Paxful - A Peer-To-Peer Bitcoin Marketplace
What is Paxful
What is Paxful?
Paxful is an online peer-to-peer marketplace, which allows anybody with an account to buy and sell Bitcoin (BTC) globally.
Rather than buying from an exchange, users buy and sell directly with each other after agreeing on a price. Paxful acts like a middleman for the trade and the funds are held in an escrow until both parties agree to everything.
Launched in 2015 by co-founders, CEO Ray Youssef, and COO, Artur Schaback, Paxful employs over 160 people in its headquarters in New York City, and established offices in Hong Kong, Manila, Tallin and Johannesburg.
Paxful’s mission is ‘social justice through financial freedom worldwide.’ And with over 300 payment options that empower merchants and buyers, they have created opportunities for millions across the globe who don’t have access to traditional banking services.
Today the marketplace is open for trading in most countries around the world, and with an unprecedented amount of payment options any person wanting to buy or sell Bitcoin in a currency is likely to find someone willing to trade in their currency of choice.
In fact, the buyer can purchase bitcoin by using whichever payment method the seller is willing to accept. Bank transfers, credit and debit cards, PayPal, Western Union, other cryptocurrencies, cash or even gift cards are just some of the payment methods frequently used.
How The Marketplace Works
If you’re looking to buy Bitcoin you’ll search for the open offers on the marketplace. Once you see a deal that interests you with the payment method of your choice, click the ‘Buy’ tab and enter how much BTC you want to buy.
The price of bitcoin may vary depending on the method of payment use. And you’re likely to find more sellers willing to take US Dollars than the Bangladeshi Taka, but that doesn’t mean you won’t find them. You’re just more likely to have to pay a little more if you want to buy with a lesser-used currency.
Once you find a seller willing to accept your method of payment, follow a few simple instructions about how to send your agreed value and send your transaction. A live chat will open with the seller and both funds will be held in a third party escrow controlled by Paxful.
Once verified, the escrow will release the funds and your BTC will be delivered to your Bitcoin wallet, and the seller will receive their funds as stated in the prearranged deal.
If you have any problems during a trade, Paxful is there to help with its one-on-one live chat customer service. The live chat expert will guide you through any trouble you might be witnessing.
If you’re looking to sell Bitcoin, you can look at the list of offers and see if there are any that you’re willing to accept. Or you can set your own rates with the payment method and currency of your choice and wait for a buyer to accept.
Once the transaction is complete, you should both leave feedback so you can both build a reputation, which will help other people wanting to trade with good, honest traders.
Paxful charges sellers a 1% fee, but doesn’t charge any fees for buyers. The charge for buyers actually comes from sellers who set the rate they’re willing to sell their Bitcoin for. Sellers do set different rates, so it’s best to search the marketplace for the best deals.
Opening an Account
Opening an account with Paxful is super easy and can be done in less than a minute.
Just click on ‘Create Account’, fill the form with your email, choose an account name and password, agree to the terms and conditions and that’s it, you’ll have an account and a Bitcoin wallet.
Once you have an account, verify your email and phone number and you’re good to go.
With only basic verification, you’re limited to buying up to $1500 worth of Bitcoin, using only PayPal, or Credit and Debit cards payment methods.
If you’re a serious trader, however, it’s recommended that you verify your account to open up the multiple payment options and unlimited amounts.
Paxful has four verification levels, each with different limits:
Level 1: Email address and phone number verification, $1,500 limit
Level 2: Government-issued ID verification, $10,000 limit
Level 3: Address verification, $10,000 limit
Level 4: Further due diligence and manual KYC check, unlimited
Why Choose Paxful
Paxful is very easy to use. It is a web interface and it also has its own app, which you can download in the App Store or Google Play Store.
You can purchase Bitcoin anonymously within a few minutes of signing up, and there are over 300 different payment methods you can use once your account is verified.
It’s a truly global marketplace and you’ll find buyers and sellers from all corners of the globe. You’ll find sellers willing to accept over 150 fiat currencies from the US Dollar to the Afghan Afghani.
You’ll also be able to buy Bitcoin with digital wallets, gift cards, air miles, other cryptocurrencies, or anything the seller is willing to accept.
Once you have your Bitcoin, it’s yours to do whatever you want with. You can send it to a hardware wallet for safer keeping; you can put it back on the marketplace to trade for some other asset you want.
Paxful has recently formed a partnership with Binance, the largest cryptocurrency exchange. Binance is the largest exchange by daily volume, and the partnership binds together its users with the Paxful marketplace. This opens up multiple new fiat gateways for Binance users.
Creating a peer-to-peer marketplace does create security issues, and there are stories of people being scammed on Paxful. But Paxful is on top of this and has stepped up their security system.
For its part, Paxful verifies and checks all sellers wanting to use its platform, and buyers are fully protected by the platform’s escrow service and 2FA.
After you make a payment, Paxful holds it in escrow and verifies it. Then, the seller sends the bitcoin. It’s not until both parties are happy in agreement that both sides of the deal are released. However, there are still reports of people being scammed.
The marketplace has a reputation system, where buyers and sellers build or lose a reputation for their actions. Therefore, it’s highly recommended that you trade with peers with a good reputation.
If things do go wrong, Paxful has a reporting and investigation disputing system. If a dispute does arise, Paxful intervenes and sorts out the problem in a fairest way for both parties.
Although the vast majority of users trade on Paxful without issue, because of the peer-to-peer nature, inevitably, people do get ripped off using Paxful.
Although, it deserves a mention that Paxful has never suffered any major security breaches, user information leaks, or other attacks, and the Bitcoin wallet is regarded to be as safe as an online wallet can be.
As soon as you sign up you will be connected to the Bitcoin network with your own secure Bitcoin wallet, which you can use in any way you see fit.
The web and App interface is so easy to use it makes it accessible to anybody wanting to buy or sell Bitcoin. And with a one-on-one live chat with an expert, the buying and selling process is as easy as buying Bitcoin can be.
Paxful is a trusted marketplace that makes it easy to interact with Bitcoin buyers or sellers in a secure environment from all corners of the world. Although there are some shady people on there so it’s important to research the person you’re trading with.
It’s one of the few places where you can buy and sell Bitcoin using a vast array of national currencies. You can pay by bank transfers, credit and debit cards, PayPal, or things like Amazon and iTunes gift cards, loyalty points, or anything you would like to trade Bitcoin for if you can find a buyer/seller willing to accept what you’re offering.
Paxful is a peer-to-peer exchange, so there are scammers on there, but with a bit of due diligence it is a recommended platform for those of you that would like to stay away from centralized exchanges.
If Paxful sounds like your kind of exchange, please click on the link and sign up.
*Disclaimer: CryptoEase may receive compensation from Paxful if you sign up membership and start trading.