A beginner’s guide to the WAX cryptocurrency and how you can buy, sell and trade WAX tokens in Australia.
WAX (Worldwide Asset eXchange) is a decentralised platform designed to allow users to create a fully functioning marketplace for online video game assets. Based on the Ethereum blockchain, WAX aims to provide a virtual goods marketplace for the more than 400 million online gamers around the world who collect, buy and sell in-game items.
WAX Tokens (WAX) are utility tokens that allow virtual goods to be exchanged for cryptocurrency. Let’s take a closer look at how these tokens work and how you can buy WAX in Australia.
Where can I buy WAX?
WAX is listed on a number of cryptocurrency exchanges, such as the following:
- Bancor Network
How to buy WAX
If you want to buy WAX Tokens, you can do so by following these three steps:
Step 1. Create an account on a cryptocurrency exchange that allows you to trade WAX
Before you can buy WAX, you’ll need to look for a crypto exchange that allows you to trade WAX in one or more currency pairings. To create an account, you’ll need to supply your name and email address and create a password.
To satisfy Know Your Customer (KYC) laws, some exchanges will require you to provide additional contact information and proof of ID before you can place any trades. It’s also recommended that you set up two-factor authentication on your account as this provides an extra layer of security.
Step 2. Deposit funds into your account
To deposit the necessary funds, log in to your account and look for the “Deposit” link on your account homepage. Specify the amount you want to deposit and generate a wallet address to transfer your chosen crypto to the exchange.
Step 3. Buy WAX
The final step is to exchange your chosen crypto, for example ETH, for WAX. The exact buying process varies from one exchange to the next, but you’ll generally need to search for your desired pairing (such as ETH/WAX) and click on “Buy WAX”. After entering the amount of WAX you want to buy and reviewing the total cost of the transaction, you can then finalise your purchase.
How to sell WAX
If you want to sell your WAX tokens, the steps you’ll need to follow are essentially the same as the buying process outlined in step 3 above, except in reverse. It’s also important to be aware that crypto exchanges don’t offer every possible currency pairing, so it may not be possible to directly exchange WAX for the currency you want.
Which wallets can I use to hold WAX?
WAX is an ERC20 token on the Ethereum blockchain, so it’s recommended that you store your tokens in an Ethereum-compatible wallet rather than on an exchange. The following are examples of wallets you can use:
How WAX works
Before we can understand how WAX works, it’s first important to introduce the concept of “skins”. Skins are virtual goods that allow gamers to customise how in-game appearances and features, such as characters and weapons, look. In the modern technological world, buying, selling and trading skins is a big business, creating an industry worth US$50 billion a year. WAX aims to tap into this market.
Gamers use centralised online marketplaces to trade these items. The largest such marketplace is OPSkins, which was also developed by the team behind WAX and attracts 200,000 new users every month.
WAX is a decentralised, peer-to-peer marketplace for the trading of virtual assets. It uses blockchain technology and smart contract tokens to allow buyers and sellers to trade skins efficiently and without the need for a middleman. The platform is designed to allow millions of users to create their own virtual stores without having to invest any capital in security, infrastructure or payment processing.
The WAX Token is essential for gamers who want to buy, sell, rent and trade their digital assets on the WAX platform. The tokens allow virtual goods to be tokenised and exchanged for cryptocurrency, with smart contracts used to execute trades and to allow trustless trading.
WAX held its ICO token sale from 15-29 November 2017, raising US$9.6 million in the process. However, an even larger number of tokens were sold prior to that during a pre-sale, which saw the platform raise around US$45.5 million worth of funds. The official launch of the WAX platform is scheduled for Q4 in 2018.
What to consider if you want to buy WAX
Before you buy WAX or any other cryptocurrency, it’s essential to be fully aware of all the risks involved. Cryptocurrencies are complicated and speculative, so you’ll need to thoroughly research any coin before making a purchase.
If you’re thinking of buying WAX, make sure you take the following factors into account:
- Supply. According to CoinMarketCap, the circulating supply of WAX at the time of writing (25/01/2018) was 492,954,537, out of a total supply of 1,850,000,000 WAX.
- Use. As the native token of the WAX platform, WAX Tokens support all activities and functionality. According to the white paper, WAX can be used to list items for sale, transact value between each other, settle the transfer of virtual goods, create and service contracts, and propose and vote for WAX Guilds. WAX Tokens are also used during transactions and messages as a fee for using the network
- The team behind the project. WAX was developed by the founders of OPSkins, a leading online marketplace for online video game assets. This means the people behind WAX have experience in developing successful online marketplaces for the gaming community, and that there will also be a high level of integration between the two platforms. OPSkins users are also accustomed to paying with cryptocurrency as the platform has accepted bitcoin for more than two years.
- Size of gaming community. There are more than 400 million online gamers who buy, sell and trade skins online, creating an industry valued at US$50 billion.
- White paper. For a thorough understanding of how the WAX platform and WAX Tokens work, check out the company’s white paper.
- Commercial partnerships. It’s also important to stay abreast of company news and developments for details of any partnerships that could impact the future value of the WAX Token. For example, in November 2017 WAX announced a partnership with global video games distributor and publisher Xsolla, revealing that Xsolla will accept WAX Tokens as a form of payment.
- Competition. Finally, make sure you research competitors that may challenge WAX for a portion of market share. Examples of projects and companies you should look into include GameCredits, DMarket and Enjin.