Paxful is a popular peer-to-peer cryptocurrency trading and digital wallet. Paxful traders may purchase and sell cryptocurrencies using a variety of payment options. It is currently one of the most established P2P Bitcoin trading platforms. It was created in 2015 by Artur Schaback and the well-known developer Ray Youssef. It is one of the top five peer-to-peer exchanges with high Bitcoin trading volume.
The Paxful review goes through all the essential features, mailing costs, deposit and withdrawal options, pros and downsides, and much more.
What is Paxful?
Paxful was founded in 2015 under the name EasyBitz. The Nigeria cryptocurrency exchange has over 4.8 million customers and more than 200 workers worldwide, including offices in the Philippines, Estonia, and Hong Kong. Paxful users worldwide, including active traders from Malaysia, the United Arab Emirates, India, Pakistan, Indonesia, and Zimbabwe.
The CEO and founder’s ambition was to create a crypto community open to any trader interested in buying and selling Bitcoin and other digital currencies.
Unlike other order-book-based exchanges, Paxful is a trustworthy and transparent platform that allows crypto buyers and sellers to directly communicate to sell or acquire Bitcoins and other key cryptocurrencies. They may trade Bitcoin, Ethereum, and Tether USD by selecting a vendor or buyer from the available options, or they can discover compatible counterparties directly.
How Does Paxful Function?
Paxful aims to make the Bitcoin trading process simpler. To begin trading, go to the official website and click the Buy Bitcoin option. A message box will appear, asking for the amount of Bitcoin and the type of fiat currency. The site will also show the value of Bitcoin.
To begin purchasing Bitcoins, follow the procedures outlined below:
- Users must first register a Paxful account by filling out a form with their legitimate email address, username, and password.
- After creating an account, Paxful will prompt customers to build a free wallet to streamline the shopping process.
- Select a payment method from the extensive list of possibilities, which includes credit card, PayPal, wire transfers, and NetTeller.
- The platform will display a list of possible Bitcoin vendors, from which the Paxful user must choose one and specify the currency and mode of payment. The open orders in the search results allow purchasers to select their chosen seller easily.
- After selecting a vendor, Paxful will allow its buyers to read the sellers’ profiles to make an educated selection. Buyers can either buy Bitcoin from the selected vendor or choose another. They may contact the vendor via the site and complete the purchase only when convinced.
- Once the seller commences the purchase process, Paxful will direct the buyer to an Escrow service, instructing them on the chosen payment option.
Also read: FTX VS Coinbase: Choose The Best Crypto Exchange
Is Paxful Regulated?
It is not a regulated wallet, yet it is safe to use. Purchasers must distinguish between the platform’s and the seller’s honesty. Even though the Paxful platform demands its clients’ ID for verification and follows KYC criteria, it has no regulations in any jurisdiction. Users may utilize the site safely since anti-money laundering, and KYC procedures are in place.
Buying and Selling Cryptocurrency
Paxful enables traders to purchase and sell digital currencies from anywhere globally without incurring transaction fees while acquiring crypto. When buyers buy cryptocurrencies from their favorite sellers on the market, they do so at the prices set by the sellers. This cryptocurrency exchange rate may fluctuate depending on various factors such as currency pairs, payment choices, etc.
When Paxful vendors sell cryptocurrency to purchasers, they must pay transaction fees. However, the selling costs vary based on the payment method used. The exchange charges 0.5% for bank transfers, 1% for cryptocurrencies, fiat currencies, credit cards, debit cards, and online wallets, and 3% for gift cards.
The purchasers pay this cost through the Escrow service when the sale begins, and after the deal’s completion, the seller receives the fees.
Fees and Other Charges
Bitcoin purchases on Paxful are entirely free. Buyers don’t have to pay fees, regardless of payment method. Sellers must pay about 5% of the entire order for each transaction. Selling Bitcoin and other cryptocurrencies via bank transfers incurs the slightest charge of 0.5%.
However, selling by gift card might incur fees ranging from 3% to 5%, depending on the kind of gift card. Other payment options for selling cryptocurrency include a 1% fixed charge. Furthermore, although crypto deposits are free, crypto withdrawals or transfers are subject to fees based on transaction size.
Bitcoin transactions over $20 incur a 0.0005 BTC fee, while USDT transfers above $20 incur a 5 USDT fee. Paxful traders can also get five free USDT and BTC transfers monthly if they move USDT and BTC to other Paxful wallets. Finally, regarding exchange costs, remember that USDT to BTC conversions is free. However, BTC to USDT conversions or transfers is subject to a 0.1% charge paid in Bitcoin.
Deposit and Withdrawal Methods
Although Paxful is available in several vital nations, the platform has made several exclusions. Paxful is unavailable to dealers from OFAC-banned nations like Iraq, Iran, Cuba, and Venezuela.
Traders can utilize over 300 payment methods for their deals; however, depending on the current active traders, they will vary by location. The site only allows the sale of two cryptocurrencies, BTC and USDT, which may be purchased using any supported payment method. Traders’ purchasing and selling limitations on the platform depend on their ID verification levels.
They must complete further stages of verification to trade at greater limitations. Paxful’s greatest trading limit is $50,000 per trade with an unlimited lifetime trade limit, although users must verify at level 4.
Paxful Platforms
Paxful exchange provides two platforms for trading cryptocurrencies:
Web Interface for Paxful
This platform resembles other trading systems. These web-based platforms allow buyers and sellers to purchase and sell various orders. The online interface automatically searches for the best offers for their transactions based on customer choices.
Paxful Mobile Interface
The smartphone interface aims to aid traders in buying and selling cryptocurrency while on the road. Traders may use this mobile interface as a wallet as well. This Paxful Bitcoin wallet app includes all of the functionality available in the online application.
Paxful Customer Service
Although customer support is limited, the platform offers a comprehensive set of FAQs and a knowledge-based help center. Paxful assists through an online form or a live chat box accessible via the Paxful logo on the website or mobile app. Paxful’s website does not provide a phone number or email address.
Nonetheless, they are available on several social media sites, like Facebook and Twitter, to provide their current bitcoin exchange news. You can mail Paxful to 3422 Old Capitol Trail PMB# 989, Wilmington, DE, 19808, USA.
Final Verdict
To summarize this Paxful review, we can state that selecting a peer-to-peer bitcoin exchange necessitates making sacrifices. Traders will either receive greater features and other payment ways for an expensive charge in exchange for effective and speedy service, or they will earn minimal fees but sacrifice stunning features. Paxful is always attempting to buck this tendency.
The site not only has a broad range of services and offers, as well as the greatest variety of deposit ways, but it also aims to charge as little as possible, ranking it among the top cryptocurrency exchanges. The minimum cost is set at 0.5%, making it one of the most affordable fee rates in the P2P crypto world.
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