Paxful Review Cover

Paxful Review

The Complete Guide To The Paxful Instant Cryptocurrency Exchange

What Is Paxful?

Company Facts:

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

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 or bank wire. Whether you want to spend iTunes gift card, Amazon gift card, PayPal funds, ApplePay or a credit card, Paxful allows you to seamlessly exchange money from your merchant of choice to purchase bitcoin. Moreover, Paxful users have the ability to create vendor accounts to sell gift cards, prepaid cards and more for bitcoin and vice-versa. The process is secure with an escrow system 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 Paxful user interface is simple to use and easy to navigate. The sign-up and verification process is seamless and thorough. The Paxful app can be found on both iOS and Android. Paxful also has an affiliate program for those who want to create 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 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

You can use the service to buy bitcoins 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 seller who’s willing to work with someone residing in your country.

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 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.

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 card and prepaid card seem to be incredibly popular. If you are a banking customer of GreenDot, Simple or Chime you will feel right at home using their app as a payment method. Those who are familiar with ApplePay, MovoCash or Zelle are able to use these services to seamlessly to perform 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.

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 platform makes it easy to buy and sell bitcoin with different payment methods at ease and earn an extra income. Merchants and entrepreneurs will have a simple receiving and closing trades under their own terms. The escrow system makes it simple to ensure that you only release bitcoins from your Paxful Bitcoin Wallet if the terms of the trade have been met. This is especially useful if you are an affiliate of Paxful and receive commissions in BTC and would like to convert it to your fiat currency of choice.

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.

Escrow System

When compared to other exchanges that only allow you buy directly from them, Paxful has a escrow system which 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.

Paxful - Escrow System

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

Escrow protects sellers from fraudulent buyers by requiring the bitcoin to be deposited up front 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.

Trade Chat

Every trade has a chat which 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 coinlocking 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 setup Two-Factor Authentification (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 platform safe for all buyers and sellers. 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.

Affiliate Program

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

Paxful Affiliate Program Dashboard

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]

How To Buy Bitcoin On Paxful With iTunes Gift Card

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.

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 confirm 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 vs LocalBitcoins

 CompanyWebsiteFeesCountries SupportedCustomer ServiceRating 
1
PaxfulPaxful
paxful.com0.1% to 5% for sellersEvery country except for a few (see banned countries)Knowledge Base9.5
2
Localbitcoins LogoLocalBitcoins
localbitcoins.comFreeAll countriesKnowledge Base9.3

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.

Paxful vs Coinbase

 CompanyWebsiteFeesCountries SupportedCustomer ServiceRating 
1
PaxfulPaxful
paxful.com0.1% to 5% for sellersEvery country except for a few (see banned countries)Knowledge Base9.5
2
Coinbase App LogoCoinbase
coinbase.com0.50% + $0.99 to 3.99%102 countries (see full list)Knowledge Base9.0

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 gift card, prepaid card, Zelle Pay, Western Union, ApplePay, MovoCash, 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 a strong option for all audiences who are just getting started with bitcoin. Paxful is also a great option 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 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
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