What is PAX Gold?
This blog post will cover:
- What is PAX Gold?
- Where did PAX Gold come from?
- What are the advantages of PAX Gold?
- What are the disadvantages of PAX Gold?
- How to buy PAX Gold on SimpleSwap?
What is PAX Gold?
Nowadays, the term "digital gold" has ceased to amaze anyone. One of those who helped it to become a reality was the Paxos Trust Company. It created an ERC-20 token called PAX Gold (PAXG) based on the Ethereum blockchain. Since the token is built in this way, it can interact with many services, wallets, or exchanges that integrate the ETH protocol.
Paxos claims PAXG is the safest way to possess customers’ gold. After all, the whole trick lies in the fact that by having tokens a person has physical, real gold. This gold is stored in the Brink’s vaults. One fine troy ounce of London Good Delivery gold bar equates to one PAXG token. Unlike some other cryptocurrencies, which do not depend on the value of other assets, such tokens as PAXG are asset-backed tokens and 100% tied to the price of the precious metal. PAX Gold offers all its users the opportunity to own gold bars with the same mobility and speed as any digital asset can offer.
For the convenience of all token holders, the company provides an opportunity to freely convert them into dedicated gold, unallocated gold, fiat (or vice versa). Moreover, at the same time, it reduces their exposure to calculated risk.
Where did PAX Gold come from?
In September 2019, the world saw the PAXG token for the first time. As was already mentioned above, this token was created by a Paxos Trust Company. The CEO and co-founder of Paxos is Charles Cascarilla. He is also the Founding Partner of Liberty City Ventures.
Before that, a Paxos Company was already known for releasing its Paxos Standard (PAX) stablecoin.
This company has 3 headquarters: in London, Singapore, and New York. Paxos co-operates annually with corporations such as Deloitte and Grant Thornton in the sphere of internal audit.
Importantly, the company recently started to support one of the newest PayPal services. With the PayPal digital wallet, US users can easily buy, hold, and sell cryptocurrency. This collaboration has shocked the Crypto World. Thus, PayPal plays a crucial role in raising awareness and the benefits of cryptocurrency for a huge number of people.
What are the advantages of PAX Gold?
- High availability
Anyone can own a fraction of the London Good Delivery gold bar without investing huge amounts of money. Paxos provides the ability to own small shares of a token. The minimum purchase amount is 0.01 PAXG.
This is a company that is approved and regulated by the New York State Department of Financial Services. Gold is stored in the safest vaults in the world. The correspondence of the PAXG token offer and the gold is confirmed by the auditor every month.
- The possibility of exchange
If users have enough amount of PAXG tokens, they can always exchange it for Good Delivery gold bars.
What are the disadvantages of PAX Gold?
- KYC requirements
PAXG tokens are allowed for redemption and sale only for verified users. In case of violation of the contractual documentation of the issuer, it is fully entitled to prohibit the use of its tokens.
- High volatility
The value of gold does not fluctuate as much as the price of cryptocurrencies backed by gold.
- High volatility
How to buy PAX Gold on SimpleSwap?
If you are interested in the PAXG token after reading this article and wondering how to buy it, we are ready to help you. Welcome to SimpleSwap, just follow the short instructions below:
- Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
- Select PAXG in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
- Enter the Recipient's Address. PAX Gold will be sent to this address. Be careful and make sure you use the correct address.
- Check all the information you have entered. If everything is correct click the Exchange button.
- You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.
Welcome to the Crypto World, SimpleSwap will help you keep up to date. Good luck with PAXG!