Fundamentally, Paxful is a middleman between people who are looking to buy and sell cryptocurrencies. They just provide a secure platform and facilitate trade with a multitude of features.
How to Sign Up on Paxful
There are basically two ways to sign up on Paxful exchange. You can immediately create your account by providing an email address and choosing a username and password. Or you can wait until you’ve found the right bitcoin seller.
Once you sign up, you receive a welcome email which contains some useful information and asks you to confirm your email address. It also includes an option to secure your account with two-factor authentication. It’s recommended that you go for 2FA as it is relatively more secure.
How to Buy On Paxful
One of the most unique features that Paxful brings to cryptocurrency traders is its range of payment methods. There are 300! Some of the key payment methods include gift cards, online wallets, bank transfer, cash, debit/credit cards, and of course digital currencies. Here’s what you need to do to buy bitcoin on Paxful:
1. Decide how many bitcoins you want to buy
2. Pick the currency for exchange rate
3. Select the payment method you prefer. It should be noted that while there are many payment methods, you should go for the one which is reliable and secure.
4. Choose your seller and click on the “Trade” button.
5. Follow the provided guidelines to make the payment and then check “Mark as paid”.
6. Seller will transfer the bitcoins to your account
Your bitcoins stay in an escrow account until your payment is transferred.
Fees & Transaction Charges
The good news for cryptocurrency traders is that there is no fee charged by Paxful. However, Paxful requires sellers to charge a percentage fee for converting your money into cash. For example, if you’ve transferred $200, seller will either charge a fee or premium based on your payment method.
There’s no fixed rate. Sellers can charge any rate on their discretion so it becomes your job to find a seller who’s not charging a high fee. From the charges and fees collected by sellers, Paxful takes its cut. So, indirectly you are paying them a fee that’s built into the cost of buying cryptocurrency.
Paxful has 4 different verification levels and each level has its own limit.
• First Level – Verification through email and phone. Buying limit is $1,500.
• Second Level – First level terms along with ID verification. Buying limit is $10,000.
• Third Level – Second level terms along with address verification. Buying limit is $10,000.
• Fourth Level – Third level terms along with other verification checks. No buying limit.
Security and Safety
Paxful employs multiple features to ensure secure trade on its cryptocurrency exchange. Some of the key aspects are listed below:
• Secure Wallet – Paxful automatically creates a secure online wallet when you sign up. You can safely and conveniently store and send your funds.
• Two-Factor Authentication – Paxful wallets don’t work without 2FA and difficult passwords to ensure security. It’s recommended to have 2FA for your account to have an additional safety cushion.
• Escrow Service – Trading on the exchange happens through an escrow service so there’s no chance of any deceitful trade.
• Encrypted Servers – Paxful uses heavily encrypted servers to ensure security, however, you should keep in mind that it is a standard practice and hackers can still penetrate the system.
• Review System – Just like many ecommerce websites, Paxful also has a review system so you can judge the reputation of sellers.
Overall, Paxful is a new but fairly reliable platform with a couple of unique features like peer to peer network based exchange and hundreds of payment methods. Having said that, you need to be diligent and use every precaution in the book to ensure your finances and funds are safe.
If you are looking for peer to peer networking, your options are quite limited. That’s why Paxful can be a decent choice with all the standard features, low fee, and tight security.
|Pros of Paxful||Cons of Paxful|
|• User friendly and intuitive interface||• Customer support not the quickest|
|• Hundreds of payment options||• No straightforward fee structure|
|• Seller ratings to judge reputation||• Vigilance required|
|• Wide range of options||• Amateur traders may suffer loss|