What is Paxful.com? Why has it been a hot subject of discussion? How is it benefiting its current users? Is there any way that you can take advantage of its features to reap benefits as well? These are the questions that I will be providing answers to in this review.
Name of the platform: Paxful.com
Official Website URL: https://paxful.com/
Overall rating: (4.5 / 5)
Table of contents
My hope is that by the time I am getting to the conclusion section, I will be helped you decide whether you will start using Paxful or not. Here are the sections of this review:
- What is Paxful.com?
- Which services does Paxful.com offer?
- Which are the currencies and payment methods allowed on this platform?
- Are there any fees that are charged on the platform?
- Is Paxful legit?
- Pros and cons
- Final words and verdict
What is Paxful.com?
Paxful.com, or simply Paxful is an online marketplace in which you can meet buyers and sellers who are willing to trade Bitcoin. Paxful’s operations can be likened to those of LocalBitcoins, in that one gets the opportunity to use a wide variety of payment methods that are not offered in traditional exchanges. Simply put, Paxful offers its users the ability to purchase Bitcoin using one of the 300+ payment options that are availed. The user experience can generally be perceived as being intuitive.
Paxful was founded back in 2015 and has managed to set up its offices in several cities around the world. Its headquarters are in the USA, where some of the 100+ employees are stationed to deal with the major issues. The creators of this platform refer to it as the “ Uber” of the Crypto community. Paxful allows the individuals who want to set up a Bitcoin “merchandise” to set up their online “shops”, just like people on platforms on eBay operate.
Whereas some of the exchanges that happen on this platform are affected by geo-restrictions and the inability to access certain payment options, Paxful is free to Bitcoin buyers and is out to ensure that maximum use is made of the decentralized trading market. It is also one of the few places where you can actually buy bitcoin with PayPal.
Which services does Paxful.com offer?
You can access the Bitcoin marketplace offered by Paxful by visiting
- The official website
- The virtual kiosk
- An app
The virtual Kiosk is essentially Paxful’s affiliate program that allows people to spread the word about Paxful as they generate revenue every time a person who used their link to sign up purchases any amount of Bitcoin.
Buying Bitcoins on Paxful.com
To buy Bitcoin on this platform, you will need to create a user account and to have it verified. You will have to verify your identity as well as your current location. Once you have done this, and you have received the notification that your account has been verified, you can purchase your BTC by:
- Choosing the amount of BTC you intend to purchase (on the home page of Paxful.com)
- Select the currency that you want to exchange rate to be calculated in.
- Choose one payment method, from the many that are listed.
- Choose a preferred seller then click on “Trade”.
- Follow the instructions offered by the seller for the payment, then click on “Mark as Paid”.
- You can then wait for the seller to release the BTC.
You should be aware that while other trades may happen instantly, others might take longer. The transaction period is all dependent on the payment method used, as well as whether the seller of the BTC is online or not.
Methods such as PayPal and gifts happen to be instant, whereas with methods such as Western Union and Bank deposits, you may have to wait for quite some time.
The Escrow Feature
Another impressive service that those who are trying to follow up on Bitcoin transactions can look forward to benefitting from is the Escrow service. Upon the buyer finding a suitable seller, and the seller accepting the offer, the seller’s BTC is usually transferred to an escrow account. The seller cannot cancel the trade at this point. The buyer has a limited time to send the money to the seller through the selected mode of payment, and then to mark the payment as being “complete”. If the buyer does not do this in the set time frame, then the deal is usually autocancelled, upon which the Bitcoin is usually sent back to the seller’s wallet.
Otherwise, when both the seller and the buyer have verified from their ends that the transaction was successful and that all terms were met, then the money is released to the buyer’s wallet and the deal concluded. If you happen to have an issue with the way the transaction is progressing, you can move it to “dispute”.
Which are the currencies and payment methods allowed on this platform?
Paxful facilitates the buying and selling of Bitcoin. It does not hold any fiat currencies on the site. The users, however, have the option to accept or pay in 300 payment methods. Some of the popular ones include:
- Western Union
- Amazon Gift Cards
- Bank Transfers
- Western Union
The fiat currencies will attract different exchange rates. You should, therefore, have this in mind when you are deciding about the method that you’ll use to pay for or receive payment for the Bitcoin.
Are there any fees that are charged on the platform?
As the person who is purchasing Bitcoin on Paxful, you will not incur any costs in the form of fees. You should, however, be aware of the fact that different sellers can charge a fee for their services, but this is highly dependent on the payment method in question.
Sellers, however, pay a 1% fee on the transfers. They also incur the Bitcoin network fees, though these usually go to the Bitcoin miners, not the owners of this platform.
Is Paxful a Scam or Legit?
Yes. In my opinion, this platform is legit, and one that has presented a very great opportunity for people who want to acquire Bitcoin to do so within a few steps. It is accessible to people in most nations in the world, with the exception of those living in:
- The central African Republic
- North Korea
- South Sudan
- Sudan and Darfur
I have used this platform before and the transitions were quite smooth. I looked at what other clients have experienced when using this platform and found out that there have been both satisfied and dissatisfied users. On TrustPilot, for instance, the overall user rating is (2.4/5) stars, which I think is a bit low.
Upon further scrutiny, I realized that most of the complaints are about people who got scammed. The other issue is about customers not being able to verify their accounts hence losing their BTC. If you can verify your account, and scrutinize sellers before going into a transaction with them, I think you will be good to go.
Overall I would say that if you just stick to trusted sellers with good ratings and reputation on the platform you will be good to go, use common sense and you will be fine. Have personally used Paxful many times to buy smaller amounts of Bitcoin through PayPal and it have worked every time.
If there would be some problem you have the ability to open a dispute, in order for you to get your money back.
Below is a very interesting place where you can purchase Bitcoin (and other cryptos) that have become very popular lately, it´s not hard to see why as they offer you a brand new cryptocurrency ATM card you can use all around the world:
Pros and Cons
It is always a good idea to compare the positives against the negatives to get a better overall view of something, right? As always in our reviews we provide you with some clear points on both sides of the spectrum:
- Many payment methods offered
- You can, on most occasions, purchase BTC in a very short time
- You can sell your Bitcoin (over spot price) if you want also
- Allow you to purchase Bitcoin with PayPal (not many other places offer that service so that´s a big plus)
- You might get scammed if you are not careful
Final words and verdict:
Overall rating : (4.5 / 5)
Paxful.com is an excellent platform that is definitely serving its purpose in the market. You can use it to purchase or sell Bitcoin instantly. It, however, calls for one to be very careful with the seller or buyer that they decide to settle on since the chances of being conned are still pretty high. If you are careful, however, you can have a very smooth transaction. You can also have a look at my recommended alternative if the loss of your money is a major concern.
We have come to the end of my review about what Paxful.com is all about. You can have a look at it and share your experience in the comments section. Or you can also read about what my recommended alternative has to offer. Either way, I wish you a good time as you acquire your Bitcoin safely.
Eric, investor, and team member on Gold Retired!