Paxful Review: Is it Worth the Hype?
This no-nonsense Paxful review will tell you the truth about this famous Bitcoin (BTC) marketplace.
Yes, there’s a lot of hype around Paxful. Some call it “the Uber of Bitcoin”. Others call it “the eBay of cryptocurrency”.
I know what you’re thinking, though.
Is Paxful legit? Is it a scam? Should you confidently buy or sell Bitcoin via Paxful?
Read on to find out.
Paxful review in a nutshell
Paxful is a huge peer-to-peer (P2P) Bitcoin marketplace.
In other words, Paxful provides a place where Bitcoin buyers and sellers meet and transact.
It operates in most countries worldwide. Its main office is in New York.
People love Paxful since it is secure and easy to use. It has a beautiful interface and makes it easy for you to choose a vendor. If you choose vendors wisely, you can get excellent rates.
The best part?
Paxful has over 300 payment methods. I won’t bore you by listing them all here.
Just note that you can buy or sell bitcoins using most of the payment methods you can think of, such as PayPal, M-Pesa, Western Union, Payoneer, Wise (formerly TransferWise), name it!
Some users struggle with issues like verification and choosing the right person to transact with. If that’s you, don’t worry, this guide will make it easy for you.
First, you need to know what Paxful does to protect you.
Paxful escrow protection
To prevent scam, Paxful offers escrow protection.
Let me explain using a selling scenario.
So, your awesome client has paid you in Bitcoin. You want to sell it on Paxful so that you can go buy your favorite watch.
You go to the Paxful marketplace and get this amazing vendor who’s buying at a fantastic rate. He’s paying you via M-Pesa. Let’s call him Sam.
Sam needs to be sure of two things:
- You have the bitcoins
- You won’t run away with the bitcoins once he sends money to your M-Pesa account
Paxful protects Sam by first holding the bitcoins on escrow. Sam is now sure that the money is held securely by Paxful. He can freely proceed to send you the cash via M-Pesa.
With this in mind, you DO NOT release the bitcoins till you get that M-Pesa confirmation message.
As soon as Sam pays you via M-Pesa, you can safely release the bitcoins to him.
In case of any issue, Paxful mediates and releases the bitcoins to the justified party.
For example, if Sam refuses to M-Pesa you, the bitcoins will be returned to your account so you won’t lose a dime.
If Sam sends you the M-Pesa cash and you don’t release the bitcoins on time, Paxful can transfer the bitcoins to him. This way, Sam doesn’t lose a dime.
At the end of the day, you can both trade with confidence. And you’re assured that Paxful support will mediate in case of any issue.
Like any marketplace, you need to avoid getting scammed. I’ll talk more about this. But first, let’s see how the buying process works.
How to buy Bitcoin in Paxful
To buy BTC, do this:
- Create a Paxful account (if you don’t have one yet)
- Verify it with your national ID or passport (very important)
- Click on “Buy”
- Choose your preferred payment method
- Look for a vendor with a good reputation (you can get one with hundreds or even 1,000+ reviews)
- Pay the vendor
- Get your bitcoins
How to sell Bitcoin in Paxful
Selling is simple as well.
Here’s the procedure:
- Create and verify your Paxful account (If you already have a verified account, skip this)
- Click on “Sell”
- Choose how you want to receive the cash (bank transfer, M-Pesa, Wise, etc.)
- Look for a vendor whose rates are above market rates but who also has fantastic reviews
- Only release the bitcoins once you’ve received the payment. Never ever release before you get the payment.
Paxful identity verification and transaction limits
Every marketplace has its rules.
Here, you must verify your account to increase your transaction limits.
It’s best to verify as soon as you join the platform to avoid any future headaches. Once you’re fully verified, you can continue trading without fear.
If you’ve just joined Paxful right now, do an ID verification right away. You can do so using your national ID or passport. Don’t sleep tonight without doing this.
Yes, I know verification can sometimes be a pain in multiple platforms.
In case you’ve tried verifying your identity and got a challenge, Paxful has a solution for you—my FreelancerKenya fans. Simply fill this form. Your issue should then get escalated and sorted out as soon as possible.
You can reach out to Paxful support any time in case of any other challenge.
Paxful has a few levels of verification that correspond with transaction limits. Here are the details.
Paxful Fees
Buying Bitcoin on Paxful is absolutely free.
Sellers mostly pay a small 1% fee when accepting payments using most payment methods. The only exception here is if you’re using gift cards, which will cost you 3 to 5% depending on the gift card you’re using.
Advantages of Paxful
Why do people love Paxful that much? Here are the advantages:
- Ease of use: It’s easy to navigate through the site and transact without any assistance.
- Safety: Despite being a marketplace with all sorts of people, Paxful does its best to keep your money secure. It keeps displaying messages and popups to help you stay safe during a transaction.
- Rates: At a glance, you can see if the rate you’re getting the Bitcoin at is above or below the market rate. If your client pays you in Bitcoin and you sell here, you can end up getting the cash at 2+ percent above market rate. Imagine getting paid $1000 and getting value worth $1020 in your pocket. This is why I love it as a way to get paid.
- Support: There are tons of tutorials on how to do stuff on the site. You can also reach out to the customer support team in case of anything.
Disadvantages of Paxful
Nothing’s perfect. Here are the cons of Paxful:
- Some people experience verification delays even after submitting valid identity documents
- When there are high volumes of tickets, customer support may take time to respond to queries
Paxful user reviews
Before writing this Paxful review, I first used it for a while and loved the experience. I then went out there to look out for other user reviews. And as expected, there was a mix of good and bad.
People love just how smooth it is to transact on the platform. Some can’t stop singing about how much they valued the rates they received from awesome Paxful vendors.
Those who came from platforms like PayPal and Skrill also enjoy the fact that they don’t get frequent account limitations.
On the other hand, some users complain of a negative experience. It’s always good to read the negatives with an open mind.
Many of the complaints out there are not about Paxful itself. But about someone who was conned by a Paxful vendor.
This isn’t meant to water down any negative experience someone has. If you have a genuine issue, you’re free to contact Paxful’s friendly support team.
To avoid getting conned by any unscrupulous traders on the platform, always follow simple safety guidelines. Let’s talk about them…
How to avoid getting scammed in Paxful (and ensure your experience is amazing)
Like any other marketplace, con vendors may seep into the system. They eventually get banned, but you don’t want them to take a single cent from you, right?
Here’s how to stay safe:
1. Verify your account
I’ve read a ton of Paxful reviews. Some claim that Paxful scammed them because they received a huge payment and were unable to transact. As I showed you above, you must verify your account to lift transaction limits.
Avoid verification issues by ensuring your account is verified today.
2. Trade with reputable vendors
Make sure you buy or sell from people with outstanding reputations. The best way to see this is by checking their reviews. Paxful shows a person’s reputation using thumbs-up signs like these:
You can click on a person’s username to see what others said about them.
As you go through the queue, you’ll see whether a vendor is new. And if they’re not new, you’ll see the average time it takes them to complete a transaction under Average Trade Speed.
Before you open a trade, make sure the vendor:
- has multiple great reviews (you can even go for 100+ or 1,000+ reviews)
- has been on the platform for a while
- completes transactions quickly
- offers a favorable rate
You may be asking, “What will happen to the new vendors if you only go for those who’ve been there for long?”
I believe your main interest is in protecting your cash, right? It’s best to do whatever it takes to ensure you’re safe in any marketplace.
However, if you’d want to trade with a new vendor for whatever reason, make sure you do this…
3. DO NOT release bitcoins till you get paid. DON’T!
This doesn’t only apply when trading with new vendors. It applies to all transactions whenever you’re selling bitcoins.
Paxful has an escrow system. If you’re selling bitcoins, Paxful holds those bitcoins till you complete the transaction. You can’t reverse this unless the buyer doesn’t pay, doesn’t respond, or closes the trade.
The buyer is safe. They know Paxful has held their cash securely in escrow. So, they should be free to send cash to your preferred payment method as soon as possible.
Scammers will use all kinds of tricks to get you to release cash. You’ll get things like:
“Just release the bitcoins, and I’ll send your $$$ via Western Union.”
“I’ve sent the cash to your M-Pesa, but it seems like there are transaction delays.” (If you get something like this, confirm with Safaricom first and wait till the payment clears before releasing bitcoins.)
“Release now! I’m using an automated system. You’ll get the cash automatically.”
…and more.
Don’t listen to these scammers. Get paid first before releasing the bitcoins.
Apart from these measures, don’t forget the usual online security precautions. These include strong passwords, 2-factor authentication, not sharing passwords, logging out after using any shared device, etc.
Frequently Asked Questions
Is Paxful legit?
Yes. It’s legit. You just need to follow its clear safety guidelines to avoid getting scammed or inconvenienced. Always remember that it’s a marketplace, so you shouldn’t blindly trade with anybody.
Is my money safe?
Paxful does its best to keep your money safe. However, you must follow the safety guidelines above to avoid getting scammed. The safety of money is mostly with the beholder. So, even in Paxful, use your money wisely.
How fast should you sell Bitcoin after getting paid?
If you’re not a professional Bitcoin trader and a client or customer pays you in Bitcoin, sell immediately.
I know you may want to trade or wait. Before doing any of these, it helps to learn how Bitcoin, cryptocurrency, and other currency markets work.
But when starting out with Bitcoin, sell immediately after getting paid.
Why?
Prices fluctuate. Tomorrow the price may be higher or lower than today. Don’t keep holding (in this industry, it’s called HODLing) money on this or any other platform long-term if you don’t know what you’re doing.
If you’re reading this and you’re a professional Bitcoin trader or HODLer, then consider Paxful a safe place to do your thing.
How can Paxful be useful in my freelancing career?
You can ask clients to be paying you in Bitcoin via your Paxful wallet. You can then take advantage of the great rates, quick transactions, low fees, and security that Paxful gives you.
It doesn’t have as much hassle as you’d get in other payment methods like Skrill and PayPal.
Paxful review verdict: Is it legit or a scam?
Paxful is a legitimate Bitcoin marketplace.
You can safely buy and sell Bitcoin here. And if you know what you’re doing, it’s a wonderful place to trade or speculate. Like many other users out there, this is my favorite Bitcoin marketplace.
I like putting disclaimers whenever I talk about money issues. The information here should not be taken as expert financial advice. You should always practice financial intelligence and do proper money management.
This is a Paxful review that focuses on it as a legitimate marketplace of choice.
Seek expert advice should you want to HODL or become a professional Bitcoin trader.
I use Bitcoin as a way to get paid by clients since I end up with more money in my pocket this way. Paxful is my go-to marketplace whenever I want to sell bitcoins. It has over 4.8 million users and is growing worldwide.
Join Paxful right now. Don’t forget to verify your account using your national ID or passport before the day ends.
