What is Wax Cryptocurrency and How Does it Work?

Welcome to the WAX cryptocurrency guide. Watch this video for a little introduction from their team:

Worldwide Asset Exchange, popularly abbreviated as WAX, is a decentralized cryptocurrency exchange geared towards helping gaming enthusiasts to buy and sell related assets. WAX is an Ethereum network-based platform that offers a marketplace for more than 400 million online gamers around the world, who aim at collecting, buying, and selling gaming items.

Unlike tokens such as ERC20, WAX tokens are utility tokens, meaning they are not subject to state regulations like their security tokens counterparts. The tokens allow users to exchange cryptos for virtual goods. We will talk more about WAX tokens at a later stage of this review.

The Team Behind WAX

WAX was created by the same team that established OPSkins, a global platform dealing in virtual assets in the gaming space. The group established OPSkins in 2015 and has managed to spread its services to over 95 countries globally. It was as a result of their global service provision that they realized they needed to cater to the needs of their customer in an even better way with a platform that will offer a decentralized marketplace. And that was how WAX was born.

WAX Tokens

WAX issued its first ICO in November 2017. The WAX ICO token managed to raise a total amount of $9.6 million, after getting a 100% subscription during the coin’s pre-launch.

The tokens enable the platform to tokenize their gaming assets allowing them to be traded on various decentralized exchanges. Other than being used to tokenize virtual gaming assets, the platform’s tokens operate on smart contracts enabling buyers and sellers of the assets to transact in a more organized and transparent way.

How to Buy WAX Token

The WAX token offers unique solutions to its users including the ability to transact using smart contract, and this has expanded to various exchanges across the world. The following are some of the exchanges where you can easily buy WAX:

All these platforms offer different ways of purchasing coins on their platforms, but the fundamental differences have to do with their payment methods as well as whether or not they allow payment using fiat currencies.

Be sure to carefully review each of them to be able to identify one that is convenient, affordable, and offers favorable exchange rates.

wax cryptocurrency

Image source via https://wax.io/

Generally, these are the steps to follow when buying the WAX cryptocurrency:

Step 1: Sign up on the exchange of your choice. Identify an exchange that trades WAX and set up an account on the platform. Ensure that the platform offers one or two WAX trading pairs.

Most exchanges only require you to sign up using an email address, a password, and a few verification details at a later stage. As a precaution, ensure that you set up a two-factor authentication to boost the security of your coins.

Step 2: Fund your account. For you to purchase WAX, you will need to avail the funds to be used in purchasing the crypto exchange of your choice. WAX does not trade with fiat money at the time so you will need to convert the funds into cryptos using a different platform first.

Proceed to the “Deposit” section in your account and specify the amount you wish to use to purchase ETH or BTC for acquiring WAX tokens. Next, you will be prompted to provide a wallet address that will send the fiat money to the exchange. Paste the address on the exchange and send the money.

Step 3: Buy WAX. This is the final stage after exchanging your money for your cryptocurrency coins. You can then proceed to trade the acquired coins for WAX on the exchange. The process of trading coins may vary from one exchange to another, but essentially you will need to identify your preferred pair such as BTC/WAX or ETH/WAX, and so on. Once that is done, you will be required to enter the amount of WAX you prefer, then proceed to make the purchase.

How To Store WAX

Now that you have acquired your WAX, it is advisable that you store them using a wallet.

As an ERC20 token, WAX is supported by a number of wallets. Preferably, they should be stored in an Ethereum-supported wallet. Cold storage ones are always preferred as they are not prone to online attacks.

Here are a few great options:

How Does WAX Work

To give you a better picture of how WAX operates, it is essential to understand the “skins” concept. Skins are virtual assets that allow gamers to customize games to improve their experiences. Users are able to customize their game interfaces, characters, weapons, and more.

The gaming sector is a multi-billion dollar industry, and WAX looks to tap into that.

Online gamers use platforms such as OPSkins to trade their gaming assets to a worldwide audience. OPSkins attracts an audience of over 200,000 on its platforms to buy and sell virtual game assets. Being a decentralized platform, OPSkins saw the need to use the Ethereum Blockchain to create a decentralized marketplace that would complement its centralized system.

WAX enables millions of users to trade on its platform using smart contracts without the need for middlemen who may sometimes impose high brokerage fees for transactions.

The WAX token allows gamers to buy, sell, or rent gaming assets to/from other enthusiasts around the world. In short, the platform brings together a community of gamers who share common interests that go beyond gaming.

The tokens make it possible to tokenize the gaming assets allowing them to be exchanged for cryptocurrencies and ultimately, fiat money. Coupled with smart contracts, the platform is able to offer its users a trustless form of trading across the world.

What to Consider when Investing in the WAX Token

Just like any other investment, crypto investments require certain fundamental factors you will need to take note of. Cryptos are quite speculative and can be complicated if not approached strategically.

You will need to research thoroughly about any coin before putting a dime into it. Below are some considerations when looking to invest in the WAX token:

  • Supply: WAX has a decent demand in the cryptocurrency community. In January 2018, Coinbase reported an under-supply of the WAX token which stood at 492 million out of a market demand of 1 billion.
  • Team: WAX has a strong technical team that brought to life one of the most successful gaming marketplaces, OPSkins. Due to their past experience in handling a successful project, they are better placed to deliver on something even better meant to compliment the weaknesses of the parent project.
  • Usage: The WAX token can be used to tokenize virtual gaming assets that are traded on its native platform, WAX, and on OPSkins. The tokens are also useful when users are messaging and transacting as they act as a fee for using the WAX network.
  • Market size: WAX is expected to serve a gaming community of over 400 million users who undertake various activities including buying, selling, and trading virtual gaming assets. In addition, the gaming sector is said to be raking  $50 billion; that is certainly worth everyone’s while.
  • Whitepaper: The platform’s white paper is quite detailed, with a clear roadmap of everything they do or intends to do. To view a copy of their white paper, click here.
  • Partnerships: It is essential to be aware of any possible business associations with a company you intend to invest in. This will enable you to understand the impact of certain partnerships or business associations. WAX, for instance, partnered with Xsolla, a worldwide video gaming distributor which paved the way for WAX coins to be used as one of the modes of payment for the purchase of gaming tools.
  • Competition: It is also priceless to find out about a platform’s main competition. WAX’s biggest competitors include GameCredits, Enjin, and DMarket.

The Future of WAX

The roadmap of WAX started back in Q4 2017. The platform released its first white paper a few days to 2018. Within Q1 of this year, OPSkins used the WAX token to tokenize its gaming assets.

Part of Q1 and Q2 of 2018 saw the establishment of the WAX’s trading platform which created a marketplace for cryptocurrency collectibles.

Q3 was mostly about finalizing on crucial details such as the smart contracts, conflict resolutions structures, among other things.

In this last quarter of 2018, the WAX team have been keen on creating as much awareness as possible for its token while getting it listed on as many exchanges as possible.

Be sure to read through WAX’s whitepaper to get a better picture of where they are headed.

Conclusion

I hope you find this WAX token review useful.

As the clock ticks towards 2019, we hope that the WAX team will have an even better roadmap for the new year. Also, despite the relatively stable nature of the crypto market in the last two quarters of this year, we certainly hope to close 2018 in a better place as this will play a big role towards the future of young projects such as WAX.

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