Paxful Review - Everything You Need to Know About The Paxful Crypto Exchange
Paxful is a cryptocurrency trading platform that enables users to purchase and sell cryptocurrencies on a peer-to-peer basis. You may connect with people directly to trade in any cryptocurrency that is supported.
Traders refer to it as the most versatile marketplace since it provides hundreds of various payment methods all around the world, rather than just two or three. Because it is a peer-to-peer trading platform, you may choose your bitcoin sellers and buyers.
However, choosing may be difficult at times and might lead to frauds. Many people have been tricked out of their BTC and other crypto assets as a result of their ignorance and negligence. This has frequently prompted people to inquire, “Is Paxful legit?”
Yes, it is. Paxful controls all accounts in accordance with its rules of service and suspends any accounts deemed suspicious. It also instructs customers on how to avoid frauds before they begin investing.
Aside from these basic facts, there is much more to this transaction that you should be aware of, such as the security of its origin, benefits, costs, and so on. In our in-depth Paxful review, we’ll go over all of these features and more.
In 1995, someone thought – what if I could connect everyone who wanted to sell something to someone who wanted to buy something? The goal was to create a marketplace, and the idea was known as eBay. Fast forward to 2015, Ray Youssef and Artur Schaback, along with a few others, had a similar idea with just a tiny bit of a modification – what if this concept was applied to create something similar for cryptocurrencies?
Thus, was born EasyBitz, an online marketplace where sellers could advertise what they wanted to sell, and buyers could approach them with their offers. Today, it is one of the most popular peer-to-peer trading exchanges in the world. Headquartered in New York, USA, they’ve got many offices in different parts of the world right from Ghana and Pakistan to UAE and the UK where they’ve employed over 200 people.
The core idea of the founders was to create an environment that would facilitate crypto traders to buy and sell freely and anonymously without any regulation. The platform acts as a mediator and has a very intuitive, user-friendly design that works very well for beginners and advanced users alike.
However, this also means you need to be alert because the platform sometimes suspends accounts if there are large transfers and any suspicious activities from your account. Rest assured, this Paxful.com review will detail these suspension cases and what to do if you face such a situation.
In This Review
Paxful Exchange Features
The highlights of a fantastic platform are the characteristics that set it apart from its rivals. However, owing to the unique combination of benefits that Paxful users enjoy, it does not face any major competition.
Some of them are as follows:
1. Various Payment Options
It surprises us when people question us, “Is Paxful legit?” Sure, there have been some complaints, but that has been the case with the majority of the exchanges. However, the sheer number of payment alternatives and partnerships with payment gateways and payment service providers should disprove any allegations levelled against Paxful.
Businesses are often strict with their procedures and do not place a high value on trust. Nonetheless, we offer an exchange that accepts over 350 different payment methods (394 at the time of writing!). This is absolutely incredible and unheard of, and it is proof enough that they are trustworthy. As you continue reading, we will dive further into these payment options and discover some of the most common supported payment methods.
2. Escrow services
When dealing with strangers, each transaction is hazardous, regardless of how brief your contact with them determined your trustworthiness. Trading coins for such a high value only on faith and trust may be a bit of a stretch, as Paxful is well aware.
When a buyer and a seller agree on a transaction, the Bitcoins from the seller’s account are transferred to an Escrow account. The buyer is then given some time to make the agreed-upon payment in order to finalise the transaction.
When this time period ends, the Bitcoins are immediately transferred back to their original owner’s account. Similarly, if the payment is made, the Bitcoins in the Escrow account are instantly transferred to the new owner, and the seller has no means of recovering the Bitcoins in the Escrow account during a transaction.
3. Before trading, do an analysis and make a decision.
When a system is governed by authorities, you must follow their regulations. These regulations may not always be in your best interests, particularly if you are not a resident of the nation where the regulatory body operates.
One of Paxful’s distinguishing features is that you don’t have to deal blindly. You have the opportunity to engage with a prospective buyer or seller, get to know them, and determine whether or not you trust them.
This guarantees that you are the only judge of each transaction, and if you encounter questionable individuals, you can simply refuse to trade and go on. Furthermore, if you suspect the person is a possible scammer, you may report them to Paxful from inside the conversation. They next examine the account and, if anything suspicious is discovered, suspend it for further investigation.
4. Auto-Generated Wallet
A wallet is generated for you as soon as you register an account with Paxful. Users may use this wallet to store and manage all cryptocurrencies bought and sold on Paxful. Some of the many benefits of this wallet include no commission costs, high-level security, and cloud backup.
This wallet is secured by two-factor authentication, and users are advised to create a strong password in order to keep the wallet safe.
The purpose of this Paxful review is to educate your readers about the yin and yang – the bright and bad sides of this transaction. While Paxful is one of the finest at what it does, the online bitcoin marketplace does have certain areas where it might improve.
These factors are as follows:
1. Limited Number of Trading Coins
Some exchanges have hundreds of cryptocurrencies and many fiat currencies to select from, but Paxful is not one of them. On Paxful, users may only exchange Bitcoin, Tether, and Ethereum.
2. Watch Out For Scams
Despite the fact that the marketplace has taken measures to reduce frauds, there will always be instances when individuals are thoughtless or too trusting. Often, these are instances where individuals fell for payment or deadline-related falsehoods and made transfers while disregarding industry best practises. All users must be cautious and understand that no platform can check each user’s intentions.
3. Seller-Determined Transaction Fees
As a seller, you may request any amount as an exchange price, and this number does not have to be market norm. As a consequence, if a customer is not vigilant, they may find up paying much more than they should. To prevent this, you should do thorough market research and look at more than a few Paxful offerings. This Paxful.com review has once again emphasised the need of all consumers being vigilant and cautious at all times.
Is Paxful a legitimate and trustworthy company? The solution is in the protection they’ve put in place to keep your trades safe from hackers. Although the exchange does not operate in the same way as other exchanges, it does use conventional encryption and other security precautions.
The Paxful exchange employs 256-bit SSL through the well-known cloud services-based SaaS security vendor Comodo.
We’ve previously seen that a wallet is created for each user in order to protect their funds. This wallet, known as the BitGo wallet service, has a slew of cutting-edge capabilities. These include two-factor authentication, secure three-dimensional payment integration, and the need for a dual-factor code to start every bitcoin transaction. Escrow protection, which keeps your money secure, may also be regarded part of their security measures.
While all of these safeguards are in place, it is important to remember that people directly engage with one another on this site, thus traders must always follow best practises to avoid being scammed.
The site does have a few rules that they provide with users to assist them avoid fraudsters; make sure you follow them completely.
The Widespread Adoption — Coins, Countries, and Payment Methods
While the absence of cryptocurrencies is previously highlighted as a disadvantage in this Paxful review, the true goal of this marketplace has always been distinct from that of conventional exchanges.
When it comes to payment methods, you’re spoiled for choice. This is important since it enables transactions from all around the world. Remember that a payment method that is popular in your nation may not exist in another. They’ve covered all bases in this respect, and here are the six main categories, totaling over 390 ways of payment:
Direct Wire/Bank Transfers – You may transfer funds both inside and outside of your nation. Be cautious; some accounts may have a daily transfer restriction, so it’s always a good idea to double-check with the bank before making any payments.
Virtual Currencies: Cryptocurrencies like Ethereum, dogecoin, Litecoin, and many more are accepted as payment methods. This implies that you may trade one cryptocurrency for another or purchase it in return for fiat money.
Goods and Services: You may pick any materialistic item, from high-end gaming consoles to antiques, gold, or anything else you can think of.
Gift Vouchers/Gift Cards: This category contains gift cards from all major retailers, including Amazon, Google Play, and Xbox.
Credit and debit cards of all denominations are accepted. Again, keep an eye out for any daily limitations or geographical restrictions that your bank may have placed on your card.
Online Wallets: All major wallets are supported, including Amazon Pay, Google Pay, PayPal, and MPesa, as well as mobile recharge and DTH recharge (only in certain countries).
All coin conversions are subject to a 0.5 percent charge. When you buy Bitcoins, the site does not charge any fee for transactions you make by mutually agreeing on exchange rates.
There is a charge for selling bitcoins, which varies depending on the method of payment you choose. Bank transfers may provide the greatest value since there is just a 0.5 percent charge. The platform costs you 1% for all other payment methods. The sole exception is gift cards, which have the highest costs – 5%. Paxful also makes a tiny commission on your trades – following successful transactions, a small fee is paid from the escrow account to Paxful.
The Website also has purchasing limitations depending on your account’s degree of authentication. There are four levels in all, and to trade on the site, US customers must have level 3 access. On their website, you can examine the limitations of each level.