This review concerns Paxful, an online peer-to-peer (P2P) exchange that offers services regarding cryptocurrencies. The information that you will get from this article will help you choose the best option available to you as a trader.
The investigation contains personal take on the online business, with pros, cons and concluding remarks serving as a general remark on the exchange.
About the Exchange
Paxful is a peer-to-peer (P2P) online exchange that allows you to purchase and sell bitcoins form fellow investors and traders. The platform works only with bitcoins, while other crypto coins can be used as a means of payment. They are not part of the general program in any other sense.
As with LocalBitcoins, the interface is quite simple and there is no offered margin trading platform for traders to use. You can only buy and sell coins directly to other people. Unlike in some other, bigger platforms like Coinmama, BitPanda, and Bitfinex, Paxful offers small trade orders most of the time.
Registration and Verification
Registering an account at Paxful is free of charge and is done under 2 minutes. Much like with other platforms, all you have to provide about yourself are email, password, and username.
Paxful is similarly organized to LocalBitcoins when dealing with identity checks. It is up to traders themselves whether they wish to fully verify their accounts or not. Sellers and buyers put the requirements in their trade orders, with unverified users having the opportunity to trade as well as those that are verified.
Services are available as long as there are active traders from your country, meaning that Paxful can operate in every single country in the world. Due to its popularity and rivalry with LocalBitcoins, Paxful is present around the globe.
Deposit/Withdrawal Methods and Fees
Paxful is probably one of the top exchanges when it comes to deposit and payment options available to its customers. You have over 300 payment methods and a large number of fiat currencies that you can use when purchasing and selling bitcoins.
The transaction fees stand at 1% for sellers while buyers do not pay any expenses for trade activities. Much like at LocalBitcoins, traders themselves make the exchange rate with their own fees part of the BTC price. You should keep in mind the financial transfer provider’s fees when buying and selling coins at Paxful.
At Paxful, you have two-factor authentication (2FA) and account activities history as measures of protection from hacking attempts on your account. The exchange itself does not offer any cold storage services like Coinbase and Bitstamp does, thus you would be at the mercy of fellow traders if you are not careful.
Much like in other P2P platforms, especially LocalBitcoins, there has been a clear record of scams in the past. Caution is needed when dealing with new and unverified users.
Pros and Cons
+ unverified users can trade at Paxful
+ over 300 payment methods and a large number of fiat currencies accepted
+ services are available worldwide
+ no fees for buyers
- possibility to encounter scammers
- the only tradable cryptocurrency is bitcoin
- trade is geared towards beginners as there is no margin trading system
The platform offers nice and easy trade interface for beginners to use when purchasing and selling bitcoins. The volumes there are not large and the only cryptocurrency accepted is bitcoin. Experts might find this platform lacking in trading instruments and options. Caution is advised at all times due to a number of scams in the Paxful market. We recommend only small investments to be made into Paxful.