocurrency exchange. It is somewhat unusual, as it offers trading in bitcoin for real, physical gold and vice versa. The minimum amount of gold that can be traded is 0.001 Gram.
We have not come across another crypto exchange that offers this type of asset combination.
According to Vaultoro, clients can also trade directly with other members and without a middleman. The client sets the price and can save expensive brokerage costs.
Naturally, Vaultoro does not offer leveraged trading, but its service is more for purely investment purposes. For those interested in leveraged trading, there are cryptocurrency exchanges like Kraken, CexIo, bitFlyer and Quoinex who offer some leverage for trading alt-coins against fiat currencies.
There are also forex brokers who offer CFDs on cryptocurrencies for trading on margin. Usually they are part of the broker’s portfolio and often can be traded on the same leverage as other CFDs, on the usual multiasset platform offered by the company, like MetaTrader 4 or 5.
As for customer verification, Vaultoro requires its clients to verify their accounts before starting to trade. For the purpose, a client needs to upload a copy of a driver’s licence or passport as well as a photo of a utility bill no longer than 3 months old.
The Company. Security of Funds
Vaultoro is based in the UK, but is not regulated by the FCA and does not need to be. Trading in cryptocurrencies is still a legal grey area in most countries and the regulators are satisfied with warning of the risks associated with them and the initial coin offerings. Most countries have not come up with a definitive decision on whether cryptocurrencies are money or another type of asset and how they should go about it.
According to Vaultoro’s site, the physical gold of the clients is stored in vaults in Switzerland. The gold itself is 99.9% pure gold bars coming directly come from the smelting companies and are secured under the client’s name, as their property, held off Vaultoro’s balance sheet and is insured.
As for the bitcoins, Vaultoro offers cold storage in multisignature wallets, encrypted accounts and client data and withdrawals with 2-factor authentication.
It looks like Vaultoro’s clients are satisfied with the service and their only request is that the company adds silver as an asset, too.
Like most crypto exchanges, Vaultoro offers its own web-based platform, which has some basic features such as price chart, volume chart, as well as an order book. Clients can place market, instant or limit orders, view their trading history and deposit and withdraw assets.
According to the FAQ section, the broker is planning the introduction of a mobile trading app, but no specific details are given.
Methods of payment
Vaultoro accepts payments in bitcoin only and nothing else. According to the website, it is because the company wants to be absolutely independent of banks.
As for fees, Vaultoro does not charge a transfer fee for depositing bitcoins. The storage fee for the gold is 0.4% of the value of the client’s gold volume, per year, calculated at every 15 minutes. In case the client is storing bitcoins only, the same amount will be deducted as bitcoin for the same value at that moment in time.
There are some crypto exchanges that accept other payment methods, such as credit/debit cards or/and bank transfers, but they are usually working with fiat currencies.
Vaultoro also offers withdrawals in physical gold, with the minimum physical withdrawal limit set at 100 grams. The fees vary from EUR 130 to 220 per 100 grams, depending on the country and include postage, insurance and handling. Depending on the client’s country of residence physical delivery might be not possible. The gold is delivered in the shape of 100 gram bars.
On the other hand, Vaultoro notes, it is not advisable to store valuables at home. For those insisting on having physical gold, it would be easier and probably cheaper to exchange it for bitcoins, withdraw the coins and buy physical gold from a local gold retailer.
Like we already said, Vaultoro offers a somewhat unusual service for exchanging bitcoins and gold. It, however, sounds as a very attractive proposition for those who want something tangible like gold bars, be they stored in a vault in Switzerland, or in their own hands. Even though a recent google analysis shows that the term “bitcoin” has surpassed “gold” when searching for investment opportunities, it is certain that the gold would most likely keep its position as an ultimate investment, whereas the bitcoin bubble could burst at any moment. Considering this, we actually quite like Vaultoro’s proposal.
Another advantage is that the exchange spares the hassle of storing the physical gold and offers the service, for a relatively small fee. Or, you can have it delivered.
Perhaps the only disadvantage of Vaultoro is that it does not work with fiat currencies and one needs to buy bitcoin first, in order to exchange it for gold.
Vaultoro Review Conclusion
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