In this article, we offer an in-depth Paxful review and how to buy Bitcoins instantly through the peer-to-peer (P2P) platform. The guide investigates factors that made Paxful one of the largest exchanges in the Bitcoin market, including:
- Paxful general information
- Paxful account registration and verification
- Supported cryptocurrencies
- Accepted payment methods
- Paxful fees and exchange rates
- Security and support
- Paxful market liquidity
By analyzing everything from the above, we construct the pros and cons of the exchange, so that results can be comparable with other platforms. Lastly, we provide a brief step-by-step guide on how to buy Bitcoin instantly through Paxful.
Paxful Review - General Information
We start Paxful review with general information about the company and how it grew to become one of the leading Bitcoin P2P marketplaces. Found in 2015 by Ray Youssef and Artur Schaback, Paxful started out as a simple online marketplace where people could buy and sell Bitcoin between each other. Headquarters are located in Denver, US.
Paxful fosters P2P system, where users buy and sell cryptos between each other. Thus, platform itself only provides a marketplace. Traders are the ones that set payment methods, currencies, prices, and market trends. Thus, service availability is global as traders from around the globe participate in the market.
Can US Citizens Buy Bitcoin at Paxful?
Since region availability entirely depends on users, can US citizen buy Bitcoin at Paxful? The short answer is – yes, they can. A bit longer explanation would be that Paxful itself does not need to acquire (for now at least) any license in the US to operate. Users themselves need to report their profits and activities to the financial institutions.
Paxful Account Registration and Verification
Paxful account registration and verification is quite simple. You provide an email (confirm it) and a password to keep your balance safe. Choose a nickname and voila! You have an account at Paxful.
On the side of verification, the platform leaves it to traders themselves. However, do keep in mind that other users sometimes leave requirements regarding identity verification levels. Best deals are sometimes reserved only for verified users. Yet, it is quite possible to buy Bitcoin anonymously at Paxful by finding sellers that do not mind unverified buyers.
How to Buy Bitcoins Anonymously at Paxful?
For beginners, we provide below steps on how to buy Bitcoins anonymously at Paxful. Since we present a process that suits unverified accounts, it may take time until suitable offers appear in the market. Thus, arm yourself with patience.
Step 1: Register an Account
The first step would be to register an account at Paxful. The widget is quite simple and will not take more than 5 minutes to finalize. Since you are buying Bitcoins without identity verification, you can proceed immediately after you confirm the email address.
Step 2: Choose Payment method
Once you are in, it is time to choose the payment method and currency you wish to exchange with BTC. To do so, click the “Buy Bitcoin” button and select appropriate filters, as seen below.
You will get a list of online offers that
are currently available for you, based on applied filters. Top ones are the
best deals (cheapest price per coin).
Step 3: Check Seller and his/her terms
Once results are in, check the seller and his/her terms. Within search, you will see their scores and whether they accept unverified accounts (marked yellow in below snapshot). Those are the ones you are looking for since Paxful would not allow you to proceed further if your profile does not match seller’s criteria.
Then, click the button “Buy” to get into the terms page, as presented in the picture below. Read seller’s terms and check whether they are agreeable to yours. Reviews are also handy to look at (marked green), as they signify whether BTC seller is trustworthy or not.
Step 4: Chat and Review
Initiate chat and review the order before you send money. It is crucial that all possible questions are answered so both sides do not end up in a bad position. Check the amount of BTCs you will get for your money and ask all necessary questions to be sure you are at the right place.
Step 5: Make a purchase and check the balance
If all necessary factors for a good trade are there, make a purchase and check balance within an hour. It takes about two confirmations to receive Bitcoins in your wallet. However, you should also account for the payment method as well, as bank transfers might take a business day or two to complete.
Currently, Paxful cryptocurrencies all fall down into a payment method category, since the only coin you can purchase is Bitcoin. Thus, it is possible to use Ethereum, Litecoin, and other digital currencies as a payment getaway for BTC but you cannot get them yourself.
Additionally, Paxful supports only Bitcoin wallet. Thus, when conducting crypto-to-crypto transfers, you need to have a wallet address ready.
Paxful Accepted Payment Methods
What Paxful can boast about is the sheer number of accepted payment methods. At the platform, it is possible to buy Bitcoins anonymously and instantly with the help of credit cards and PayPal account. Thus, the P2P website stands tall to many other exchanges in the market. Overall, there are over 300 methods and 50 fiat currencies available to users.
Both buyers and sellers set payment methods and fiat currencies. So, if sellers from your country appear, chances are that they would accept your local transfer channels as well. However, BTC is meant to connect people globally. Thus, it is quite possible to buy crypto from people outside of your region. Just select an acceptable payment method and you are good to go!
Paxful Fees and Exchange Rates
Recently, Paxful fees and exchange rates went under slight changes. Well, we really mean fees, since the exchange does not control exchange rates anyways. Previously, there was a standard 1% fee for sellers but now, we have couple more categories to add to that.
- Gift Cards: 5% for iTunes/Google Play and 2% for other gift cards.
- Bank Transfers – 0.1%
- All other payment methods (Bank cards, online transfers, etc.) – 1%
It is still sellers that pay the price at the checkout but you can be sure they have added the expense in the BTC price.
On the side of Bitcoin transfers, you pay a fee of 0.0005 BTC every time you send coins outside of Paxful. If you send BTCs to other Paxful accounts, first 5 transactions are free of charge. After those, you pay $1 for each transfer.
Paxful Security and Support
Paxful security and support are a bit limited in scope, mainly since the company left safety to users instead. As a trader, you have several security options available to secure your account:
- Two-factor authentication (2FA)
- Email notifications
A lot of scams were reported in the past which Paxful could not deal with. Although it does impose API tools that track IP addresses, the platform does not take responsibility on lost coins. Thus, be sure to trade only with a verified account or at least with those that have numerous positive reviews. Paxful did a good job by providing a profile overview that is visible by all market participants.
Support, however, is very responsive, suing ticket and email system as communication channels. Buyers can also reach Paxful through social media, including Facebook and Twitter for more immediate inquiries. Currently, there are no live chat or phone options available, which is standard for P2P platforms.
Lastly, for those that wish to engage in trade through phone devices, Paxful offers apps. Both iOS and Android are supported, downloadable for free at their respective online stores.
Paxful Market Liquidity
Paxful market liquidity is of adequate level, mainly due to its popularity. Users themselves put offers online for BTC purchase or sale. Looking at number of active offers under worldwide category, there are a lot of options to choose from in terms of fiat currencies, payment method, BTC price, and volume available for purchase.
As a Paxful review conclusion, we deem the exchange to be one of the best places to buy Bitcoins. The platform offers a way to instantly buy and sell coins anonymously. Additionally, due to the fact that users set offers, US citizens can participate as well without issues.
However, it is important to guard yourself against scams by working only with reputable sellers. Paxful does not take responsibility for lost coins.