Paxful is a US-based cryptocurrency exchange that was established in 2015 by a team of developers with the aim of providing a peer-to-peer platform that connects buyers and sellers to trade digital currencies.
The platform acts as a mediator for crypto enthusiasts, and provides a simple, fair, and secure exchange that facilitates the trade of digital assets.
Speaking of what the platform offers, I came across this video by the Paxful team and found it very informative. Check it out here:
So, what do you think, is this exchange worth your time and money?
Paxful is mostly known for dealing in one of the most popular cryptocurrencies: Bitcoin. It also features a very user-friendly platform.
Other than the listed payment modes, you also have the option to add additional payment modes as seen below.
And if you have an unused gift card lying around somewhere, you can now turn it into cash by using it to buy Bitcoins.
Having numerous payment methods is one of the best features of the Paxful exchange. However, in this Paxful review, we will take a deeper look into what other features are provided by this exchange.
Let’s get started!
How Paxful Works
Getting started on this platform is reasonably easy – you will first need to head to their website and create an account. For this, you will be required to provide your email address, username, and a strong password.
You will then need to add a payment method of your choice, and then you will be able to proceed to view the open orders.
The products, listed by different sellers, will be displayed, and buyers can then select suitable vendors using several criteria that include filtering by price, payment method, or minimum/maximum order limits. In addition to this, it is also possible for buyers to check the trading histories, and ratings of the sellers they intend to transact with.
Once you have identified a suitable vendor, you can proceed to purchase the desired quantity of Bitcoins. An escrow service will then be initiated, as well as a conversation window between the buyer and the seller.
Once you have finalized the details of the transaction, click on the “Mark as Paid” icon to initiate a transfer to your Paxful account. You can then transfer the coins to your personal wallet.
For those who prefer not to create an account on the website, yet wish to purchase coins, the platform offers a direct way of doing so by following a few steps after selecting the cryptocurrency, as well as the amount that you wish to purchase.
And that is how you buy Bitcoins using the Paxful exchange.
Two quick notes:
- Be careful when selecting your method of payment. The method you choose may either result in higher transaction fees, or lower ones, depending on what you and the seller agree to. For instance, buyers who use gift cards are usually charged the highest fees among all payment methods.
- Other charges incurred by the seller include a 1% fee on the transaction amount, and a mining fee of 0.0008 BTC when sending Bitcoins from one address to another.
Numerous payment methods: To me, and many others, this is one of the features that most exchanges simply get wrong. However, Paxful made sure to capitalize on it by providing more than 10 convenient payment methods, which ensures that almost everyone gets a chance to trade on the platform.
Superior security: When you sign up for an account on the exchange, you will automatically have a wallet for your coins. This wallet helps you store your funds and also serves as a wallet for receiving coins from other addresses.
Escrow services: As I mentioned, when buying coins on the platform, your money will be maintained by an escrow service until the purchase is finalized and your coins are deposited in your wallet. This feature provides a safer transacting space for both buyers and sellers.
Customer support: Paxful offers a comprehensive customer support system with quick responses to user queries. Queries can be channeled through direct emails to their team, social media platforms, as well as via phone call.
Reputation: If customer ratings are anything to go by, then a lot of platforms can borrow a leaf from Paxful. This platform enjoys decent customer ratings. Below, are a few reviews found on Trustpilot.
Is Paxful Safe to Buy Bitcoin?
Only having been around for a short time, Paxful has managed to create a good name for itself when it comes to trading safely. With a good track record, and an undisputed legitimacy, the peer-to-peer marketplace platform offers one of the safest exchanges for users looking to trade Bitcoin.
So yes, Paxful is legit and safe for buying and selling Bitcoin!
But as I always tell our readers, however much a review may tell you that a platform is safe, extra caution must be exercised at all times when trading virtual assets.
Things to Consider When Trading on Paxful
When transacting on any decentralized platform, it is essential to consider certain measures to ensure a safe trading experience. The excellent features offered by Paxful have caught the eyes of many, and of course, this include hackers and cyber criminals. Therefore, to help protect you from any unfortunate incidents, we recommend following these tips:
- Do a background check on any seller you wish to deal with – check their profiles for any alarming reviews. You should always try to only deal with buyers who have positive feedbacks of over 90%.
- Never transact with sellers outside of an exchange. Only agree to engage a seller on the platform and finalize the transaction on it. Sellers who try to talk you into transacting outside the platform are most likely trying to trick you out of your money. Also, do not be tempted to communicate with vendors using email, SMS, or phone calls to further avoid the risk of falling into their traps.
- Be aware of the prevailing marking prices for the coins you wish to buy – this may help you negotiate and make deals at the right prices. Also, the payment method you choose can significantly affect your transaction fees.Therefore, it is best to shop around for the best rates offered by the various payment methods on a platform when purchasing coins.
- You should always go for a payment system that guarantees the security of your money. The most vulnerable payment method on Paxful is using a Gift Card. These are prime targets for scammers since the cards are difficult to trace once they are stolen. On the other hand, payment methods such as PayPal, credit and debit cards, as well as banks transfers offer some of the safest modes of paying for your coins on most platforms.
In case you still have doubts about anything, including a seller or a procedure, make use of the exchange’s customer support channels. It is possible to run into problems when using any platform, do not assume it however insignificant it may be at the time.
Paxful grants you an easy and safe way of buying and selling Bitcoins with no transaction limits. Unlike many exchanges, Paxful users are not restricted depending on the provided verification details. With these and other numerous features, this is perhaps one of the best exchanges in existence today.
But before we can make the decision on whether or not this is the go-to platform when looking to trade Bitcoins, here’s an overview of the ratings of some of the key functionalities on Paxful.
Our Rating of Paxful
In this Paxful review, we analyzed four main features of this exchange to come up with our rating. They include:
User experience – 4.5/5 stars
Payment method – 5/5 stars
Fees – 4/5 stars
Security – 4/5 stars
Overall Rating – 4.4/5 stars
The Reason Behind The Rating
User experience: This exchange has a user-friendly interface, multiple customer support channels, and operates in more than 100 countries.
Payment method: So far, this is one of the platforms with one of the highest variety of payment methods
Fees: Using the Paxful is free, and the mining fee is only 0.0008 per BTC; however if the transaction amount is high, it can become quite expensive.
Security: Paxful offers top-level security features such as a safe wallet with two-factor authentication, and an escrow service for all transactions between sellers and buyers.
- Offers flexible payment methods
- Extremely user-friendly
- Contains unique security features such as the escrow service
- Only deals in Bitcoin
Paxful offers a user-friendly and decentralized system for trading Bitcoin. The biggest advantage of the platform is its numerous payment methods, while its biggest disadvantage is only being able to trade one type of cryptocurrency, Bitcoin.
All in all, Paxful is a great platform for traders looking to invest in a Bitcoin exchange with non-limiting payment methods. If that seems like you, you’ll definitely love this platform.
Finally, do you know something about Paxful that we don’t? We would love to hear what you think in the comments section.