Paxful is a well-known P2P (peer-to-peer) Bitcoin marketplace that operates worldwide and connects buyers and sellers locally to exchange fiat currencies for Bitcoins and vice-versa. It enables users to buy-sell Bitcoins with almost any acceptable payment method in a particular region or country.
In this comprehensive post, I will cover the Paxful marketplace with all its pros and cons and try to answer the key questions that most of the users seek regarding the safety and legitimacy of this P2P platform.
What I’ll Cover?
5. Paxful Fees
12. Final Thoughts
1. Paxful Overview
Founded in 2015, in Wilmington (US), Paxful is another established platform to buy Bitcoin and Tether with Fiat money all over the world. Paxful is a leading peer to peer marketplace that allows regular people to buy Bitcoin instantly using fiat money.
According to Paxful, you can buy cryptocurrencies in more than 300 ways. You can pay using any of the payment methods that are supported by sellers in a particular region. These payment methods include bank transfers, credit/debit card purchases, gift cards, digital currencies (Eth, Ltc, Eos, Tether, etc.), and most of the online wallets. Without any doubt, it’s the single platform that offers so many payment options at your disposal.
Thus, the Paxful P2P marketplace can be a great alternative for buying Bitcoins in countries where traditional exchanges suffer from certain geographical restrictions or limited fiat payment methods.
2. Paxful Pros and Cons
Before moving ahead it’s pertinent to have a look at its pros and cons.
1). Offers simplest and intuitive user interface, as compared to other P2P platforms.
2) It offers the largest number of fiat to crypto payment methods i.e over 300.
3) Paxful and Binance strategic partnership has further brought new possibilities and features to users.
4). Paxful peer to peer platform is available in most countries of the world.
5). Buyers don’t have to pay any fee to the exchange.
6). Paxful uses escrow to hold the seller’s crypto and releases the crypto to the buyer only after getting confirmation from the seller’s side.
1.) Not suitable for regular traders.
2.) Higher fee of 1% for sellers.
3). The prices offered by sellers on Paxful are quite high as compared to traditional crypto exchanges.
4). A lot of scam accusations against other users and a lot of bad ratings due to a lack of proper dispute resolution.
3. Paxful Products and Services
Paxful is a peer-to-peer marketplace that’s primarily focused around providing easy and quick ways to buy-sell Bitcoins using fiat money. And for the same, it has equipped its users with a variety of payment methods.
Apart from its peer-to-peer marketplace, it also offers some other crypto-related products and services. These are;
1) Pay with Paxful: It is a payment processing service from Paxful. It allows businesses to accept payments from anyone, anywhere in the world. As a business all you need to do is to sign up for “Pay with Paxful”, and get the plugin integrated to your website and start accepting payments for your goods and services.
2). Virtual Bitcoin Kiosk: Virtual Kiosk is an affiliate program by Paxful where you can make a 2% revenue on any amount bought. It allows you to integrate its widget to a website or channel where visitors can buy Bitcoins directly from Paxful without leaving your website or channel.
3). Paxful wallet: It also offers a Bitcoin wallet where you can manage your Bitcoins, top up your wallet via the P2P market place, and send or receive Bitcoins easily and quickly.
4. Trading, Deposit and Withdraw Limits
Similar to other peer-to-peer platforms Paxful has also certain verification levels and each verification level offers different buying and selling limits. In order to maximize your buying limits, you need to complete all the verification levels.
Level 1: It requires your email and phone verification. Trading volume limit is upto $1000.
Level 2: It requires level 1 verification + ID verification. Trading volume limit is upto $10000.
Level 3: It requires level 2 verification + address verification. Trading limit can be $10000 and higher.
Level 4: For level 4 verification you need level 3 verification and additional verification such as EDD (enhance due diligence). Trading volume can be $50000 and higher.
Therefore, you can choose between different levels of verification and increase your buy-sell and deposit-withdraw limits according to your needs.
5. Paxful Fees
You won’t have to pay any fee as a buyer on Paxful, while sellers have to pay a 1% fee to the company. However, sellers may charge fees or a premium (already included in the quoted price) depending upon the method of payment that you have selected.
Moreover, there is also a variable Bitcoin network fee that is paid by the sender.
6. How to Use P2P Marketplace Safely and Avoid Getting Scammed?
Paxful is a peer-to-peer marketplace for buying Bitcoins where buyers and sellers directly interact with each other and make transactions. The P2P platform has certain security measures in place including an Escrow service for the security of user funds. However, in spite of all these security measures, scammers can still found their way around to dupe the buyers.
Below are some safety tips that a user must consider while trading on Paxful P2P market place;
1). Before you even fund your account make sure to enable 2FA (SMS or Google Authenticator) for login, for making transactions, and to release Bitcoins.
2). As a Seller, never confirm the release of Bitcoins before receiving payment in your bank account. Double-check your account and then confirm the release of Bitcoins.
3). Make sure that the trader you are dealing with must have traded more than 50 BTC and completed successfully more than 100 trades. Do not be fooled by just looking at 100% positive feedback.
4). Check out the detailed profile (email, phone number) and verify that the trader’s Paxful account must be older than a year and should be trusted by 20 or more people.
5). Always communicate to the respective trader (buyer or seller) via Paxful chatbox and avoid any third party platform (WhatsApp, WeChat, etc.).
6). Shortlist and discuss all your requirements with the seller in advance. If everything is fine, you can start the trade.
During a trade, if you receive a suspicious-looking email from email@example.com or from other accounts pretending to be a Paxful representative. Avoid clicking on links in that email. Do verify, and if it’s really sent by the scammer, save the conversation and immediately contact support from the support section in your account and share the details with the customer support.
7. How to Register An Account With Paxful and Start Trading?
Creating a Paxful account is easy and you can create yours by following the given steps;
1). Visit Paxful.com and click on, “Create Account“.
2). Enter your email address and a strong password in the space provided.
3). Click on, “Create Paxful Account”.
4). You will receive a confirmation email with a link, click the link and verify your email ID.
5). Now, your account is created successfully and your email address is confirmed.
However, before making trades with your account, you need to verify your account by providing KYC details. As stated earlier, Paxful offers four verification levels, and you can choose one according to your personal needs and submit the requested details.
8. How Buying and Selling Works on Paxful?
It allows users to buy-sell Bitcoins and Tether in two ways, i.e. from already posted ads and by creating your own ads. It works as follows;
1). Buying Bitcoins directly from already posted ads.
– Login to your Paxful account and click, “Buy” on home page.
– Choose the crypto i.e. Bitcoin or Tether, that you want to buy. Let’s choose Bitcoin for example.
– Choose the fiat currency that you pay for the exchange of Bitcoins and enter the amount of trade in the respective currency.
– Select the payment method, that suits you most.
– Then click, “Search for offers”.
– Choose a seller and click, “Buy” to begin the trade.
– Follow the instructions and make the payment.
– After making the payment click, “Mark as paid”.
– Now, wait for seller to release the Bitcoins.
Similarly, you can sell Bitcoins to buyers by selecting one from already posted ads.
Remember that because of the payment method you have selected, some trades can be concluded instantly (such as PayPal, Gift cards, etc.) while others might take longer (Bank deposits, money transfers, etc.).
2). You can also buy and sell Bitcoins by creating your own ads. You can create an ad in three steps;
– Login to your Paxful account, and click, “Create an offer”.
– Choose the crypto that you want to buy or sell, i.e. Bitcoin and Tether. Let’s assume Bitcoin for example.
– Now, select the offer type, i.e Buy or Sell.
– Select the payment method that you want to utilize for your offer.
– Choose your preffered fiat currency. (USD, EUR, GBP, INR, etc.)
– In step two, first of all you need to provide trade pricing, i.e. market or fixed.
– Then choose the margin% that you want to make one each purchase.
– Set min and max trade limits and time limit for your offer.
– Check all details and proceed to next step.
– Here you can list your trade instructions, terms and offer labels for your offer.
– Choose a verification filter for your trade partners. (such as fiat limit for new accounts, target country, etc.)
– Now verify your entered details and click, “Create offer”. You have created your offer successfully. You can use Vendor dashboard to edit and manage your online offers.
For the safety of both the parties involved in a trade, Paxful utilizes its Escrow service. As a buyer finds a seller and the offer is accepted by the seller, the Bitcoins from the seller’s wallet are automatically moved and locked in the escrow. If a dispute arises at any stage during a trade, the trade is moved to the dispute resolution team. The support team then investigate the whole matter in detail and release the Bitcoins to the satisfying party.
9. Supported Payment Methods and Fiat Currencies
Paxful is a global P2P marketplace that offers to buy-sell Bitcoin and Tether using 300+ payment methods. Some of the widely accepted methods are Wire transfers, Credit cards, PayPal, Skrill, Neteller, Direct bank transfers, Amazon gift cards, and Western Union.
One thing, as a user you must be aware of, is that different payment methods for buying Bitcoins will result in different exchange rates. If you are choosing the most frequently used and non-refundable (bank transfer etc.) methods for buying Bitcoins, you will get comparatively lower exchange rates than payment methods that allow for chargebacks (credit cards, PayPal, etc.)
In terms of fiats, it supports nearly 150 fiat currencies including major ones such as USD, EUR, RUB, INR, JPY, GBP, AUD, SGD.
10. Supported Countries
Paxful supports most of the countries around the world. However, users from the following countries are banned:
Central African Republic Sanctions
Republic of Congo
South Sudan-related Sanctions
Sudan and Darfur
11. Customer Service and User Reviews
Paxful boasts of 24/7 customer support to its users and you can reach out to the support by submitting a ticket via the “Contact Us” section. It also offers a bot in the chatbox section to answer frequently asked questions. Except for FAQ, all other support queries will be replied to later via email. However, sometimes it’s much delayed than usual.
Paxful has an intuitive and easy to use interface that delivers a great user experience. However, in terms of customer support, it isn’t that satisfactory. You can easily found people on different social media platforms (Quora, Reddit, etc.) blaming Paxful for its lack of proper support in dispute resolution and nailing scammers.
It’s something that the company must take into account because if a large number of people are addressing the same issue and leaving negative reviews all around, there’s definitely something wrong that needs to be fixed.
How LocalBitcoins scored that big in terms of ratings and reviews, it’s because of the proper dispute resolution process and satisfactory customer support.
12. Final Thoughts
Paxful P2P marketplace can be a great platform for buying Bitcoins with fiat currencies. It brings you the ability to buy Bitcoins with almost any conceivable payment method (300+). But its customer support surely needs an upgrade.
All in all, Paxful being a moderator, can’t leave everything on the user’s end. If people are getting scammed or having issues related to blocked accounts, it must behave responsibly in terms of its services and it must strive for the greatest authenticity possible.
Last but not the least, if you wish to use the Paxful P2P marketplace for the first time, I would strongly recommend you to complete your KYC first and only then go for a trade. By doing so you can avoid certain hurdles that can crop up due to unverified accounts.
Additionally, while making a trade in a P2P marketplace, always trade with a small proportion of your total assets in order to avoid any big loss (in case trade goes wrong) and play safe. Wishing you a happy journey in the cryptocurrency space.
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