Pax Gold (PAXG) Complete Guide - Gold and Blockchain Meet
✨ Hello! Have you been curious about Pax Gold (PAXG), a new gold investment method in the digital age?
Today, I will tell you in detail about Pax Gold, an innovative digital asset born from the combination of the value of traditional gold and cutting-edge blockchain technology.
Don't worry if you are new to cryptocurrency! I will explain complex concepts in easy-to-understand everyday language. π
A Complete Introduction to Pax Gold (PAXG)
Pax Gold is not just a simple cryptocurrency, but an innovative financial product that digitizes physical gold. 1 PAXG is pegged 1:1 to exactly 1 troy ounce (approximately 31.1g) of 99.95% pure gold.
Key Features of Pax Gold:
• 100% Physical Gold Collateral: All PAXG tokens are backed by real gold bullion recognized by the London Bullion Exchange
• Transparent Audit: Our gold holdings are publicly verified through monthly audit reports
• Instant Redemption: You can exchange your PAXG for physical gold or cash at any time
• Fragile Investments: Unlike traditional gold investments, you can trade in decimal places
The most exciting part is that with PAXGold, you actually own gold. Instead of simply tracking the price of gold, you digitally prove your ownership of specific gold bullion stored in a physical vault. It's like having a digital safe key!
PaxGold is also strictly regulated by the New York State Department of Financial Services (NYDFS), ensuring much safer and more transparent operations than other cryptocurrencies.
PaxGold's exciting history and background
September 2018 - PaxGold Launch
Paxos, a financial technology company, has launched the world's first regulated gold-backed stablecoin. At that time, the price of gold was around $1,200 per ounce.
2019 - Listing on major exchanges
Accessibility was greatly improved as the world's largest exchanges, including Binance and Coinbase, began trading PAXG.
2020 - COVID-19 pandemic
PAXG trading volume increased more than tenfold due to preference for safe assets caused by economic instability.
2021 - Inflow of institutional investors
Hedge funds and institutional investors have begun to use PAXG to diversify their portfolios.
2024 - Present
More than $1 billion worth of gold is tokenized and managed as PAXG worldwide.
The background to the creation of PaxGold was the limitations of traditional gold investment. Physical gold is difficult to store, gold ETFs do not have actual gold ownership, and gold futures are complex derivative products. PaxGold was an innovative solution that solved all these problems at once.
PaxGold's sophisticated working principle
PaxGold's working principle is really interesting. It looks complicated, but it is actually operated by a very systematic and transparent system.
π PAXG issuance process:
1. Purchase of gold: Paxos purchases LBMA certified gold bars from the London Bullion Exchange
2. Safe Storage: The gold you purchase is stored in a vault at a professional vault like Brink's
3. Token Issuance: PAXG tokens are issued on the Ethereum blockchain in the amount of gold stored
4. Serial Numbering: Each gold bar has a unique serial number that allows tracking
The most amazing thing is that PAX Gold holders can actually visit the vault and check their gold in person if they want! Of course, you must hold at least 430 ounces (about 13 million won), but this transparency is a feature that is hard to find in other financial products.
In addition, all transactions are automatically processed through smart contracts and are permanently recorded on the blockchain, making falsification impossible. Even if Paxos goes bankrupt, there is a legal mechanism in place to ensure that the gold in the vault remains the property of PAXG holders.
Various ways to use Pax Gold
Pax Gold is not just a simple investment product; it can be used in various ways in everyday life. You will be surprised at how wide its range of applications is!
π° Personal Investment Portfolio: Many investors include Pax Gold in their portfolios along with stocks and bonds to diversify their risks. It is especially popular as an inflation hedge.
π Payment Method: Some high-end jewelry and precious metal stores accept PAXG as a direct payment method. It's like trading directly with the value of gold!
π¦ DeFi Utilization: You can borrow PAXG as collateral on decentralized finance (DeFi) platforms or deposit it in liquidity pools to earn returns. This is a method that was not possible with traditional gold investments.
π International Remittance: When sending money to family living abroad, using PAXG is faster and has lower fees than traditional bank transfers. Especially good because it can reduce the risk of exchange rate fluctuations.
Real-world use cases:
• A US real estate investor used PAXG to buy real estate in Dubai
• A Venezuelan businessman used PAXG to protect his assets against the devaluation of his local currency
• A Japanese collector traded rare art pieces with PAXG
A complete guide to major PAXG exchanges
There are many exchanges where you can trade PAXG. However, it is important to know the features and pros and cons of each and choose!
πΆ Binance
Advantages: Largest trading volume in the world, low fees
Fees: 0.1% (0.075% with BNB discount)
Features: Staking service provided
π· Coinbase
Advantages: High reliability, user-friendly
Fees: 0.5% (Pro version)
Features: Fully compliant with US regulations
πΈ Kraken
Advantages: Strong security, various order types
Fees: 0.16-0.26%
Features: Institutional investor services
πΉ Upbit
Advantages: Korean language support, direct KRW trading
Fees: 0.25%
Features: Korea's largest exchange
Exchange selection tips:
• Beginners: We recommend places with simple interfaces like Coinbase or Upbit
• Large volume trading: Recommend high liquidity like Binance or Kraken
• Long-term holding: Use a secure exchange and hardware wallet in parallel
• Residents of Korea: Consider domestic exchanges for tax reporting convenience
Share information with an active PAX Gold community
It's really important to join various communities to get the latest information and investment insights on PAX Gold. Each platform has its own unique features and advantages!
π± Telegram Channel: This is where real-time price alerts and market analysis are shared the fastest. It's great for keeping up with global market trends, as you can communicate with investors around the world 24/7.
π¬ Discord Server: More in-depth technical analysis and investment strategy discussions take place. In particular, there's a wealth of information on how to use DeFi and advanced trading techniques.
π¦ Twitter (X): Follow the official Paxos account (@PaxosGlobal) to get the latest official updates. You can also check out PAXG-related analyses from famous crypto influencers.
π° Reddit: Share in-depth discussions and experiences on the r/paxos and r/cryptocurrency subreddits. Especially, I like finding actual user reviews and troubleshooting methods.
Special tips for Korean investors:
• Exchange Korean information at Naver Cafe 'Virtual Currency Investment Research Institute'
• Share real-time market information in the KakaoTalk open chat room
• Watch Korean analysis videos on YouTube channels
• Refer to investment experiences on blogs and Brunch
However, it is dangerous to blindly trust information from online communities. Always cross-check information from multiple sources, and give priority to information from official channels.
PaxGold Safe Storage Complete Guide
Safely storing PAXG is as important as investing. Losses due to improper storage are irreversible!
π Hardware Wallet (Recommendation: ⭐⭐⭐⭐⭐): Hardware wallets such as Ledger or Trezor are the safest. Since they store your private keys offline, there is almost no risk of hacking. The price is around 100,000-200,000 won, but it is a must-have investment if you store a large amount of money.
π± Mobile Wallet (Recommended: ⭐⭐⭐⭐): Mobile wallets like MetaMask or Trust Wallet are convenient, but you need to pay more attention to security. Be sure to download them from the official app store and update them regularly.
π» Desktop Wallet (Recommended: ⭐⭐⭐): Wallets used on PCs or Macs are feature-rich, but computer security is important. Always keep your antivirus up to date and avoid visiting suspicious sites.
Things you should never do:
• Do not store large amounts of PAXG on exchanges for long periods of time
• Do not store your private keys or seed phrases online
• Do not save screenshots of your private keys
• Do not enter your private keys on phishing sites
• Do not access your wallet from public Wi-Fi
My personal recommendation is 'cold storage