Paxful: P2P Bitcoin Exchange
Paxful is a bitcoin exchange platform that operates on a peer-to-peer basis, connecting individuals who wish to buy and sell bitcoin directly.
Description
Paxful was a peer-to-peer bitcoin exchange that connected you directly to people buying and selling bitcoin. Paxful, which was founded in 2015, has a mobile app for Android and iOS and supports the Lightning Network.
Ray Youssef, co-founder of Paxful, announced the platform’s shutdown on April 4, 2023, citing internal issues. Users were instructed to withdraw funds. However, the exchange has since resumed operation.
How Paxful Works
As a peer to peer exchange, Paxful works by bringing buyers and sellers of bitcoin together on its platform. The procedure is simple: buyers can search for sellers who offer bitcoin and then select a seller to buy from. After deciding on a seller, the buyer can initiate the trade and complete the transaction.
To ensure that the transaction is secure, Paxful acts as a bitcoin escrow service. This means that the bitcoin is held in escrow by Paxful until the seller confirms that they have received payment. Once the payment is confirmed, Paxful releases the bitcoin to the buyer. At the start of a trade, Paxful deducts the escrow amount from your Paxful Wallet. When the trade is successfully completed, Paxful receives the escrow fee. If the trade is not completed, the amount is released from escrow and returned to you without any fee taken by Paxful.
Signing up for Paxful is a simple process. You can register for an account by going to the Paxful website and clicking the “Register” button. Being a KYC exchange, to create an account, you will need to provide some basic information, such as your email address and a password. Once you’ve created your account, you’ll need to verify your phone number or email address (depending on what you used to create your account) using a code sent to your phone or email. There are several levels of Paxful KYC verification that you can complete. These verification levels allow for different trading limits within the marketplace. These countries have mandatory ID verification when creating a Paxful account. If you are from these countries, you may not be able to withdraw funds or use their wallet without verifying your ID.
Paxful Escrow Service
Paxful escrow service is a feature of the Paxful peer-to-peer Bitcoin marketplace that helps to ensure safe and secure transactions between buyers and sellers. When a trade is initiated, the seller’s Bitcoin is placed in escrow by Paxful. This means that the Bitcoin is held by Paxful until the buyer has completed their part of the trade (typically, sending the payment to the seller). Once the buyer has completed their part of the trade, the Bitcoin is released from escrow and sent to the seller.
The Paxful escrow service is designed to protect both buyers and sellers from fraud. For buyers, it ensures that they will not receive the Bitcoin until they have paid for it. For sellers, it ensures that they will receive the payment for their Bitcoin before they release it from escrow. The escrow service is free to use for both buyers and sellers. However, there is a small fee charged for each trade that is completed using escrow.
Paxful Payment Methods
Paxful offers over 350 payment methods, including bank transfers (ACH, wire transfers), credit/debit cards, online wallets (PayPal, Skrill, Neteller), and gift cards (Amazon, iTunes, Visa). Bank transfers are popular for those who prefer traditional methods, while credit/debit cards are a convenient option for online purchases. Online wallets are ideal for those who prefer a third-party service to manage their funds, while gift cards are a great way to exchange for Bitcoin.
Paxful Transaction Fees
Paxful has zero fees when you buy or receive bitcoin. Selling bitcoin attracts fees on the platform. Paxful charges a fee of 1% for most payment methods, which is a competitive fee compared to other exchanges. However, for gift cards, the fee is slightly higher at 5%. Paxful offers a fee calculator on their website to help you estimate the fee for your specific transaction. The platform charges a fee for withdrawals or transfers, which varies based on the size of the transaction.
Paxful Limits
Paxful has different limits for trading, sending, and receiving Bitcoin depending on your verification level. Here’s a breakdown of the limits and verification requirements:
| Verification Level | Trade Limits | Wallet Send-Out Limits | Lightning Transaction Limits | Receiving Limits |
|---|---|---|---|---|
| Level 1 (Email and Phone) | $1,000 | $1,000 | – | No limits |
| Level 2 (Email and ID Verification) | $10,000 | $10,000 | – | No limits |
| Level 3 (Address Verification) | $50,000 | $50,000 | – | No limits |
| Level 4 (Enhanced Due Diligence) | No limit | No limit | $750 per transaction, $10,000 per month | No limits |
While Level 1 verification is required for all users, Level 2 verification is required for users in certain countries and Level 3 and 4 verification are optional but can increase your limits significantly.
Supported Languages and Countries
Paxful is available in over 200 countries and supports over 300 payment methods. Paxful cannot be accessed by traders who belong to any country that is currently under sanction or embargo by the United States Office of Foreign Assets Control (OFAC). The platform also supports multiple languages, including English, Spanish, French, Portuguese, Russian, Chinese, and more.
P2P Paxful Alternatives
More Information
- Paxful on Twitter: @paxful
- Paxful reviews on Trustpilot
- Paxful’s Built with Bitcoin project
Additional information
| Bitcoin Only | |
|---|---|
| Type of Exchange | |
| Lightning Network | |
| KYC | |
| Escrow | |
| Mobile App | Yes |
| Operating System (OS) | |
| Wallet Type | |
| API | Yes |
| Referral Program | Yes |
| Supported Languages | |
| Languages | English, Spanish, French, Portuguese, Russian, Chinese, etc |
| Year Launched | 2015 |
| Headquarters | New York |
Simeon Falade –
I really like Paxful’s P2P mode of operation, as it makes it easier to exchange Bitcoin in a negotiable way. Most of the sellers on the platform are honest and provide quick service delivery, which is why I always use Paxful. I recommend it to any honest buyer looking to exchange Bitcoin.
Fabian Alex –
I’ve been using Paxful exchange platform for a while now, and I can say that it’s a trusted platform. Sellers on the platform are rated based on their trust and usage, which ensures transparency in exchanging Bitcoin. You can be sure your funds are secured when exchanging.
Overall, I highly recommend Paxful exchange platform for anyone looking for a reliable and secure way to exchange Bitcoin. The platform provides a transparent and trustworthy exchange experience.
Kenny –
Paxful charges a lower fee compared to other P2P cryptocurrency marketplaces, making it an attractive option for traders. Overall, Paxful is a reliable and secure P2P cryptocurrency marketplace that offers a variety of benefits to its users.
Matthew Mz –
Great platform. Still learning on Paxful but everything seems seamless and unambiguous.