- Multiple Banking Options
- Quick Bitcoin Transactions
- Buyers Don't Pay Trading Fees
- Seller's Transfer Costs to Buyer's
- Only Supports Trading of 3 Cryptocurrencies
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Founded in 2015, Paxful is a peer to peer cryptocurrency exchange based in New York. They were created as a solution to banking issues for those living in less developed countries. They are now one of the largest peer to peer exchanges being used by millions of people around the globe.
First, you can use numerous payment options when purchasing cryptocurrency here — including many that aren’t available elsewhere. Assuming you’re tired of being limited to bank transfers and a couple of credit cards, then you may love this aspect.
Second, Paxful doesn’t charge buyers with trading fees. Instead, only the sellers cover a 1% fee. But the latter often adjust the purchase exchange rate to offset this fee.
Below, you can see whether Paxful’s differences make it a useful exchange or severely limit it.
The sheer variety of payment methods accepted at Paxful is most likely the reason for its popularity. At the time of writing they accept 389 different payment options. I can't confirm this is the most out of any cryptocurrency exchange but it must certainly rank amongst the top.
For obvious reasons i am not going to list every single payment method but they do accept bank transfers as well as ANY debit or credit card. They also accept popular alternative payments such as Skrill, Neteller and PayPal.
Paxful also accepts cash deposits through well respected wire transfer providers such as Western Union and MoneyGram. They even support the use of checks with the cryptocurrency being held in an escrow account until the check clears.
One of the more unusual payment methods that are accepted at Paxful are gift cards, they actually accept 126 different gift cards including those from ASOS, H&M and even your Dunkin' Donuts card!
They also accept payments that are almost completely unheard of such as selling "in-game" items and even allow you to trade your car for Bitcoin!
It's because of this that Paxful is actually a very useful exchange for new users as they can use a payment method they may have received to buy cryptocurrency. For example you may have received an iTunes gift card from a distant relative but you have no use for it. Well now you can use this card to purchase cryptocurrency and have control over your own banking.
Speed of Purchases
In most cases, you’ll receive your Bitcoin instantly no matter the payment method. Paxful features an escrow service, where the exchange holds and transfers BTC upon a completed transaction.
Once the seller accepts an offer, the coins are automatically moved from the escrow account to the buyer’s wallet. During this time, the seller is unable to cancel the trade.
The catch for the buyer, though, is that they must deliver the payment within a short timeframe. If they fail to do so within the proper time, the transaction will be canceled and the seller will get their BTC back.
There are no fees to purchase cryptocurrency at Paxful. The sellers must cover a 1% fee on the total value of the coins exchanged.
The result is that many customers sell at above market value to compensate for the 1% fee. So the fee will most likely be directly related to the amount of cryptocurrency that is bought and sold.
I recommend that, before you carry out any transaction on Paxful, you have a thorough look through the various sellers to compare the deals they offer and find a reputable seller that offers a reasonable fee.
Your buying limits depend upon what level of verification you’ve achieved. Here are the different levels:
- Level 1 – $1,500 limit for email and phone verification.
- Level 2 – $10,000 limit for ID verification + previous steps.
- Level 3 – $10,000 limit for address verification + previous steps.
- Level 4 – No buying limit for “due diligence” + previous steps.
One area in which Paxful doesn't have many options is their customer service as they only offer support through live chat or email. You could also consult the FAQ section to seek quick answers to issues and questions. However, Paxful hasn’t been very active at updating these so they may not be very helpful.
Does Paxful Hold Your Funds?
Over 3 million people have used the Paxful wallet to send and receive over 40,000 BTC. Its best-in-class security features make it one of the most trusted wallets in the world — so you’ll never have to choose between security and convenience.
The Paxful wallet is functional, safe, and easy to use on all your devices. You can easily manage your funds and top up directly via their peer-to-peer marketplace, and send or receive Bitcoin, in just a few clicks.
Be aware, this wallet only supports Bitcoin so be sure to only ever send Bitcoin to this wallet as other cryptocurrencies may be lost.
As with all wallets held on exchanges we always recommend that you only use them for short periods before and after a transaction and not as a long term storage. Again, always remember "not your keys, not your crypto".
Which Coins Are Supported?
Paxful supports the buying and selling of just 3 cryptocurrencies, but they are 3 of the highest market cap cryptocurrencies. You can use Paxful to buy and sell Bitcoin (BTC), Tether (USDT) and Ethereum (ETH). Again, due to the peer to peer nature of the exchange you would be purchasing the above cryptocurrencies directly from another customer.
Which Countries Can Use Paxful?
Paxful accepts the vast majority of countries from around the world. Most of the exceptions are found in Africa and the Middle East. Cuba is the only restricted nation that’s not found in these regions.
You can get started with purchasing Bitcoin at Paxful with as little as your name, email, and mobile phone number. However, you’ll need to provide further verification to buy at higher limits.
You must upload your ID to increase your purchase limit to $10,000 worth of BTC in one transaction. The site notes that you can attain an unlimited buy amount by showing due diligence over time.
Paxful provides a list of 1,200+ recommended sellers to help you avoid any scams when buying Bitcoin. You’re better off purchasing from these sources than picking the non-recommended vendors.
The moderators can help you in the case of a dispute. Therefore, you want to ensure that all communications made with the seller are based on Paxful and not offsite.