Often touted as digital gold, Bitcoin diverges greatly from the precious metal. Nevertheless, there is some overlap between those who hold gold and hodlers. That is because both are stores of value that are supposed to be resistant to government excess or downturns in the fiat system. That is precisely the niche Vaultoro caters to.
With a wonderful platform to trade Bitcoin for gold – and now Dash for gold and Bitcoin as well – Vaultoro is the platform fiat contrarians werealways looking for.
We will take a look at everything that Vaultoro offers so you can understand how to use this gold to Bitcoin trading app and benefit from its best feature: low fees!
Vaultoro: Background Information
- Vaultoro was founded in 2015
- This is the first platform to offer crypto to gold trading that is fully backed by physical gold reserves
- Vaultoro is available for users in 95 countries
- It has more than 20,000 users
- More than $132,000,000 USD have been traded so far on the platform
- Its founders are Joshua and Philip Scigala
- It offers Bitcoin/gold, Bitcoin/Dash, gold/Dash pairs
- Vaultoro holds all its users’ gold in a vault in Switzerland
- Users can ask for a physical delivery of the gold they hold at any time
Vaultoro’s trading platform is easy to use. The dashboard is quite instinctive, allowing for easy navigation. You will be able to toggle between order books, your account, and other features easily. If you have traded before, the learning curve is just a few seconds.
This is how the Vaultoro trading platform looks:
It is no secret to anyone that storing gold is as costly as storing Bitcoin can be inexpensive. Therefore, there are 3 main questions that people ask themselves when they look at fees on a Bitcoin/gold or crypto/gold platform:
- How expensive are the storage, trading, and withdrawal fees?
- How does the fee schedule work?
- Are there too many variables that will make the fee schedule too complex or are there any hidden fees?
Note: Storing Bitcoin or other cryptocurrencies on any trading account is free. Vaultoro, just as any other cryptocurrency custodian, will charge a withdrawal fee. This is comparable to the fees you pay for physical delivery of bullion, if you are interested in taking position of the gold you bought.
Vaultoro Trading Fees
When it comes to trading fees, it is hard to find comparisons. This is because Vaultoro comes from the crypto space and offers a bridge into physical gold through trading. Other services offer physical gold or precious metals, including investment portfolios, but only offer Bitcoin payments. They are not necessarily trading platforms.
In any case, Vaultoro’s trading fees are straight forward. The key to understanding them is to figure out the system:
- Vaultoro is the trading platform, sitting in between two people making a deal in the market
- As a platform, it can charge a fee on both sides of the transaction
- Buying and selling is not as straight forward as one might think
- Therefore, Vaultoro divides the market into market makers and market takers
Vaultoro Market Makers and Market Takers
Market makers are simply the people offering something in the market. To do that, they create an order on Vaultoro’s platform. Market takers are the ones who fulfill that order.
A market maker can either create an order to buy or sell gold, Bitcoin or Dash on Vaultoro’s platform. A market taker can either buy at a certain rate from a market maker or sell to them at the indicated rate. Buying and selling takes place on both sides of the market if you will.
Market Maker vs Market Taker Fees
To encourage a healthy order book, Vaultoro’s fees for market makers are lower. Market taker fees are higher. So, if you are window shopping for some Bitcoin, and you go through the equivalent of all the store fronts – the order book – you have the advantage of taking the best deal but the disadvantage of paying the higher fee.
Here are the crypto to crypto market maker and market taker fees for Vaultoro:
|Market Maker||Market Taker|
If a -0.05% fee looks weird, it is because traders are not used to getting paid to trade. Vaultoro introduced negative trading fees for market makers. This means that traders on crypto pairs will get 0.05% when they create an order in the order book, once this order is filled.
Market makers on the gold to crypto side will also get that benefit if their 30-day trading volume is above certain threshold. Here is the crypto to gold trading fee schedule:
|30-Day Trading Volume||Market Maker||Market Taker|
|€0 – 5,000||0.5%||0.5%|
|€5,001 – 25,000||0.45%||0.475%|
|€25,001 – 100,000||0.4%||0.45%|
|€100,001 – 1,000,000||0.35%||0.425%|
|€1,000,001 – 5,000,000||Free||0.4%|
|More than €5,000,001||-0.1%||0.375%|
High volume market makers get either free trades or get a fee of 0.1% when their order is filled.
How to Save Money on Vaultoro’s Trading Fee System?
If you are looking to save money on Vaultoro’s trading fee system, you simply open an order to buy or sell, which turns you into a market maker. The disadvantage is that you must affix a price to your order – you will buy or sell at a predetermined price. This could end up costing you more than what you can save on fees, especially if volatility increases.
In a market that is experiencing higher volatility, you might want to pay a higher fee and become a market taker. This will allow you to take the best price out there, regardless of whether you are selling or buying.
Vaultoro Withdrawal Fees
When it comes to cryptocurrency withdrawal fees, Vaultoro is highly competitive. Here is a table comparing Bitcoin withdrawal fees at Vaultoro and other popular trading platforms:
|BTC Withdrawal Fees||0.0005 BTC||Network Transaction Fee||0.001||Network Transaction Fee|
Vaultoro has lower withdrawal fees than Gemini, but when you compare it to Coinbase or Binance, it seems that Vaultoro is more expensive. This might or might not be the case.
Coinbase and Binance deduct the network fee from the withdrawal. In theory, they can charge more for a transaction fee than the network average is and keep the difference.
Vaultoro Storage Fees
Storage fees are probably the most critical for traders. After all, once you trade your digital gold for the old-fashioned physical version, the cost of keeping it safe rises.
Vaultoro offers extremely competitive storage fees for bullion. Here is a fee schedule comparing it to Gold Money’s and GoldSilver’s fees:
|Gold Vault Location||Switzerland||US, Canada, UK, Switzerland, Singapore, and Hong Kong||US, Canada, Singapore, and Hong Kong|
|Insurance Cost||Included in the storage fee||Included in the storage fee||Included in the storage fee|
|Storage Fee||0.033% monthly for all metals||Gold: $10 USD monthly minimum. Between 0.01% and 0.018% for holdings of $100,000 USD or more. Fees for the storage of other precious metals varies between 0.03% and 0.082% depending on the quantity held and the type of metal.||$4 USD monthly minimum or a 0.06% monthly fee for holdings of $6,700 USD or more|
Comparing Vaultoro Storage Fees with its Competitors
These storage fees might seem simple, but they are not. When it comes to a fair comparison, Vaultoro’s storage fees are the most straight forward and easy to calculate. However, there is a level at which Gold Money’s fees might be cheaper when it comes to gold storage.
Here is a table to compare storage fees between both providers:
|Vaultoro Storage Fees||Gold Money Storage Fees|
|For $10,000 USD of gold||$3.3 USD per month||$10 USD per month|
|For $33,000 USD of gold||$10.89 USD per month||$10 USD per month|
|For $100,000 USD of gold||$33 USD per month||$10 USD per month|
GoldSilver’s storage fees are always more expensive than Vaultoro’s:
|Vaultoro Storage Fees||GoldSilver Storage Fees|
|For $10,000 USD of gold||$3.3 USD per month||$6 USD per month|
|For $33,000 USD of gold||$10.89 USD per month||$19.8 USD per month|
|For $100,000 USD of gold||$33 USD per month||$60 USD per month|
Note: All the storage fees regardless of the service provider are calculated based on the USD value of the holdings each month. Consult with your preferred platform how that monthly price is established.
Physical Gold Delivery Fees
Apart from crypto, you can ask Vaultoro to deliver your bullion to you. That “withdrawal” will cost you. How does that cost compare with Gold Money and GoldSilver?
|Withdrawal/delivery fee||Physical delivery is arranged on a case by case basis. A price will be quoted depending on where you want your gold to be delivered to. The minimum delivery is 100 grams of gold||Metal redemption fees can be arranged if you own 1kg or more of metal. Fees must be arranged directly with the vault if you opt for a pick-up. Otherwise, SchiffGold representatives can deliver to your location. Fees must be arranged with SchiffGold||Withdrawal or pick-up fees depend on vault location. You must call to find out|
Bullion delivery fees are set on a case by case basis. Nevertheless, Vaultoro offers a lower threshold for delivery than Gold Money. When it comes to instructions on how to arrange delivery, Vaultoro’s are much clearer than GoldSilver’s.
None of these fee advantages and the ease with which you can calculate whether Vaultoro is the right choice for you based on your style of trading, would be worth much without accountability. After all, Vaultoro is guaranteeing that you will get physical gold that is stored in a secure vault or Bitcoin/Dash for the gold you possess.
Therefore, Vaultoro must hold itself to high standards of security and transparency. You want to know that your gold is safe, and it actually exists. You also want to know that your coins are safe, and you can withdraw your funds as you please. Vaultoro must also protect your identity.
Vaultoro Glass Books Protocol
That is why Vaultoro adopted the Glass Books Protocol. This protocol is Joshua and Philip Scigala’s brainchild. It consists of a system in which anyone can check Vaultoro’s statements on holdings and then cross check the audits. The best part of it all: you do not need to log into the system to check, which means Vaultoro does not know when people go through the information.
Of course, there are always ways of heating the system, but Vaultoro volunteered to make this an extremely difficult endeavor. Perhaps the weakest point of this system is the gold side. Bitcoin is subject to verification through the public ledger. Gold holdings cannot be accounted for in the same way.
Therefore, Vaultoro hired BDO, a Belgian accounting firm, to audit their gold holdings. This means that at some point you will have to make a leap of faith, but the risks you run in doing so have been reduced to the extent possible.
If you have made the decision to trade, then it is better to do it with a company that imposes such high standards on itself. Just for the sake of understanding how high these standards are, you can check the auditing yourself at any point in time through the “Audit” tab on the platform:
Vaultoro Referral Program
If you like the fee structure, the service that Vaultoro offers, and their Glass Books Protocol, but you do not want to trade, then the referral program is perfect for you. You can make money and accumulate gold for yourself by spreading the word.
The Vaultoro referral program will give you the following pay outs for each user you refer:
- 5% of trading fees for each tier 2 user you refer, for 2 years
- 20% of trading fees for each tier 1 user you refer, for 2 years
- ½ a gram of gold for you on each referral – one-time payment
- The user you refer also gets ½ a gram of gold when they open an account and start trading
Vaultoro is the Best Bitcoin/Dash to Gold Trading Platform Out There
There is no doubt that Vaultoro is a unique trading platform. From its functionality and the services, it offers to its unique Glass Books Protocol, it is hard to find an alternative that can compete with it on every front.
If you are interested in trading your Bitcoin or Dash for gold or in holding gold as a hedge, Vaultoro is the place to go.