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Everything You Need To Know About Pax Gold Coin

By December 22, 2022May 16th, 20235 minute read

In the past few years, people have seen dramatic changes in the way they make investments. Cryptos, NFTs, and other investment options have gained a lot of traction. No matter how many new investment options make their way, gold investments have remained intact and will continue to. Gold has remained one of the safest and most prominent investment options for people, especially in countries like India.

Keeping this in mind, a Crypto company, Pax Gold (PAXG), thought to give a modern touch to gold ownership. The company gave the privilege to the investors to trade gold just like any other Crypto. Pax Gold has found a way to amalgamate Crypto with actual gold assets, which catches the eye of investors and encourages them to try this alternative investment method.

In this article, let’s have an overview and how you can buy Pax Gold.

What is Pax Gold (PAXG)?

The Paxos Trust Company is the custodian of the ERC-20 stablecoin PAX Gold (PAXG), which is backed by physical gold reserves. In secured gold vaults like Brink’s, each PAX Gold token is equivalent to 1 troy ounce of a 400-ounce London Good Delivery gold bar. Since PAXG represents actual gold, its value is directly correlated with the current market price of that actual gold.

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Paxos undertakes monthly audits to make sure that the supply of PAXG tokens it has matches the amount of gold it has to guarantee that it consistently maintains its reserves. Should they choose to, users could also redeem PAXG for gold bullion bars at any time.

How does Pax Gold work?

PAXG is an ERC-20 token that is a part of the Ethereum blockchain. As a result, it works with Ethereum wallets and is simple to trade on crypto exchanges. It can also be used on platforms that support it, such as dApps and DeFi.

Compared to holding actual gold bars, PAXG doesn’t charge any storage or custodial fees. Instead, it simply costs Ethereum gas fees and a transaction fee of 0.02%. This is far more manageable for those who want to avoid the burden of all the expenses related to owning gold.

Finally, the system is made to safeguard the user. Every month, Paxos Trust Company is audited by a third-party accounting company to ensure its gold reserves equal the number of tokens issued.

To make sure the network is secure, this is accompanied by regular “smart contract audits.” In addition, separate protection is provided for consumer and company assets. This guarantees that your assets will still be safe even if the business files for bankruptcy.

Advantages of Pax Gold coin

  • Trusted Issuer

The Paxos Trust Company has a history of developing and managing stablecoins, including Paxos Standard (PAX) and the Huobi stablecoin (HUSD), which is pegged to the U.S. dollar.

  • Fully Collateralized

The Paxos Trust Company ensures that the circulating supply of PAXG is backed at a 1:1 ratio by the actual gold bars kept in secure Brink’s vaults.

  • Accessibility

Individuals can acquire fractional ownership of London Good Delivery gold bars at retail investor-friendly rates because of PAXG’s low minimum order requirement.

  • Interest Accounts

Holders of PAXG can earn interest through the crypto asset interest accounts provided by companies like Nexo and Crypto.com. Through the Nexo platform, users can also obtain short- and medium-term loans that are backed by their PAXG tokens.

  • Fractional Ownership

Physical gold bars are generally out of reach for investors. However, a minimum purchase of 0.01 PAXG (currently equal to $19) gives customers access to fractional gold ownership as an alternative.

  • Legitimacy

The Paxos Trust Company, the issuer of PAXG, is completely governed and authorized by NYDFS. Customers’ balances are cumulatively pegged 1:1 by the supply of PAXG tokens that are in circulation as a result of the company’s ongoing, publicly accessible audits.

So, this was an overview of the Pax Gold coin. In the following section, let’s see how to buy Pax Gold coins in India.

How to buy Pax Gold (PAXG) Coins in India?

Below are a few simple steps you can follow and buy the PAXG token in India with WazirX, India’s most trusted and widely used Crypto exchange.

The best way to buy PAXG tokens is using P2P trade. To get answers to all your queries related to the P2P trade, click here!

Step 1 – Sign-Up on the WazirX platform

To begin buying and selling PAXG Crypto, you are required to create an account on the WazirX platform by signing up. Also, you can directly Log-in if you have an account already on the platform.

For your reference, here’s how you can open an account on WazirX.

Sign-Up on the WazirX platform

Step 2 – Set up your account security by verifying your email address.

This step is about verifying your email address. After you sign up on the WazirX platform, you’ll get a verification link on your registered email. By clicking on that link, you’ll get two options to ensure the security of your account – the authenticator app and mobile SMS.

Note: The authenticator app is a more secure way to stay safe when compared to mobile SMS because there’s a risk of delayed reception or SIM card hacking.

Sign-Up Verification on the WazirX platform

Step 3 – Complete the KYC process.

After choosing your country, you can proceed with completing the KYC process. Click here for a detailed overview.

Note: You must complete your KYC to be able to trade P2P or withdraw funds on the WazirX app.

Step 4 – Add funds to your WazirX account using P2P.

After integrating your bank account into your WazirX account, you can buy USDT through P2P to the WazirX wallet. The USDT will act as funds to help you buy your favorite Cryptos.

Step 5 – Finally, buy PAXG on WazirX.

You can now easily purchase PAXG tokens using P2P trade on the platform. Check the PAXG to INR rate from here and PAXG to USDT here.

 After logging in to your WazirX account, you can choose USDT from the “Exchange” tab. You can also check all the price charts, order book data, and an order input form on the right side of the screen.

Click “Buy” after entering the amount and checking the total USDT amount to be paid.

Buy PAXG on WazirX

Your order will be placed according to the price you have input. A seller willing to sell at a price will be notified, and then you can exchange the tokens using P2P.

It might take a few minutes for the order to be completed, but as soon as it is executed, you will receive the PAXG Coins you purchased in your WazirX wallet.

Happy Trading!

Frequently Asked Questions

Is Bitcoin And Cryptocurrency The Same Thing?

Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.

What Is Crypto?

Crypto or a cryptocurrency is a digital currency protected by cryptography, making counterfeiting and double-spending nearly impossible. Blockchain technology is used to produce cryptocurrencies (a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a government does not issue them. The word "cryptocurrency" refers to the encryption methods employed to keep digital currencies and the network secure.

What Are The Best Cryptocurrencies To Invest In?

The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.

How To Invest In Cryptocurrency Stocks?

Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.

What Is Cryptocurrency?

A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.

What Is The Safest Cryptocurrency To Invest In?

Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.

Is Cryptocurrency Safe To Invest In?

Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.

Are Cryptocurrencies Legal In India?

In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.

What Is Virtual Currency?

Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.

Is Mining Cryptocurrency Legal?

Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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