Paxful is a digital wallet service and a peer-to-peer exchange, which has users in almost 200 countries and supports more than 300 payment methods to purchase Bitcoin.
It is a much-needed solution for seasoned investors and traders in countries where they cannot access Bitcoin and altcoins any other way.
How it works
The following deposit methods are available to Paxful customers:
· Bank transfer
· PayPal
· Skrill
· Neteller
· A debit card or credit card
· Western Union
· Payoneer
· iTunes gift card
· Amazon gift card
· Cash
· Cryptocurrencies
The seller releases Bitcoin to the buyer after confirming receipt of funds from the platform’s escrow service.
Paxful is available all over the world. The minimum amount you can buy is equivalent to $10.
To sign up, all you need to provide is your name, country, mobile number, email address, and password.
Verification levels
Paxful has a relatively high number of verification levels: four. For the first one, you’re asked to validate your phone and email address. The trade limit is $1,000.
For the second, you’re required to undergo ID verification. The trade limit is $10,000.
On level 3, the platform requires address verification, and the limit is set at $50,000 per trade. On the highest level, the limit is above that, but enhanced due diligence is required. High-volume traders will find this a worthwhile option as Paxful can be used in any location with a reliable internet connection, even where crypto trading is banned.
Paxful has a desktop and a mobile trading app. To get started, click on the “New Order” button. Verifying the seller’s ID before you commit to purchase from them is recommended. Once you’ve reviewed the seller to your satisfaction, enter the amount of money you’d like to spend. The seller will transfer the crypto to you. Until then, your funds will be in escrow.
Key features
Paxful offers low fees and a wide variety of payment methods. The service fee is around 1% and is charged to process withdrawals from Paxful to your account. Below are a few other key features.
High security
Paxful is a highly secure platform, albeit unregulated. It follows strict KYC and AML (know your customer and anti-money laundering) procedures. With every deposit, the platform creates a new wallet for users, reducing the risk of a hack. Paxful also introduced two-factor authentication a few years ago.
Cloud-based wallet
Paxful is more than a trading platform; it’s a Bitcoin and Tether wallet. You can use this cloud-based wallet anywhere in the world as long as your internet access is reliable.
The wallet is directly linked to Paxful’s exchange platform so that users can sell and buy Bitcoin quickly and seamlessly.
Pros
· Offers biometric verification
· Fixed trading fees
· Hundreds of payment methods
· Quick and responsive support
· Reliable escrow trading
Cons
· Only Bitcoin, Tether, and Ethereum available for trading
· Trading can be challenging for novices
Why should you use Paxful?
You’re always in control of your funds when using the Paxful wallet app. Paxful also offers a wide variety of payment methods, with bank transfers being the most popular option.
The platform holds all funds in highly secure escrow until both the buyer and the seller have received full assurance the transaction will go through as agreed. The escrow feature provides much-needed trust in a market that has yet to make a name for itself in this respect.
The support team is helpful and responsive if issues arise. They are patient and can help walk inexperienced users through the process. They will answer your questions to your full satisfaction.
What makes it different from competitors?
All too often, people are forced to compromise when selecting a peer-to-peer cryptocurrency exchange. In most cases, you have to choose between low fees and a high number of payment methods with extra features. If you are looking for impressive features, you have to pay higher fees.
Paxful is one provider that breaks with this tendency. Its minimum fee is set at just 0.5% and doesn’t charge fees on crypto purchases. The fee incurred by sellers depends on the payment method. It’s highest on gift card payments: 4% on average.
Final verdict
All in all, we find this platform’s pluses outweigh the minuses. It features a sleek design, peer-to-peer crypto trading, a vast range of deposit methods, and no fee for buying crypto. Unfortunately, it has a limited cryptocurrency selection to choose from, but that may change as it grows.
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