Looking to buy Paxos Standard (PAX) in the UK?
Check out this quick post for an overview of where you can buy PAX from in the UK.
Intro: Best Ways to Buy Paxos Standard in the UK
Here’s a quick overview of the best places where you can buy Paxos Standard (PAX) in the UK.
|Coinbase Pro||UK Bank Transfer||Up to 0.02%|
|CoinJar||UK Bank Transfer||1%|
|CoinJar||Credit & Debit Card||2%|
|Crypto.com App||UK Bank Transfer||Variable|
|BC Bitcoin||UK Bank Transfer||5%|
Let’s dive into these options a little more.
How to Buy Paxos Standard UK
1. Coinbase Pro
You can use this cryptocurrency exchange to buy Paxos Standard (PAX) and loads of other cryptocurrencies – including stablecoins like USDC and popular cryptocurrencies like Bitcoin (BTC).
Unfortunately, you can’t buy Paxos Standard (PAX) directly with GBP on Coinbase Pro. This means you’ll have to use Tether (USDT) to buy it instead.
Coinbase Pro currently has two Paxos Standard (PAX) trading pairs:
Coinbase Pro charges a maximum of 0.5% in trading fees when buying cryptocurrencies. However, the trading fees work a little different when buying and selling stabelcoins like Paxos Standard (PAX).
As this page details, you’ll be charged a maximum of 0.01% in trading fees when:
- Buying Tether (USDT) with GBP in your Coinbase Pro wallet.
- Buying Paxos Standard (PAX) with Tether (USDT) in your Coinbase Pro wallet.
This means you’ll pay a maximum of 0.02% in fees to complete this entire process. And, because this is one of the biggest exchanges around, you’ll also be trading at close to the real exchange rate.
CoinJar allows you to buy, sell, store, and transfer Paxos Standard (PAX) and many other cryptocurrencies in the UK.
You can deposit GBP into CoinJar using a UK bank transfer. This is processed via the Faster Payments Service (FPS) – so any GBP you send over to CoinJar doesn’t take long to land in your account.
CoinJar charges a fixed fee of 1% when you buy Paxos Standard (PAX) or any other cryptocurrency on its platform. The exchange rate you’re quoted might be a little higher than elsewhere – but not by much (around 0.5% when I’ve checked).
You can also buy Paxos Standard (PAX) and other cryptocurrency supported by CoinJar with a debit card. Without a doubt, this is more convenient – but you’ll pay 2% in fees (i.e., twice as much).
3. BC Bitcoin
Another way that you can buy Paxos Standard (PAX) in the UK is with BC Bitcoin.
BC Bitcoin is a cryptocurrency broker that opened its doors in 2017. It allows you to buy almost any cryptocurrency you could want. The main exceptions to this are privacy-focused cryptocurrencies like Monero (XMR) or Zcash (ZEC).
It supports a few payment methods, but the lowest-cost option is to use a simple UK bank transfer.
You’ll normally be charged 5% in fees to buy Paxos Standard (PAX) on BC Bitcoin. This fee is reduced to 4% if you buy £5000 worth of cryptocurrency in a single order.
BC Bitcoin is more expensive than alternatives, but they’ve received great reviews on Trustpilot – with many highlighting their great customer support.
What is Paxos Standard (PAX)?
Paxos Standard (PAX), now known as the Pax Dollar (USDP), is a US-dollar pegged stablecoin issued by Paxos Trust Company. The coin was officially renamed Pax Dollar (USDP) in August 2021, but many people still call it Paxos Standard (PAX). Note that the Pax Dollar (USDP) is different from other Paxos-issued coins and tokens such as PAX Gold (PAXG).
Paxos Trust Company bills itself as the “first regulated blockchain infrastructure platform”. The company, founded by Charles Cascarilla and Rich Teo, creates products like Pax Dollar (USDP) that can serve as “the foundation for a new, open financial system”. Paxos Trust Company launched in 2012 and it first issued USDP in 2018.
In many ways, the Pax Dollar (USDP) is similar to other 1:1 US dollar-pegged stablecoins like Tether (USDT) and USD Coin (USDC). It aims to maintain its peg by holding US dollars in reserve as collateral for each issued stablecoin.
But Paxos Trust Company claims to hold 100% cash reserves for the stablecoins that it issues. As a result, Pax Dollars (USDP) are theoretically redeemable for US dollars at any time. The firm also makes the monthly third-party audits of its cash reserves available online for all to see in order to prove that it has enough collateral to back all Pax Dollars (USDP) in circulation.
What sets Pax Dollar (USDP) apart from the competition is that it is regulated and overseen by the New York State Department of Financial Services. While USDP isn’t the only government-regulated stablecoin – Gemini Dollar (GUSD) is another option – it is one of the few USD-pegged stablecoins that’s subject to a high level of regular scrutiny.
Here’s a quick video that explains how it all works:
The primary benefit of holding Paxos Standard (PAX), now known as Pax Dollar (USDP), is that it can serve as a price-stable cryptocurrency.
This can seem like a drawback to investors that see cryptocurrencies as investment vehicles, but proponents believe that this price stability gives USDP (and other similar stablecoins value if you want to use them to regularly buy and sell goods and services.
Since the price of USDP should theoretically always equal US$1, it could serve as a straightforward alternative to fiat currencies in daily transactions. While you could use non-stablecoin cryptocurrencies for goods and services, the fact that the value of these coins can fluctuate dramatically might limit their potential functionality in regular purchases.
Of course, this all hinges on USDP maintaining its 1:1 peg with the US dollar. If the coin’s peg breaks, it could negatively affect the value of USDP. Since USDP is highly regulated and scrutinised, this might not be likely – but there’s always a risk that Paxos Trust Company won’t maintain enough US dollars in its reserves to collateralise all USDP in circulation.
Pax Dollar (USDP) has other benefits besides the fact that it’s a stablecoin. Since USDP is an ERC-20 token, it can be used in a wide range of decentralised finance (DeFi) and centralised finance (CeFi) applications.
For example, many brokers and exchanges now offer interest on Pax Dollar (USDP). The stablecoin can also be used to trade for other ERC-20 tokens on Ethereum network-based decentralised exchanges (DEXes) such as Uniswap. It can also be used as collateral for some crypto-backed loans.
Best Paxos Standard (PAX) Wallets
There is no official Paxos Standard (PAX)/Pax Dollar (USDP) wallet. However, since the stablecoin is an ERC-20 token, you can store the keys to your USDP in nearly any ERC-20-compatible wallet.
Some of the best software wallets for holding the keys to your Pax Dollar (USDP) include:
- MetaMask: Available as both a browser extension and a mobile app, MetaMask is a popular ERC-20 software wallet. It supports all ERC-20 tokens, including Pax Dollar (USDP), and it offers integrations with many decentralised apps (DApps) for quick access to DeFi platforms.
- Atomic Wallet: One of my favourite multi-currency wallets, Atomic Wallet is a user-friendly option for ERC-20 token storage. It’s available as a mobile app and desktop app, too, for easy coin and token management.
- Trust Wallet: Designed by the team at Binance, Trust Wallet is a non-custodial crypto wallet that supports all ERC-20 tokens. It provides a sleek interface for managing your coins as well as an option to buy crypto right in the app.
If a hardware wallet is more your style, you have a number of options to choose from for managing your Pax Dollars (USDP).
Both the Trezor One and Trezor Model T can store the private keys to USDP. Trezor Suite, the Trezor wallet interface, also supports USDP, so you can manage your assets with ease.
The Ledger Nano S and Nano X also both support Pax Dollar (USDP). You can manage the private keys to your USDP directly in Ledger Live (the Ledger wallet interface) or you can integrate your wallet with MetaMask for easier access to DApps and other DeFi tools.
Thanks for checking out this guide about how to buy Paxos Standard (PAX) in the UK!
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