PAX Gold (PAXG) is an ERC-20 stablecoin that is backed by real gold that is kept in safe vaults. By letting users own small amounts of real gold without having to pay for storage or shipping, PAXG makes investing in gold easier for more people. People can buy and sell PAXG as a digital asset on DEXs and organized coin markets.
Introduce
Over thousands of years, gold has stayed a valuable product. People use it to keep value, make jewelry, and even protect themselves from inflation. Buying real gold, on the other hand, is usually expensive and difficult for regular investors. Starting with keeping gold in a safe place, like a bank vault. Furthermore, moving gold from one place to another can be hard because it is so heavy.
To deal with these problems, Paxos Trust Company made PAX Gold (PAXG), which is digital gold that lives on the blockchain.
What is PAX Gold (PAXG)?
The ERC-20 stablecoin PAX Gold (PAXG) is backed by real gold that is kept in safe vaults. For every PAX Gold coin, there is one troy ounce of a 400-ounce London Good Delivery gold bar that is kept in a safe place, like Brink’s. Since PAXG is made up of real gold, its worth is directly linked to the price of gold on the market at the moment.
There is oversight and approval for PAXG from the New York State Department of Financial Services. So that Paxos can keep its gold reserves, a third-party monitoring company checks every month to see if Paxos’s gold reserves match the number of PAXG tokens that are in circulation and to confirm the information that is posted on the Paxos website. Regular testing of smart contracts by PAXG engineers looks for mistakes and security holes.
Also, all of Paxos’s customers’ assets, including PAXG’s, are kept separate from the company’s assets and safe from bankruptcy.
How does PAXG work?
The Ethereum blockchain is where PAX Gold works. Since PAXG is an ERC-20 coin, it can be used with Ethereum accounts. DeFi DApps and DEXs on Ethereum can work with it, and it can be bought and sold on coin platforms like Binance.
If you own PAXG instead of real gold bars, you don’t have to pay any fees for keeping or management. A very small fee of 0.02% and some ETH are charged for each PAXG exchange. PAXG makes buying in gold easier for more people by letting users own a small amount of real gold bars without having to pay fees, storage, or shipping costs.
The serial numbers of the PAXG tokens are matched to the serial numbers of each gold bar. By putting their Ethereum wallet address into the PAXG finding tool, gold owners can find out about their gold’s unique number, value, and other details. They can also trade their PAXG for cash, another cryptocurrency, or assigned or unallocated gold bars from gold shops at the present price of gold on the market.
What is the difference between PAXG and a gold ETF?
ETFs that invest in gold follow the value of the gold they are based on. While investors can lose or gain money based on the price of gold, they do not actually own the gold. When someone buys gold ETF shares, they are legally entitled to a certain amount of the gold that is already in the pool. Having a gold ETF is not the same as having real gold. Sometimes, the value of the contract may be less than the value of the gold it represents at the time of payment. This can happen during times of crisis and instability.
PAXG, on the other hand, is a computer picture of gold. Each PAXG ticket is like a small ounce of gold that is kept in safe vaults in London and can be identified by its unique serial number. On the other hand, PAXG transactions don’t take days to settle like gold bar transactions do. Because PAXG is an ERC-20 coin on Ethereum, it can be sold and settled almost instantly.
How to buy PAXG on Binance?
People can buy PAX Gold (PAXG) on platforms for cryptocurrencies like Binance.
1. Go to your Binance account and click on [Trade] – [Spot].
2. Type in “PAXG” to see the trade pairs that are available, such as PAXG/BTC, PAXG/BNB, PAXG/USDT, and PAXG/BUSD.
3. Type the amount of PAXG you want to buy into the [Spot] box. We will use the Market order in this case. When you click [Buy PAXG], the tokens will be added to your Spot Wallet.
Summary
Although investing in different coins has become popular in recent years, traditional investors still like to hold real goods. Using the speed and value of crypto-assets, PAXG wants to challenge this established market with a blockchain-based option.
