Paxful Review Cover

Paxful Review

The Complete Guide To The Paxful Instant Cryptocurrency Exchange

What Is Paxful?

Paxful

Company Facts:

CEO:Ray Youssef
Headquarters:New York, NY
Founders:Ray Youssef, Artur Schaback
Founded:2015
Customer service:+1 (865) 272-9385

For those new to bitcoin exchanges, Paxful is the world’s largest Peer-to-Peer Marketplace having over 2 million users and is a simple way to exchange your leftover money for Bitcoin. With over 300+ payment methods, customers have the ability to buy Bitcoin through a multitude of channels including the typical bank transfer and bank wire. Whether you want to spend an iTunes gift card, Steam gift card, PayPal funds or a credit card, Paxful allows you to seamlessly transfer money from your merchant of choice to Paxful in order to purchase Bitcoin. The process takes seconds and makes Paxful one of the premier Bitcoin exchanges online.

The mission of Paxful is to give working people a simple, fair and secure platform for trading the value of their work. The company is disrupting the financial services industry by offering a brand new way to transact money into digital form.

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

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 remains as one of the largest Bitcoin exchanges 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).

Countries Supported by Paxful

You can use the service to buy bitcoins whether you reside in the United States, United Kingdom, Australia, Canada, India, Japan, Mexico, Brazil, Russia or just about anywhere else in the world. The key is finding a seller who’s willing to work with someone residing in your country.

Cryptocurrencies Supported

Although Bitcoin is the main cryptocurrency supported it is possible to buy and sell the following cryptoassets on Paxful exchange: 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.

Buy Bitcoin With PayPal, Credit Cards, Gift Cards, Bank Wire And More

Paxful has quite possibly the most bountiful options out of all the exchanges for buying bitcoin. Among the options, gift cards and prepaid cards seem to be incredibly popular. If you currently use banking services such as GreenDot, Simple or Chime you will feel right at home using them as payment methods. Those who are familiar with the Square Cash App or Zelle will be able to use them seamlessly to make trades.

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 platform.

There is only a 1% fee for the seller from the amount of a sale. For gift cards, this becomes a 5% fee for iTunes and Google Play; and 2% for every other gift card. The fee for bank transfers is merely 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.

Paxful Bitcoin Wallet

Paxful Bitcoin WalletWhen you buy bitcoin it automatically goes into your Paxful Bitcoin Wallet, which is free. It takes a total of 3 confirmations for the funds to be credited to your wallet.

Before you can start selling on Paxful you must first top up your account with some bitcoins. You can do this by proceeding 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. You can generate a new address every single time you want to receive more bitcoins.

The Paxful Bitcoin Wallet can also be found on both 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 consider moving them into a more secure cloud, smartphone or hardware wallet such the KeepKey.

Is Paxful Safe?

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. Not only are there multiple layers of account & persona verification, but also the system encourages you to setup Two-Factor Authentification (2FA) to secure your Paxful account. Paxful currently supports Google Authenticator, Authy and SMS based 2-factors. As always, ensure you use a secure password such as one generated with a secure password generator tool.

With the Paxful escrow service, it is simple to place holds on your funds to buyers and sellers and securely execute a transfer of funds. Each buyer and seller has a feedback rating which ensures a strong and safe community. The Paxful servers are well-guarded up to the highest banking specifications, so there should be no downtime.

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 platform.

Phone: +1 (865) 272-9385

Support Email: [email protected]

Getting Started

In order to begin trading for Bitcoin on the Paxful Exchange Platform, 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.

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.

Step 2: At the top of the page click on the button Buy Bitcoin. This will take you to a page where you can select how much you want to deposit, the currency you will be paying in and how you want to pay. You have over 300+ payment options. Click on Search.

Step 3: On the following screen you will see open offers for the payment method you want to use. For each offer, you are able to view the vendor’s feedback and the price you are paying. When you make a selection click Buy.

Paxful - Buy Bitcoins Instantly Open Offers Page

Step 4: On the next screen enter the full value of the gift card amount. Make sure you agree with the rates and that you read the terms before you make a purchase or upload a card. Click on the green BUY NOW button to complete your trade.

Buy Bitcoin Now Paxful iTunes Gift Card

Step 5: Your trade has started and is now live. On the next screen, you can view the trade instructions under the pay now 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. This will complete the trade. If you are a seller you may need to provide your wallet address.

Step 6: 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 vs Coinbase

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 far more options including PayPal, credit card, gift card, Western Union, MoneyGram, and many more services. The fees on Paxful are almost non-existent, while Coinbase fees range from 1.49% to 3.99%. You can buy bitcoin on Paxful, however, Coinbase offers a much larger selection of cryptocurrencies.

If you want to view more great exchanges for buying and selling bitcoin check out our full guide.

Conclusion

Paxful is an excellent platform to buy and sell Bitcoin between other forms of convertible money such as credit cards, debit cards, gift cards, Western Union, MoneyGram, PayPal, and hundreds of more methods. If you want to purchase bitcoins quickly and painlessly, Paxful simplifies the process. Overall, I recommend Paxful as an excellent option for all audiences who are just getting started with bitcoin. Paxful is also a great option for advanced users of bitcoin and online payment systems.

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 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. 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
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