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Paxful Review: Fees, Deposits/Withdrawals, Purchase Limits

Trading

Paxful was established in 2015 by a team of experienced developers whose goal was to provide a secure and straightforward exchange platform for anyone to buy and sell Bitcoin. The company’s platform connects crypto enthusiasts by acting as a mediator between buyers and sellers of Bitcoin.

The US-based peer-to-peer digital currency exchange accepts clients from all over the world. New York-based clients are not accepted on the platform because Paxful does not yet have BitLicense, which is now required to operate in the State of New York. Paxful’s headquarters is at 3422 Old Capitol Trail, PMB #989, Wilmington, DE 19808, United States.

Clients on the platform can buy and sell cryptocurrency using a wide range of payment methods such as PayPal, bank transfer, Skrill, Debit/Credit card, Neteller, Amazon gift cards, iTunes gift cards, as well as Steam gift cards, among others.

The Paxful Platform

Paxful clients can trade Bitcoin using two different formats of the trading system. These include:

  • Web interface: Paxful offers a web-based trading platform that is a lot similar to what other peer-to-peer exchanges provide. The system allows users to place two different types of orders. The first purchase option involves choosing the fiat currency as well as the preferred payment method, after which you can get the system to select the best offer for you. The platform then searches for the best offers automatically.

With the second buy option, you manually view the offers that are available and then choose the one that suits you best. The same applies to the sell option. The trading platform also provides users with a chat feature that they can use to communicate with each other. Clients are provided with tons of other functionalities such as minimum and maximum order limit, among others.

  • Mobile application. Paxful provides users with the mobile version of the trading platform to allow them to buy or sell Bitcoin on the go. Clients can also use the mobile app as a wallet. The program comes with the chat option, among other critical trading features.

To make it easier for clients to establish that they are dealing with specific entities from the get-go, Paxful has added a reputations ranking feature to allow clients see at a glance whether the person they are dealing with is trustworthy or not. This feature serves as a good indicator that can help you to decide whether or not to take an offer. The rankings are based on a client’s activity as well as their ratings, trading history, and feedbacks, all of which can be viewed by anyone. In much the same way, if you are a buyer, the “trusted vendor” badge enable you to see individuals that render fast and efficient services. All transactions executed on Paxful are delivered into users’ Paxful wallet, which is offered for free.

Assets Traded

Paxful allows users to buy and sell Bitcoin (BTC).

Fees

Being a peer-to-peer network, Paxful does not charge buyers any fee for Bitcoin purchases. This responsibility falls on the sellers who charge buyers a fee depending on the payment method they are using. For instance, if you are making payments via gift cards, you will be charged higher fees than if you are using credit/debit cards for purchases.

Sellers on the Paxful exchange platform are charged 1 percent fee. Also, sellers will also need to pay a mining fee when they send cryptocurrency from one address to another. Besides these, Paxful does not charge any more fees.

Deposits and Withdrawals

Paxful allows traders to make payments via over 300 channels. Some of these options include:

  • Debit/Credit cards. Paxful clients can use their debit or credit card to make payment on the Paxful exchange platform. These cards include MasterCard, VISA, AmEx.
  • Gift cards. Paxful users can use gift cards to make payments on the exchange. The acceptable gift cards include Amazon gift cards, Target Gift cards, Walmart gift cards, BestBuy gift cards, GameStop gift cards, etc.
  • Cash deposits. Users can make cash payments by making cash deposits at the teller. After depositing the funds, you will need to upload the receipt to have your Bitcoin transferred to you.
  • E-wallets. You can make payment from the comfort of your home by utilizing mediums such as PayPal, PerfectMoney, Skrill, OKPay, Serve to Serve Transfer, Paxum, NetSpend, as well as a host of other online wallets.
  • Money transfer services. You can make payments via money transfer services such as MoneyGram and Western Union.

Security

Paxful clients’ funds are stored in a wallet that the company automatically creates for them during registration. However, clients who do not want their funds stored in the firm’s wallet can choose their preferred wallet. Not only does Paxful’s default wallet allow you to store funds, it also lets you carry out transfers. To further ensure funds security, a 2-factor authentication feature is provided to help clients keep their purses adequately protected.

Another helpful step that Paxful has taken to ensure funds security is the provision of escrow services. Users’ funds are held in escrow when they are trading on Paxful until both parties involved confirm that the transaction has been completed successfully. This way, traders are assured that they won’t lose their funds to fraudsters who are looking to prey on unsuspecting traders. Also, Paxful’s servers are protected in line with the best of banking requirements.

Limits

Paxful does not control the buyer/seller limits. Instead, the company leaves it to the market participants to decide. So, if you are buying Bitcoin from any seller, you will do well to read the limits they set. You want to make sure that the terms are favorable to you before you proceed to make payment. If you are unable to find satisfactory explanations, you can inquire from the seller directly.

Supported Countries

Paxful accepts clients from all countries. Meaning that you can register and begin trading on the platform regardless of your location (unless you are in New York, of course). Note, however, that each buyer and seller has their policy on which countries they support. You can use payment channels such as Western Union to make payments internationally. The other means of payment will depend on your country of residence.

Customer Support

Paxful’s customer support team does their utmost to help clients efficiently and in a friendly manner. They will handle issues for you and do their best to ensure that you are satisfied. Another benefit of the company’s support services is that you can reach support in several ways. These include:

  • Email: Users who want to address specific issues can send a message to Paxful’s customer support desk at help@paxful.com.
  • Phone: If you want immediate response to your queries, you can utilize the telephone option. You can reach the company’s customer support team at + (865) 272-9385.
  • Live chat: You can also reach Paxful’s customer support team by making use of the live chat feature on the company’s website at www.paxful.com.
  • Facebook: You can connect with Paxful on Facebook through the company’s page at https://www.facebook.com/paxful/.
  • Twitter: Users who prefer to follow the company on Twitter can do so by following this link: https://twitter.com/paxful.

You can find answers to several queries by visiting the company’s FAQs page at https://paxful.com/support.

Conclusion

Paxful offers traders a fast way to make Bitcoin transactions. What we like best about the platform is the large number of channels through which you can make payments for Bitcoin purchases. In the same way, you can buy Bitcoin using any fiat currency of your choice provided there is a seller that offers it.

The trading platform itself is incredibly easy to use, even for beginners, with several features designed to protect you from being cheated out of your hard-earned money. The escrow the company provides may not seem like a lot, but it goes a long way in helping to prevent fraud. The firm’s zero tolerance for fraud is highly commendable. This makes Paxful a good exchange for individuals who are looking for a trade that is very safe and secure.

The company’s wallet services, which is offered for free, helps to make trading convenient for traders seeing as they won’t need to spend a fortune on another wallet unless they have to. Paxful also offers a mobile application, which allows you to buy and sell Bitcoin even when you are on the move. The customer support team is highly efficient and reliable. In many ways, the company has managed to create a landmark within a short span of time.

But while we like and would recommend this company, we are however of the opinion that their fees for sellers are rather on the high side at 1 percent. Another issue is that there is no uniform exchange rate, which is expected considering the fact that every seller offers their own rates. So you should always compare the seller rates before you proceed to transact with any seller. One cannot be too careful.

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