Since the birth of cryptocurrency in 2009, traditional Bitcoin exchanges (BTC) have been the most popular way to buy and sell cryptocurrency. Although they remain the most popular peer-to-peer (P2P) platforms like Paxful usher in a more people-centric way of buying crypto.
What is Paxful?
With ultimate payment flexibility and a robust security system to back it up, Paxful has become the first people-powered marketplace on the planet.
Launched in 2015, Paxful has only one goal in mind: for everyone to have equal access to finance. Since most traditional exchanges require their users to register using a bank account, the unbanked and underbanked population is immediately disqualified from participating. P2P platforms like Paxful tip the scales by allowing these populations to participate in transactions that were previously denied to them.
Advantages and disadvantages
As we mentioned before, the most important selling points of Paxful are ultimate payment flexibility and one robust security system.
If you are looking to buy bitcoins, Paxful offers nearly 400 payment options, allowing users to exchange virtually anything they want for BTC. On the platform, you can sift through thousands of deals, find great deals from trusted vendors, and start with as little as $ 10. They also have zero purchase fees, providing people with a great experience for those who are just starting out.
On the other hand, if you will sell bitcoins, you can earn money by creating an offer and setting your profit percentage. The offers are also highly customizable and can be tailored to suit what best suits your needs.
To help secure users on the platform, Paxful creates a secure trading environment with features like their high-security escrow service, two-factor authentication, and cutting-edge blockchain analysis tools to help. to identify the bad actors on the platform.
That said, there’s no way that a platform like this isn’t without its drawbacks.
Since sellers on the platform can set profit percentages, you might come across overpriced crypto. Users can get greedy at times, especially if you are looking to redeem a payment method that is not that popular. However, it should be noted that it goes both ways: if you are looking to sell BTC with a not-so-popular payout option, you have the potential to earn more.
There is also a slight chance of running into crooks. While Paxful has done a great job of beefing up security, the occasional scammer can sometimes slip through the cracks. As a user of the platform, you will need to take the time and learn potential red flags bad actors may have to make sure your money stays safe.
Finally, on Paxful, you’re limited to three fully integrated cryptos: Bitcoin, Ethereum (ETH), and Tether (USDT). There are thousands of cryptocurrencies out there and being limited to three is a point taken out of Paxful. However, there are workarounds. For example, there are almost 40 digital currencies that are on their list of payment methods, but until they are fully integrated on the platform, this will hold them back.
Overall, it’s safe to say that the pros outweigh the cons, especially since there are workarounds for Paxful’s most significant cons.
How to buy BTC on Paxful
If you want to buy Bitcoin, Paxful’s process can be simplified into three main steps, assuming you’ve already created your account.
Step 1: Find an offer
Enter your preferences on the home page and click Find Offers. Paxful will show you the list of available offers. From there, all you need to choose one – don’t forget to look at the seller’s review score, the price of BTC, and whether the user is active. If you need more details, you can click on the Buy button to see the full scope of the offer.
Step 2: Start the trade
When you are ready to trade, enter the amount you are going to buy and click Buy Now. Follow the seller’s instructions carefully, then mark the transaction as paid.
Step 3: Receive your BTC
Once you’ve sent your payment and marked the transaction as paid, give the seller a few minutes to verify the transaction. As soon as this is confirmed, they will release the BTC from escrow and it will go straight to your wallet. From there, all you need to do is leave feedback and your transaction is complete.
Overall, Paxful is a great place to trade cryptocurrencies, whether you are a seasoned veteran or an avid newbie. The clean interface makes it easy to trade, the list of payment options makes crypto accessible, and you feel safe with the environment they’ve created.
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