What Is Paxful?

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Paxful is the world’s largest Peer-to-Peer Marketplace with over 2 million users and is a simple way to exchange money for bitcoin. There are over 300+ payment methods to choose from and customers have the ability to buy and sell bitcoin through a multitude of channels.

The Paxful app can be found on both iOS and Android devices.

Paxful users have the ability to create vendor accounts to sell bitcoin for cash, gift cards, prepaid cards and more. With an escrow system, the process is secure and makes Paxful the premier bitcoin marketplace online.

Paxful

Paxful Homepage

Rating

Website:paxful.com
CEO:Ray Youssef
Headquarters:New York, New York
Founders:Ray Youssef, Artur Schaback
Founded:2015
Customer service:Knowledge Base
More information:Read Review

Paxful is a person-to-person marketplace that supports over 300 payment methods.

Paxful gives vendors the ability to create offers in all currencies.

Pros

  • Escrow system
  • Security
  • Diverse payment methods
  • Simple user interface (UI)
  • Wide variety of sellers

Cons

  • Buyers and sellers are at risk of being scammed

ReputationFeesPrivacyLimits
ExcellentLowHighHigh

Paxful Review Cover

The Complete Guide To The Paxful Instant Cryptocurrency Exchange

The mission of Paxful is to give working people a simple, fair and secure platform for trading the value of their work and to be the Uber of bitcoin services. The company is disrupting the financial services industry by offering a brand new way for merchants to become their own exchange.

The Paxful user interface is simple to use and easy to navigate. The sign-up and verification process is smooth and thorough.

Paxful also has an affiliate program for those who want to build another stream of income.

Before making any purchase decision with an exchange always ensure to investigate the reputation of management, venture capital investors and regulatory approvals. Make sure to learn about each company’s values and core mission and to perform proper due diligence on review sites, message boards and with investment professionals. 

Is Paxful Legit?

Paxful is based in New York, New York and was founded in 2015. Paxful is one of the largest bitcoin marketplaces online today with an ever-growing number of payment methods for users of all types. The executive team consists of Ray Youssef (CEO) and Artur Schaback (CTO).

How Can I Buy Bitcoin With Paxful?

If you want to buy bitcoin using Paxful then you can follow this step-by-step guide to get started right away.

How To Buy Bitcoin With Paxful Summary

  1. Create an account with Paxful.
  2. Verify your account.
  3. Go to “Buy Bitcoin” and choose a payment method.
  4. Open a trade with the vendor and complete the terms.
  5. Receive bitcoins directly into your Paxful wallet.

That’s it! You have successfully purchased bitcoin on Paxful using any payment method you want.

Countries Supported

You can use the Paxful marketplace to buy bitcoin whether you reside in the United States, United Kingdom, China, Australia, Canada, India, Japan, Nigeria, Mexico, Brazil, Russia or just about anywhere else in the world. The key is finding a buyer or seller who is willing to work with your needs and requirements.

Paxful Supported Countries

Banned countries: Burundi, Central African Republic Sanctions, Cuba, Crimea region, Iran, Iraq, Lebanon, Libya, North Korea, Somalia, South Sudan-related Sanctions, Sudan and Darfur, Syria, Yemen

Cryptocurrencies Supported

Although Bitcoin is the main cryptocurrency supported it is also possible to trade for the following cryptoassets on Paxful: Bitcoin Cash, Ethereum, Litecoin, Dash, Bitcoin Gold, Ethereum Classic, Dogecoin, Ripple, Zcash, Cardano, Tron, Electroneum, Verge, Icon, Raiblocks, Augur, Siacoin, Bitshares, Dentacoin, Digibyte, EOS, Tether, and many others.

Payment Methods Supported

Paxful has quite possibly the most bountiful options for payment methods out of all the exchanges for buying bitcoin. Among the options, gift cards seem to be incredibly popular.

If you are a banking customer of GreenDot, Simple or Chime you will feel right at home using the app to make trades. Those who are familiar with Cash App, ApplePay, MovoCash or Zelle are able to use these services to seamlessly send and receive money for bitcoin.

Paxful Payment Methods

Here is a brief list of some of the payment methods (300+ in total) that are available on Paxful.

You can view all payment methods available on Paxful here.

Fees

There are no fees for buying on the Paxful marketplace.

Sellers are charged a 1% fee for each sale. This becomes a 5% fee for iTunes and Google Play gift cards; and 2% for every other type of gift card. The fee for bank transfers is 0.1%.

This covers the cost of operating expenses for Paxful. Paxful does not charge fees to their buyers. The fee structure may change in the future.

Account Verification And Buying Limits

Level 1

Requires email and phone verification. This increases the security level of the account, provides access to a higher amount of offers, creates a higher level of trust. The trading volume limit is up to $1,500. Only 2 trades can be opened at once and for a total volume of $500.

Level 2

Requires ID verification. Increases trading volume limits, provides access to additional trading methods such as Bank Transfer. It is necessary to create offers to buy bitcoins. No need for 0.02 BTC on balance to make your buy offer visible on the website. The trading volume limit is up to $10,000.

Level 3

Requires Address verification. Increases trading volume limits, provides access to additional trading methods such as Bank Transfer. Trading volume can be $10,000 and higher.

Level 4

Requires additional verifications such as EDD (Enhanced Due Diligence) or CDD (Customer Due Diligence). Increases trading volume limits. May be requested for significantly high volume institutional/corporate accounts.

Vendor Account

The Paxful marketplace makes it easy to buy and sell bitcoin with different payment methods at ease and earn an extra income. Merchants and entrepreneurs can receive and close trades under their own terms in any amount at any time.

The escrow system makes it so that you only release bitcoins from your Paxful Bitcoin Wallet if the terms of the trade have been met.

You can find my personal Paxful profile and trade with me here if you want.

A vendor account is especially useful if Paxful is your main bitcoin wallet or you are an affiliate of Paxful and receive commissions in BTC.

Paxful Bitcoin Wallet

Paxful Bitcoin Wallet

When you buy bitcoin it automatically goes into your free Paxful Bitcoin Wallet. A total of 3 confirmations are needed for bitcoin to be officially added to your wallet.

You can top up your account by going to the button at the top named Wallet. From here you will be able to view your current balance and/or deposit into your Paxful Bitcoin Wallet using your personal bitcoin address.

The Paxful Bitcoin Wallet is also found on iOS and Android mobile platforms. The wallet makes it simple to send, receive and store bitcoin seamlessly and effortlessly from anywhere.

It is recommended that you do not store your bitcoins in the Paxful Bitcoin Wallet for the long-term and instead move them into a hardware wallet like the Trezor One.

Escrow System

When compared to exchanges that only allow you to buy directly from them, Paxful has an escrow system that secures the buying and selling process for traders.

The escrow system works safely by keeping the bitcoin in each trade in a 3rd party safety deposit account. Only once all terms have been met are the bitcoins released and the trade completed.

Escrow protects sellers from fraudulent buyers by requiring the bitcoin to be deposited upfront and released only if the terms of the sale have been met.

Escrow protects buyers from sellers who refuse to release coins after sending payment. As an additional measure, buyers can upload proof of payment for Paxful moderators to have them release bitcoin to their wallet.

Paxful - Escrow System
Every Paxful vendor has their own terms of trade to complete the sale.

Trade Chat

Every trade has a chat that is used to communicate with the buyer or seller and to upload supporting documents.

Disputes

A buyer or seller can open a dispute and provide supporting documents to the moderators if the seller does not release the bitcoins on time or if the buyer is coin locking without making a payment.

Cancel Trade

The buyer has the ability to cancel the trade at any time. If the trade has been marked as paid, then the buyer must wait for the seller to release the bitcoins.

Is Paxful Safe?

Yes, Paxful is one of the most secure platforms for buying and selling bitcoin with different payment methods.

Upon sign-up, you will encounter a five-layer process to ensure the security of your account which includes your phone number and email address. The system encourages you to set up Two-Factor Authentication (2FA) to secure your Paxful account. Paxful currently supports Google Authenticator, Authy and SMS based Two-Factor Authentication. As always, make sure to use a secure password such as one generated with a secure password generator tool.

Paxful Two Factor Authentication

The escrow system makes the marketplace safe for all buyers and sellers. Each buyer and seller has a feedback rating that ensures a strong and safe community. The Paxful servers are well-guarded up to the highest banking specifications, so there should be no downtime.

Affiliate Program

Make Money For Every Affiliate Referred To Paxful

Earn 50% on Every Bitcoin Purchase

Earn 50% on standard escrow fees from every bitcoin purchase made by a Tier 1 Affiliate.

Build Your Affiliate Empire

Build Your Empire

Earn 10% of the standard escrow fees from every bitcoin purchase made by a Tier 2 Affiliate.

Get Paid In Bitcoin

Get Paid

You can transfer your affiliate earnings to your Paxful wallet when your balance reaches the equivalent of 10 USD.

The Paxful affiliate program is a great way to earn bitcoin by referring other users to trade on the marketplace. Affiliates earn 50% of Tier 1 escrow fees and 10% of Tier 2 escrow fees. Paxful is the top platform for people who want to buy and sell bitcoin with hundreds of payment methods and easily outclasses its competitor, LocalBitcoins, in average daily volume, number of users, and trade size.

Personally, Paxful is a high-converting marketplace to promote as a bitcoin affiliate and it is used by people all over the world, so it will only grow in size.

You are able to withdraw bitcoin from your Paxful Bitcoin Wallet as soon as it reaches $10 USD.

Paxful Affiliate Program Dashboard

Paxful Peer Program

Paxful has a highly rewarding peer program for power users who want to be ambassadors of the brand. As a Peer, you will spread the word about Paxful and receive cool perks like a Peer badge, swag, VIP support, and access to exclusive meetups. Ambassadors receive bonuses for hosting meetups in their local area and teaching others about financial freedom. Associates are compensated monthly and get to visit the Paxful office and team.

Beyond Associate, there are even more badges you can earn while you are in the Paxful Peer Program like Professor, Consular, Sentinel, and Guardian.

You can learn more about the Paxful Peer Program here.

Customer Service

Paxful has an excellent customer service team which will help you answer any questions you may have. There is also a comprehensive Support FAQ that covers everything you need to know about the Paxful marketplace.

Phone: +1 (865) 272-9385

Support Email: [email protected]

How To Buy Bitcoin On Paxful With iTunes Gift Card

In order to begin trading bitcoin on the Paxful marketplace, you will need to get familiar with the user interface. Here are the steps you need to take to get started on Paxful. If you are new to Paxful scan the QR code to get started with buying and selling bitcoins.

Paxful Wallet Address QR Code

Let’s say you are located within the United States and want to redeem a $25 iTunes Gift Card for bitcoin:

Step 1: Go to the Paxful home page. You will need to create an account if you haven’t already. Make sure you are logged in.

Paxful Homepage Marketplace Dashboard

Step 2: At the top of the page click on the blue ‘Buy Bitcoin’ button.

Paxful Buy Bitcoin

Step 3: This will take you to a page where you can select how much bitcoin you want to buy (in dollars) and how you want to pay. You have over 300+ payment options at your perusal. Once you have made a decision click on ‘Search For Offers’.

Paxful - Buy Bitcoin With iTunes Gift Card

Step 4: On the following screen you will see open offers for iTunes Gift Card. For each offer, you are able to view each vendor’s feedback rating, limits and price that you will pay. When you make a selection click ‘Buy’.

Paxful - Open Offers For ITunes Gift Card On Marketplace

Step 5: On the next screen enter the full value of the gift card. Make sure you agree with the rates and that you read the terms before you begin the trade. Click on the blue ‘Buy Now’ button to start your trade.

Paxful - Buy Bitcoin From Vendor

Step 6: Your trade has started and is now live. On the next screen, you can view the trade instructions under the ‘Paid’ button. You can message the seller and upload pictures of your gift card on the right side. Once you have uploaded the pictures be sure to click on the ‘Paid’ button. Once the seller confirms receipt of the payment, he or she will release the bitcoins to your wallet and complete the trade.

Paxful - Trade With Another Vendor Escrow System

Step 7: Congratulations! You have purchased bitcoin with your own gift card in just a few minutes. This process can be repeated for every type of payment method on Paxful. We hope this helped and feel free to share this guide with a friend.

Paxful Testimonials And Reviews

As a marketplace, Paxful has over 12,000 Vendors, 800,000 Customers and over a million bitcoins sold to date. For many users of bitcoin, Paxful is the go-to place to easily exchange bitcoin for cash in their currency of choice.

Paxful Vendor Review - Bitcoinforever
Paxful Review Testimonial - Fahimipour
Paxful Review Testimonial - Aluam
Paxful Trader Testimonial - Cashforbtc
Paxful Vendor Testimonial - Mainebitcoin
Paxful Vendor Testimonial - Thomasmarkets

Paxful vs LocalBitcoins

 CompanyFeesCountries SupportedCustomer Service
Paxful Icon Resized
Paxful

Free, 0.1% to 5% for sellersEvery country except for a few (see banned countries)Knowledge Base
LocalBitcoins Icon Resized
LocalBitcoins


Free, 1% to advertisersAll countriesKnowledge Base

Paxful and LocalBitcoins are both global marketplaces for people to buy and sell bitcoin with any payment method. Paxful offers over 300+ payment methods and has a seamless escrow system for purchases, while LocalBitcoins has a wide variety of payment methods and you must interact with each seller directly on their terms.

Paxful is available for most countries while LocalBitcoins includes every country in the world. Paxful charges a minimal fee to sellers on transactions, while LocalBitcoins is free for users and charges a minimal 1% fee for advertisements.

Paxful vs Coinbase

 CompanyFeesCountries SupportedCustomer Service
Paxful Icon Resized
Paxful

Free, 0.1% to 5% for sellersEvery country except for a few (see banned countries)Knowledge Base
Coinbase Icon Resized
Coinbase

0.50% + $0.99 to 3.99%102 countries (see full list)Knowledge Base

Paxful is often compared to Coinbase in that they are both simple to get started.

While Coinbase can feel limited in terms of payment options available, Paxful offers a far superior selection of payment options. The fees on Paxful are almost non-existent, however, merchants set their own prices, while Coinbase fees range from 1.49% to 3.99%. Coinbase offers a larger selection of cryptocurrencies.

Conclusion

Paxful is an excellent marketplace for buying and selling bitcoin with other forms of convertible money such as gift cards, prepaid cards, Zelle Pay, Western Union, ApplePay, MovoCash, MoneyGram, PayPal, and hundreds of other methods. If you want to trade bitcoins quickly and painlessly, Paxful simplifies the process.

Overall, I recommend Paxful as a strong option for all audiences who are just getting started with bitcoin. Paxful is also a popular marketplace for advanced bitcoin sellers.

Frequently Asked Questions (FAQ)

A Paxful account gives a person the ability to hold bitcoins within a Paxful bitcoin wallet and make transactions with other users. Within the Paxful marketplace, customers can choose from over 300+ payment methods to buy and sell bitcoin within a dedicated escrow system. When choosing a payment method users have the option of picking between credit cards, gift cards, prepaid cards, bank transfers, Western Union, Cash App, GreenDot, MoneyGram, Payoneer, PayPal, Venmo and more.

Paxful users have the ability to become their own merchant and decide how they want to set up their business.

Paxful is headquartered in New York City, New York. The company was founded in 2015 by Ray Youssef (Founder) and Artur Schaback.

Paxful can be used as a bitcoin wallet if one so desires. Each user can see their current balance, make a deposit and withdraw from their wallet at any time. 2FA can be enabled for enhanced security of your Paxful bitcoin wallet. A Paxful bitcoin wallet has a QR and a wallet address such as 38x2fNxXNWimeWNWZH7SRRaXXmmSq15TxE

Your Paxful bitcoin wallet is also a statement of transactions going in and out of your wallet. When a customer starts a trade, bitcoins are withdrawn from the vendor's wallet and held within an escrow and not distributed to the buyer until the vendor releases the bitcoins.

Disputes should be started in any of the following cases:
  1. If you are buying bitcoins, have followed the vendor instructions, and paid the vendor, but the vendor refuses to release bitcoins.
  2. If you are a vendor and the buyer is not responding and locking up your bitcoins in escrow.
  3. If you are a vendor and the buyer refuses to pay you or follow your trade instructions and will not cancel the trade. To prevent this make sure to write CLEAR offer terms when you create your offer and CLEAR trade instructions.
  4. If the buyer of bitcoins forces you to release coins first, without payment confirmation or pretending that payment was made.
  5. If one of the parties impersonates the moderator, attempts to steal your Paxful account details, or in any other way violates the Terms of Service.
After a trade starts, a user must wait 3 hours to begin a dispute except for the following cases:
  1. If you are a verified vendor, you can start disputes instantly.
  2. If the trade has been marked as paid within 5 minutes, then a dispute can be started within 30 minutes (the wait is lowered because in these cases it is most likely a coin locker). This helps sellers to get their bitcoins back to their wallet from so-called “coin-lockers” and won’t hinder sales any longer.
How To Start A Dispute On Paxful

Head over to the page you are trading on and click dispute. Provide a clear reason for your dispute along with any supporting documentation materials as to why you are doing it.

The Paxful support team determines who wins a case by looking at all the facts and proof submitted by both parties. Once a decision is made bitcoins will be released to the winning party.

 

If you want to learn more about disputes on Paxful you may do so here: https://paxful.com/support/en-us/articles/360009626754-Disputes

You can get in touch with Paxful customer support through a variety of methods. For starters, on each trade, there is a 'Report scam' button which can be used to contact a moderator if a buyer or seller fails to make a payment. If you wish to speak with a live representative there is also a chat feature which can be used to access a Paxful team member at any time.

Phone+1 (865) 272-9385

Support Email[email protected]

Lastly, the comprehensive Support FAQ covers everything about the Paxful platform from A to Z.

Paxful

9.5

Overall

9.5/10