What is the Paxful exchange?
It is important to mention from the start that the Paxful exchange is based in the USA. This means it operates under more stringent regulation than sites that choose countries with less restrictive laws. This should be seen as a positive. It was established in 2015 by developers. The vision of the site is to create a peer-to-peer marketplace for buyers and sellers to interact. The purpose of the site is to act as a mediator between the parties and offer the space for discussion.
If you are looking for a site that resembles the working practice of the Paxful exchange – then you need only look at eBay. The platform offers the logistics for the trading of cryptocurrency – rather than directly involving itself in the holding or securing of funds.
You are likely going to choose Paxful if you are a beginner to trading in cryptocurrency. The site only offers bitcoin – but there is a diverse range of payment methods – including debit and credit card – as well as PayPal, MoneyGram, and Skrill. You can even pay with Amazon and iTunes gift cards – though this comes with a higher set of fees than other methods.
How Paxful works?
The Paxful exchange is wonderful because of its simplicity. People list an advert and then other people click on buy, if this is the amount of bitcoin they could like to purchase. You then pay in your local currency – which will be displayed for you on the site.
Before you can click buy, you will need to set up an account. This will require you to state the currency you are working in and your method of payment. This is how sellers can search for buyers – so it is worth thinking carefully about your choices. It is also possible for the buyer to check out the seller – as there will be a history of feedback – including a rating. Once you feel you are matched up with the right person – click buy, deposit funds in escrow and begin communicating with the seller about the trade in more detail.
Once all details of the trade are complete, then the trade should be recategorized by clicking the “mark as paid” button. The bitcoin will then be transferred into your wallet. You can continue to store your bitcoin in your Paxful exchange wallet – or use it anyway you choose.
Key information about Paxful
Before we move to the Paxful review, it is important that we give you key information. This way you can make your own judgement about the Paxful exchange. We will provide details about security, fees and reliability.
The fees on the site can be particularly steep – especially if you choose to pay by gift card. The seller charges the buyer a fee and the seller in turn is charged by the site. This fee is 1%. In comparison to other sites where you can buy bitcoin, this is quite expensive – and the sellers are likely to be asking more for bitcoin than the market value.
However, reliability and usability of the site are high. The site allows for cash deposits and for payment by credit and debit card. This makes it easy to get started in trading virtual currency. The variety of payment methods available are what make the site so attractive to users. It is this choice that would make it worth paying the higher charges and higher prices you will face.
The customer service support is prompt, with access through direct message, email, phone and social media, and the escrow service and reputation ratings help the trader to self-manage the security of the exchange.
In terms of security, the onus is on the user. This is a decentralised peer-to-peer trading site – meaning there really is no middle man – just the site as a structure by which to meet people who have bitcoin to sell. This means the level of security on the site is all aimed at helping the individual make informed decisions about safe trading. Reputation ratings and escrow are safety measure offered by the site to ensure a good experience. However, you need to be vigilant and make sure you do all you can to make a secure trade.
The Paxful exchange wallets are maintained at the same level as your bank that holds your fiat currency. Its servers are secure. There is also a 2-factor authentication process – which offers an extra layer of security against hacking.
Your Paxful Review
- it is as easy to buy bitcoin on the Paxful exchange as it is to buy clothes from eBay. The trading and payment methods are what the standard person on the internet would expect from an eCommerce site. This makes it an attractive proposition for beginners to the world of cryptocurrency
- the customer services support is prompt and helpful – any conflicts are likely to be resolved quickly – as the site markets itself as the mediator
- there are many, many different payment options – and payment can easily be made in your home currency. If you are looking to use your PayPal account, for instance, then Paxful is by far your best option. This makes it easy to work out how much you are actually paying for your bitcoin.
- the site only offers bitcoin
- much of the security of the trade is down to the judgement of the user – therefore you are going to have to do some research and ask some questions before parting with your money. Although the site offers security in terms of its servers and 2FA- it assumes you will vet the suitability of your trading partner
- it can be much more expensive buying bitcoin this way.
Overall Paxful Review
Our overall Paxful review comes in two parts. If you are new to cryptocurrency trading and you want to buy the currency in the easiest way possible – then the Paxful exchange is perfect. If you want more complex trading options – and a good price for your bitcoin – this might not be the place to go.