Paxful is not exactly a cryptocurrency exchange, but rather a peer-to-peer market for its users and investors. It gained popularity after it helped sex workers accept Bitcoins as payment, when Visa and MasterCard stopped lending services to their back-page. They operate throughout the world, and are frequently compared to LocalBitcoins.com which also acts as a peer-to-peer market place for Bitcoins.
It operates throughout the world apart from the state of New York. The website is global and is not regionally focused but some countries are specifically highlighted on their homepage, na mely - USA, India, China, Russia, Nigeria etc. Maybe they have a wider customer base in these places. Paxful is popular for its wide variety of payment options that it provides its users to buy Bitcoins from.
Users do not have to be restricted to using only bank wires or credit or debit cards. They can also utilize mobile wallets like - PayPal, Neteller, Amazon Gift Card, Western Union and 300 more options to purchase crypto-assets, including 'cash in person'. When you give the users the option to buy Bitcoins using cash, it is like opening a new door to unlimited possibilities. There are, however a lot of risks involved when users try to buy Bitcoin using cash that the website also warns the users about. Hence, in the end it trickles down to the user alone, and becomes his sole responsibility to be careful enough.
Paxful is based in Wilmington, Delaware, in USA. Mohammed Ray Youssef and Artur Schaback are the co-founders of this exchange. It was launched in 2014 under the name 'EasyBitz', but soon in 2015, it was changed to Paxful. Paxful is popular for being a peer-to-peer network, as it does not have cryptocurrency on its own system. They invite users who want to buy or sell cryptocurrencies and they just act as middle-men, making the users interact and providing them a platform where they can make a secure deal.
They provide their users an option to purchase Bitcoins using cash, and the users also need not share their identification details. Users have the freedom to be anonymous on Paxful, and deal in Bitcoins without a worry. But being anonymous is an option only for limited payment options. Suppose if you want to make payment using credit card or debit card, you will need to provide your ID and upload details for Paxful executives to verify your account and allow you to buy Bitcoins on their platform.
Paxful has many advantages over other exchanges. Being a peer-to-peer network, Paxful has a lot of upsides that makes it a preferable platform for people for many reasons. This Paxful review aims at providing you a transparent, clear and unbiased view of the network -
If there are advantages, there are disadvantages too. To keep the review unbaised and to present a clear picture of their operations and functioning, here are some downsides of Paxful -
Paxful is available across the globe, without much restrictions or problems. It is only banned in the state of New York, rest it is available in all of the USA, and many other countries including - India, Russia, Nigeria, China etc. It has no compliance issues or issues relating to its performance anywhere. They motivate their users to employ 2FA (two factor authentication) to their accounts, and they have always asked their users to be careful. Since it is not an exchange, so they cannot take complete guarantee of completion of an order, as the completion depends upon two parties. They only act as an intermediary, whose job is to connect two parties on their platform.
Being a popular platform, Paxful has quite a strong influence on market. As per the data extracted from similarweb.com, Paxful has gathered more than 17 million views in last 3 months, which is a big number. However, if it is compared to its biggest competitor, which is localbitcoins.com, it has less than half of the views. Localbitcoins.com gathered almost 42.4 million views in last three months.
Coming to geographical preferences, Paxful has gathered highest users from USA (27.9%). After USA, if there is a country that visits Paxful the most, it is Nigeria standing at second position with 7.6%. These two countries are followed by India (4.2%), United Kingdom (3.2%) and lastly Germany (3%).
Signing up on Paxful is easy and a task of minutes for new users. Anyone can easily register, and you can even register even anonymously. They give you freedom of keeping your identity concealed, and they do not ask you to verify any ID either. Signing up is simple, and the security features are also good on Paxful. They have the option of 2FA (two factor authentication), available for users. They also give regular warnings to users from time to time. They ask users to be careful while dealing fiat currency in cash, for Bitcoins outside the network.
The biggest downside of Paxful is that it only supports Bitcoin as of now. No other crypto-asset is available for trading on this platform, and diversifying crypto-portfolio might be impossible for users on Paxful. They will need to create accounts on exchanges that provide alt-coins, ICOs and other crypto-assets.
Paxful is famous for its low fees. Paxful fees is a lucrative asset for users, as it does not charge anything from buyers. If you are a trade-maker and you want to buy Bitcoins, Paxful might be perfect, because not only do they provide more than 300 payment options to their users, but they also offer them the benefit of zero transaction fees. They do charge from sellers for complete trade. They charge 1% from sellers, which prompts them to include the fees in the price itself. Hence, the price of Bitcoin on Paxful might be higher than other exchanges, but then it is the only platform that provides you the freedom of exchanging cash with Bitcoins.
Paxful provides a good customer support, as they also give a widget for chat, where you can drop your messages and queries. Apart from their in-depth and detailed FAQ section, they provide support through chat and email as well. Some users claimed that they are slow, but almost every user has agreed that they received a response. It might be late, but it was there. The only thing that they need to improve is the speed on which their customer support functions.
The only option for Paxful users, as an alternate is localbitcoins.com, because apart from all the available cryptocurrency exchanges, the only peer-to-peer network is localbitcoins.com. One benefit of using localbitcoins.com is that you will find a higher volume of users, because it is older than Paxful, and you can trade Bitcoins from users who have been selling or buying Bitcoins since almost 2012, while Paxful began its operations in 2015. Paxful has lower fees than localbitcoins.com, as they charge flat 1% fees from sellers, but localbitcoins.com has hidden charges. They charge 0.5% on the trade, apart from that they also charge network fees which is not mentioned clearly on their website.
Paxful is a good platform overall, and certainly a new platform when it comes to peer-to-peer networks. Localbitcoins.com has a trust factor among users. Users can verify the sellers/buyers by the rating they receive o their profile. While with Paxful, the functioning is almost same, but the profiles are not much older. It also becomes a disadvantage for new-users, because the trust-factor associated with new profiles is lower than those who have been trading/dealing in Bitcoins since years now. Paxful has a bright future ahead, because apart from Paxful, there is only localbitcoins.com that provides peer-to-peer networking to users. SEO Title: Paxful - Review of a peer-to-peer Bitcoin exchange Meta Description: How amazing it would be if you could buy Bitcoins for cash? Well, Paxful made it possible, and now you can buy Bitcoins from investors from your own city! Tags: Paxful, Paxful exchange, Paxful bitcoin, Paxful fees, Paxful cryptocurrency, Paxful scam, Paxful review, Paxful rating, Paxful fake, Paxful bitcoin exchange, Paxful legal