Paxful Bitcoin Broker Review
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Paxful is a so-called Peer-to-Peer (P2P) Bitcoin marketplace that facilitates and regulates the buying and selling of Bitcoin. Bitcoins can be bought, traded and converted back into common currencies using a variety of different payment methods. How exactly this works, how secure and serious the offer is and what costs and fees you will have to pay at Paxful we have tested and described here in detail.

Paxful
  • Secure via escrow accounts
  • Two-factor authorization
  • P2P Marketplace for Bitcoin Trading
  • 300+ payment methods

What exactly is Paxful?

Paxful was founded in summer 2015 by Ray Youssef and Artur Schaback and is based in Delaware, USA. On the site registered users can exchange Fiat currencies for Bitcoin or vice versa in a P2P system. Peer-2-peer in this context means that the marketplace provides the link between suppliers of Bitcoin and buyers of Bitcoin. This means that offers to buy and sell are mediated, which is exactly the job of a broker or agent.

Paxful scores particularly highly on the fact that over 300 payment methods can be used on the marketplace. This multiplies the possibility of trading, payments and withdrawals many times over.

Paxful’s main focus is certainly on Bitcoin. Recently, however, the still unregulated cryptocurrency Tether can also be traded. This currency is equipped with a token and is issued by the company Tether Limited. It is a so-called stablecoin, which is traded at a ratio of 1:1 to the US dollar.

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How serious and safe is Paxful?

With a P2P platform like Paxful, the most important thing in terms of reliability and security is good certification and control of the providers. There are two measures in particular to ensure security: extensive verification of identities on the one hand and security through an escrow account on the other.

The standard applied, which controls and ensures the identity of trading participants, makes a very solid impression on us. For example, when the identity document is confirmed, a biometric check is carried out via the camera of the mobile phone or computer.

Furthermore, the access options are doubly secured by a so-called two-factor authorisation, for example, by requiring a code to be confirmed via the stored mobile number when logging in. This is today’s most secure and up-to-date standard with which unauthorised access to the account can be prevented very effectively.

The trading transactions themselves are secured by a so-called escrow account. This is an interim account to which the respective amount of the crypto currency is automatically parked by the wallet of a seller when a trade is opened until the transaction is successfully completed. This should completely rule out fraud or non-fulfilment of the contract by one of the parties.

Paxful registration, setup and start

Getting started with Paxful is easy in three simple steps:

Step 1

Register

Registration is free and easy. Once you have completed your registration, you can start setting up.

Step 2

Set up wallet

After registration, set up your wallet and other functions. To do this, verify your identity and address.

Step 3

Trade

The Peer 2 Peer Marketplace is now available to you. Buy and sell Bitcoin and use the different payment methods.

Register with Paxful

Registering with Paxful is generally very simple: from the homepage click on the registration form and fill in the registration details. This usually takes about one to two minutes.

Setting up Paxful correctly

A few important things are taken care of, such as the verification of an identity document and confirmation of address, e-mail and mobile phone number. In our opinion, the security standards are very good here and underline the seriousness of the offer. Ultimately, it is a matter of the transaction of currencies and monetary values and here all parties involved want to be sure that fraud attempts can be excluded and the identity of the participants can be guaranteed. On the following picture we have once presented the verification:

Paxful Verification
Paxful Verification

If the address document is verified (this can be either a passport, a driving licence or an identity card), a detailed video is also shown again to illustrate the procedure. We have already linked the video here for you:

Start with Paxful

Once your identity has been successfully verified, you can make further personal settings if required, such as linking to a bank account or an online wallet. However, you can also jump directly to the store and display current offers. So you are ready to start with the first transactions. How exactly this works is described in the next section.

All functions of Paxful explained

Paxful Wallet free of charge

Free Wallet

Paxful offers a completely free wallet that links the purchase and sale of Bitcoin and allows you to hold currencies and balances. There are no fees for this, as is sometimes the case with other broker accounts. If you want to set up and use the free wallet, you can go to Paxful here .

Buy Paxful Bitcoin

Buy Bitcoin using Paxful

When buying Bitcoin via Paxful, there is a very clear and well-structured interface in the form of a dashboard. All important parameters are listed here: You can see the current Bitcoin market price and the equivalent value for one dollar that the seller offers you. From this you can see the fee for the respective trade. This value is also shown as a percentage.

Furthermore, you can see the corresponding ratings from the community and important information on requirements such as photo ID from each provider. If a provider’s requirements are not yet fulfilled, for example due to a missing address verification, this is indicated by a small yellow notice.

For a better understanding we have provided a screenshot of the dashboard for you here:

Paxful Dashboard

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Sell Bitcoin using Paxful

There are also different options for the sale of Bitcoin. The classic way is the normal transfer of the Bitcoin amount to my specified bank account. For this a flat fee of 1% is charged directly by Paxful.

However, there are also many other ways to sell Bitcoin and get it back in another form. Here the procedure works in the same way as when buying via the offer platform using the P2P procedure. A wide variety of providers offer possibilities for exchanging Bitcoin for gift cards (although sometimes with significant discounts), trading for goods and services, exchanging it for other digital currencies or transferring it to online wallets (over 140 different worldwide). Even a transfer of the amount in cash can be agreed as a service.

Paxful international

Trading Bitcoin internationally

Paxful is a completely open market place and therefore accessible to all sellers and traders from international markets. However, there are a few key aspects of the offer that Paxful particularly supports. There are five focus markets for trading Bitcoin through Paxful: USA, China, Nigeria, India and Russia. In general the functions are generally the same and usable everywhere, but there are special features in some countries that Paxful has taken care of. Here is an overview:

Trading Bitcoin in the US

Trading of Bitcoin in the USA against the US dollar is one of the most common methods of trading. Here the marketplace offers advantages in cost efficiency and flexibility through more than 300 different payment methods.

Trading Bitcoin in China

In specialising in the trade of Bitcoin in China, Paxful has enabled a connection via WeChat Pay in addition to the normal bank transfer. PayPal is considered the easiest and most secure method for the crypto trade in China and the transfer from Renminbi to Bitcoin or vice versa is therefore no problem.

Trading Bitcoin in Nigeria

Bitcoin plays a particular role in Nigeria in hedging against the loss of value of the Naira. In addition to the normal payment methods, it is supplemented by offers such as Chipper Cash or Western Union.

Trading Bitcoin in India

There are also specially tailored offers for trade in India. To the INR, trading can be done via IMPS or UPI transfer or via PayTM, PhonePE or Bhim.

Trading Bitcoin in Russia

Yandex Money plays a decisive role in the trade of Bitcoin against the Russian rouble. The service is fully supported here. Another major payment provider from Russia is WebMoney, which is connected just like Qiwi or PayPal.

Paxful
  • Secure via escrow accounts
  • Two-factor authorization
  • P2P Marketplace for Bitcoin Trading
  • 300+ payment methods

Paxful fees and costs

There are costs involved in using Paxful as with any other way of buying or selling Bitcoins. These take the form of fees for selling and buying, but vary.

For the sale of Bitcoin via the platform, the supplier Paxful takes a flat rate of 1% as a fee. For the purchase of Bitcoin from one of the listed Provider Offers the fee varies depending on the current market situation, Provider and in some cases on the chosen payment method. Exotic payment methods that are rarely used may be subject to a small surcharge.

In general, one can very often assume a cost factor of about 2.0-2.2% for which one can already successfully conclude a deal. However, very often we also see offers on the platform that are well below the 2 % mark. All in all, the costs are thus quite reasonable and within reasonable limits.

Our conclusion on Paxful

All in all, the offer convinces us and we can recommend it without reservation. On the one hand, this is due to the factors that ensure the security of the trade, such as the two-factor authorisation and the security of the trade via the escrow account. This was probably not always the case and has recently been improved. In our view, this is one of the most important factors in assessing whether trading on the platform makes sense or can be recommended.

What we also liked very much is the simple and intuitive user interface, which works great on mobile devices as well as on the desktop. All steps are simple, clear and well explained. The customer support was also very fast and smooth. However, there are sometimes different opinions about this on the internet and therefore everyone should make his own experience.

If you want to trade Bitcoin in a secure and serious way in a P2P network, Paxful is one of the largest and most established providers available. Especially for those who want to use different payment methods, the offer is certainly very good.

CH GO Rating
User Rating
[Total: 128   Average: 4.8/5]

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We only link to the official site of the provider.