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Paxful Review 2024

Written By

Tobias Robinson

Written By

Tobias Robinson

Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.

» Tobias Robinson Profile Page

Fact Checked By

William Berg

Fact Checked By

William Berg

William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.

» William Berg Profile Page

Updated

Jan 8, 2024

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Available in United States

Overall Rating

3.8 / 5

Paxful is #29 in our crypto broker rankings.

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Minimum Deposit 0.005 BTC

Trading Platforms Own

Instruments Cryptos

Regulators

Account Currencies USD, EUR, GBP

Payment Options Bitcoin Payments, Wire Transfer, Credit Card, Mastercard, Visa, PayPal, Skrill, Neteller, Debit Card, Google Wallet, Ethereum Payments, American Express, Przelewy24

Paxful was a peer-to-peer cryptocurrency exchange and digital wallet provider. Customers can buy and sell cryptos using 350+ payment methods. Our review will cover how to open a Paxful wallet, the account login process, minimum deposit requirements, sending fees, and more. Find out whether to start buying and trading Bitcoin at Paxful.

About Paxful

Paxful was founded in 2015 (originally EasyBitz). Today the company has 6 million users and employs 400+ individuals, with global offices in Hong Kong, Estonia, and the Philippines. Its headquarters are located in the New York City (NYC) office, USA. Its users also span the world, with active Paxful traders found everywhere from Pakistan and Malaysia to the UAE, India, Zimbabwe, and Indonesia.

The vision of the founder and CEO was to create a world where finance was accessible to all, with cryptos connecting the dots.

The company’s charitable initiative #BuiltwithBitcoin was launched in 2017, supporting philanthropy projects in countries including Ghana, Nigeria, Kenya, Rwanda, and Uganda.

Coins & Tokens

Users can buy Bitcoin (BTC), Tether (USDT), and Ethereum (ETH) at Paxful. No other digital currencies are available to purchase. This means the cryptocurrency trading platform is fairly limited vs competitors like Binance and Coinbase. However, when comparing Paxful vs LocalBitcoins, Paxful has more options. Minimum limits for BTC transactions apply.

Over 350 payment methods can be used to buy and sell Bitcoin, Tether, and Ethereum, including Ripple (XRP), Monero (XMR), and Dogecoin (DOGE).

Wallet

The Paxful Inc wallet is a free, convenient, and safe way to manage cryptocurrencies or access the P2P marketplace to buy and sell Bitcoin. The wallet is available for download to PC, mobile devices, or via API trading.

Users benefit from 0% commission fees, cloud backup protection, and stringent security measures. Online wallet services are maintained by BitGo.

Opening an Account

Clients need to meet mandatory registration requirements to open a live account, including ID verification for specific territories. Note, customers from North Korea and Cuba cannot open a Paxful account. However, day traders from Zambia, London, Jordan, and many other countries and cities can access services.

Additionally, should you reach volume or wallet activity limits, you may need to complete additional KYC identity checks, including video verification and answering security questions.

Requirement limits by verification level:

• Level 0 – No verification needed. $0 per trade and lifetime limit
• Level 1 – Phone. $1,000 per trade and lifetime limit
• Level 2 – Email and ID. $10,000 per trade and lifetime limit
• Level 3 – Address. $50,000 per trade. Unlimited lifetime limit
• Level 4 – Enhanced due diligence. $50,000+ per trade. Unlimited lifetime limit

Paxful reserves the right to cancel a trade or delete an account with a one-time withdrawal. This may occur if terms of service are violated or if you are in a blocked jurisdiction when you log in. The company also uses a QR code feature for easy wallet address sharing to make trading efficient.

Mobile App

Paxful offers a Bitcoin wallet app available to download to iOS and Android (APK) devices. The application provides safe and secure sign-in access to the cryptocurrency marketplace. Other features include:

• Real-time balance
• Personalize your profile
• View the status of recent transactions
• Access updated crypto to fiat conversion rates
• Receive notifications of trader requests, chats, or any other account activity
• Send, receive and store crypto coins in your mobile wallet, anytime and anywhere

Deposits & Withdrawals

The exchange does not charge a deposit fee. The platform supports 350+ payment methods for account funding. This is a significantly higher offering when compared to Binance or Coinbase.

Payment methods include:

• Bank transfer – Domestic and international
• Digital currencies – Including Litecoin and Dogecoin
• Goods & services – Including gold, cars, and game items
• Gift cards – Including Amazon, Google Play, and Xbox gift cards
• Debit/credit card – Including Greendot, American Express, and VISA
• Online wallets – Buy Bitcoin with PayPal, Zelle, Google Pay, MPesa, and mobile recharge

Paxful wallets are free, but withdrawal fees are charged. Users can remove Bitcoins from internal and external cryptocurrency wallets, including Binance. External wallet transfers are subject to fees depending on the withdrawal size. Withdrawals of $20+ incur a 0.0004 BTC charge. Internal wallet withdrawals incur fees based on associated limits. Withdrawals up to $1,000 per month incur no charge. After this, a fee of $1 or 1% (whichever is higher) applies.

Buying Bitcoin

To start buying and trading Bitcoin:

1. Sign up for a Paxful account and login
2. Select the buy logo and click Bitcoin
3. Click show all payment methods and select a deposit solution
4. Click any currency and select your currency from the list
5. Enter the amount you want to buy and trade
6. Select your country from the location list
7. Click search for offers and select as desired
8. Confirm the transaction

Rates & Margin

The broker and exchange offers a market price for Bitcoin taking an average rate from Coinbase, Bitstamp, and Bitfinex, though vendors can list an exchange price of their own. View the amount you can get for US Dollars under the rate per Bitcoin section of the ‘buy’ page.

Margin is set by the vendors. Paxful regards it as a seller fee rather than traditional leveraged trading, and it can vary from 5% to 50%. Investors can review the terms and conditions set by the vendor before accepting an offer or find an alternative that meets pricing expectations.

Speed

Platform speeds to send or buy Bitcoin can vary. Influencing factors include the seller’s availability, specific owner terms and conditions, and payment methods. To improve transaction speeds or to limit the queued to send out time, it’s worth contacting the seller directly via their online username to understand particular requirements.

Once Bitcoin is sent, you will receive a notification via Paxful stating confirmed or unconfirmed BTC.

Fees

Cryptocurrency conversions are subject to a 0.5% fee. The broker does not charge to buy cryptocurrency, but an exchange fee is set by other customers and account owners offering Bitcoin purchases.

Transfer fees apply to sell crypto coins, varying by payment method. Bank transfers incur the lowest charge at 0.5%. Alternative methods, including debit cards, digital currencies, and online wallets are subject to a 1% fee. The gift card rate incurs the highest rate for selling crypto at 5%. An escrow network fee is deducted from a vendor’s wallet immediately and delivered to Paxful upon completion of a trade.

Use the Bitcoin fee calculator to understand the worth of your crypto in fiat currencies using live exchange rates.

Pros

Reasons to start trading cryptos with Paxful include:

• Referral codes
• No commission fees
• Secure escrow trading
• Positive wallet reviews
• Mobile app with full account features
• Hundreds of supported payment methods
• Supports charitable initiatives with Bitcoin
• Select crypto venders suited to specific requirements and pricing

Cons

Downsides to registering for a Paxful account include:

• Unregulated exchange
• Only three crypto assets
• Limited customer support options
• Services restricted in some countries

Customer Support

Customer support is limited. An online contact form and a live chat bot are available via the logo in the bottom right corner of the Paxful website, or on the mobile app. A contact phone number is not provided. The exchange’s office mailing address is 3422 Old Capitol Trail PMB# 989, Wilmington DE, 19808, USA.

The support email addresses are help@paxful.com and help@paxful.zendesk.com. However, we had to dig for the contact details. This information isn’t readily available to its users, not even through a third-party research website like CrunchBase.

Paxful also offers an extensive FAQ page and help center (knowledge base). Topics include how to create a Paxful account, ID verification, how to buy Bitcoin, plus English and global language settings. Social media platforms including Twitter also provide the latest news and help.

Security

Peer-to-peer transactions may lead to an unfair trading environment. Some online concerns query whether Paxful is real or fake, and flag related PayPal scams. Our recommendation to ensure legitimate trading is to keep transactions within the marketplace to maintain dispute and escrow protection. This will help reduce the risk of scams.

The Paxful BitGo wallet service provider assures high-tech features to protect client funds. This includes 2FA for account login, 3d secure payments integration, and dual-factor code requirements for all crypto transactions.

Paxful Verdict

Paxful is a unique peer-to-peer crypto marketplace and wallet service. Our review was pleased to see the exchange supports 350+ payment methods, secure logins, and crypto vendor opportunities. Limited customer support and unregulated services may be a concern for some investors. Also, be aware of high vendor fees and the narrow range of digital currencies available for investments.

FAQ

Is Paxful A Good Wallet?

Over 3 million customers have used the Paxful wallet to buy and sell over 40,000 BTC. The wallet is practical, secure, and easy to use on PC and mobile devices.

What Is A Paxful Account And Can I Sign Up Without ID?

Paxful is a P2P cryptocurrency trading platform and Bitcoin wallet. You can create an account quickly after you’ve completed the ID verify requirements. A business account is available, subject to eligibility criteria.

Is Paxful A Regulated Exchange?

Paxful is not regulated in any country. KYC and anti-money laundering standards are in place, meaning some of the verification standards seen at regulated exchanges are followed.

How Can I Become A Paxful Vendor?

Clients need to create a vendor account on the exchange’s website. New users can join over 12,000 registered vendors to create offers, set margins, and build unique customer offerings. See online forums for further details on how it works.

Does Paxful Have A Minimum Age Requirement To Open An Account?

You must be at least 18 years old to open an account to buy and sell cryptocurrency with Paxful.

How Do I Start A Dispute On Paxful?

Paxful intervenes in any disputes via a third-party moderator. The system provided through the exchange helps ensure quick and efficient resolutions. Head to the crypto broker’s website to get started.

Who Is QuickDeal?

QuickDeal is one of the most popular users on Paxful. They have a trading volume of 1000+ BTC.

Top 3 Alternatives to Paxful

Compare Paxful with the top 3 similar brokers that accept traders from your location.

1. IG – Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
   Go to IG
2. Interactive Brokers – Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
   Go to Interactive Brokers
3. World Forex – World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
   Go to World Forex

Paxful Comparison Table

Compare Trading Instruments

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Paxful vs Other Brokers

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