Vaultoro is a broker for bitcoin, gold and silver based in Berlin. in this article we’ll take a closer look at the platform to review it. And without further ado, we hope you’ll enjoy reading this comprehensive Vaultoro review.
Table of Contents
Who is behind Vaultoro?
Vaultoro was founded in 2015 by Joshua Scigala and Philip Scigala. The two brothers, who have a background in software engineering and finance, respectively, were interested in creating a secure and transparent platform for investing in gold that was also accessible to anyone with an internet connection.
Joshua Scigala had previously founded a Bitcoin startup, as he was impressed by the transparency and security that blockchain technology could provide. This led him to develop the concept for Vaultoro, which uses blockchain-like technology to provide a transparent and secure platform for trading and investing in gold.
The idea behind Vaultoro was to create a platform that would allow investors to trade gold in real-time, similar to the way stocks are traded on a stock exchange. This would provide investors with more control over their investments and greater transparency into the underlying assets. The Scigala brothers’ vision was to merge the world of traditional finance, represented by gold, with the innovation of blockchain technology to offer a unique investment experience.
After launching in 2015, Vaultoro quickly gained traction among investors who were interested in the security and transparency that the platform provided. Today, Vaultoro is a leading platform for trading and investing in gold and silver, and it continues to innovate and expand its platform to meet the needs of investors around the world.
The world’s first crypto-to-physical-gold exchange, Vaultoro was also the first bitcoin exchange with an implementation of the Lightning Network as an instant deposit method.
Their commitment to combining the age-old security of gold with the cutting-edge technology of cryptocurrencies has solidified Vaultoro’s position as a pioneer in the bitcoin industry.
Vaultoro Review: Gold, Silver & Bitcoin DCA
Vaultoro.com is an online platform that enables users to trade and invest in cryptocurrencies (primarily Bitcoin) against allocated, audited, and stored physical gold and silver.
It offers a unique approach to combining digital assets with precious metals, providing transparency, security, and an alternative investment option.
For those who do not seek to actively trade, Vaultoro also functions as a userfriendly onramp providing innovative features like auto-conversion and dollar cost averaging or saving plans.
Bitcoin and Gold, Interview with founder Joshua Scigala
Unlike traditional exchanges that primarily deal in fiat currencies, Vaultoro specializes in the trading of cryptocurrencies against physical, allocated gold. This unique approach sets it apart in the crypto world and deserves a closer look.
One of the most compelling aspects of Vaultoro is its commitment to transparency and security. They have implemented a system where every gram of gold is physically allocated and independently audited. This means when you purchase gold on Vaultoro you receive the exact amount of gold in a secure vault. This assurance of transparency and backing of assets provides a sense of trust and confidence in the platform.
The user interface on Vaultoro is well-designed and easy to navigate. It caters to both beginners and experienced traders, making it accessible for a wide range of users.
In this Vaultoro review, we must make clear that we’re not dealing with a traditional exchange in the sense that it does not deal with fiat currencies. Instead, you can trade various cryptocurrencies and stablecoins. It allows to depost USDT, DAI and USDC. Also crytpo equivalents of EUR and GBP are integrated.This unique concept makes it an excellent option for those looking to hedge their crypto holdings against precious metals.
Security is of utmost importance, and Vaultoro takes it seriously. The platform employs multi-signature wallets, cold storage, and other security measures to ensure the safety of users’ assets. Moreover, the transparency of their gold reserves adds an extra layer of security, as you can always verify your holdings.
Another standout feature of Vaultoro is its active community and educational resources. They offer various articles, blog posts, and webinars to help users understand the intricacies of trading cryptocurrencies against gold. This commitment to educating their users is a testament to their dedication to making crypto trading accessible and understandable for all.
Vaultoro is a fascinating cryptocurrency exchange that provides an alternative trading experience by allowing users to trade digital assets against physical, allocated gold. Its commitment to transparency, security, and education make it a compelling option for those interested in diversifying their cryptocurrency portfolio and protecting their investments with precious metals.
Gold and silver have long been recognized as solid investment options for diversifying portfolios and preserving wealth. Their tangible nature and historical value have made them popular choices for investors looking for stability in uncertain economic times. Here’s a closer look at the merits of investing in physical gold, silver, and cryptocurrencies, particularly Bitcoin:
Physical Gold and Silver:
- Tangible Assets: Both gold and silver are tangible, physical assets that investors can hold in their hands. This characteristic appeals to those who prefer investments they can see and touch.
- Historical Value: Gold, in particular, has been a store of value for millennia, and silver also boasts a substantial history as a precious metal. This long track record suggests that they can hold their value over time, independent of specific companies or markets.
- Hedge Against Inflation: These metals are often viewed as hedges against inflation. When the value of fiat currencies decreases, gold and silver tend to appreciate, making them attractive options for protecting wealth from the eroding effects of inflation.
- Liquidity: Both gold and silver are relatively easy to buy and sell, providing investors with a convenient way to store wealth and access cash when necessary.
- Diversification: Holding physical gold and silver can be a part of a diversified investment strategy. They often move independently of traditional financial markets, offering a counterbalance to other investments.
Cryptocurrency (Bitcoin):
- Digital Gold: Bitcoin is often referred to as “digital gold” due to its store of value characteristics. It shares similarities with gold, such as scarcity, as there will only ever be 21 million bitcoins in existence.
- Potential for Appreciation: Bitcoin’s relatively short history has been marked by significant price increases, attracting investors seeking potential for capital appreciation.
- Increasing Adoption: Bitcoin’s acceptance as a legitimate form of payment has grown, with more businesses and individuals adopting it as a medium of exchange. This trend is likely to continue, further solidifying its role in the global financial system.
- Security and Anonymity: The blockchain technology underlying Bitcoin provides a high level of security, and transactions offer a degree of anonymity. This can be attractive to those valuing privacy and asset protection.
- Decentralization: Bitcoin operates on a decentralized network, free from government control or centralized authorities, making it resistant to censorship and seizure.
In summary, physical gold and silver are solid options for investors who value tangibility and historical value, while Bitcoin offers a unique digital alternative with potential for appreciation, growing adoption, and security features. These assets can serve as valuable components of a diversified investment portfolio, providing stability and opportunities for growth in different economic environments.
Is Vaultoro Safe?
Probably the most important question you might ask: Is Vaultoro safe and are my assets well protected? Remember, not your keys not your corn and third-party storage always adds certain risks. When analyzing the risks associated with the place of storage we have to consider both upsides and downsides of custodial storage vs self custody.
In the case of Vaultoro a few positive aspects to point out are the following:
Regulated entity
Vaultoro is regulated in Lithuania and owns a VASP license since 2019. They company complies with all laws and requirements which safeguard the financial industry.
Secure Storage in Switzerland
All physical assets such as the gold and silver you can purchase on Vaultoro are stored in a secure vault in Switzerland. This vaulting facility is highly secure and on top of that it’s also insured. In the case that Vaultoro goes bankrupt, customers can still access their physical gold at any time.
Insurance
Vaultoro has an insurance which covers loss scenarios up to $1M. This provides additional safety and protection to users of Vaultoro.
Here’s a table comparing the advantages and disadvantages of self-custody and custodial storage for both Bitcoin and physical gold:
| Aspect | Self-Custody for Bitcoin | Custodial Storage for Bitcoin | Self-Custody for Physical Gold | Custodial Storage for Physical Gold |
|---|---|---|---|---|
| Security | Advantages: | Advantages: | Advantages: | Advantages: |
| – Full control of keys | – Professional security | – Direct access to asset | – Professional security | |
| – Reduced risk of hacks | – Backup and recovery | – No counterparty risk | – Vault protection | |
| Disadvantages: | Disadvantages: | Disadvantages: | Disadvantages: | |
| – Risk of key loss | – Third-party risk | – Risk of theft or loss | – Limited access and control | |
| – Responsibility for | – Limited recovery options | – Security concerns | – Potential fees | |
| security | – Human error | – Maintenance needed | ||
| – Verification required | ||||
| Control | Advantages: | Advantages: | Advantages: | Advantages: |
| – Full control over | – Professional management | – Full control over asset | – Professional management | |
| your assets | – Convenience of service | – No third-party control | – Ease of use | |
| – Privacy | – Asset recovery options | – Access to market opportunities | ||
| Disadvantages: | Disadvantages: | Disadvantages: | Disadvantages: | |
| – Responsibility for | – Limited control over | – Responsibility for | – Limited control over asset | |
| managing assets | private keys | managing assets | – Counterparty risk | |
| Accessibility | Advantages: | Advantages: | Advantages: | Advantages: |
| – Immediate access | – Professional assistance | – Direct access to asset | – Professional assistance | |
| to your assets | – Recovery options | – Liquidity options | – Convenience of service | |
| Disadvantages: | Disadvantages: | Disadvantages: | Disadvantages: | |
| – Risk of theft or loss | – Limited access | – Limited liquidity | – Verification required | |
| – Potential human | – Verification and | – Limited market | – Potential fees | |
| error | authentication required | opportunities |
It’s essential to consider your individual preferences, risk tolerance, and specific needs when deciding between self-custody and custodial storage for Bitcoin and physical gold. Both have their merits and drawbacks, and the right choice for you may vary based on your unique circumstances.
Vaultoro Fees
Vaultoro Gold Purchase and Storage Fees
| Gold | Silver |
|---|---|
| 0.5% | 0.5% |
- Prices generally range from 2%-4% above the price of our suppliers depending on market conditions and trading days.
- A shortage on physical bullion might increase the price short term
- We are always transparent in our pricing and you will be able to get exacts quotes before executing the trade (via direct purchase).
- Gold Storage: 0.05%/month Calculated daily
- Silver 0.125%/month Calculated daily
Vaultoro Withdrawal Fees
| Asset | Minimum Deposit | Address Set up Fee | Deposit Fees | Minimum Withdrawal | Maximum Daily Withdrawal Limit | Withdrawal Fee |
|---|---|---|---|---|---|---|
| Bitcoin | No min | Free | Free | 0.0005 BTC | 5 BTC | 0.00015 BTC |
| Ether | No min | Free. Limited to 1 per account | Variable on-chain fee | 0.004 ETH | 50 Ether | 0.0017 ETH |
| Chainlink | 1.5 LINK | 0.15 LINK | 0.12 LINK | 0.12 LINK | 100 LINK | 1.4 LINK |
| Dai | 35 DAI | 5 DAI | 5 DAI | 5 DAI | 5000 DAI | 2.5 DAI |
| Tether | 35 USDT | 5 USDT | 5 USDT | 5 USDT | 5000 USDT | 2.5 USDT |
| USDC | 35 USDC | 5 USDC | 5 USDC | 5 USDC | 5000 USDC | 2.5 USDC |
| Uniswap | 2 UNI | 0.5 UNI | 0.5 UNI | 2.2 UNI | 150 UNI | 0.6 UNI |
