Paxful is a United States-based company founded in 2015 by some developers who tried to create a peer-to-peer marketplace that let buyers and sellers interact after putting up trade offers. The platform operates as an intermediate between interested individuals and presents a space for its users to communicate.
Paxful is a favorite option for trading Bitcoin as the site is user-friendly and allows the most varied range of payment methods possible on the internet.
Similar to LocalBitcoins, on this platform, anyone in the world can trade Bitcoin for fiat currency or vice-versa. The only exemption and jurisdiction where they cannot work is the state of New York as it is yet to get the BitLicense required to operate in the region.
Even though the platform is US-based and not focused on a particular region, some countries like China, Nigeria, India, and Russia are highlighted on its homepage, on “How to buy Bitcoin…” sections.
Creating an account on Paxful is straightforward and can be achieved in two ways: automatically, after giving a yet to be registered email on the platform during the checkout in a buying process or, by filling the registration form available on their website directly. Apart from verifying your account by clicking on the confirmation link sent to the email address you registered with, you will also be required to set two security questions.
Alternatively, you can verify your mobile phone number and activate notifications via SMS. Bear in mind that while you can opt-in for getting notifications on a wide range of activities relative to your your account through email, only alerts about significant movements are sent through SMS.
After creating an account successfully, you can check out all the open orders, some sellers will be available, and you can find the most suitable merchant by looking at the minimum and maximum order amounts, price, as well as the accepted payment methods. You can also view a seller’s account history and feedback rating to determine whether they are suitable for you or not.
Once you find a suitable vendor, you can start trade immediately by clicking on the “Buy” button. It’s then important to choose the amount you would like to purchase and make your transaction. Executing a deal will open up an escrow service and chat option that lets you communicate with the seller directly and discuss the deal in more detail.
After finalizing the trade and payment has been settled, you can click the “Mark as Paid” button and expect the transfer of Bitcoin to your Paxful wallet. When the Bitcoin has been successfully transferred to your wallet, you can use it whichever way you want.
Paxful does not charge any fees from the buyer of the digital currency. The buyer will, however, be charged a fee determined by the seller; and this fee can differ considerably depending upon the preferred payment method. Paying by gift card usually incurs the highest fees.
The platform charges a fee of 1% from the seller after each transaction. Sellers also pay a small ‘mining fee’ after sending Bitcoin from one address to another. Just like Localbitcoins, Paxful functions as a peer-to-peer marketplace and uses some key features to try and guarantee a high level of usability.
The most significant advantage of Paxful, perhaps, are the various payment systems available. Most platforms have a limited set of options, which often, for instance, do not include credit cards, but when it comes to Paxful, the payment options are given by the sellers. The payment options listed on the platform include SEPA, PayPal, Skrill, bank transfers, MoneyGram, Western Union, Neteller, OkPay, Visa, MasterCard, and AmEx.
Besides these options, you can also decide to buy Bitcoin using any of a vast number of gift cards like iTunes and Amazon. These options make Paxful a convenient spot for buying and selling Bitcoin.
Is Paxful safe?
Paxful renders a service very comparable to that of Localbitcoins and many other peer-to-peer digital currency platforms. As said earlier, its most significant advantage is the numerous payment options, and the most prominent disadvantage is the higher prices.
Another critical benefit of Paxful is the Android and iOS mobile app the trading platform is rendered on, and the Paxful wallet as it can be easily assessed on the go. When dealing with an individual vendor you should keep a watchful eye as risk of fraud is still out there no matter how complex and advanced the security measures taken by Paxful are. That is why the most appropriate way to move forward would be dealing choosing a verified vendor with transparent history.
All things considered, Paxful is a great decentralized peer-to-peer bitcoin exchange where users can buy and sell bitcoins easily and free of any hassles. But if you are seasoned trader used to dealing with complex charts and generally prefer more speculative approach to trading than you are very unlikely to stay here for long.