Paxful is a peer-to-peer crypto-currency exchange and digital wallet provider. Customers can buy and sell cryptos using over 350 payment methods. We will cover how to open a Paxful wallet in our review, the account login process, minimum deposit requirements, shipping fees, and more. Find out if you can start buying and trading bitcoins on Paxful.
About Paxful
Paxful was founded in 2015 (originally EasyBitz). Today, the company has 4.8 million users and over 200 employees, with global offices in Hong Kong, Estonia and the Philippines. Its headquarters are in New York City (NYC), USA. Its users also span the globe, with active Paxful merchants everywhere from Pakistan and Malaysia to the UAE, India, Zimbabwe and Indonesia.
The founder and CEO’s vision was to create a world where finance was accessible to all, with cryptocurrencies connecting the dots.
The company’s charitable initiative #BuiltwithBitcoin was launched in 2017, supporting philanthropic projects in countries like Ghana, Nigeria, Kenya and Uganda.
Coin
Users can purchase bitcoin (BTC), Tether (USDT) and Ethereum (ETH) on Paxful. No other digital currencies are available for purchase. This means that the crypto-currency trading platform is quite limited compared to competitors like Binance and Coinbase. Minimum limits for BTC transactions apply.
Over 350 payment methods can buy and sell Bitcoin, Tether and Ethereum, including Ripple (XRP), Monero (XMR) and Dogecoin (DOGE).
Wallet
Paxful Inc’s wallet is a free, convenient and secure way to manage crypto-currencies or access the P2P market to buy and sell bitcoin. The wallet can be downloaded to a PC, mobile device or via an API.
Users benefit from 0% commission fees, cloud backup protection and strict security measures. BitGo manages the online wallet services.
Opening an Account
To open an account online, customers must meet mandatory enrollment requirements, including identity verification for certain territories. Note that customers from North Korea and Cuba cannot open a Paxful account. In addition, if you reach volume or portfolio activity limits, it may require you to complete additional KYC identity checks, including video verification and answer security questions.
Requirement limits by verification level:
Level 1- Email and telephone verification. Limit of $1,000 per transaction and lifetime.
Level 2 - ID. 10,000 per transaction and lifetime limit
Level 3 - Address. $50,000 per transaction. Unlimited lifetime limit.
Level 4 - Enhanced Due Diligence. 50,000+ per transaction. Unlimited lifetime limit.
Paxful reserves the right to cancel a transaction or delete an account with a onetime withdrawal. This can happen if the terms of service are violated or if you are in a blocked jurisdiction when you login. The company also uses a QR code feature to facilitate sharing of the wallet address to make trading efficient.
Mobile app
Paxful offers a Bitcoin wallet app for download on iOS and Android devices (APK). The app provides safe login access to the crypto-currency market. Other features include:
Real-time balance
Customization of your profile
Viewing the status of recent transactions
Access to up-to-date conversion rates between crypto and fiat
Send, receive, and store crypto currencies in your mobile wallet anytime, anywhere.
Deposits and withdrawals
The exchange does not charge a deposit fee. Paxful supports over 350 payment methods for account funding. This is a significantly higher offering compared to Binance or Coinbase.
Payment methods include:
Bank transfer - domestic and international
Digital currencies - including Litecoin and Dogecoin
Goods and services - including gold, cars and gaming items.
Gift Cards - including Amazon, Google Play and Xbox gift cards
Debit/credit cards - including Greendot, American Express and VISA
Online wallets - Buy bitcoins with PayPal, Zelle, Google Pay, MPesa and mobile top-up.
To buy and trading bitcoins:
Create a Paxful account and log in.
Select the purchase logo and click on Bitcoin
Click on View All Payment Methods and select a deposit solution.
Click on any currency and select your currency from the list.
Enter the amount you wish to purchase and exchange
Select your country from the list of countries.
Click on search for offers and select the ones you want
Confirm the transaction
Paxful wallets are free, but there is a withdrawal fee. Users can withdraw bitcoins from internal and external crypto-currency wallets, including Binance. Transfers from external wallets are subject to a fee based on the amount of the withdrawal. Withdrawals over $20 incur a fee of 0.0004 BTC. Withdrawals from internal portfolios are subject to a fee based on the associated limits. Withdrawals up to $1,000 per month are free. Beyond that, a fee of $1 or 1% (whichever is greater) applies.
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Rates and Margin
Paxful offers a market price for bitcoin by taking an average rate from Coinbase, Bitstamp, and Bitfinex, though sellers can quote their own exchange price. See how much you can get in US dollars in the “rate per bitcoin” section of the “Buy” page.
The sellers set the margin. It can vary from 5% to 50%. Traders can review the terms and conditions set by the seller before accepting an offer or find an alternative that meets price expectations.
Speed
The speed of platforms to send or buy bitcoins can vary. Influencing factors include the availability of the seller, specific owner requirements, and payment methods. To improve transaction speed or limit the time to send, it is helpful to contact the seller directly via their online username to understand their specific requirements. Once the bitcoins are sent, you will receive a notification via Paxful showing confirmed or unconfirmed bitcoins.
Fees
Crypto-currency conversions are subject to a 0.5% fee. Paxful does not charge for purchasing crypto-currencies, but other customers and account owners set exchange fees offering bitcoin purchases. Transfer fees apply to the sale of crypto-currencies, varying by payment method. Bank transfers are the least expensive (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 the sale of crypto-currencies, at 5%. They deducted immediately an escrow network fee from a seller’s wallet and remitted to Paxful at the end of a transaction.
Use the bitcoin fee calculator to understand the value of your crypto in fiat currency using live exchange rates.
Pros
Here are some reasons to trade cryptos with Paxful :
Referral codes
No commission fees
Secure trading through escrow
Positive wallet reviews
Mobile app with full account features
Hundreds of payment methods supported
Support for charitable initiatives with bitcoins
Selection of crypto-currency vendors tailored to specific needs and prices
Disadvantages
Unregulated exchange
Limited customer support options
Limited services in some countries
Customer support
Customer support is limited. An online contact form and live chat bot are available via the logo in the lower right corner of the Paxful website, or on the mobile app. A support email address is not used and they do not provide a phone number. The mailing address for the exchange office is 3422 Old Capitol Trail PMB# 989, Wilmington DE, 19808, USA.
Paxful also provides a comprehensive FAQ page and help center (knowledge base). Topics include creating a Paxful account, identity verification, buying bitcoins, and English and global language settings. Social media platforms, including Twitter, also provide the latest news and help.
Security
Peer-to-peer transactions can lead to an unfair trading environment. Some Internet users question whether Paxful is real or fake, and report PayPal-related scams. To ensure the legitimacy of exchanges, we recommend you keep transactions on the Paxful marketplace to maintain protection from litigation and escrow. This will help reduce the risk of scams.
Paxful’s BitGo wallet service provider ensures high-tech features to protect customer funds. This includes 2FA for account login, 3d secure payment integration, and two-factor code requirements for all cryptographic transactions.
Paxful Verdict
Paxful is a unique peer-to-peer crypto marketplace and wallet service. We were pleased that the exchange supports over 350 payment methods, secure connections, and crypto-currency selling opportunities. The limited customer support and unregulated services may concern some investors. Also, be aware of high seller fees and the narrow range of digital currencies available for investment.
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 convenient, secure to use on PC and mobile devices.
What is a Paxful account and can I sign up without ID?
Paxful is a P2P crypto-currency exchange platform and Bitcoin wallet. You can create an account quickly and easily after completing the identity verification requirements. A business account is available subject to eligibility criteria.
Is Paxful a regulated exchange?
Paxful is not regulated in any country. However, KYC and anti-money laundering standards are in place, so we follow some of the verification standards seen on regulated exchanges.
How do I become a Paxful seller?
Customers must create a seller account on the exchange’s website. New users can join over 12,000 registered sellers to create offers, set margins and develop unique deals for customers. Check out the online forums for more details on how it works.
Is there a minimum age requirement to open an account with Paxful?
You must be at least 18 years old to open an account to buy and sell crypto-currencies with Paxful.
How do I start a dispute on Paxful?
Paxful intervenes in any dispute through a third-party moderator. The system provided by the exchange ensures quick and efficient resolutions. Head over to the crypto-currency broker’s website to get started.
Accepted countries
Paxful accepts traders from Australia, Thailand, Canada, the United States, the United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, the United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar and most other countries.
Traders cannot use Paxful from Korea, Cuba.
