Paxful

Paxful Review

A peer-to-peer marketplace, Paxful allows its users to buy and sell cryptocurrency using multiple payment methods. It describes itself as “Paypal plus Uber and the People’s Wall Street.” Paxful prioritizes accessibility and convenience, offering its users a straightforward, transparent crypto service.

Paxful was established by a group of experienced developers in 2015. It is unique in several ways. First and foremost, it is peer-to-peer. In the marketplace, buyers and sellers can post trade offers. It is similar to eBay. Instead of being simply a merchant for Bitcoin transactions, the exchange acts as a mediator between parties, providing a public space for users to post prices and make offers.

How Paxful Works

Although it’s difficult to mine bitcoin, this mining is gaining traction as currency for daily purchases. Paxful connects buyers and sellers, allowing them to exchange bitcoin easily. Over 300 different payment methods are accepted. If you’re a business, this platform offers you a way to let your online shoppers pay with bitcoin.

Users can purchase and sell Bitcoin using diverse payment options, including bank transfer, credit or debit card, Neteller, PayPal, Skrill, and many different gift cards such as Amazon, iTunes, and Steam.

No fees are taken directly from the buyer when he or she purchases Bitcoin. However, the buyer may be charged a discretionary fee at the hands of the seller, with the percentage varying depending on the payment method that is used. These fees may be a little steep, particularly if you’re using a gift card.

Bitcoin sellers will be charged a one-percent fee by Paxful. Also, there is a small “mining fee” charge that is taken when Bitcoin is sent from one address to another. This charge will also be tacked on to the seller. User information is very transparent and users can leave feedback (positive or negative) with additional comments on your profile.

Security at Paxful

When conducting financial transactions online, you must ensure that the website on which you are transacting is safe, secure, and protects your personal information. Comodo secures Paxful, encrypting its data by 256-bit SSL. The exchange also abides by PCI vulnerability standards, further securing its environment. Because this is a peer-to-peer marketplace, you have the opportunity to make sure that the user with whom you are trading is reputable, garnering positive feedback and reviews. Your funds are Escrow-protected, with any disputes between parties resolved by a team of moderators.

Paxful, Inc. headquarters are located at 3422 Old Capitol Trail, PMB #989, Wilmington, Delaware, 19808, U.S. This company is registered, and information about the company and staff is located on the “About Us” webpage. Reviews of Paxful are generally positive, with over 55,000 customers served since 2015.

Paxful Exchange Rate & Fees

There is no fee for buyers. The fees instead come from sellers, who all pay a fee equal to one-percent of the amount of the transaction.

Make sure you pay attention to the exchange rate, as that is a pretty hefty fee in some cases. Even though Bitcoin is decentralized, it is still affected by market trends and government regulations. On Paxful, sellers set their own prices at a little bit higher than the exchange rate. This way, transfers are faster and more convenient.

Exchange rates also can fluctuate based on the transfer service you select. As an example, if the mid-market rate is 1 USD to 1,049.20 BTC, Paxful could offer an exchange rate of 1 USD to 1,037.15 BTC. The Paxful seller then decides how much more than the rate they want to charge, so make sure to always compare seller rates.

Paxful Special Features

• It’s simple to use, letting buyers and sellers make quick, easy transactions.
• Over 300 payment methods. Pay with cash, credit or debit cards, bank account transfers, Apple Pay, gift cards, and more.
• Fast deliveries of transactions. Usually, your bitcoin appears in your e-wallet instantly.
• There no buyer fee. However, Paxful charges sellers a one-percent fee on the amount of the transaction.

Ease of Use

The Paxful process is straightforward. You search the Bitcoin value you want to buy, and a list of potential vendors appears. When you see one you like, you contact him or her through the live chat option. Through live chat, you and the seller can discuss the terms of your transaction.

Buy/Sell at Paxful

With Paxful, purchasing Bitcoin is easy. You need to first create an account and you will instantly get a free e-wallet. Then, enter your desired spending level and choose the payment method you wish to use. Compare seller rates and pick a sender. Initiative a live-chat with that vendor to discuss terms and finish the transaction.

The minimum amount of Bitcoin a seller can offer is 0.001 BTC, regardless of the seller’s verification level. The company charges a one-percent fee on the sale, which is automatically taken from the vendor’s wallet and transferred to escrow, along with the amount the client is buying during the trade.

Paxful’s internal reputation system allows its user to rate their experience with one another during a trade. After a seller has reached fifty trades with over twenty buyers, he or she can apply to become verified, if his responsiveness is high and his success score over 33%. This feature is available to Canadian, Australian, American, and European clients only. The process can take up to one week, and, since Paxful launched, the requirements to become verified have changed slightly. For more information about this process, click the corresponding entry on the Paxful knowledge base.

Bottom Line

Paxful is ideal for anyone looking for a quick way to buy and sell Bitcoin using a multitude of different payment methods. Whether you want to buy Bitcoin through Paypal, Runescape Gold or a Netflix gift card, you can do so on this platform.

When using a peer-to-peer system such as Paxful, make sure to research the users with whom you are seeking to make an exchange. Fees are determined by individual sellers, which means you should always look for the best deal, avoiding any offerers that charge high exchange fees and try to profit off new users’ naivety.  

To see how Paxful ranks against other industry-leading crypto exchanges and cryptocurrency trading platforms see our comparison charts. Read our expert reviews, see our ratings and compare the best online trading platforms, features, fees, and more.