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Paxful Review: Features, Pros & Cons For 2023

Paxful

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Before launching this Paxful review, here is a bit of trivia, also known as ‘Bitcoin Uber’, Paxful is a digital marketplace connecting Bitcoin buyers and sellers. It provides hundreds of payment and trading methods to its users that aren’t available to competitors.

This guide will review Paxful in full detail, covering everything, including services, features, USP, and its shortcomings.

Overview of Paxful

Paxful, a P-2-P marketplace for selling Bitcoin, was started in 2015 by Ray Youssef and Artur Schaback. It operates across major cities globally. Since its launch, Paxful has allowed sellers to sell Bitcoins without hassles. Vice versa, the buyers also benefit from multiple payment options, smooth transactions, and seller trust ratings. It fills the gap between miners and exchanges.

Unlike exchanges grappling with geographic restrictions, Paxful allows buyers to choose the seller and connect independently. It truly represents the spirit of the decentralized concept of cryptocurrencies.

In many terms, the exchange is similar to LocalBitcoins.com. Its users experience the same peer-to-peer buying options from private sellers after agreeing to mutually acceptable terms. The transaction is completed through one of the many available options.

Paxful’s Position in the Cryptocurrency Landscape

Paxful has established itself as a prominent player in the peer-to-peer cryptocurrency exchange sector. Its commitment to providing diverse payment methods, robust security measures, a user-friendly trading interface, and comprehensive customer support sets it apart from traditional centralized exchanges. While Paxful may not match the popularity of larger platforms like Kraken or Gemini, it fills a crucial niche by offering a seamless trading solution for novice and experienced investors in countries with limited access to traditional cryptocurrency exchanges. As cryptocurrencies continue to gain traction globally, Paxful remains a valuable platform that empowers individuals to engage in peer-to-peer transactions, expand their crypto portfolios, and participate in the evolving decentralized financial ecosystem.

Platform Features

PAxful main
PAxful main

Paxful’s core value proposition is connecting buyers and sellers directly, facilitating seamless peer-to-peer transactions. The platform offers a range of features designed to enhance the trading experience and cater to the diverse needs of its users.

1. Payment Methods: Paxful supports an extensive selection of over 350 payment methods, ensuring users have flexibility in choosing their preferred method for both buying bitcoin, and selling cryptocurrencies. These options span traditional methods like bank and wire transfers to more modern options like Apple Pay, Google Pay, and PayPal. Paxful’s commitment to offering diverse payment methods sets it apart from many other exchanges in the market.

2. Trading Interface: Paxful boasts a user-friendly trading interface accessible through mobile and desktop applications. Placing orders is straightforward, with a “New Order” button allowing users to initiate trades and connect with potential buyers or sellers. Additionally, vendors can create advertisements to showcase their crypto offers on Paxful’s Facebook page or within the trading platform’s Instagram community, attracting a broader audience of buyers.

3. Escrow Service: Paxful’s robust escrow service protects buyers and sellers during transactions. The platform holds the cryptocurrency in escrow until both parties confirm the completion of the trade, minimizing the risk of fraud or disputes. This feature instills trust in the marketplace and helps cultivate a secure and reliable trading environment.

4. Affiliate Program: Paxful offers an affiliate program, allowing users to earn passive income by referring new users to the platform. Affiliates can receive payouts in tokens, providing an additional avenue for cryptocurrency accumulation while engaging in transactions on Paxful.

Supported cryptocurrencies and payment methods

Paxful primarily supports Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) as the main cryptocurrencies available for trading. However, the platform offers additional options through various payment methods, enabling users to access a broader range of digital assets.

1. Cryptocurrency Options: While BTC, ETH, and USDT are the main cryptocurrencies supported by Paxful, users can explore additional tokens through specific payment methods. By leveraging alternative payment options, users gain access to other cryptocurrencies within the Bitcoin and Ethereum families and popular altcoins like Dogecoin (DOGE). This diversity allows traders to explore a wider range of digital assets based on their preferences and investment strategies.

2. Payment Methods: Paxful’s extensive selection of more than 350 payment methods is a significant advantage for users seeking flexibility in their transactions. From bank transfers and PayPal to gift cards and digital currencies, the platform accommodates various preferences and enables individuals from various countries to participate in cryptocurrency trading. This vast array of different payment methods and options is a testament to Paxful’s commitment to inclusivity and accessibility.

Fees

Paxful implements a fee structure that is transparent and competitive within the peer-to-peer exchange landscape. The platform aims to provide users with cost-effective trading options while maintaining its commitment to delivering a reliable and secure trading environment.

1. Buying Fees: Paxful does not charge fees for purchasing cryptocurrencies directly. Buyers can acquire Bitcoin, Ethereum, or Tether without incurring additional charges from the platform. However, it is essential to note that sellers may include transactional charges ranging from 0.1% to 5%, which buyers need to consider when selecting their preferred offers.

2. Selling Fees: When sellers initiate transactions on Paxful, fees are applied based on the chosen withdrawal method. Bank transfers incur a fee of 0.5%. In contrast, other bank transfer options, credit/debit card transactions, all digital wallet and currency withdrawals, online wallet transfers, cash exchanges, goods and services transactions, iTunes and Google Play gift card sales, and all other gift card sales are subject to a 1% fee. It is worth noting that these fees may vary depending on specific trade terms and conditions.

Customer support

Paxful places significant importance on providing robust customer support to assist users throughout their trading experience. The platform ensures that individuals can seek guidance and resolve any issues promptly.

1. Support Channels: Paxful offers multiple avenues for users to reach customer support. These include email support, live chat, and a 24/7 chatbot, enabling users to seek assistance and receive timely responses to their queries. Furthermore, Paxful maintains an active presence on social media platforms such as Facebook, Telegram, and Twitter, providing additional communication channels for users to engage with the platform and address their concerns.

2. Comprehensive Resources: Paxful provides a comprehensive FAQ section, forums, and 24-hour daily monitoring of accounts, all contributing to a well-rounded support ecosystem. Users can access a wealth of information through these resources to troubleshoot issues, gather insights, and navigate the platform effectively.

How to Create An Account At Paxful

Users can register an account on Paxful or browse the website to view potential Bitcoin offers. Paxful gives users multiple choices in creating accounts.

First, they can register on the website immediately after landing via the register link and filling out the form with relevant details. You will need an active email ID, create a password and username and then subsequently confirm the registration link received in your given email.

In the second method, you begin by searching for a suitable BTC seller and proceed to register with Paxful afterward. the paxful Account holders can browse the website thoroughly for suitable Bitcoin offers. After selecting the seller per deal details, you will be prompted to register with the platform and complete the transaction.

A ‘Welcome Email’ is sent to the new account user containing a verification link to confirm your ID via authentic email. Another mail contains ‘2-Factor Authentication’, allowing users to verify their identity via an SMS verification. The next step involves selecting the relevant security questions to help protect your future logins. However, you can select the fund’s source when closing the Bitcoin deal.

Simply put, it’s a pretty clear-cut process.

How to Buy Bitcoins on Paxful

Paxful allows you to purchase BTC just like any other public online marketplace. Here’s a step-by-step guide to purchasing Bitcoins on Paxful.

  1. Choose the amount of Bitcoins you want to purchase
  2. Select the currency of exchange from available options
  3. Choose a suitable payment method (over 300 options available)
  4. Choose a Bitcoin seller from the list and hit ‘Trade’ button
  5. Follow the steps for payment and hit ‘Mark as Paid’ button
  6. Once the seller confirms the deal, the buyer receives Bitcoins in wallet

As mentioned above, there are close to 300 methods to pay on Paxful! They are as under:

  1. Cash deposits
  2. Gift cards
  3. Online transfers
  4. Credit/Debit cards

Once you select your category, Paxful will display sellers matching your payment method and their respective Bitcoin price offers. If the ‘Cash Deposit’ method is chosen, the sellers who accept cash payments will appear on the screen, and users can take their pick.

Most importantly, if you select ‘Gift Cards’ as an option, Paxful doesn’t require any ID. It’s a great option for those looking to stay anonymous. However, other methods do prompt you to enter a valid ID.

Other Essential Services

Escrow

Paxful provides secure escrow services to its buyers and sellers. Once both ends confirm a trade, the platform transfers the Bitcoin from vendor to Paxful’s escrow account. The particular trade cannot be canceled at this stage, even if the seller wants to. In the meantime, the buyer is given a set period to complete the transaction using the chosen method. If the buyer does not pay during the stipulated time frame, the platform cancels the deal automatically.

In case of successful trade confirmation and compliance with platform terms, the transaction is regarded as complete. Bitcoin reaches the buyer’s wallet, thereby completing the deal.

Paxful moderators resolve disputes after undertaking a detailed investigation into the trade, including transaction details, chat transcripts, and more. Technical errors are also taken into consideration. However, most deals move smoothly toward completion since Paxful keeps a tight lid on scams.

How to Withdraw Bitcoins from Paxful

Your purchased Bitcoins can be withdrawn to any bank account from the Paxful wallet. BTC can be transferred to other wallets or used to buy things from a retailer that accepts Bitcoins as payment for merchandise.

Paxful does not charge any fee for withdrawals for U.S. dollars and BTC. Nevertheless, there’s a miner’s fee for every successful deal that further reaches blockchain miners and currently hovers around. 0.0008 BTC.

How to Store Bitcoins on Paxful

Paxful assigns a wallet to every Paxful user upon successful user registration. However, this wallet is recommended for short-term storage. We strictly advise Paxful users to invest in a reliable hardware crypto wallet. Far more secure wallets in the market offer more secure features.  Trezor.io, BreadWallet.com, SpectroCoin.com and LedgerWallet.com are a few notable examples.

That being said, Paxful’s encryption and 2-factor authentication provides optimum safety. Owners can use the bitcoin wallet app for Bitcoin storage and transactions. Wallet QR code helps receive Bitcoins in their wallet.

Paxful Fees

Buyers aren’t charged anything to purchase. However, the fee is imposed on individuals who want to buy bitcoin sell Bitcoin. Here’s where Paxful can put some people off! The platform itself does not charge any fee neither does their website.

Naturally, sellers include a certain percentage of the transaction amount as a fee to cover their charges. Furthermore, all sellers have their charging fees as per their whims. The fee is entitled ‘to pay – on the Dollar’. Choose the seller according to their respective charges.

Paxful Jurisdiction – In which countries is Paxful legal?

Being a peer-to-peer exchange, Paxful enjoys jurisdictional freedom everywhere on the globe. It operates hassle-free in major countries, including the UK, U.S., India, Japan, Mexico, Europe, South America, and many more. The key here is locating a seller with no issues with your location.

U.S. customers have no problems since most sellers come from the U.S.A. Some sellers don’t do business with Russian or Chinese customers and which limits their customer base.

Paxful security measures

Paxful strongly emphasizes security to protect user assets and personal information. Although it is not regulated in any specific jurisdiction, Paxful implements robust security measures to ensure the overall safety of the platform.

1. KYC and AML Processes: Paxful incorporates Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to promote a secure trading environment. While the platform may not operate under regulatory oversight, these processes help mitigate the risks associated with illicit activities and enhance the overall marketplace security.

2. User Wallet Security: Paxful generates a new wallet for each deposit and withdrawal session, minimizing the likelihood of hacking or unauthorized access. Furthermore, users can enhance their wallet security by utilizing multi-signature (multi-sig) wallets, which provide additional layers of protection.

3. ID Verification and Two-Factor Authentication: Paxful has implemented ID verification for users engaging in trades exceeding $1500. This verification process adds an extra layer of security and helps prevent fraudulent activities. Additionally, the platform supports two-factor authentication, specifically utilizing Google Authenticator, to safeguard user accounts from unauthorized access.

4. BitGo Wallet Integration: Paxful’s online wallets now are provided by BitGo, a renowned and trusted Bitcoin wallet service in the industry. The integration with BitGo ensures the security and integrity of user funds, as BitGo employs advanced security measures and protocols to safeguard digital assets.

Paxful Customer Support

Paxful comes with a robust support system that addresses most user concerns. Users can get in touch with paxful support staff through multiple, easy-to-use options. The customary chat functionality, email support, and customer support number help people connect directly and voice their concerns. We can hear many schools being built with clients donating Paxful.

You can expect a quick response from [email protected] email support. Next, the chat feature is always available at the right-hand lower corner of the screen throughout the browsing session. It can take longer to connect due to long waiting times.

Calling Paxful at 1-865-272-9385 is another good option to connect. As expected, this method works best during regular office working hours. Users will get prompt replies during these hours. The company’s Facebook page is another great way to connect with Paxful.

The email method is most productive, though. Narrate your problem in detail (use screenshots). There’s no need to wait to chat, connect back and forth, and wait for the reply. It’s better and more responsive.

Buying Limits

Paxful has categorized buyers as per their respective buying limits as follows:

  1. Level 1 – Buyer with $1,500 limit (requires phone and email verification).
  2. Level 2 – $10,000 limit. (Phone, email + ID verification)
  3. Level 3 – $10,000 (Phone, email, ID verification + address verification)
  4. Level 4 – No limits (all above verification + due diligence)

Conclusion

Paxful platform is a peer-to-peer cryptocurrency exchange that offers a wide range of features and payment methods to facilitate seamless transactions for users across the globe. The platform’s low fee structure, starting at 0.5%, sets it apart from many competitors in the P2P crypto community. With a user-friendly interface, robust security measures, and an escrow service to protect both buyers and sellers, Paxful strives to provide a secure and trustworthy trading environment. The platform’s extensive selection of payment methods, including bank transfers, PayPal, and various gift cards, ensures flexibility and accessibility for users with diverse preferences. Although Paxful faced a temporary suspension in April due to internal disputes, the platform has resumed operations, emphasizing its commitment to customer safety and the continuation of its marketplace.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Editah Patrick

Editah is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates her, she finds the intersection of both technology and finance mind-blowing. Her particular interest in digital wallets and blockchain aids her audience.

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