Paxos Standart Sports Betting 2023

Paxos Standart PAX review

Paxos Standard is a PAX stablecoin which was created by Paxos Trust Company, LLC, with the crypto being tethered to the USD at a 1:1 ratio. PAX was developed to reduce crypto asset volatility, facilitate frictionless remittance transactions, and become a reliable payment medium for blockchain-based assets (read this - PAX Gold review).

How Does It Work?

Paxos is based on Ethereum’s ERC-20 token standard, meaning that it cannot be mined or staked. Thus, you can only buy or exchange the coin.

The issue and redemption of PAX are based on a smart contract that handles the one-to-one conversion between PAX and USD. It is worth mentioning that the total supply of Paxos Standard Token is backed by fiat that is stored in reserve.The tokenization procedure of PAX involves a user sending USD to the token issuer’s bank account, then the smart contract mints the equivalent PAX amount, which is then deposited into the user’s wallet.

The reverse process is used to redeem PAX for USD, with the tokens that are taken out of circulation being burned immediately.There are no fees charged for the process of converting or redeeming the tokens, but there is a minimum limit of $100.

What Makes It Unique?

The Paxos Standard Token code is open source and can be inspected by anyone by accessing the project’s official GitHub page.

Paxos has notable legal regulations, as the company is approved and regulated by the New York State Department of Financial Services (NYSDFS). All tokens supplied by the Paxos Trust Company are backed by 1 USD each on the company’s account.

What sets PAX apart from other USD-based stablecoins is its partner organizations and the use of “processing windows.” Processing windows are specific time frames in which PAX conversions and fiat deposits/withdrawals occur. These processing times are scheduled to happen frequently every weekday (and even some on the weekends), which allows the transactions to be initiated and executed faster than regular conversions.

Advantages and Disadvantages

Paxos’s most notable advantages include regulations from the New York State Department of Financial Services, collateralized deposits in FDIC-insured U.S. banks, bank-grade audits, additional transaction monitoring, surveillance partners, and no fees. But it is important to realize that Paxos is not a decentralized coin, which can put off many privacy-concerned people from using the crypto.

How Is It Used for Sport Betting?

Paxos Standard has transactional functionalities just like the rest of cryptos, with transfers from one wallet to another being executed peer-to-peer over the Ethereum network.

The same payment process applies to PAX deposits and withdrawals to and from sports betting websites. If the bookmaker supports PAX payments, look for its PAX wallet address, copy it, and then enter the address in the recipient field from your own Paxos wallet when you want to make the PAX transfer. The coins are then sent to your betting account.

To withdraw, you have to go to your bookmaker account and initiate a withdrawal to your external PAX wallet, wait for the bookie to approve the withdrawal request, and then you will receive your earnings in your wallet.

Paxos sportbooks are very rare in the online gambling industry, so you will not find so many options. Crypto-only sites are the most likely to support PAX payments. Very few bookmakers that accept the PAX coin but there are no sportsbooks for PAX at the moment. Click here if you all the best crypto sportsbooks.

Is It Safe to Use for Betting?

Legally speaking, Paxos and its parent company are regulated by one of the sternest financial authorities in the US. The company and its reserves are thoroughly audited, regularly checked for security flaws, and collateralized. PAX also fluctuates less than the most popular stablecoin - Tether.

The main concern of PAX crypto bettors is that the company can track the transactional history and use of PAX coins, and if they consider gambling with them in a jurisdiction where it is illegal or against the regulations they abide, funds can either be frozen or confiscated.

But using the coins to bet in online sites where it is legal, or if there are no interdictions for crypto betting, then you will probably be able to play using PAX. The risk of sharp PAX price fluctuations is close to a minimum, as this is the purpose for which stablecoins have been designed.

How and Where to Get It? Where to Buy PAX?

Every Paxos token can be purchased or redeemed through the Paxos.com website. PAX can also be bought directly from exchanges in pairs against a variety of cryptos. There are not as many options in terms of exchanges compared to other stablecoins, such as USDT or USDC, but you will be able to find PAX platform listed on two dozen platforms, including popular ones such as Binance, Bittrex, Bitfinex, Bithumb, HitBTC, and OKEx.

However, Binance has the most pairs, with a total of 19. PAX is mostly paired against BTC (PAX to BTC) and USDT, and there are also a few pairs with ETH and LTC. Five exchanges support the trading of PAX against the USD (PAX to USD), namely P2PB2B, Bittrex, Bitfinex, CREX24, and OKCoin. There are two KRW options for South Korean users for PAX buy on the Bitsonic and Coinsbit platforms.

Exchanges that support fiat options will most likely require you to pass a KYC verification before you are able to make a deposit. After signing up and passing the KYC, select the Paxos pair you want to trade with. Then, you will have to specify how many coins you want to buy and complete the order. Once the Paxos coins will have reached your PAX exchange wallet, move them to your external ERC20-compatible wallet.

Conclusion

Paxos is a stablecoin that is used in the crypto trading community, as it is issued by a reliable company and has one of the least fluctuating PAX prices compared to other stablecoins, but there are currently not many online sports betting sites that has PAX support.