In cryptocurrency investing circles, it's fashionable to talk about buying the dip. Unfortunately, the "dip" has now turned into a full-blown rout in 2026. Top cryptocurrencies, including both Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), are down anywhere from 20% to 35% for the year, and market sentiment has taken a nosedive. However, even amid crypto market chaos, there are some intriguing investment opportunities. Two cryptocurrencies that are on my shopping list for February are Hyperliquid (CRY ...

Core Insights - Bitcoin has been the top-performing cryptocurrency over the past decade, but Pax Gold (PAXG) is currently considered a better investment option due to its 1-to-1 peg with gold and a 74% increase in value this year [1][8] Group 1: Gold-Backed Stablecoins - Gold-backed stablecoins, such as Pax Gold and Tether Gold, are gaining traction, with both having market caps exceeding $1.6 billion [3] - Pax Gold is preferred over Tether Gold due to its availability on more U.S.-based cryptocurrency trading platforms [3] - Pax Gold trades at the price of gold, currently valued at $4,563, rather than the typical $1 peg of traditional stablecoins [4] Group 2: Investment Advantages - Pax Gold offers a more cost-effective and simpler way to gain exposure to gold compared to traditional gold ETFs [8] - Each Pax Gold token is backed by 1 fine troy ounce of gold stored in a London vault, providing a direct link to physical gold [5][6] - The ability to exchange Pax Gold for physical gold at any time adds to its appeal as a digital gold alternative [6]

Core Insights - Stablecoins, particularly U.S. dollar stablecoins like Tether and USDC, are primarily designed for digital payments rather than investment opportunities, with a market size of approximately $317 billion, where Tether and USDC account for about $263 billion [1] - Commodity-backed stablecoins, such as PAX Gold and Tether Gold, provide an alternative investment avenue, as they are backed by physical gold and have performed well amidst a declining crypto market [2] Group 1: Overview of PAX Gold and Tether Gold - PAX Gold and Tether Gold are both backed by one troy ounce of gold per token, issued by Paxos Trust Company and Tether Limited respectively, with each company managing gold storage and ownership rights for token holders [3] - Token holders have the option to redeem their tokens for physical gold, although this may reduce the convenience of investing in these stablecoins [4] Group 2: Pricing and Fees - Both stablecoins aim to track the spot price of gold, with Paxos charging fees based on order size for transactions, while Tether charges a one-time fee of 0.25% for purchases or redemptions [5] - As of December 27, gold was priced at $4,534 per ounce, with PAX Gold priced at $4,560 and Tether Gold at $4,543, indicating Tether Gold is slightly closer to the spot price [6][7] Group 3: Trust and Safety - The safety of these stablecoins is influenced by their issuers and the methods used to maintain their asset peg, with arguments suggesting Paxos may be viewed as more trustworthy due to its U.S. licensing and wider availability on U.S. crypto exchanges compared to Tether Gold [8]

Stablecoin & Cryptocurrency - Kyrgyzstan launched USDKG, a USD-pegged stablecoin [1] - USDKG is backed by physical gold rather than traditional cash reserves [1]