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Paxful Review - is it scam or safe?

Paxful Review - is paxful.com scam or good cryptocurrency exchange?

RATING: 3 / 3 REVIEWS Paxful

RECOMMENDED BITCOIN BROKERS


 Trading accounts and conditions

 

Account type Leverage Fees
Standard 1:1 1%, seller

 

Paxful is a US-based P2P cryptocurrency exchange where clients can buy and sell bitcoins for fiat currency between each other. The service is similar to that of Local Bitcoins.

 

The platform accepts clients globally, but it is worth noting that it dose not accept clients from the state of New York, as it does not have the relevant BitLicense, introduced by the state.

 

According to its own estimates, on the platform have changed hands over 40 000 bitcoins, between 55 125 customers.

 

In 2015 Paxful gained notoriety by allegedly serving clients of the site Backpage, which was running paid export ads, but got in trouble with Visa and MasterCard who refused to process its payments.

 

 

Paxful Advantages

 

- Convenient Payment methods. Perhaps the biggest advantage of Paxful are the numerous payment methods available. Most platforms have a very limited set of options, that often do not include credit cards, for example, but in Paxful’s case the payment options are provided by the sellers. On Paxful’s site as payment options are listed bank transfers, Western Union, MoneyGram, SEPA, PayPal, Skrill, Neteller, OkPay, Visa, MasterCard, AmEx.

 

>> See crypto exchanges accepting credit cards <<

 

- Low Fees. The fee for sellers in 1%, which is a bit on the high end for the industry, but the sellers usually charge higher prices and the transfer fees are covered by the buyer.

 

- Fiat currencies. In theory one can buy bitcoin for whatever fiat currency they like, as long as there is a seller offering it. In practice, naturally, there are no offers for some of the more “rare” currencies. Our experience shows that in some cases even not-so-rare combinations such as buy bitcoin for euro via cash deposit in bank, cannot be found.

 

- Has Escrow. Similarly to other P2P bitcoin exchanges, Paxful keeps the bitcoins subject to the deal in escrow, until the payment is confirmed. This is done with the purpose of preventing fraud. Still, there is the risk of chargeback.

 

- Anonymity. Due to the nature of the service offered by Paxful, the clients can remain fully anonymous, if they so wish and depending on the payment method. Obviously, the bank transfers and credit card payments cannot be anonymous, nor can the Western Union transfers, for example, but payments through gift vouchers or cash in person, can. Also, some users can set their own rules regarding client identification and required government ID photo.

 

 

- Wallet. For the convenience of its users, Paxful provides a free bitcoin wallet, which is created automatically with the creation of an account. From the wallet users can send and receive bitcoins.

 

- Platform. Similarly to other P2P cryptocurrency exchanges, Paxful allows the placing of two types of orders. In the first buy option one can set the fiat currency and the payment method of choice and click on the “Give me the best” button. In the second – one can view the available offers and select one that suits them. The sell option works in a similar way. There is also the chat option where buyer and seller can chat with each other.

 

 

The client can also set a number of rules and requirements laid out below the offer. They can include ID verification, place of residence, minimum and maximum order limit, etc.

 

- Reputation rankings. Paxful has introduced reputation rankings for its users, which can be useful in deciding whether to take the offer or not. There are also the “trusted vendors” who offer fast and reliable services.

 

- Simple Registration. The registration at Paxful’s platform is simple and straightforward and one only needs a working e-mail address for verification.

 

 

Paxful Disadvantages

 

- Price. Generally, the prices offered by Paxful users are higher than the average that can be found on other exchanges. But, convenience comes at a price.

 

- Potentially high Payment fees. The payment fees are covered by the buyer and are set by the seller. In some cases they can be quite high, particularly for “exotic” payment methods like the various gift vouchers (Amazon, Walmart, etc.)

 

- Risk of Fraud. As we have already mentioned, despite the efforts of Paxful to prevent fraud, dishonest users can find their way around the system.

 

- Few Coins. For the time being, only bitcoins can be traded on Paxful’s platform, but this is quite understandable, considering that bitcoin is still the most popular cryptocurrency and in the minds of many is the only cryptocurrency. There is also the option to pay for bitcoin in ether, but at the time of writing this article, there were no offers.

 

- No Leverage. Quite naturally, Paxful does not offer leveraged trading, due to the nature of its service and platform. There are some exchanges, though, who offer trading on margin, such as KrakenbitFlyer and CexIo. There are also a large number of forex brokers – regulated and unregulated – who have included cryptocurrency CFDs in their portfolio.

 

>> See our list of regulated bitcoin forex brokers <<

 

Conclusion

 

Paxful offers a service very similar to that of Local Bitcoins and several other P2P crypto platforms. Its biggest advantage are the numerous payment options and the biggest disadvantage are the higher prices.

 

When dealing with private persons, one can have in mind the risk of fraud, despite the security measures implemented by Paxful and perhaps the safest option is to seek verified vendors and do business with them.

 

 

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Traders` reviews for Paxful

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Paxful scammed me

I am dealing with paxful from last 1 year. From last 2 months lots of scammers joined paxful and they start scamming sellers. In last 2 weeks i have scammed with $500 home depot card and amazon dispute still in process. Now if you sell any gift to buyer then buyer tell you to upload receipt and card. After you upload they will tell you that card is already used. If you fight with them and click on dispute. Then after 10-15 days moderator joined and they will tell you to speak with card companies and get time information. If you call card companies to get time information then you wont be able to get it just because of security concern they will tell you. So somehow if you cant get time information then you will get scammed from paxful websites. From last 2 weeks i got scammed with 500 home depot and amazon card of 250 +200 is in dispute process. I know that paxful is going to scam me with these 2 cards. Rather than asking time information from seller they do not ask screen sharing recording from buyer. Moderator and buyer are same they know very well how to scam seller.

Nohely khilnani 07/04/2019

There are discrepancies in this review

I read through the review but I have noticed some discrepancies! As for someone who's been using the platform for quite some time, I know that Paxful doesn't have nor announced anything about having a mobile application that is up and running. Avoid downloading those random links from people claiming that its an app, those are PHISHING LINKS!

Also another thing I've read on this review that I think isn't a fact is them not accepting clients from the state of New York. I got curious and contacted their support regarding this, what they can only disclose is the BitLicense thing is currently in the works. If you wanna know more about it, probably just send them a message through live chat on their website.

Just looking out to my fellow traders and for the bitcoin newbies out there.

Gary Hopkins 02/08/2019

Don't use paxful

Why you should never use Paxful.

I’ve been a vendor on Paxful for 8 months and today I decided never to use them again. I have always had issues with them that I tried to ignore believing that things will improve with time, but they just keep getting worse.

In summary Paxful made 3 things mistakes that makes me believe anyone in their right minds should avoid them.

1. Paxful never paid me or any of its’ users their BCH, BTG or any of the forked coins, in fact I have proof Paxful claimed all of these coins for themselves and made millions out of it, if you have a Paxful wallet just put your wallet number on a BCH explorer or similar and see for yourself

2. Scam networks had been operating on their web page for years and Paxful do support them for reasons I can only speculate. These networks have patterns and behavior that anyone can detect in a minute, why they never take them down is something I don’t get but I believe they are profiting from them

3. It seems that Paxful disregards all the legislations that make sense such as KYC in order to facilitate the use of fraudulent credit cards, hacked PayPal accounts, and stolen gift cards etc. Whoever dares to report such activity to their biased moderators gets a very bad treatment if they are unlucky not to mass a group of vendors before reporting

In general this company seems to have no owners and is ran by a staff that have no clue what they are doing. They have a cool interface which I like but it’s nothing but a marketing scam and their new projects are covered by 1/100 of the funds they have stolen from their unsuspecting users.

More details and proof will follow.

Saher 12/28/2017
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