Cryptocurrencies are becoming mainstream as more people have started investing in this new-age digital currency. If you are here and still wondering what the cryptocurrency “Bitcoin,” is all about, you can go read our previous article where we have explained Bitcoin in detail. We have previously shared with you some of the best crypto exchanges to buy and sell Bitcoins and in this article from our Crypto Tips series, we are reviewing a crypto exchange in detail, so you can easily get started with your crypto adventure. The crypto exchange that we will review here is Paxful. Let’s begin!
Paxful Review
Paxful is a peer-to-peer (P2P) crypto exchange or you can say Bitcoin exchange. So, what exactly is a P2P exchange and how does it differ from other types of platforms? Also, how can you get started with Paxful? What are the pros and cons of trading on its platform? You can get the answers to these questions in our Paxful Review.
Pros:
- Free online wallet
- 350+ payment methods
- No commission fees
- Secured by escrow.
Cons:
- Buying crypto on Paxful is a bit more complicated vs. buying on traditional crypto exchanges
- Low liquidity – only a few vendors accept large transactions
- Need to be extra careful as there are a few bad eggs that may take advantage of you.
About Paxful
As mentioned above, Paxful is a peer-to-peer cryptocurrency exchange and digital wallet where you can buy and sell Bitcoins as well as other cryptocurrencies. It was founded back in 2015 as EasyBitz and soon renamed Paxful. Within five to six years, the crypto exchange has grown to a whopping 6 million user base. It also receives more than 300K daily transactions.
Paxful offers a simple interface where users can directly trade Bitcoins and other cryptocurrencies without the need for any mediator.
Further clarifying, there are two types of exchanges— the traditional and P2P. In traditional exchanges, users get help from the platform as a middleman to complete the trade. While in P2P exchanges like Paxful, buyers, and sellers complete the trade themselves. This gives them the payment flexibility for buying or selling Bitcoins.
With P2P exchanges, you can enjoy payment flexibility. You can use the money in your digital wallets to buy Bitcoin and accept crypto payments directly in your digital wallet. Paxful allows you to enjoy ultimate flexibility for payments. You can use gift cards, goods and services, and more.
Trading on Paxful is really simple. Just create and verify your account and start trading. If you want to become a vendor, you can sell Bitcoin to millions of users around the world.
Paxful Facts and Figures:
Mobile Apps: Android and iOS
Notifications: Email, SMS, Telegram
Coins: BTC, ETH, USDT
Minimum Trade: INR 250 (approx.) or 10 USD
Secured by: Escrow
Cryptocurrencies available on Paxful
At Paxful, you can trade Bitcoin (BTC), Tether (USDT), and Ethereum (ETH). The platform has all the popular digital currencies but still, these are limited options when we compare it to other players like Binance.
Paxful Payment Methods
One of the best features of Paxful is that you can use any of the 400 payment methods available to buy and sell crypto. So you can exchange your Bitcoins with anything ranging from cash to gift cards. This platform supports bank transfers, debit and credit cards, cash payments, several online wallets, gift cards, goods, and services, and other digital currencies as payment methods.
If you’re from India, you have several popular payment methods to choose from including Airtel Money, Amazon Gift Card, BHIM, Google Pay, JioMoney, MobiKwik, PayZapp, Paytm, PhonePe, alongside all other UPI payment options, and major e-com gift vouchers.
Creating an Account on Paxful
If you are a newbie on Paxful, here’s how you can easily create an account.
On Desktop
1. Go to the Paxful website and click “Register” at the top right.
2. Enter your email address, choose a password, and click on “Create Account.” Once done, you will receive a free Bitcoin wallet where you can store and manage all your cryptocurrencies.
3. You will receive a verification code at your email address. Enter the code on the website in order to verify your account.
That’s it! You can now start trading on Paxful.
Mobile Apps
Paxful also offers Bitcoin wallet apps for iOS and Android devices. The app offers simple and secure access to your wallet and lets you send, receive, and store cryptocurrencies on your mobile phone anytime. Other features of the Paxful app include real-time updates of balance, the status of recent transactions, and profile personalization.
Buy Bitcoin on Paxful
Once you’re done setting up your profile, you can now start buying Bitcoin and other currencies right away. Here’s how:
1. Go to the home page and click on “Buy”. You will see all the offers from vendors selling their coins.
2. You can customize these offer results by selecting cryptocurrency, payment method, amount, and location from the side menu.
3. Once you see the curated offers, click on “Buy” next to the offer that best suits your needs. To buy Bitcoin from any vendor, you must verify your email and phone number first.
Sell Bitcoin on Paxful
If you want to sell Bitcoins on this platform, you will need to set your preferences first. The process is again very simple. Here’s how you can get started.
1. On the home page, click on “Sell” and then choose your payment method.
2. Or, directly click on “Sell” from the available offers listed below.
3. Once again, you will need to verify your email and phone number to start selling. Also, make sure that you have enough crypto in your wallet before you create an offer.
Create an Offer
Lastly, if you want to create an offer on Paxful that appears on the offer page, you will need to verify your identity. So, aside from email and phone verification, you will also be asked to verify your ID and address.
1. Go to the home page and click on Create an offer.
2. If you haven’t verified your ID yet, click “Verify Identity.”
Upload all the necessary documents to verify your identity and once these are approved, you will be able to create an offer.
Trading Fees
Paxful does not charge any fees when you buy cryptocurrency. However, there is an exchange fee set by Bitcoin sellers on the platform. Also, a transfer fee is applied when sending crypto to a non-Paxful wallet.
Points to remember:
1. Users will also incur at least 0.5% charges for bank transfers. Other payment methods including debit cards, other digital currencies, and online wallets are subject to a 1% fee.
2. The gift cards incur the highest fee for selling crypto at 5%. Lastly, there is an escrow network fee deducted from a vendor’s wallet immediately when the trade is completed.
3. When you are purchasing crypto on Paxful, the rate will be set by the sellers themselves. These rates will vary based on numerous factors such as your payment method, currency type, and order size.
4. When you are selling crypto, an escrow amount is deducted from your Paxful wallet at the beginning of the trade. After the successful trade, Paxful receives that fee. In case the trade is not completed, Paxful charges no fee.
Trading Speed
The trading speed on Paxful varies depending on various factors, including the seller’s availability, specific terms and conditions of the seller, and payment methods. To improve trading speed, you can try contacting the seller directly via their online accounts and see what can be done.
On Paxful, the trading speed ranges from within a minute to 30 minutes. Once the crypto is successfully sent, the buyer will receive a notification via SMS, email, or push notification on the app stating the confirmed BTC.
Paxful Common Queries
Q. How secure and safe is Paxful?
A. Paxful uses a strict verification process to verify its customers. It uses a “Trusted” badge next to the sellers who are authentic, so you don’t need to not worry about safety. It also has dispute and fraud prevention analysts to make sure trades run smoothly.
The platform also has an “Escrow” security feature where the currency is held while trading and until the trade is complete. This ensures that the money goes to the right buyer. Paxful uses BitGo as a wallet service provider, which is one of the most secure available in the market.
Additionally, you can protect your Paxful account with security features like two-factor authentication (2FA).
Q. Does Paxful have a minimum age requirement to create a trading account?
A. Yes, you must be at least 18 years old to create an account and start trading on Paxful.
Q. Can I sign up on Paxful without any ID?
A. You can create a Paxful account using just your email address. However, when you start buying or selling bitcoins, you will need to verify your account. In some cases, you can start buying only by verifying your email ID and phone number.
Further, to open a vendor account, you need to meet mandatory requirements, including ID verification, address verification, etc. Also, when you reach a certain volume or wallet activity limits, you may need to complete additional KYC including video verification.
Q. Is Paxful a regulated crypto exchange?
A. Paxful is regulated by the US government and complies with OFAC sanctions.
Q. How do I contact Paxful customer support in case of any dispute?
A. You can contact Paxful via a live chatbot at the bottom right corner of the Paxful website or mobile app. If the chatbot doesn’t understand your issue, you can raise a ticket by writing to [email protected].
Moreover, Paxful also offers an extensive FAQ section and help center where you might have all your questions answered. Lastly, the best way to reach the Paxful support team is via their social media channels, including Twitter and Facebook.
Paxful Review: Wrapping Up
So, if you have read our Paxful review till the end, you now know what exactly this peer-to-peer crypto exchange is. The best part is that it offers a wide range of payment methods to choose from in order to start trading cryptos. Apart from that, other features like a free wallet, escrow security, and no commission fee make it even better. If you don’t find trading that complicated and manage it by yourself, then Paxful can be the best crypto exchange for you, especially because of its flexibility with payment methods.
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