Paxful vs Coinbase | Why We Prefer Coinbase Much More!

When it comes to trading fees, Paxful and Coinbase have slightly different approaches. Let's take a closer look at each exchange's fee structure and what it means for their users.

Paxful charges a 1% sell fee for users selling via various methods such as bank transfers, credit/debit cards, digital currency, online wallets, or even goods and services. However, if you're selling gift cards, the fees increase to a 5% commission.

One notable aspect of Paxful's fee structure is that it only charges sellers, meaning buyers don't have to worry about any additional fees.

On the other hand Coinbase has a different trading fee structure. It charges a 0.40% spot maker fee and a slightly higher 0.60% spot taker fee.

Coinbase does not currently offer futures trading, so users looking for those options might have to explore other exchanges.

However, Coinbase does provide an opportunity to lower trading fees if monthly trade volumes exceed $10,000. So, for active traders or high-volume users, this could be a substantial advantage.

Both exchanges have their own perks and conditions when it comes to their fee structures. Paxful's fees are relatively straightforward and great for buyers who don't have to worry about any costs while Coinbase overall has lower maker and taker fee then Paxful's sell fee.

Paxful and Coinbase differ in terms of the deposit methods they offer. Paxful does not support any type of fiat currency deposits.

This means that users cannot directly deposit traditional currencies such as USD, EUR, or GBP into their Paxful accounts.

Instead, the only option for depositing funds on Paxful is through cryptocurrencies and Paxful does not charge any fees for deposits.

Users can deposit Bitcoin, Ethereum, Tether USD, or Circle USD into their Paxful accounts, which can then be used for trading or other transactions on the platform.

On the other hand, Coinbase offers more flexibility when it comes to depositing funds. Coinbase supports three fiat currencies: USD, EUR, and GBP.

Users can deposit these currencies directly into their Coinbase accounts using various methods. For USD deposits, users can choose to deposit funds via ACH (Automated Clearing House) transfer, which is free of charge.

Wire transfers, on the other hand, incur a fee of $10 USD. For EUR deposits, users can use SEPA (Single Euro Payments Area) transfers, which have a deposit fee of 0.15 EUR. GBP deposits can be made via Swift transfer, and there is no fee associated with this method.

Starting with Paxful, we need to first highlight that it does not support any fiat currencies for withdrawal. Instead, users can withdraw cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), USDC, and USDT.

The withdrawal fees for Bitcoin vary depending on the amount being withdrawn. For smaller amounts under $10, the fee is 0.00008 BTC, while for amounts over $20, the fee is 0.0004 BTC.

The withdrawal fees for Ethereum range between 0.002 ETH and 0.0005 ETH. As for USDT and USDC, the fees are dynamic and can range from $1 to $10, depending on network activity.

Moving on to Coinbase, this exchange offers a wide range of withdrawal methods for both fiat currencies and cryptocurrencies.

For fiat withdrawals, users can choose from options such as ACH, Wire, SEPA, and Swift. ACH withdrawals are free of charge while Wire withdrawals come with a fee of $25 USD. Coinbase SEPA withdrawals have a fee of 0.15 EUR and Swift withdrawals have a fee of 1 GBP.

When it comes to cryptocurrency withdrawals on Coinbase, the fees vary depending on the specific cryptocurrency being withdrawn.

For Bitcoin, the fee is 0.0002 BTC while for Ethereum, it is 0.000768 ETH. Solana withdrawals come with a fee of 0.008 SOL and for USDT (ERC-20), the fee is 3.55 USDT.

Paxful and Coinbase provide users with different options when it comes to withdrawing funds. While Paxful focuses solely on cryptocurrencies and offers dynamic fees based on network activity, Coinbase offers a wider range of withdrawal methods for both fiat currencies and cryptocurrencies.

In conclusion, Paxful and Coinbase are two well-known cryptocurrency exchanges that cater to different needs and audiences.

While both exchanges have their unique strengths, Coinbase appears to have an advantage in terms of extensive features and services offered.

Coinbase stands out for its user-friendly interface, security, and regulatory compliance.

It provides a comprehensive platform for trading, investing, and learning about cryptocurrencies, making it suitable for both retail and institutional investors.

Additionally, Coinbase supports over 200 cryptocurrencies, offering a wide range of options for users.

On the other hand, Paxful focuses on providing accessibility and a wide range of payment methods, targeting the unbanked and underbanked population.

It allows users to buy and sell only 4 cryptocurrencies in Bitcoin, Ethereum, USDT, and USDC via over 350 payment methods.

When it comes to the signup process, both Paxful and Coinbase require KYC verification before their users can user any services.

In terms of trading fees, Paxful charges a 1% sell fee, with higher fees for gift card transactions. Coinbase, on the other hand, has a different fee structure with spot maker and spot taker fees that start at 0.40% and 0.60%.

When it comes to deposit methods, Paxful only supports cryptocurrency deposits, while Coinbase offers the flexibility to deposit funds in USD, EUR, and GBP through various methods.

Coinbase as such is clearly the more versatile and user friendly exchange while Paxful was design to cater mainly to a very specific use case of P2P-transaction in underserved countries.