PAX Gold (PAXG) is a digital asset. Unlike Bitcoin, Litecoin, and other cryptocurrencies on the market, each PAXG token is backed by a slim 400 oz (t oz) troy ounce London good delivery gold bullion. Gold bars are safely stored in Brink vaults.
If you invest in PAXG, it means that you own the underlying physical gold that is in the custody of Paxos Trust Company.
Compared to other cryptocurrencies on the market, PAXG is more stable as it is backed by commodities, which means that investors get hold of real assets: gold. This type of stablecoin could take over the train that other cryptocurrencies have created. Let’s find out more to see whether or not PAX Gold will steal the spotlight from cryptocurrencies.
PAX Gold Wallpaper
PAX Gold (PAXG) is a commodity-backed, stable gold coin issued by Paxos. Paxos is the first blockchain infrastructure platform to regulate PAXG. Its products serve as the basis for a new, more efficient and faster open financial system. Of course Paxos website, PAX Gold is traded on Binance US, Uniswap and Kraken. It can be purchased from any broker account that supports PAXG trading, such as Crypto.com.
Currently, trillions of money are locked in inefficient and outdated financial infrastructures that millions of people cannot access. Paxos is developing revolutionary technology that will allow resources to instantly travel anywhere on the planet.
For corporate clients, Paxos uses technology to tokenize, hold, trade and regulate assets. Its Paxos Crypto Brokerage and Stablecoin as a Service solutions enable Fintech and financial institutions to provide cryptographic capabilities to their clients. It also provides commodity and securities settlement services. PayPal, Credit Suisse, Société Générale, StoneX and Revolut are among Paxos clients.
Stablecoin versus cryptocurrency
First, we have to look at the distinctive features of Stablecoin which distinguishes it from cryptocurrencies, but it also connects in some way.
Stablecoins are cryptocurrencies whose value is linked to another cryptocurrency, fiat currency, or exchange-traded commodities (such as gold, silver, and some precious metals).
Asset-backed cryptocurrencies like PAXG have the advantage of being stabilized by assets that vary outside of the cryptocurrency market. For example, the underlying asset is unrelated, which reduces financial risk.
Since Bitcoin and altcoin are strongly linked, cryptocurrency investors cannot avoid big price drops without exiting the market or switching to asset-backed stablecoins. Furthermore, due to arbitrage, stablecoins are unlikely to fall below the value of the underlying physical product, provided they are managed in good faith and include a method of redeeming the asset that backs them.
backed stablecoins are still subject to the same volatility and risk as the underlying asset.
Why is PAX Gold the trend now?
Stable currencies are a new type of digital currency backed by real-world stable assets, such as fiat currency. stability of the US dollar meets the efficiency of blockchain technology at PAX Gold.
This is why many investors are jumping from the ‘cryptocurrency ship’ to ‘digital versions of traditional asset ships’ like PAXG.
As of May 19, 2021, the flagship cryptocurrency Bitcoin hit three-month lows, dropping to around $ 30,000 at one point. latest drop followed a significant increase that started in the second half of the previous year.
Part of Bitcoin’s decline appears to be a temporary reversal in broader acceptability, as well as regulatory concerns and weakening in the more speculative sections of the financial markets.
Bitcoin price falls in the first half of 2021
se investors choose PAX Gold (PAXG) as an alternative to the more volatile cryptocurrencies to escape US dollar inflation.
PAX Gold combines the benefits of owning physical gold bars with the speed and liquidity of a digital asset, fractional ownership, and none of the security risks associated with physical gold bars stored in your home safe or payment. gold storage in the vault.
5 benefits of PAX Gold
Real gold on the blockchain offers the advantage of reflecting legal ownership of the assigned physical gold, avoiding the disadvantages of limited portability and expensive storage costs. It has the divisibility, fungibility, and marketability of any digital asset, such as Bitcoin. To put it another way, you get the best of physical and digital assets at the same time!
Here are 5 more detailed reasons why PAXG should be in your next investment portfolio:
- Protection and security
New York State Department of Financial Services (DFS) governs Paxos as PAXG’s trusted and custodial company, which is fully backed by gold awarded in the safest vaults in the world. So if you’re wondering if PAXG is safe, rest assured. Each month, a nationally recognized auditor will testify on the corresponding offering of PAXG tokens and underlying gold.
- Backed by gold and other stable coins
only gold token that can be redeemed for LBMA accredited Good Delivery gold bars is the redeemable PAX Gold. Smaller amounts can be redeemed at a real gold dealer network for added convenience. Unassigned Loco London Gold is also available to institutional clients. Paxos clients can always redeem their USD funds at current gold market rates. PAXG wallet has the same function as other cryptocurrency wallets, but the most special thing is that it can be converted into real gold if necessary.
- Competitive rate structure
fee structure for generating and redeeming PAXG tokens in the Paxos wallet is extremely competitive (0.03-1 percent based on volume levels), with minimal fees on on-chain Ethereum transactions (0.02 percent) and no storage fees . For on-chain transactions, minimum Ethereum gas fees apply, as for all ERC-20 tokens.
- Very accessible
PAXG is an Ethereum-based ERC-20 token that can be transferred and exchanged anywhere in the world at any time. Anyone can now purchase a fraction of an LBMA accredited London Good Delivery gold bar with a minimal investment.
With the Paxos platform, you can easily trade or redeem PAXG for fiat, physical, or unallocated gold. On major cryptocurrency exchanges, you can exchange PAXG for other digital currencies. PAXG can be used anywhere ERC-20 tokens are accepted.
Of course Paxos website, PAX Gold is traded on Binance US, Uniswap and Kraken. It can be purchased from any broker account that supports PAXG trading, such as Crypto.com.
With over 20 vaults, wallets, wallets and lending rigs, PAX Gold is handled safely without the hassle of hiding physical gold behind paint or under the bed. y take care of everything. speed and liquidity of this digital asset still has a long way to go before it finally reaches common ground with cryptocurrencies. But it is coming out strong as most people still trust gold, which is less volatile than the peer-to-peer ecosystem.
Take the advice here with a pinch of salt, as any market fluctuation is unpredictable and risky.
Frequently asked questions
Is PAX Gold safe?
Yes. Paxos, the custodian of PAX Gold, is regulated by the New York State Department of Financial Services (DFS). coin is also backed by gold, which is held behind the safest vaults in the world. Additionally, a nationally recognized auditor conducts monthly audits on PAXG tokens. auditor will testify the corresponding PAXG token offering against the underlying asset which is gold.
Where can I exchange for PAX Gold?
PAX Gold can be traded on the PAXOS website, Binance US and Kraken. It can also be purchased from any other broker account that supports PAX trading, such as Crypto.com.
What are the PAX GOLD fees?
fee structure for generating and redeeming PAXG tokens in the Paxos wallet is extremely competitive (0.03-1 percent based on volume levels), with minimal fees on on-chain Ethereum transactions (0.02 percent) and no storage fees . For on-chain transactions, minimum Ethereum gas fees apply, as for all ERC-20 tokens. At 0.03-1%, Paxos wallet fees are among the cheapest on the market. re are also on-chain Ethereum transaction fees of 0.02%, which are also minimal, and there are no storage fees. This makes it very convenient to trade and hold PAX Gold.
What is the main benefit of buying PAX Gold?
With the current uncertainties in the cryptocurrency markets, PAX Gold offers an intermediate solution in which you can invest in cryptocurrencies that are also backed by real-world currencies such as gold and fiat. This can help reduce the risk of an investor’s overall portfolio.
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