US investors permitted
Vaultoro – Detailed review
A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of Vaultoro consists of four parts: general information, fees, deposit methods and security.
Vaultoro is a cryptocurrency exchange from the United Kingdom with a truly unique offering: exchanging BTC for gold. United Kingdom is the country which without a doubt has the most cryptocurrency exchanges in the world. At least that we know of. A non-exhaustive list of exchanges from the UK (in addition to this one) includes Exmo, CEX.io, CoinEgg, Livecoin, DSX, LocalTrade, Bittylicious (funny name by the way), CoinMate, Indacoin, MixCoins, Paybis, Instant Bitex and eToro.
It is in our opinion also the most transparent exchange we have ever encountered. We challenge readers of this review to come up with a question that is not answered in Vaultoro’s extremely extensive FAQ.
At Vaultoro, US-investors can also buy gold for Bitcoin. If you want to trade any less known coins (Zennies Coin, Zatgo Token, Yashcoin, Woodcoin, Ethorse Coin, or any coin with a similar market capitalization to those) against gold, then you’ll be disappointed as Vaultoro only offers trading against BTC.
Storage of the gold
The gold you purchase at Vaultoro is 99.9% pure gold coming directly from the smelting companies. Vaultoro stores the gold in a high security vaulting facility operated by a company named ProAurum Switzerland. The storage and insurance fee is 0.40% of the relevant gold volume (updated every 15 minutes).
List of holdings
Another thing that is quite unique with this exchange is that it publically displays records over which customers that hold which quantities of gold and Bitcoin, respectively. The customers are identified by with their ID-numbers, such as “32u96naANd”. This is an extract from the list of holdings:
At the date of writing this review, Vaultoro stores 0.5 tons of gold for its customers (and 375 BTC), but these figures changes each second as new customers sign up and previous customers withdraw or change their allocation between gold and BTC.
Trading fees can’t really be compared with trading fees at “normal” coin exchanges as this isn’t a normal cryptocurrency trading platform. There is thus no industry average or anything like it.
Vaultoro charges the following trading fees (volume calculated daily based on the most recent thirty-day period):
- First, if you have traded less than 500 grams of gold, your trading fee is 0.50%.
- Then, if you have traded between 500.001 – 1,500 grams of gold, your trading fee is 0.40%.
- Then, if you have traded between 1,001- 5,000 grams of gold, your trading fee is 0.30%.
- Finally, if you have traded more than 5,000 grams of gold, your trading fee is 0.20%.
The storage fee mentioned above (0.40%) is in addition to your trading fee.
From our understanding, if you purchase gold for Bitcoin and then switches back to Bitcoin and then want to withdraw your Bitcoin, there will be no withdrawal fees charged. However, there will of course be withdrawal fees when you withdraw your physical gold from Vaultoro.
To start with, you can never withdraw less than 100 grams of physical gold. This is since the physical gold bars start at 100 grams and it would be too impractical for Vaultoro to ship smaller weights. Vaultoro divides the world into 4 zones, as follows: Zone 1, Germany, Switzerland, UK, Zone 2: Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, France, Germany, Ireland, Italy, Monaco, Netherlands, Portugal, Slovakia, Slovenia, Switzerland, Spain, Sweden, Latvia, Lithuania, Poland, Zone 3: USA and Canada (Only with a local US or Canadian gold dealer, no direct delivery), and Zone 4: Hong Kong, Japan, Malaysia, Mexico, Singapore, United Arab Emirates, Australia, New Zealand.
The withdrawal, shipment and insurance fee to people in Zone 1 is EUR 130 per 100 gram bar, for people in Zone 2 EUR 175 per 100 gram bar, for people in Zone 3 EUR 190 per 100 gram bar and for people in Zone 4, EUR 220 per 100 gram bar.
Vaultoro does not accept any deposits of fiat currency. The service is “gold for BTC” and you consequently need BTC. This means that new cryptocurrency investors (i.e., investors without any previous holdings of cryptocurrencies) can’t trade here. In order to purchase your first BTC, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency. Find one by using our Exchange Finder!
When you’re running a gold storage operation, security is of course of paramount importance. However, that’s not the security we will focus on in this section. We will focus on the digital security.
Vaultoro states on its website that only a very small percentage of its customers Bitcoins are held in hot wallets. Furthermore, they state that payout addresses are locked by the users of the exchange by 2FA (two-factor authentication). Moreover, they match the hot wallets funded by their customers with their own funds in a “publicaly viewable hot wallet”. Finally, they publish the cold and hot wallets for the Bitcoins on its website for public scrutiny.
Vaultoro’s security score is F, when performing the test at Observatory by Mozilla (https://observatory.mozilla.org/). This is below industry average when it comes to top crypto exchanges.
All in all, we think this is an extremely exciting offering and applaud the team behind Vaultoro for offering a service that is unique and surely will be copied by others.
If you have concluded that this is the exchange for you, congratulations! Go for it. But if not, find the best cryptocurrency exchange site for you by using our revolutionary matching tool.