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Buy Pax Dollar

Pax Dollar

USDP
Currency=PAX.svg
$0.000USD
Past performance is not indicative of future results. All prices are sourced from CoinJar Indices.
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Overview

#346Popularity
StablecoinAsset type
2018Active since
Official site

What is Pax Dollar?

Why do investors buy Pax Dollars (USDP)? The Pax Dollar, often abbreviated as USDP, belongs to the category of stablecoins.

A stablecoin is a cryptocurrency that is “pegged” to an asset considered stable, like gold or a fiat currency, like the Euro or the US Dollar. The primary purpose of stablecoins is to provide stability in an otherwise volatile cryptocurrency market.

How USDP Works

USDP is issued by Paxos Trust Company, a regulated financial institution. It is backed one-to-one by US Dollars. For every USDP in circulation, Paxos says that they hold an equivalent amount in cash and cash equivalents. This parity ensures the stability of the USDP, shielding it from the erratic price movements common in the crypto market.

USDP operates on blockchain technology, the same decentralised, distributed ledger system that underlies cryptocurrencies like Bitcoin and Ethereum.

USDP can be used for various financial transactions, like trading on cryptocurrency exchanges, buying things, and as a form of savings.

Stability and Security

The Paxos Trust Company says that Pax Dollars are fully backed by cash and cash equivalents, maintaining a 1:1 peg to the US dollar. This stability makes them an attractive choice for risk-averse investors. Unlike volatile cryptocurrencies, USDP offers a reliable store of value, especially during market downturns.

Instant Redemption

If you ever need to convert your USDP back to US dollars, you can do so instantly through Paxos. This allows investors to move seamlessly between crypto and fiat.

Lower Transaction Costs

Traditional banking systems often charge hefty fees for cross-border transactions. In the USDP Whitepaper, they say, “Pax Dollar essentially could remove cross-border transaction fees, allowing commerce and trade to occur more fluidly. This improvement alone to the current system could unlock billions in foreign exchange fees.”

Whether users are sending money to family overseas or conducting business internationally, USDP can save users money on transaction fees.

Hedging Against Volatility

Cryptocurrencies are notorious for their price volatility. By holding Pax Dollars, users can hedge against sudden market swings when the crypto market experiences turbulence.

Conclusion

In summary, Pax Dollars combine the advantages of blockchain technology and the stability of fiat currency. Paxos Standard is a stablecoin that maintains a 1:1 peg to the US dollar, claiming stability and regulatory compliance. Paxos Dollars is regulated by the New York State Department of Financial Services. This regulatory approval helps its stability as a stablecoin pegged to the US dollar.

How to Buy Pax Dollars (USDP)

Sign Up for CoinJar: Download the CoinJar app on iOS or Android.

Create an account and verify your identity.

Deposit Funds: Transfer funds from your bank account to CoinJar.

Buy Pax Dollar (USDP): Once your funds are in CoinJar, navigate to the trading section.

Search for “Pax Dollar” or “USDP.” Choose the amount of USDP you want to purchase. Confirm the transaction.

Secure Storage: After buying USDP, consider transferring it to a secure wallet. Hardware wallets or non-custodial wallets provide high level of security for a crypto asset.

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Frequently asked questions

What are Pax Dollars (USDP)?

Pax Dollars (USDP) are a stablecoin issued by Paxos Trust Company. They are designed to maintain a 1:1 peg with the US dollar, providing stability in the volatile crypto market.

How can I buy Pax Dollars (USDP)?

You can buy USDP through various methods:

Bank Transfer: Transfer fiat currency (such as US dollars) from your bank account to an exchange that supports USDP.*

Credit Card: Some exchanges allow you to purchase USDP directly using your credit card.

What is an ERC-20 Token?

An ERC-20 token is a standard for creating fungible tokens on the Ethereum blockchain. USDP is an example of an ERC-20 token.

Are Pax Dollars a Digital Asset?

Yes, USDP is considered a digital asset because they exist in digital form on the blockchain.

Who regulates Pax Dollars?

Pax Dollars (USDP) are regulated by the New York State Department of Financial Services (NYDFS). Paxos Trust Company holds a charter from NYDFS, ensuring compliance with US financial regulations.

What is the market cap of Pax Dollars?

The market capitalisation (market cap) of Pax Dollars represents the total value of all USDP tokens in circulation. It is calculated by multiplying the current price of USDP by the total supply.

How quickly can I transfer Pax Dollars?

Pax Dollars transactions are typically processed within 24 hours, making them suitable for timely transfers.

What role do smart contracts play in Pax Dollars?

Smart contracts on the Ethereum blockchain facilitate the creation, issuance, and management of Pax Dollars. These contracts ensure transparency and automate processes.

What are cash and cash equivalents?

Pax Dollars are fully backed by cash and cash equivalents, meaning that for every USDP token issued, there is an equivalent amount of US dollars held in reserve.

Who founded Paxos Trust Company?

Paxos Trust Company was co-founded by Charles Cascarilla and Rich Teo. They established the company to bridge the gap between traditional finance and the crypto world.

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