What is Paxful com
Paxful is a Bitcoin trading platform where you can easily buy and sell Bitcoin. Moreover, there are many payment methods supported, such as common bank transfers, and some online electronic wallets, such as common PayPal and other payment methods.
In addition to regular payment methods, paxful also supports various gift card transactions. Such as Amazon gift cards, visa virtual cards, Steam Wallet gift cards, eBay gift cards and so on. Moreover, some transaction users often sell these gift cards at very low prices, so there is room for arbitrage. Take the common Visa US dollar gift card as an example. Choose a merchant at random, you only need to pay 153.92 USD equivalent bitcoins, and you can receive a visa gift card worth 200 USD.
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How to start using Paxful?
The following are the steps to get started with Paxful.
Create a Paxful account and log in
Visit Paxful and click “Get Started” at the top. After that, click “Create Account”. Fill in all your details and click “Create Account”. Soon, you will get a verification link at your email address. Click it for email verification. After completing this process, you can log in to Paxful for the first time.
Paxful wallet
After creating an account on Paxful, Paxful does provide a safe and free Bitcoin wallet.
Verification and purchase restrictions
Paxful does have four verification levels. Each level has different restrictions:
- Level 1: Phone and email verification. Here, the limit is $1,000.
- Level 2: Level 1 requirement + identity verification. The maximum limit is $10,000.
- Level 3: Level 2 requirements + address verification. Here, the maximum limit is $50,000.
- Level 4: Level 3 requirements + due diligence. There are no restrictions at this level.
U.S. users must complete level 1, 2, and 3 transactions before they can trade on Paxful.
How to buy Bitcoin on Paxful?
Find a quote
After creating an account on Paxful, select the payment method, the number of bitcoins you intend to purchase, and your preferred currency. After that, click “Search for Quotes”. Please check the list of offers and choose the one that best meets your specifications. Then, review the seller’s terms. Please check the price set by the seller and their feedback and reputation score to evaluate their credibility.
Start trading
After you are satisfied with the seller’s terms, enter the amount of bitcoin you want to buy. Then, start trading. After that, a live chat with the seller will be opened. Follow the seller’s instructions to make the payment and confirm the payment.
Receive bitcoin
The seller will release the bitcoin directly into your Paxful wallet.
How to sell Bitcoin on Paxful?
Set your requirements
Choose your preferred payment method and the maximum number of bitcoins you intend to sell. You can also indicate your preferred currency and location. When finished, click “Search for Quotes”. Then, you will see a list of quotations.
View offer
You must check important information about the purchaser, such as their name, reputation, verification level, and exchange rate for each bitcoin. After you find a suitable quotation, please click “Sell”. This will not open the transaction, but will guide you through the quotation conditions and terms set by the buyer.
Start trading
After you are satisfied with the buyer’s terms, fill in the amount you are going to trade, and then click “Sell Now”. This will open a real-time transaction chat and move your bitcoins to Paxful’s secure custodian. Please read all provided instructions carefully and follow the instructions. Your buyer will also complete the transaction. You can then continue to release Bitcoin after receiving the payment. After the transaction is over, download the public receipt.
leave feedback
After selling bitcoin, remember to provide feedback from trading partners. This is essential for Paxful, as it helps build the reputation of users.
Currency and payment methods on Paxful
This peer-to-peer platform only satisfies the trading of Bitcoin and Tether to a large extent. The platform does not store fiat currency for users because the money is sent directly to the seller. Paxful sellers accept more than 300 payment methods. The most famous methods are Paypal, Amazon gift card, wire transfer and WesternUnion. Remember that different payment methods will result in different exchange rates. For example, payment methods that allow refunds (credit card, PayPal) will cost more. In contrast, non-refundable payment methods (cash, bank transfer) usually have lower exchange rates.
Paxful hosting
The platform does provide custodial services for every Bitcoin transaction. After the buyer found the seller and the seller accepted the offer, the bitcoins were transferred from the seller’s wallet to a third-party custodian. After that, the seller will not be able to cancel the transaction. However, the buyer only has a little time to remit the money to the seller. If the buyer fails to do so within a given time, the transaction will be considered incomplete. Therefore, Bitcoin will be returned to the seller’s wallet. The transaction must be confirmed by both parties.
Assume that there is controversy at all times. In this case, the Paxful host will make a prudent decision based on the detailed information available. Then, Bitcoin will be provided to the seller or buyer accordingly. Usually, due to the strict review of the platform, the transaction goes smoothly.
How to use Paxful safely?
You may mistake the integrity of Paxful for the integrity of the seller. However, Paxful is like a market. This means that certain sellers are not trustworthy and may become scammers. Here are some things to keep in mind when trading on Paxful:
- Do not communicate outside of Paxful. Please make sure that everything is recorded in the system. As the host, if there is any dispute, I will be able to help you.
- Make sure that the users you are trading with are online. This is because unanswered orders will be automatically cancelled in a short time.
- If you cannot fully control the payment, please do not release the payment from the escrow. This means it should be confirmed in your account.
- If you cannot afford the loss, please do not send money.
Frequently asked questions
Is Paxful legal?
Yes, Paxful is absolutely legal. Paxful also provides hosting services for the safety of its users.
How to contact Paxful?
Paxful provides 24/7 customer support. You can contact Paxful’s support team through its contact form.
Is there a scam at Paxful?
Even with Paxful’s strong protection, it is still a market. This means that some sellers are not trustworthy and may become scammers. If you follow all the rules given on Paxful, then you will stay safe on Paxful.