How to Buy PAXG on Backpack Exchange: Complete Guide (2026)

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Looking to buy PAXG (PAX Gold) as digital gold? Backpack Exchange allows users to trade gold-backed cryptocurrency with zero fiat on-ramp fees. This guide explains what PAXG is, how it works, and the step-by-step process to buy it on Backpack.

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What Is PAXG (PAX Gold)?

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PAX Gold (PAXG) is a gold-backed cryptocurrency where each token represents one fine troy ounce of London Good Delivery gold stored in professional vaults. It is issued by Paxos Trust Company, a regulated financial institution. PAXG combines the price exposure of physical gold with the transferability and accessibility of blockchain technology.

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Key Features of PAXG

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• 1:1 Gold Backing: Each token corresponds to one fine troy ounce of physical gold
  
  
• Regulated and Audited: Paxos operates under regulatory oversight and provides regular third-party attestations of reserves
  
  
• Redeemable: PAXG can be redeemed through Paxos for physical gold or fiat currency, subject to applicable terms and minimum requirements
  
  
• Fractional Ownership: Investors can purchase small amounts of PAXG rather than buying a full gold bar
  
  
• ERC-20 Token: Built on Ethereum, making it compatible with widely used wallets and DeFi applications
  
  

PAXG is designed to track the market price of gold and typically moves in line with global gold spot prices.

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Why Buy PAXG on Backpack Exchange?

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Backpack provides access to both spot trading (PAXG/USD) and perpetual futures (PAXG-PERP) in a regulated trading environment.
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Zero Fiat On/Off Ramp Fees

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Backpack does not charge fees for fiat deposits or withdrawals. While banks or payment providers may apply their own charges, the exchange itself does not impose additional on-ramp fees.
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Regulated Platform

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Backpack operates under a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). The platform also implements:
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• Proof-of-reserves transparency
  
  
• Secure custody systems
  
  
• Multi-layer security architecture
  
  

Spot and Perpetual Markets

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Users can choose between:
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• PAXG/USD (Spot): Buy and hold gold-backed tokens
  
  
• PAXG-PERP (Perpetual Futures): Trade gold price movements with leverage
  
  

This flexibility allows investors to either hold digital gold or actively trade volatility.

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Step-by-Step Guide to Buy PAXG on Backpack (Spot Trading)

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Buying PAXG on Backpack is simple and fully spot-based. After creating and verifying your account, deposit USD or cryptocurrency, navigate to the PAXG/USD spot market, and place your order.
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Once you own PAXG, you can choose to hold it on the exchange, withdraw it to your own wallet, or convert it back to fiat and use Backpack’s zero-fee off-ramp.

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Step 1: Create and Verify Your Account

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1. Visit backpack.exchange
   
   
2. Click “Sign Up”
   
   
3. Register with your email and create a secure password
   
   
4. Verify your email
   
   
5. Complete identity verification (KYC) to unlock full trading access
   
   

For added security, enable two-factor authentication (2FA).

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Step 2: Deposit Funds
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Backpack supports both fiat and crypto deposits.

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Deposit USD (Fiat On-Ramp)
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1. Go to Wallet → Deposit
   
   
2. Select USD
   
   
3. Choose your preferred payment method
   
   
4. Follow the instructions
   
   

Backpack does not charge fees for fiat deposits. Your bank or payment provider may apply their own charges.

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Deposit Cryptocurrency
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1. Go to Wallet → Deposit
   
   
2. Select a supported asset such as USDT, USDC, BTC, or ETH
   
   
3. Copy your deposit address
   
   
4. Transfer funds from your external wallet
   
   

Wait for confirmation before trading.

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Step 3: Navigate to the PAXG Spot Market

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1. Click “Trade”
   
   
2. Select the “Spot” section
   
   
3. Search for PAXG/USD
   
   
4. Confirm you are on the correct trading pair
   
   

Always verify the asset name before placing an order.

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Step 4: Place Your Order

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Choose your preferred order type:

Market Order: Executes immediately at the best available price.

Limit Order: Executes only at your specified price.

Enter the amount of PAXG you want to buy or the USD amount you wish to spend, then confirm your order.

Once executed, your PAXG will appear in your wallet balance.

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Step 6: Monitor and Manage Your Investment

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After buying PAXG:
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• Track gold price movements
  
  
• Set price alerts if available
  
  
• Decide whether you are holding long-term or rebalancing periodically
  
  
• Keep transaction records for tax reporting
  
  

PAXG tracks global gold prices rather than broader cryptocurrency sentiment.

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Step 5: Hold, Withdraw, or Off-Ramp

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After purchasing PAXG, you have multiple options:

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Keep PAXG on Backpack

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• Convenient for future trading
  
  
• Stored within Backpack’s custodial system
  
  

Withdraw to a Personal Wallet

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• Transfer PAXG to an Ethereum-compatible wallet
  
  
• Provides full self-custody
  
  
• You are responsible for securing your private keys
  
  

Convert Back to Fiat and Withdraw

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• Sell PAXG on the spot market
  
  
• Convert to USD
  
  
• Withdraw funds to your bank account
  
  

Backpack offers zero-fee fiat off-ramp, allowing you to move between digital gold and traditional banking without additional exchange withdrawal fees.

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Important Considerations When Buying MON

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Before investing in crypto, it’s essential to understand the key factors that can impact your safety, costs, and legal obligations.

Fees: Exchanges and trading platforms charge varying fees for transactions, including trading, deposits, and withdrawals. Always review the fee structure before making a purchase.

Security: Choose reputable platforms with strong security measures. Protect your accounts using strong, unique passwords and enable two-factor authentication (2FA).

Risk: Cryptocurrency is a volatile asset class. Prices can fluctuate dramatically, and you could lose some or all of your investment. Invest only what you can afford to lose.

Regulations: Cryptocurrency laws differ by country. Understand the legal and tax implications in your region to ensure compliance and avoid penalties.
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Conclusion

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Buying PAXG on Backpack offers a straightforward way to gain exposure to physical gold within the crypto ecosystem. With spot trading, zero fiat on-ramp and off-ramp fees, and flexible custody options, users can move seamlessly between digital gold and traditional finance.

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Whether you are diversifying your portfolio or seeking a gold-backed asset onchain, PAXG provides access to global gold markets in a blockchain-native format.

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As with any investment, understand the risks, review fees, and ensure the asset aligns with your financial goals before trading.

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