Paxful Exchange Review | More Than Just A P2P Exchange?
Jack Moreau
Feb 2024
9 min read
Fact checked
Paxful Review: If you're looking for a peer-to-peer Bitcoin marketplace, you may have heard of Paxful. But how does it stack up against other options on the market? Our unbiased review of Paxful covers everything from its features to its fees and user experience, so you can make an informed decision about whether it's the right exchange for you. Keep reading to find out more!
Paxful is a peer-to-peer platform for buying and selling digital currencies such as Bitcoin and Ethereum. Paxful was founded in 2015 by Ray Youssef and Artur Schaback with a mission to empower the unbanked and underbanked population.
Paxful exchange
The company is headquartered in New York with offices in Estonia, the UK, Dubai, and other countries. Paxful has more than 400 employees and has established itself as one of the leading peer-to-peer exchanges in the world.
Paxful users can buy Bitcoin, Ethereum, USDT and USDC with over 350 payment methods, including gift cards, debit and credit cards, bank transfers, online wallets, and more.
With over 10 million global users, Paxful is a popular choice for underserved users looking to buy or sell digital currencies. Paxful's mobile app is also available on both Android and IOS where it has 1 million downloads and a weakish 3.3 star rating.
Paxful app
Paxful Signup & KYC
Users can sign up and create an account on Paxful by either providing an email or a phone number. Once the email or phone number has been verified, users are prompted to continue to complete KYC in order to begin buying and selling Bitcoin.
Paxful signup
Paxful requires KYC for all users and no buying or selling can occur without having a verified account. For those that conduct phone verification, they can buy up to $1,000 worth of Bitcoin.
For those that also verify their identity with a valid government ID, they get to buy and sell up to $10,000. Unlimited trading is available for users that also verify their home address.
Paxful KYC
Paxful Products & Services
Paxful is a peer-to-peer (P2P) cryptocurrency exchange platform that provides a marketplace for users to buy and sell Bitcoin and Ethereum. The platform operates by connecting buyers and sellers directly, thereby facilitating transactions between them.
Buy and sell on Paxful
With more than 300 payment methods available, Paxful is highly accessible and convenient for users around the world. When a trade is initiated, the Bitcoin being sold is held in escrow by Paxful until both parties confirm that the transaction is complete.
Paxful wallet
In terms of user experience, Paxful offers a very different exchange experience that is centered around the buying and selling of only Bitcoin, in a peer-to-peer setting. This is a service that is mostly tailored to people living in underbanked countries around the world that don't have access to more traditional ways of buying and selling cryptocurrencies.
Paxful convert
Prices on Paxful can vary wildly as they are set by individual users who can set their own prices. Overall, Paxful is a unique offering in the cryptocurrency exchange space, with a focus on providing a P2P marketplace for buying and selling Bitcoin and Ethereum. For individuals who are looking for a traditional cryptocurrency exchange, Paxful will most likely not be the right fit.
When it comes to trading fees, Paxful charges a 1% sell fee for users selling via bank transfers, credit/debit card, digital currency, online wallet or good & services.
Paxful trading fees
For those that sell gift cards, the fees are 5% commission. Paxful only charges the sellers which means that buyers do not pay any fees. These fees are overall quite and unless there is a very particular reason to use Paxful, we recommend alternative exchanges like Binance and OKX we charged much lower fees.
Paxful does not support fiat currency deposits, which means users can only deposit cryptocurrencies such as Bitcoin, Ethereum, Tether USD or Circle USD into their accounts.
However, Paxful does not charge any fees when users deposit cryptocurrencies, which can be a convenient option for those looking to trade with digital assets.
It's worth noting that Paxful does not work with third-party providers for buying or selling cryptocurrencies, so users should be cautious when engaging in any transactions outside of the platform.
Paxful Withdrawal Methods
Paxful is a cryptocurrency exchange that does not support any fiat currencies but only cryptocurrencies like BTC, ETH, USDC, and USDT. To withdraw funds from Paxful, users must pay a dynamic fee that depends on the network activity.
Paxful withdrawals
Bitcoin withdrawals cost less for smaller amounts, with less than $10 worth of BTC costing 0.00008 BTC to withdraw, while over $20 costs 0.0004 BTC to withdraw.
The fees to withdraw ETH range between 0.002 ETH and 0.0005 ETH, while USDT and USDC fees are also dynamic and can range from $1-$10 depending on network activity.
In conclusion, Paxful is a leading peer-to-peer platform for buying and selling a limited 4 cryptocurrencies which includes BTC, ETH, USDT and USDC. The platform 10 million users can buy and sell cryptocurrencies with over 350 payment methods available.
While it may not be the best fit for all users, Paxful is a great option for those looking for a decentralized peer-to-peer way of trading cryptocurrencies. When it comes to trading fees, Paxful only charges sellers with a 1% sell fee for most payment methods and a 5% commission for gift cards.
The platform only supports cryptocurrency deposits and withdrawals, and fees for withdrawals vary based on network activity. Despite some limitations, Paxful is a convenient and accessible option for those looking to trade with digital assets.
For users that are looking to buy and sell more cryptocurrencies or simply want access to a wider range of products, we recommend alternative exchanges such as Binance and OKX.
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Author
Jack Moreau
Jack is a crypto writer and reviewer who has been active in the space since he caught the crypto bug in 2017. With a passion for trying out new shiny things, Jack is always eager to try the latest cryptocurrency exchanges, wallets or DeFi applications.
