About Paxful
When Ray Youssef, co-founder, and CEO of Paxful, decided to create a world in which finance was accessible to all, he saw cryptocurrencies connecting the dots. Hence, he launched a Bitcoin Exchange platform that offers over 300 ways to buy crypto while earning and maintaining the trust of its 160,000 monthly users. After its partnership with BitMart, the P2P marketplace brought real-time cryptocurrency trading to global customers.
Initially founded in 2015 as EasyBitz, the company employs 200+ individuals and has 4.8 million users. It is headquartered in New York City (NYC), USA, and has offices in Hong Kong, the Philippines, and Estonia. It has a global user base, with traders located in Malaysia, Pakistan, the UAE, India, Indonesia, and Zimbabwe.
The company launched a charitable initiative, #BuiltwithBitcoin in 2017, which supports philanthropy projects in Uganda, Kenya, Nigeria, and Ghana.
QUICK FACT
Paxful – a P2P platform that lets you buy or sell cryptocurrency at one of the lowest market rates
Opening an Account With Paxful
Clients need to meet compulsory registration requirements to open a live account, including ID verification for some territories. (Note: North Korea and Cuban clients cannot open a Paxful account.)
Requirement limits by verification level:
• Level 1: Email and phone verification. Lifetime limit and $1,000 per trade.
• Level 2: ID. Lifetime limit and $10,000 per trade.
• Level 3: Address. Unlimited lifetime limit and $50,000 per trade.
• Level 4: Enhanced due diligence. Unlimited lifetime limit and $50,000+ per trade.
Lastly, Paxful reserves the right to delete your account or cancel a trade with a one-time withdrawal. It can happen if you violate the terms of service or are located in a blocked jurisdiction when logging in.
Is Paxful Regulated?
Paxful is not a regulated platform, but it is secure to use. Though Paxful abides by the KYC standards and requires their clients’ ID for verification, it is not regulated in any country. You can use the platform securely since the KYC and anti-money laundering standards are in place.
How Does Paxful Work?
Paxful strives to keep a straightforward process for trading Bitcoins (or other cryptocurrencies). To start trading on Paxful, you need to visit the official website and click on the “Buy Bitcoin” button. A pop-up box will appear, enquiring about the type of fiat currency and Bitcoin quantity you want to trade. The site will automatically convert the amount of Bitcoin to the chosen fiat currency.
Detailed steps are mentioned below:
1. First, you need to create a Paxful account.
2. Once you create the account, Paxful will ask you to create a free wallet to simplify the purchase process.
3. Next, choose your preferred payment method from the list of payment options, like wire transfers, credit card, PayPal, and NetTeller.
4. The platform will then show a list of available Bitcoin sellers from which you need to select a suitable seller and mention the currency choice. The search results will then display the open orders for buyers to choose the preferred seller.
5. Once you select the seller, Paxful will show the sellers’ profiles to make an informed decision. You can either select another buyer or proceed to buy Bitcoin from the chosen one. You can also contact the seller through Paxful to confirm the purchase process.
6. Once the seller initiates the purchase process, Paxful will redirect you to an Escrow service to guide you on the selected payment method.
Paxful – Fees
Paxful charges all crypto conversions a 0.5% fee. While Paxful does not charge you to buy crypto, other customers and account owners who offer Bitcoin purchases set an exchange fee. Additionally, transfer fees apply for selling crypto coins and vary by payment method. Bank transfers are charged at 0.5%, while alternative methods like online wallets, digital currencies, and debit cards are subject to a 1% fee. If you want to take the gift card option, you will be charged the highest price at 5%.
Paxful’s Accepted Payment Methods
Paxful offers various payment methods to buy Bitcoins; these include:
• Bank transfer
• Skrill
• Paypal
• Neteller
• Debit or credit card
• Payoneer
• Gift Cards (there are several options available, including Amazon, iTunes, etc.)
• Cash
Paxful Supported Coins and Countries
The supported cryptocurrencies on the Paxful platform are:
• Bitcoin (BTC),
• Ethereum (ETH)
• Tether USD (USDT)
Paxful is available in almost every country worldwide. Still, in 2020, it decided to exempt countries involved in financial activities that pose threats to foreign policy, national security, or the US as an economy. Consequently, It removed the OFAC banned countries from the supported country’s list, which include:
• Yemen
• Syria
• Darfur
• Sudan
• Somalia
• Republic of Congo
• North Korea
• Cuba
• Libya
• Lebanon
• Iran
• Iraq
• Central African Republic Sanctions
• Burundi
Paxful Customer Service
Paxful offers quick and quality customer support. Users having questions or need guidance can contact Paxful by:
• Live Chat
• Paxful ZenDesk: For FAQs on how to trade Bitcoin on Paxful
• Seller Support
• Paxful School: Videos that will take you through the account verification and trading process
• Email support
Paxful Security Features
Following are the security features that Paxful uses:
• It uses a strict verification process for verifying its customers.
• If there is a “Trusted” badge next to the sellers’ account, it means it is an authentic seller.
• There are fraud and dispute prevention measures in place to ensure trades run smoothly.
• An “Escrow” security feature holds the currency while trading and until the trade gets completed. It ensures that the money reaches the right buyer.
• Additionally, one can protect their Paxful account with security features like two-factor authentication (2FA).
Conclusion
Regarding most peer-to-peer cryptocurrency platforms, traders either compromise on the features at lower fees or pay expensive fees to get additional features and quick service. Paxful tries to break the trend where traders do not have to make any compromises. It offers various features with a selection of different payment methods while keeping the charges low. It has fixed the minimum fee at 0.5%, one of the lowest rates in the P2P crypto community. Without a doubt, it has earned its place in the list of the best P2P cryptocurrency platforms.