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Everything you need to know about Pax Gold (PAXG) cryptocurrency

This token allows users to invest in physical Gold without paying for its storage and transportation. Users can trade PaxGold as a digital asset on centralized digital currency exchanges or DEXs (decentralized exchanges).

Introduction

Gold has given its value to It has retained the title of a valuable commodity. Gold is used to make jewelry, store assets, and capital that is resistant to inflation. Although buying physical Gold is expensive and difficult for retailers. Storing physical Gold requires safe deposit boxes, such as bank safe deposit boxes. In addition, it is not easy to transfer Gold from one place to another because of its heavy weight.

To solve these problems and challenges, Paxos Trust has introduced the Paxos Gold digital currency, which is actually token gold.

What is Pax Gold (PAXG)?

Pax Gold is an ERC-20 standard stablecoin with physical Gold reserves held by the company. Paxos Trust is sponsored. Each Pax token is equivalent to one ounce of a 400 ounce Gold bullion held in safe Gold vaults in London. Since PAXG is backed by gold, its price is directly tied to the current price of physical Gold in the market.

PaxGold is regulated by the New York State Department of Financial Services. To ensure that Paxos Trust correctly declares its Gold reserves, a third-party auditing firm conducts monthly checks to determine whether Paxos Trust has physical reserves equal to the tokens being issued. The report of these reviews is published monthly on the official website of Paxos.

Pax Gold developers regularly audit smart contracts to identify bugs and possible vulnerabilities. In addition, all assets of Paxos Trust clients, including PaxGold, are protected against bankruptcy and held separately from the company's assets.

How does PaxGold (PAXG) work?

BingMag.com <b>Everything</b> <b>you</b> <b>need</b> to <b>know</b> <b>about</b> <b>Pax</b> <b>Gold</b> <b>(PAXG)</b> cryptocurrency

PexGold runs on the Ethereum blockchain. As an ERC-20 token, it is fully compatible with Ethereum-based wallets and can be integrated with decentralized DeFi and DEX applications on Ethereum and traded on exchanges such as Binance.

Compared to holding physical Gold bullion. Having Pax Gold does not require a safe deposit box or paying maintenance fees. Each transaction involves only a 0.02% fee and a very small amount of Ether as a network fee. In this case, users can have physical Gold without the need for storage and transportation costs.

Pax Gold tokens have a serial number that matches the serial number of physical gold. Token holders can find information about their physical gold, including serial number, value and other attributes, by entering their Ethereum address into PaxGold's search tool. Users can also trade the token with fiat currency (common paper currencies such as dollars), or other digital currencies at any time.

What is the difference between Pax Gold and Gold ETFs?

Gold and only expose investors to Gold prices, not their ownership. Gold exchange-traded funds cannot replace full ownership of gold. For example, in times of crisis and extreme price fluctuations, the value of the contract can be lower than the value of the base Gold that is shown at the time of settlement.

In contrast, PaxGold is a digital representation of gold. Each PexGold token is equivalent to one ounce of physical Gold held in safe deposit boxes in London. Since PaxGold is an ERC-20 token on the Ethereum blockchain, you can trade it instantly.

How to buy PAXG on Binance Exchange?

you can buy Pax Gold (PAXG) on cryptocurrency exchanges like Binance.

1. Log in to your Binance account and click [Trade] [Spot].

2. Search for "PAXG" to see available trading pairs, including PAXG/BUSD, PAXG/USDT, PAXG/BNB, and PAXG/BTC.

3. Go to the [Spot] box and enter the amount of PAXG to buy. In this example, we use a Market command. Click [Buy PAXG], and the purchased PAXG will be deposited into your Spot wallet.

Disclaimer: Binance exchange has banned users with Iranian identity worldwide, and any bypassing of the authentication process may cause be blocked or lose your capital.

Summary

In a situation where investment options in the world of digital currencies have become very diverse in recent years, and at the same time they have become very popular. achieved, physical commodities still have a place in traditional investors' portfolios. Using the speed and liquidity of digital currency, Pax Gold is trying to provide a blockchain-based alternative to investing in physical goods.

  • What is the BTC Dominance Index?

Source: Binance Academy

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