If you’re looking for more information about Paxful, then you’re in luck. We’ve done the legwork for you and create an in-depth review so you can learn more about Paxful. Throughout this guide, you’ll learn more about Paxful, who they are, how to set up an account, and how to use the exchange. Let’s take a closer look at Paxful and what this exchange has to offer.
What is Paxful?
Paxful is a peer-to-peer market which facilitates in connecting buyers and sellers. The site behaves in much the same way Amazon does in that it doesn’t require a third-party to mediate transactions. It’s important to note that Paxful is not a shopping site, but rather a place to place to exchange cryptocurrencies.
Paxful is a great option for trading cryptocurrencies. It offers a user-friendly interface and a wide range of payment methods. The site does provide support for clients around the world, however, currently is it not registered in the state of New York so New Yorkers cannot use it.
One thing to remember is that the site itself does not have cryptocurrency. You interact with other users on the platform to secure the deal, which transfers your digital coin straight to your wallet. While we might refer to Paxful as an exchange, it’s more along the lines of a person-to-person market.
Who Are Paxful?
Paxful launched in 2014 as “EasyBitz,” but changed to Paxful less than a year later. It resides in Wilmington, Delaware, in the United States and was founded by Artur Schaback and Mohammed Ray Youssef.
Youssef is a native of New York City and has been a serial entrepreneur since the early 2000s. He’s a systems admin and a full stack web developer. Schaback is a native of Estonia and has been heavily involved in the world of financial infrastructure. A third member of the team, Ivan is listed as the company’s CTO with experience at Adcash prior to joining the Paxful team.
Things to Consider
Paxful is a peer-to-peer market, so you want to exercise caution when you’re using the site. While the exchange has developed a solid reputation as a secure and safe place to buy and sell crypto, it’s still in your best interest to consider a few things as you go about using Paxful.
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- Verify the buyer or seller you’re interacting with is reliable and safe. Look for those with high positive feedback and verified accounts. Typically you want to interact with those who have a rating of 98% or higher.
- Don’t set up trades that don’t take place on the platform. If a seller asks for an external trade, request that the trade is made through Paxful. Additionally, stick to using the Paxful messenger so you can avoid scam coming to your mobile or email.
- Select a method of payment which provides you with a decent amount of protection. Scammers like gift cards since they’re untraceable. If you have problems after a Paypal, bank, or credit card transaction, you’ll have resources available to help you.
- Prices usually fluctuate based on your method of payment. Be sure you set out your requirements simply so you can be sure to get a fair price.
- If you do run into problems, reach out to the Paxful customer support team. If you’re unsure of a seller, you can do the same. Make use of their support team if you encounter any situation with which you’re not comfortable or unfamiliar.
If you’re buying Bitcoin, Paxful does not directly take fees from you. Instead, the fee is charged based on the seller’s discretion. This fee is usually dependent on your method of payment. Some fees can be very high, especially if you’re using a specific type of payment method, like a gift card.
On the other hand, if you’re selling, Paxful will charge you a fee of 1%. You’ll also encounter a mining fee, which the seller also pays. Once the transaction is complete, you can leave positive or negative feedback, along with comments. Remember that you’ll be rated too, which other users can see on your profile.
All your transactions go right to your Paxful Bitcoin wallet, so you don’t have to worry about connecting an external wallet to the site. While buying Bitcoin on Paxful, you can use over 300 different types of payment. Here are some of the most common payment types to buy Bitcoin with on Paxful:
- Gift cards
- Wallet transfer
- Credit card
- Bank transfer
- Western Union or MoneyGram
This massive range of payment options means that Paxful is one of the top ways to buy bitcoin with PayPal and other more exotic payment methods.To see the full list of payment options from which you can choose, head on over to the Paxful site.
Opening a Paxful Account
While you can search for someone to buy Bitcoins from on the Paxful site, in order to actually complete a transaction you must first create an account. Paxful makes account creation pretty easy, so just head on over to the site to get started.
- Buy Bitcoin With: Gift cards, Western Union, PayPal, Skrill, Neteller ApplePay, AmEx & more.
- Get Bitcoin Instantly: Paxful does away with hanging around for days to buy Bitcoin.
- Easy To Use: The peer-to-peer market is simple and quick.
Want To Buy Bitcoin The Fastest Way? Use Paxful.
Click on the “Create Account” option in the top right of the page.
Fill in the registration form that pops up with your email address, username, and password. Agree to the Terms of Service, tell the site you’re not a robot, then click on the “Create Account & Free Wallet” button. An email will arrive in your inbox asking you for verification. Click on that and you’ll be taken back to the Paxful site. That’s it. You’re ready to start buying Bitcoin!
It’s not required, however, we do recommend that you take a few extra moments to sign up for two-factor authentication on your account. It will give you an additional layer of security for your account and protect against hackers who try to gain your personal information. It’s a smart move for any account you open.
If you decide to go ahead and sell Bitcoin on Paxful, it probably makes sense for you to become a verified vendor. This helps to increase trust with others on the site while giving you additional advantages with Paxful. However, only those in Australia, Canada, Europe, or the US can be verified vendors.
To become a verified vendor you must do the following:
- Provide proof of address through regular mail
- Submit a picture of a government issued ID (Passport, Drivers License, etc.)
- Send in a video of yourself with your passport or ID.
Buying and Selling with Paxful
So now you’re ready to start buying and selling on Paxful. Let’s start with the process of buying Bitcoin using the Paxful platform.
The first thing you’ll do when buying Bitcoin on Paxful is select your method of payment. Depending on which method you choose, you’ll have more privacy, secure faster payment, or encounter fewer or more sellers. Once you’ve selected your payment type, you’ll then enter how much Bitcoin you want to buy.
At this point, you’ll select which fiat currency you’re going to use. There are plenty of options from which you can choose. Most commonly used are US Dollars, British Pounds, Euros, and Canadian Dollars. Click the green “Buy Bitcoin Now” button to see what offers are available to you.
Something to keep in mind when using Paxful is that you’ll often encounter higher prices than you will with other exchanges or a brokerage. This is due to the fact that sites like Paxful aren’t as secure and a little more questionable for sellers.
For example, a buyer might decide not to pay or mark a transaction complete, which means the seller is losing out on both their Bitcoin and the money they are owed. Charging higher prices means sellers have a bit of a safety net in the event the transaction goes south.
Once you find a seller that works for you, check out their terms so you can learn more about trading with them. Reading the terms tells you exactly what the seller wants and gives you a good idea of what they expect from you.
If you’re good with everything, click the “Buy” button. When you do, the Bitcoin is moved to escrow and held there until all requirements of the transaction are satisfied. It’s an imperfect system, but it prevents a lot of bigger issues from occurring. However, there are those looking to game the system, so problems happen from time to time.
Follow the seller’s instructions for providing payment. When that’s complete, you’ll select the “I have paid” option, which alerts the seller. When they indicate they received payment, the Bitcoin in escrow is released and sent to your Paxful wallet.
Perhaps you’re more interested in selling on Paxful than buying. If that’s the case, let’s go through the selling process using the Paxful platform.
To begin, you’ll need to fund your Paxful wallet before you can sell. If you haven’t already done so, you can create a Bitcoin wallet on the Paxful platform. Just click on the “Wallet” button at the top of the site. You’ll see a bright yellow “Create Free Bitcoin Wallet Now” button. Now you’re ready to deposit your Bitcoin into your Paxful wallet.
Once you’ve added funds to your wallet, you can sell them. On the main page hover over the green “Buy Bitcoin” drop and choose “Sell Bitcoin.” Here you can select how much Bitcoin you have to sell and what types of payment methods you’re willing to accept.
When you find someone to whom you want to sell, you can set more specific information regarding your transaction. Before initiating the trade, don’t forget to do some research and determine whether or not this is a person you want to sell to. Verify their statistics and reviews, along with the last time they were online.
If you feel like you’ve found a good buyer, you can go ahead and initiate the transaction. These transactions occur through the chat system, which means you can discuss the trade, share files and documents, and finalize the transaction with the buyer.
Security is of the utmost importance as it keeps your information and trades secure. Here are a few ways in which Paxful provides a safe and private platform:
We mentioned this one briefly, however, you can never have too much security. Two-factor authentication provides another layer of protection for your account if hackers try to get to your funds or your wallet.
Paxful can’t control the behavior of every single person on their site, however, they try to mitigate issues by offering a reputation score for each of its users. This tells you information of previous dealings along with how reliable they are when it comes to completing a transaction. With a reputation ranking, you can find the best buyers and sellers while avoiding scammers.
Upon registering with Paxful, you’ll get a free wallet on the platform. You can use this wallet to keep your funds safe and secure, along with a method to transfer Bitcoins. In addition to your wallet, all Paxful servers meet standard security protocols set forth by the banking industry.
If you do run into a problem while using Paxful, its support team is easy to reach and quick to respond. You can reach the team through email or by phone. If you use social media regularly, you can also reach out via Facebook and Twitter. Paxful also offers a support page, which answers regularly asked questions and provides additional information and guides.
- Multiple payment methods including PayPal, Skrill, Mastercard, Visa, Western Union, and many more
- Excellent fiat currency support
- Escrow account to hold Bitcoin while transactions are in flux
- Buyers and sellers can remain anonymous when using the platform if they so choose
- Paxful provides its users with a wallet upon creating an account with the site
- Reputation ranking gives users the knowledge needed to make intelligent and knowledgeable decision regarding who they are buying or selling with
- Users have access to a mobile application available on both the iOS and Android platforms
- Quick and easy registration process
- Prices offered on the Paxful platform are typically higher than users will find on the average exchange
- Payment fees are provided by the buyer which can be high with certain payment methods like gift cards and vouchers
- Dishonest users do use the system, which increases the risk of fraud associated with Paxful
- Currently, Paxful only supports Bitcoin and no other cryptocurrencies
The biggest draw of the Paxful platform is the ease through which you can buy or sell Bitcoin. If you have a computer or smartphone, you can purchase or sell with Paxful. Users can remain anonymous while choosing among a wide variety of payment methods.
Even though the site does have scammers, it does what it can to shut them down. In addition to using an escrow solution, Paxful also has a team of customer support staff who work vigorously to provide a secure platform for users. They are always ready to help out when you have an issue.
Paxful gives users who might otherwise be unable to buy Bitcoin a method to start using cryptocurrencies. Whether you’re new to crypto or a veteran, Paxful is a platform that has appeal. While using the platform, however, ensure that you are using all the resources available by Paxful to ensure that you’re trading with users you can trust.