In the rather new and wild world of Bitcoin you can never be too cautious when it comes to trading sites like PaxFul. If you are wondering is Paxful legit or a scam platform then you are in the right place. I’ve been using PaxFul on and off for a bit of time now and I’m finally getting around to writing this review because I know a lot of people have been asking for it.
In this review I’ll be going over a few extremely important things that you should know about this site whether you are looking to buy or sell Bitcoins. Take note, I am in no way affiliated with this site and this is a completely unbiased review.
- Website: paxful.com
- Type: Peer to peer bitcoin trading platform
- Recommended?: Kind-of, more on this
PaxFul is what you call a Peer to Peer marketplace for Bitcoins. If you have ever heard of LocalBicoins.com, its pretty much the same thing as that. PaxFul is just a platform that connects people looking to buy bitcoins with people looking to sell them. They just provide a secure place to trace basically.
Sometimes, for whatever reason, bitcoin brokers like CoinBase cannot be used. This may be because they don’t allow you to use their site due to your location, maybe they don’t except your payment method, etc. The good thing about a Peer to Peer marketplace like PaxFul is that you can always find someone willing to sell bitcoins to you.
How It Works
Buying bitcoins on PaxFul isn’t quite as straightforward as buying from a broker like CoinBase. This is because each seller can make up their own rules when it comes to payment. This can be a pain sometimes but usually isn’t too bad.
The process of buying bitcoins on this site can be broken down into 4 steps.
Step 1: Search for Sellers
When searching you can filter your results based on how much money you want to spend, what currency you are dealing with, and how you want to pay. There are literally over 100 ways that you can pay people over this platform. People will except anything from iTunes and Amazon gift cards to PayPal and MoneyGram. Its pretty awesome.
Step 2: Select a Seller
There are so many sellers that use this site you will have to select one to buy from. You will see that they are all selling bitcoins at different prices. This is because they can sell at whatever price they want to and this is always going to be above market value.
For the purpose of this example I chose this guy named Eximius. I chose him because he has a very high rating of +2872 which is from people that have traded with him giving good feedback.
Step 3: Start the Trade
To begin the trade you will click the “Buy Now” button and this will initiate the trade. PaxFul will then take the bitcoins out of the seller’s account and hold them in escrow, which is for safe keeping and helps ensure you don’t get scammed.
Then you will have to follow the seller’s rules of payment. They can make whatever rules they want to because they are the seller. Some common rules to payment include having to submit your ID to the seller along with a selfie of you holding it and submitting screenshots of proof that you paid.
Just to give you an example these were the rules for the trade I clicked on…
As you can see the seller is also charging me a 4.9% PayPal processing fee. This is a bunch of crap and sellers usually rip you off like this when you pay with the more desirable payment methods like PayPal.
Step 4: Confirm Your Payment
After you have paid the seller you will then confirm your payment on PaxFul. Then after the seller also confirms it PaxFul will release you your bitcoins.
What I Like About PaxFul
Now of course this place isn’t 100% secure and there are scams (that I’ll go over), but they do a pretty good job at making it a safe place to trade. The fact that they use escrow accounts is a big deal. They take the promised bitcoins out of the seller’s accounts before the trade happens so that the seller cannot just walk away after you pay and not give them to you.
No Fee’s for Buyers
PaxFul themselves charge no fees to the buyers. The sellers can charge whatever fees they want to but PaxFul doesn’t. They only charge sellers 1% fees on the total trade amount.
Tons of Payment Methods
As I mentioned earlier, the fact that you can choose from a massive list of payment options is awesome. There is no one that shouldn’t be able to find a way in which they can buy bitcoins on this site.
PaxFul has a community support forum that is pretty well laid out and very helpful. On this forum you can communicate with other members and its easy to ask questions and get answers.
They also have chat support and email support at firstname.lastname@example.org.
What I Don’t Like
My biggest complaint is how inflated the bitcoin prices are on this site. As I’ve said, the sellers can set the price at whatever they want to. This usually means that they set it way above market value. The sellers know that some people need bitcoins and its hard for them to buy them elsewhere, so they jack up the prices and people get ripped off.
Unfortunately there are scammers that are on this platform and there isn’t much that PaxFul can do about it until after they have already scammed people.
The thing is, although PaxFul holds bitcoins in escrow, the seller can just say that the buyer never paid them and not confirm the payment. This means that PaxFul won’t release the bitcoins to you.
This is why it is very important to deal with sellers that have a good reputation. Always look at their feedback from past transactions. If you do that you will be fine.
Final Thoughts & Do I Recommend PaxFul?
First off, PaxFul is definitely not a scam. I don’t see anything that would point to them being one. They simply provide a platform to trade on and they do try to make it secure, although there are instances when scams are unavoidable.
Overall, I like PaxFul and like what they have put together. It is an easy platform to use and works well. However, I would suggest buying bitcoins from a broker like CoinBase if you can. The reason for this is because you can buy bitcoins at market value and not get ripped off by individual sellers. You also don’t have to worry about the seller being a scammer.
But PaxFul is a great alternative if you can’t use CoinBase or other brokers. They are a place where anyone can buy bitcoins no matter where they live and what they want to pay with.
Anyways, that’s my review. I hope you found this helpful and all. If you have any questions, comments, or concerns leave them below in the comment section and I’ll get back to you soon 🙂