What Is Paxful?
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.
|New York, New York
|Ray Youssef, Artur Schaback
Paxful is a person-to-person marketplace that supports over 300 payment methods.
Paxful gives vendors the ability to create offers in all currencies.
- Escrow system
- Diverse payment methods
- Simple user interface (UI)
- Wide variety of sellers
- Buyers and sellers are at risk of being scammed
Table of Contents
- What Is Paxful?
- The Complete Guide To The Paxful Instant Cryptocurrency Exchange
- Is Paxful Legit?
- How Can I Buy Bitcoin With Paxful?
- Countries Supported
- Cryptocurrencies Supported
- Payment Methods Supported
- Account Verification And Buying Limits
- Vendor Account
- Paxful Bitcoin Wallet
- Escrow System
- Is Paxful Safe?
- Affiliate Program
- Paxful Peer Program
- Customer Service
- How To Buy Bitcoin On Paxful With iTunes Gift Card
- Paxful Testimonials And Reviews
- Paxful vs LocalBitcoins
- Paxful vs Coinbase
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
- Create an account with Paxful.
- Verify your account.
- Go to “Buy Bitcoin” and choose a payment method.
- Open a trade with the vendor and complete the terms.
- Receive bitcoins directly into your Paxful wallet.
That’s it! You have successfully purchased bitcoin on Paxful using any payment method you want.
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.
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
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.
Here is a brief list of some of the payment methods (300+ in total) that are available on Paxful.
- Amazon gift card
- Apple gift card
- Best Buy gift card
- Cheesecake Factory gift card
- Chipotle gift card
- iTunes gift card
- Google Play gift card
- Nike gift card
- Nordstrom gift card
- Sephora gift card
- Starbucks gift card
- Steam Wallet gift card
- Target gift card
- Victoria’s Secret gift card
- VISA gift card
- Walmart Visa gift card
- OneVanilla VISA/MasterCard gift card
- Cash in Person
- Zelle Pay
- Western Union
- MTN Mobile Money
- Facebook Messenger Payment
- Bluebird American Express
- Chase QuickPay
- Google Pay
- WeChat Pay
- Square Cash
- Perfect Money
- GreenDot Card
- Chime Instant Transfers
- Other cryptocurrencies
You can view all payment methods available on Paxful here.
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
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.
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.
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.
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.
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
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.
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.
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.
Every trade has a chat that is used to communicate with the buyer or seller and to upload supporting documents.
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.
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.
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.
Earn 50% on Every Bitcoin Purchase
Earn 50% on standard escrow fees from every bitcoin purchase made by a Tier 1 Affiliate.
Build Your Empire
Earn 10% of the standard escrow fees from every bitcoin purchase made by a Tier 2 Affiliate.
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 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.
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.
Let’s say you are located within the United States and want to redeem a $25 iTunes Gift Card for bitcoin:
Step 2: At the top of the page click on the blue ‘Buy Bitcoin’ button.
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’.
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’.
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.
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.
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 vs LocalBitcoins
|Free, 0.1% to 5% for sellers
|Every country except for a few (see banned countries)
|Free, 1% to advertisers
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
|Free, 0.1% to 5% for sellers
|Every country except for a few (see banned countries)
|0.50% + $0.99 to 3.99%
|102 countries (see full list)
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.
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.