Buy Pax Dollar in the UK

Why Invest in Pax Dollars (USDP)?

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 financial institution. Paxos Trust Company holds a charter from NYDFS, ensuring compliance with US financial regulations. It is backed one-to-one by US Dollars.

For every USDP in circulation, Paxos says that there is an equivalent US Dollar held in reserve by them. 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 Protection

The Paxos Trust Company aims to ensure 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.

Competitive 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 aims to maintain a 1:1 peg 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. UK residents are required to do an assessment and then wait 24 hours (see below).

New customers are also required under local regulations to wait 24-hours as a “cooling off” period (from account creation), before their account is active (i.e. to deposit, trade, withdraw etc.).

Deposit Funds: Transfer funds from your bank account to CoinJar using one of the following methods:

Bank Transfer: Link your bank account and transfer funds directly.

PayID: Use your PayID to transfer funds instantly.

Osko: Make timely payments using the Osko network.

How to 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.

Protected Storage: After buying USDP, consider transferring it to a wallet with a certain level of protection.

CoinJar Wallet: CoinJar provides its own wallet service. It is convenient, however being an online wallet there is a risk that it may be a victim of a cyberattack. Online wallets are also called “hot wallets”.

External Wallets: If you want to hold on to your Bitcoin for a while, you can transfer your Bitcoin to an external wallet.

Hardware wallets are also known as “cold wallets” (like Ledger or Trezor) and these are effective for long-term storage as they are offline and seriously difficult to hack.

CoinJar has been operating since 2013. CoinJar keep the vast majority of customer assets in cold storage or private multi-sig wallets and maintain full currency reserves at all times.