Thinking of getting Bitcoin quickly and anonymously? Or you want to sell gift cards? A platform quite a number of people consider is Paxful. It is an online marketplace which allows buyers and sellers connect online and trade Bitcoins. The need for the top cryptocurrencies has skyrocketed as people are seizing the opportunity to purchase these cryptos at lesser rates after a year of failing prices. Thus, the need for a trusted platform cannot fully be emphasized. Paxful has been considered as a platform that provides convenience through its platform and flexibility in payment methods: fiat, PayPal and credit cards inclusive.
While some of its features are remarkable, such as the free wallet, the continuous complaints about scam, missing Bitcoins, inadequate professionalism from Paxful, may prove that it is not exactly a good bitcoin trading platform. This article is a thorough Paxful review that answers all you need to know about Paxful, including questions such as: is Paxful legit? Is Paxful safe to buy Bitcoin? And Do they scam on Paxful?
What Is Paxful ?
Paxful is an online Bitcoin marketplace that was created in 2015, to connect Bitcoin buyers and gift card sellers. Being peer2peer implies that it offers anonymous ways to buy and sell Bitcoin without having to go through a middleman and just trade directly with each other.
It was setup in Delaware by a team of developers who were interested in making the process of buying/selling bitcoins, easy. Worthy of note amongst the founders are Ray Youssef and Artur Schaback.
Schaback elaborated in an interview in 2017 that their platform was built on the premise of simplifying the process of Bitcoin trading, where people could trade anonymously. The exchange aims at empowering the Bitcoin traders by allowing them regulate the trading process.
How To Buy Bitcoins On Paxful?
Paxful strives to keep the bitcoin trading process as seamless as could be. To use the platform, you log on to the site, select the “Buy Bitcoin” option at the top center section.
It is known for allowing a wide range of payment methods and buying options which are not on traditional exchanges.
Select the amount of Bitcoin to buy and the currency you prefer. You will then see the Bitcoins to expect for the amount. To buy the Bitcoins displayed, you will need to follow these steps:
- Create an account, after the number of Bitcoins that would go to your wallet has been displayed. Fill in the form you see after clicking on ‘Create an account’
- Upon creating your account, Paxful creates a free Bitcoin wallet for you.
- Choose the method of payment you want.
- Check for the available Bitcoin sellers, put in the currency you want and the method of payment. The search results for available sellers show the open orders that you can just click on and pick a seller.
- Upon choosing a seller, you can view their profile to be sure of your decision. You may also chat with the seller on the platform and proceed with the transaction when fully convinced.
- After completing the transaction, you will be directed to an Escrow service that will guide you on further steps to take based on your choice of payment method.
What Is Paxful Exchange Fee?
Trading on Paxful does not require any fee. Rather, the fee is determined by the seller and also trade gift. Trades like selling gift cards for bitcoins generally attract more fees. It should also be noted that Paxful takes 1% of the amount of the transaction. It is very pertinent to pay attention to the exchange rates because the exchange fees could be high. As a matter of fact, some sellers have very high exchange rates. This is mostly done to get back the 1% they are being charged for.
Also, rates could switch even before completing the transaction. Thus, you should compare the rate, so as not to be caught unawares.
Can I Trust Paxful?
There are some things Paxful put in place to ensure a smooth transaction. While cases of scam and missing Bitcoins cannot be overlooked, Paxful still earns a fair mark in terms of safe trading. Here are some structures put in place by them:
– It Is Registered
They operate as a registered company with its headquarters at 3422 Old Capital Trail, Wilmington USA. Some pictures of their workers are on their website too. This could suggest that they are in tune with the local laws and could be held accountable, should they go against these laws.
– Enhanced Encryption
When making transactions, particularly those relating to finances, it is important to make sure that your website is secure, so as not to be hacked. This, Paxful is secured by Comodo. The technology is very advanced.
Also, as a peer2peer platform, the user also has to be very watchful when choosing a seller, as scammers pose to be a threat on Paxful.
– Funds Security
After users create an account on Paxful, their coins are kept in the wallet that is created for them by Paxful. It is secure and makes use of 2FA (Two factor authentication). Even though there are platforms that adopt this, it still is worthy of note.
To give your wallet more security, you should create a wallet that is hard for hackers to gain access to. Make use of special characters and symbols.
– Customer Support
Although, there have been series of complaints by users of Paxful, regarding the customer care service, some still claim they are quite responsive. Complaints are made via mails, chat function and through calls. A handful of users have reported that these channels have not exactly been effective, as responses are hardly made or made at a later time.
Is Paxful Legit?
Paxful allows users buy bitcoin with any payment method they deem fit. The user experience is commendable, although users have to explore the website on their own to access some options.
Some things also have to be considered in order for you to have a good trading experience. First ensure you’re trading at a fair rate because charging fees could be very high sometimes.
Two, be sure the seller you are dealing with has a good reputation marking and has made successful trades in the past.
Below is a detailed summary of the pros and cons of Paxful.
Pros of Paxful
Cons of Paxful
|However, there are exchange rates from the sellers on Paxful. In fact, higher than t=what buyers get in other trading platforms.|
|Buyers sometimes pay high transaction fee, as set by the seller.|
|Cases of scam are still being reported by users of Paxful. Buyers are still scammed daily.|
|It is not flexible, as users can only trade Bitcoins.|
|Customer service is not responsive.|