Which Crypto Is Best to Buy Now? Why Gold-Backed Assets Are Outshining Bitcoin This Year

The Unexpected Leader in Crypto Performance

When most people think of the best cryptocurrency to buy right now, Bitcoin usually comes to mind. Yet despite BTC’s historical dominance, it’s actually down 3.23% over the past year, while investors who looked beyond the mainstream narrative have discovered an alternative that’s thriving. That alternative is Pax Gold (PAXG), a blockchain-based token that’s gained 71.27% in value and is currently trading at $4.63K.

The contrast is striking. While Bitcoin and Ethereum (down 4.87% YoY) struggle with market headwinds, Pax Gold has quietly become one of the few assets in the crypto space delivering genuine returns. For anyone asking which crypto is best to buy now with $500, this may be an unconventional answer worth exploring.

Understanding the Gold-Backed Stablecoin Revolution

Most stablecoins peg their value to the U.S. dollar, maintaining a 1:1 ratio. However, an emerging category ties cryptocurrency to tangible assets. Pax Gold represents a different approach: it’s a digital token where each unit is backed by exactly one fine troy ounce of physical gold stored in London vaults.

Think of Pax Gold as gold that lives on the blockchain. Built on the Ethereum network, PAXG operates through Paxos Trust Company, a New York-regulated custodian, meaning you theoretically hold a direct claim on physical gold. This isn’t hypothetical—if you own PAXG tokens, you can exchange them for actual gold bullion at any time.

Currently, two major gold-backed stablecoins compete in the crypto landscape: Pax Gold and Tether Gold, each boasting market capitalizations exceeding $1.6 billion. The key differentiator? Pax Gold’s wider availability across U.S. cryptocurrency exchanges makes it the more accessible option for most retail investors.

Why This Beats Traditional Gold Investment Routes

Investors seeking gold exposure typically choose between physical ownership (the security headaches are real) or exchange-traded funds. Gold ETFs like iShares Gold Trust and SPDR Gold Shares have long dominated this space, charging annual management fees that compound over time.

Pax Gold changes the equation. By purchasing PAXG, you eliminate ETF management expenses while gaining fractional ownership capabilities and 24/7 trading availability—neither possible with traditional gold products. You own the asset directly rather than paying intermediaries to manage it for you.

For a $500 investment, these advantages matter. Over years, the fee savings alone create meaningful returns differentials. Emerging evidence suggests that gold-backed stablecoins could eventually pose serious competitive pressure on established gold ETFs by offering lower costs and greater accessibility.

The Current Market Window: A Critical Timing Consideration

Here’s the reality check: Pax Gold’s recent surge tracks directly with gold’s rally. The precious metal is experiencing one of its strongest years on record, lifting PAXG along with it. This creates an important distinction—when investing in gold-backed crypto, you’re gaining upside participation but accepting the same directional risk as physical gold itself.

The 71.27% year-to-date performance looks impressive today, but markets shift. Gold could consolidate or decline, taking PAXG with it. This isn’t a “set it and forget it” investment; it’s a tactical position suited to investors who believe gold will maintain its upward trajectory into 2026.

Recalibrating Crypto Portfolios in 2026

The broader context matters. Most cryptocurrencies have disappointed this year—Bitcoin and Ethereum both posted negative returns while traditional markets also stumbled. This creates opportunity for investors willing to think differently about which crypto is best to buy now.

Pax Gold represents a rare anomaly: an asset capable of substantial appreciation while providing the inherent stability of commodities. Unlike speculative altcoins or even Bitcoin at current levels, PAXG offers genuine downside protection through gold’s safe-haven characteristics.

For investors with $500 seeking meaningful exposure in this environment, Pax Gold merits serious consideration. It’s not revolutionary technology; it’s practical finance—digital ownership of real gold, trading 24/7, without the overhead of traditional systems.

The real question isn’t whether gold-backed cryptocurrencies will replace Bitcoin. Rather, it’s whether your portfolio can afford to ignore an asset that’s actually delivering returns when most of the crypto world is still in recovery mode.