If you buy gold and store it in a house, there is always a fear of theft.
If not, you can store the gold in a gold vault of a bank or a precious metal commercial vault provider. However, there are storage fees.
Buying gold without the hassle of storing it in a commercial vault or bank is the solution to protect the hard earned currency from INFLATION.
You can buy the PAX GOLD token which is 1:1 backed by GOLD from either any centralised exchange or just swap any ERC20 token into PAXG via 1INCH DEFI platform.
What is PAX GOLD?
Screenshots from the website: https://www.paxos.com/paxgold/
* YOU CAN CREATE A PAX GOLD ACCOUNT if you wish to convert the gold token into real physical gold at one point of time in the future.
However for just short term usage of just owning a digital asset of gold(which is fully convertible) does not require to sign up at PAXOS website.
Recall that it is safer to use GOLD instead of a fiat currency(which is prone to inflation) in the longer run.
Even any gains in the crypto could be safer being stored as valuable asset such as GOLD(fully convertible to physical gold) rather than any fiat currency or fiat currency token.
1. BUYING PAX GOLD via centralised exchange: BINANCE
One of the most reputable exchange with the lowest buy/sell transaction fee is Binance.
By clicking on this link, you will get back 10% of your trading commission fees. If you are going to register on your own, you have to pay the trading fees 100% when a trade is made to buy or sell. So, please register for the BINANCE FREE ACCOUNT
( 100% free and 100% safe) via this REFERRAL link:
https://www.binance.com/en/register?ref=KIXVAU1F
After you had bought the gold at the SPOT RATE as a digitalised asset, store your gold in a digital wallet and earn interest on your gold token.
You can buy PAXG token using either USDT, BNB or BTC.
As per the screenshot from BINANCE website, there is a special promotion of ZERO FEES on International USD BANK TRANSFERS via SWIFT till 29th Jan 2021 for those outside US.
If it is a hassle to do a swift transfer, buying crypto using debit/credit card is equally competitive (one of the lowest in the market)
The instruction is given in BINANCE website itself :
https://www.binance.com/en/support/faq/7a795b5916db4a3ea57c1a1208e19581
After buying the GOLD PAX token at the BINANCE exchange, Sign up for an account at YouHodler.
2.Alternatively you can convert any of your ERC-20 token coins to PAXG token at the most competitive rate by using 1inch EXCHANGE.
In order to use Decentralised exchanges, you need to use a wallet where the private key is owned by you.
TRUST WALLET is the most popular and safe decentralised wallet.
You can connect wallet using the WALLETCONNECT feature found in the settings of the TRUST WALLET.
If not, you can connect any decentralised wallet (where the seed phrase is remembered and written by the owner safely in offline modes) to 1inch exchange.
1inch EXCHANGE(as an aggregator)compares the best rate across all the leading decentralised exchange platforms.
After converting any ERC20 token to PAXG, Sign up for an account at YouHodler.
The interest rate for PAXG is 8.2 % ( annual rate), which is the highest in the market so far.
Interest payout is given out every 7 days.
In the wallet of YouHodler, you can safely store the digital gold.
If you store it in a commercial vault or even in a house under lock and key, you cannot earn interest.
By storing it in a digital wallet like YouHodler, you are able to earn interest in keeping gold.
Remember to copy and paste the wallet address correctly and transfer in the correct chain.
For asset backed tokens such as PAX GOLD, the token is fully redeemable for actual gold.
Currently in most countries, buying gold attracts a goods and service tax(also known as Value-Added Tax), however buying digital tokens which back the real assets does not attract any tax.
Depending on the jurisdiction a capital gain tax can be imposed.
Benefit of Buying a GOLD BACKED PAX GOLD TOKEN :
1.Using Gold as a storage of value.
2.Getting a passive income via interest paid on keeping the gold in a digital wallet.
