Paxful is a P2P bitcoin (BTC) and tether (USDT) buying and selling platform that has more than 300 payment methods. This platform works in Spain and most of Latin America. In this guide, we’ll take you step-by-step from how to register and verify your account, to how to securely buy and sell within Paxful.
What is Paxful and how does it work?
This platform It was founded in 2015 and works under the P2P concept or people-to-people exchange. Every purchase and sale is done through a custodial agreement which, in other words, means that the platform stores and safeguards the cryptocurrencies that will be exchanged between 2 users. This mitigates potential fraud, as the seller can’t run away with the money you paid and the coins you bought. This type of system is the same one used by platforms like Localbitcoins or Localcryptos.
What Paxful offers compared to its competition
Paxful, like Localbitcoins, Hodl Hodl or Localcryptos, uses a custodial system, in this case centralized, since it is a platform that stores the private keys of stored cryptocurrencies. Something that sets it apart from the rest of its direct competition is the number of payment methods available, which amount to more than 300 right now.
A notable fact that you may not be able to find on other platforms is the ability to pay with gift cards (Amazon, App Store and Google Play, among others) and goods and services. Yes, it is possible to pay with any goods or services in exchange for bitcoin or tether on Paxful.
You can see a complete list of all payment methods here.
What do I need to use Paxful?
For trade on Paxful You must create an account with your email and verify your phone number. This will give you access to the $1,000 limit to work monthly. When verifying your identity, for which you must upload a photo of the document, this limit will increase to $10,000. If you meet all the verification requirements (proof of identity, address and income), you will not have a trading limit.
As regards where Paxful is available, can be used in Spain and almost all Latin American countries. Restrictions on its use exist only in Venezuela and Cuba.
How to register on Paxful
Paxful main page. Source: Paxful.
The first thing you need to do to register is to go to Paxful website. Once there, you need to find the Start button in the top menu and select the Create Account option. When you open it, you will see a form where you have to enter your email address and password for your new account. Paxful.
To complete this first registration process, you must verify your email address and phone number. Once you’ve done that, you can prepare your account.
With phone and email verification you will now have a $1,000 trade limit. however, Many users within the platform require at least that the merchant has verified their identity. Therefore, to verify your identity, you need to locate the Verify me option in the top menu and follow the step by step.
Learn how to deposit and withdraw bitcoin or tether on Paxful
Cryptocurrencies you trade in Paxful They will be stored in the wallet of your account, the private keys of which are held by the platform.
To access your wallet Paxfulyou must select the Wallet option from the top menu.
Cryptocurrency wallet on Paxful. Source: Paxful.
Something interesting about the wallet is that if you have only verified your phone number and not your identity, you will only be able to deposit and withdraw bitcoin. Only when you pass identity verification will you be able to work with tether.
To receive cryptocurrency, you must have your Paxful wallet address, just like any wallet. To do this, you will have to click on Receive and the platform will show you the destination address and its abstraction in a QR code.
When sending, you need to find the appropriate option and enter the destination address to which you want to send BTC or USDT. As for BTC, Paxful supports SegWit addresses. In the case of Tether, The token you can use inside Paxful is ERC20 belonging to the Ethereum network. It is not possible to use USDT from TRON or OMNI.
Inside the platform It is possible to exchange USDT to BTC or BTC to USDT. The fee is 1% and only applies when converting BTC to USDT. The reverse process is free.
How to buy cryptocurrency on Paxful
To go to the shopping section at Paxful, you will have a specific button at the top. Once you’re in there, you just need to select the cryptocurrency you want to trade and you’ll be redirected to the appropriate list. The buying and selling process is the same, regardless of which cryptocurrency is selected.
List of sales offers on Paxful. Source: Paxful.
Within the list of offers, you will see a number of filters that you can apply to the published ads. One fact worth pointing out is that The payment method you can choose is not limited by your geographic location. The only condition for using the payment method, according to Paxful policyis that it is registered in your name.
Prices are listed from lowest to highest. As we shop, it shows us the ads with the best price first.
Data to consider when finding ads within Paxful. Source: Paxful.
As for what to consider with each ad, we have:
- Here you will see the name of the user who is selling. The number of approvals, or feedback from other users who have traded with him. And at the bottom will be the last time you were active on the platform.
- In this section you will find the payment method and a short summary, provided by the user, where certain requirements are usually indicated in order to be able to trade with him.
- This is the average waiting time that an operation with this user usually takes.
- Here you will see the price per unit, in this case Bitcoin, where at the time of writing this guide, 1 BTC equals $37,773 USD. You’ll also see trading limits, which represent the minimum and maximum this user is willing to trade for each exchange.
Before opening an ad, it is advisable to enter the user’s profile to see his reputation and comments from other people he has traded with. As a tip, look at the latest comments and make sure that, indeed, are satisfied with the user.
Once you have found an offer that suits your needs, you must click the Buy button on the corresponding ad.
Open exchange contract in Paxful. Source: Paxful.
The window that opens is the following allows you to view transaction-related data in more detail. At the bottom you will find the conditions of the offer, which are explicit indications of the user who created the ad about the conditions to be able to open an offer with it.
Another important fact to keep in mind is the payment period or transaction time limit. This is the maximum time you will have to send to the seller. If the specified time has passed and the money has not been sent, the other user will have the opportunity to conclude a sales contract.
To proceed to the next step, you will need to indicate the amount to buy, either in cryptocurrency or fiat money, and click Buy Now.
Open contract to buy bitcoins. Source: Paxful.
When you open the purchase offer, you will be presented with the interface you see in the image above. In it you will have a chat, which allows you to communicate with the user you are buying from, and buttons to confirm or cancel the payment.
The next step is a little more manual. First, you’ll need payment information, and to do this, you’ll need to ask the user for relevant details, such as a bank transfer code or a code to send money to a payment processor. In the case of gift cards, You must share the corresponding code and the seller must verify its authenticity.
After you make your payment, you need to click on the Paid option immediately. This will notify the seller who can confirm receipt of the funds and proceed with the release.
If the seller does not release the funds, you will have the option to open a dispute. If you do, the team Paxful He will be in charge of mediating the conflict and determining who is right.
Feedback form at the end of the trade. Source: Paxful.
Finally, after the user releases the funds, you only need to leave feedback with a comment.
After the seller releases the funds, they will be immediately available in your wallet Paxful.
How to sell cryptocurrency on Paxful
The process of selling cryptocurrencies on Paxful It’s initially the same as shopping in terms of looking for trade-in offers. The first thing to consider is that Cryptocurrencies for sale must be in your wallet Paxful before opening the sales contract. This is because, after the exchange opens, the balance to sell will be blocked from your wallet until the exchange is released or cancelled.
When selling, a little warning or advice: avoid, as much as possible, the use of payment methods that can be easily reversed, for example, Paypal. When you have already released cryptocurrencies, There is no way Paxful can protect you if a customer files a dispute with Paypalclaiming he did not receive the property he paid for with his balance.
When all this is clarified, and you have located the buyer, you need to open the exchange contract.
Sales contract on Paxful. Source: Paxful.
Now you need to share the relevant information so that the customer can make the payment for the cryptocurrencies. Here’s the important thing: Since payment verification is manual, always confirm that you’ve received the funds, either to your bank account, with a payment processor, or by retrieving a gift card code. Never trust and verify that the payment has been made correctly.
After confirming the payment, you will have a Send Bitcoins button where you must check Yes to release the funds and thus complete the exchange. Likewise, in case there is a dispute with the payment, you can click No, which will allow you to open a dispute.
Finally, as with a purchase, you must leave feedback about the operation you just performed.
How to post an ad on Paxful
Another way you can buy and sell cryptocurrencies on Paxful You are the one who creates the exchange announcement.
For that, it is advisable to have a good reputation. This is achieved by conducting exchanges through advertisements posted by other users. So you will create trust so that other users are willing to trade with you. It is also necessary to pass identity verification.
When everything is ready, now you need to select the Create Offer option from the top menu.
The first step in creating an exchange ad on Paxful. Source: Paxful.
First of all, you need to choose what type of ad you want to create. It can be bought or sold. After that, publishing the ad is divided into 3 steps.
In the first step, you need to choose a payment method for the job. They are divided into 6 categories along with a list of each. Although, if you don’t want to search manually, since there are more than 300 methods available, You have a search engine where you just need to enter the name of the payment method.
Form for setting market rates and transaction limits in an ad. Source: Paxful.
In step number two, indicate the market rate, foreign exchange limits and payment period. Inside Paxfulthe rate is set based on the market price and you set what percentage you want to earn or lose from the final price.
For example: let’s imagine that the current price of BTC is 10,000 USD in the market. But you need to sell quickly, so set the exchange rate below the market price (predicted by Paxful), for example, -5%, which means that the final price at which you will sell your BTC will be $9,500.
Likewise, you can enter a number greater than zero to sell or buy above the market price.. If you enter zero, the final price will be the market price.
At the bottom, you must specify the minimum and maximum amounts. Remember that the amount depends on the amount of BTC or USDT you have in your wallet, this is only in case of sale.
For the payment period, you must choose a reasonable amount of time that you feel you can wait to complete the exchange. If you don’t comply, you could create a bad reputation.
It is possible to suggest Paxful to add a new tag. Source: Paxful.
You are already on the last step. Here you will need to indicate 3 things:
- Offer Tags: They make it easier for people using the Paxful offer search engine to locate your offer. Tags are already predefined.
- Your offer tag: This description is a brief summary of the offer. This will be displayed in the ad list.
- Offer Terms: Here, as a recommendation, you should be as explicit as possible about the conditions you need for a person to open an exchange with you.
Finally, click Advanced Options to customize your ad a bit more. There you can choose, among other things, the target country of your ad and the minimum verification requirements that a user needs to open an exchange with you.
To create an offer, just click on Create offer and the contract will be published immediately.
The control panel allows you to manage the published ads. Source: Paxful.
At the end of the ad creation process, you will be redirected to the Vendor Dashboard section. From here you can manage all the ads you’ve publishedas well as track the statistics of your exchanges.
When you receive an offer, you will be notified by email and you will see a bell icon notification in the top menu. The exchange process will be exactly the same as we already did when buying and selling on Paxful.
Commissions for Paxful
Table of commissions by payment method in Paxful. Source: Paxful.
Commissions in Paxful are established for sellers onlyregardless of whether it is a created ad or a direct sale.
As can be seen in the previous image, Fees vary by payment method. The highest commissions are for gift cards and reach up to 5% in the case of iTunes and Google Play.
Paxful does not set a commission for receiving cryptocurrencies. In the case of sending to external wallets, a fixed rate is established which includes a commission for miners in the network of the cryptocurrency being sent. In BTC, the rate is 0.00008 BTC for transfers less than USD 10 in BTC, and can be increased to 0.0004 BTC if the amount exceeds USD 20. In the case of BTC transfers between Paxful wallets, it is not set. up to a maximum of 5 BTC per month. Amounts greater than this amount will incur a fee of $1 or 1% of the total amount sent.
As for Tether, commissions start at 1 USDT for amounts less than 10 USD and 5 USDT for amounts greater than 20 USD.
You can view the complete list of commissions here.
Paxful It is the P2P exchange that has the largest number of available payment methods. It even competes with services like Bitrefill, as it allows payments with gift cards.
Recently, the interface received an update that greatly improved the way users interact with the platform. It retains, of course, the way in which exchanges are made.
On the other hand, Paxful offers a bit high commission compared to other P2P exchange portals. Fees can be as high as $15 for cryptocurrency withdrawals over $20.
However, for sale it is possible to use because Paxful It does not charge commissions for deposits, as is the case with LocalBitcoin, however. You can even exchange within the platform between USDT and BTC.
In conclusion, Paxful It is a platform that is not harmful to try and take into account, because it makes more than 300 payment methods available to the user.