Paxful Review 2024

Paxful is one of the world’s largest peer-to-peer (P2P) cryptocurrency exchanges and DeFi service providers. The firm takes almost any payment method possible, backed up by more than 350 listed on the website, making it accessible to investors from around the world, including the UK. Paxful’s million-strong user base and strong security measures demonstrate a dedication to its clients and a competitive range of trading services.

This 2024 will explore why you should or should not open an account with the broker, exploring reputation, fees, account types and security protocols.

Paxful is a hugely popular P2P crypto trading service, offering integrated wallet services, hundreds of payment options, advanced security measures and an intuitive web platform.

Company History & Overview

Paxful was founded in 2015 by its founder and CEO Ray Youssef, an Egyptian immigrant who was raised in the heart of New York City. In his words, the goal of the project is to make finance accessible to everyone of all backgrounds, which manifested as Paxful. The purpose of the firm is to host a large peer-to-peer (P2P) crypto trading marketplace, allowing members to either buy from or sell to each other.

The company has four offices around the world and over 200 employees of many different backgrounds, working hard to provide the basis for a platform that hosts millions of users. However, the company is unregulated in the UK, meaning traders should approach it with caution before depositing large sums of money.

Paxful Platform

As it is exclusively a peer-to-peer crypto marketplace, Paxful does not offer a trading platform in the traditional sense. Instead, its website works to connect users with each other via the posting and fulfilment of exchange offers. For instance, someone who would like to buy Bitcoin (BTC) would login, deposit their funds (in whatever form they are) in their Paxful wallet and then find an offer with favourable terms. Those wishing to sell Bitcoin can do the same thing in reverse, searching for another user that wants to buy some crypto.

Alternatively, users can create their own listings to buy or sell Bitcoin and other tokens on their own, predefined terms. While using Paxful, we found the process to be simple and intuitive. See below for a step-by-step guide to curating an exchange.

There is no platform download required for PC devices, the platform works entirely online.

How To Make A Paxful Crypto Listing

1. After logging into the broker’s website, click the Create an offer  button on the site header
2. Select the coin you wish to exchange and whether you want to purchase or sell tokens
3. Input your desired payment method (local wallet, wire transfer, credit card etc.) and any necessary details
4. Select whether you would like to list at the market price or fix the listing’s token value
5. Fill in any coin value boundaries, margin offers and time limits you desire
6. If preferred, associate your offer with any keyword tags, provide a label, outline your terms and detail any specific instructions
7. Click the blue Create Offer button and  your listing will be made public

Paxful Offer Creation

Assets & Tokens

Paxful is exclusively a cryptocurrency exchange, so it offers no other services in terms of forex and equity speculation. The cryptocurrency tokens supported by the website are Bitcoin (BTC), Ethereum (ETH) and Tether (USDt). Importantly, this is fairly limited vs other competitors.

Mobile App

In addition to its desktop and mobile-accessible integrated web platform, Paxful offers a dedicated mobile application. When we used this app, it was free to download from both the Apple App Store and Google Play Store.

The handheld version offers all the same functionality available on the full-scale website, including access to its local wallet, the ability to create new offer listings and trade statistic information.

How To Open A Paxful Account

1. Click the Visit button at the top of this Paxful review
2. Fill in your email address and desired password
3. Verify your email address using the code sent
4. You can now access the list of available offers, create your own offer, fund your account or set up a local wallet, all from within the default client area

Paxful P2P Platform

There are several different account levels with Paxful, determined by the level of identity verification you have provided to the firm. This system is in place to protect its clients from malicious users. Account levels determine the maximum that can be deposited into your account, as well as access to certain features.

A level 1 account can hold up to £1,000 worth of capital and has access to the more basic functionality. Level 2 can be reached by verifying your identity, phone number and 2FA. This raises the account limit to £10,000 and allows you to convert any tokens held in your account. Level 3 accounts require address verification and the setup of security questions, lifting position size and frequency limits.

Payment Methods

One of the biggest selling points for Paxful is the huge array of payment and withdrawal options on offer. In fact, the website claims to offer over 350+ methods of both depositing and withdrawing funds into and from a user’s online wallet. For obvious reasons, not all of these options can be listed here, but the main and most popular payment options are outlined below:

• Credit/Debit Card
• Amazon Gift Card
• Wire Transfer
• Google Pay
• Apple Pay
• Neteller
• Paypal
• Skrill

The minimum deposit needed to begin trading crypto on Paxful starts at 0.005 BTC and the minimum value of any trade on Paxful is £10.

UK Regulation

Paxful clients should be wary of placing total trust in any site that is unregulated in the UK. As such, transactions on the platform are not monitored and protected by a third party and residents will not have any additional legal protection in the event of malpractice. Any issues a UK user might get into will then be difficult to dispute if Paxful does not cooperate.

While this can be seen as a downside, crypto firms are usually unregulated, given the decentralised nature of the industry.

Paxful Local Wallets

Paxful offers support for several different wallet options in which to store user funds, whether crypto tokens or simply fiat account capital. This is great to see from a crypto exchange as it provides a one-stop-shop for all things DeFi.

Hot Wallets

The most popular and widely-used wallet type by retail and low-net-worth crypto traders, a hot wallet is a digital vault for DeFi tokens that is connected to the internet and can be easily accessed via a desktop computer or smartphone. These are popular as they are available at reasonable prices, sometimes for free.

Our experts found that Paxful offers users a free Bitcoin wallet on sign-up that can be accessed via the web platform and smartphone app. While these are highly accessible, they do come with a slightly greater risk of cyberattacks, so Paxful’s wallet uses a two-factor authentication (2FA) code and multi-signature technology to provide security to the funds of its user.

Paxful Wallet Interface

Cold Wallets

Cold wallets are offline physical devices whose connection to the internet can be cut, so access to them cannot be gained when the user does not need to immediately transfer funds. Options for these kinds of wallets include hardware devices, such as a USB flash drive, a desktop wallet, which is installed on a specific PC, and paper wallets, where a user’s private key and public address are printed on a piece of paper.

All these wallets can be used with Paxful but are not the default local wallet discussed above.

How To Set Up A Paxful Wallet

The Paxful hot wallet registration process is as simple as opening an account with the broker and funding the account, whether with fiat or crypto from another wallet.

Trading Hours

Paxful is a peer-to-peer global crypto marketplace, so operates 24/7, with trades being made at any time of day and week.

Extra Features

Paxful has a host of social media accounts, including Facebook, Reddit, Twitter, LinkedIn, Instagram and TikTok, upon which you can view bespoke webinars and learn about the crypto markets. These are a great way to educate yourself about the platform, industry and peer-to-peer trading. Moreover, users can join the firm’s Telegram forum channels to chat with other users, company employees and crypto enthusiasts.

Customer Service

Paxful’s customer support consists of a virtual assistant ‘PaxBot’, which is a live chat support bot claimed to provide immediate assistance to users or pass them onto a human member of the help centre support team if the issue is too complex. This sounds straightforward but reports online are mixed, with some suggesting that customer support is extremely slow and others claiming they had no problems. As such, customer service is an area that Paxful can improve upon.

While using Paxful, we also found no direct contact number.

Client Safety

Paxful claims to have the security of both its users’ details and funds as one of its highest priorities. As such, the firm has taken steps to make transactions as secure as possible.

Firstly, the company has introduced a feature called security deposits, which requires sellers on the site to commit deposits to their selling offers. This reduces the number of trade cancellations and produces a more beginner-friendly environment. This deposit can be as low as 0.005 BTC but carries with the seller’s global location. Additionally, if it has been more than seven days since a trade was last made with a security deposit, it will be returned to the user’s wallet.

Furthermore, Paxful uses an escrow system to protect its buyers and sellers by ensuring both parties have fulfilled their commitments before finalising the transaction. The company’s online wallets are provided by BitGO, a retail wallet service provider that many claim to be one of the most secure in the industry. Finally, identity verification is required from all users and log-ins must always be completed with 2FA.

Should You Invest With Paxful?

Paxful’s verdict is a positive one, boasting extensive client security and support, including an escrow system, seller commitments and wallet protection. Moreover, the firm has millions of active users, providing impressive liquidity and almost no limit to the number of offers available. The company is also made accessible to international clients and those with money in all forms, supporting hundreds of global payment methods. However, users should bear in mind that the company is not regulated by the FCA and its customer support leaves a lot to be desired.

FAQ

Top 3 Paxful Alternatives

These brokers are the most similar to Paxful:

1. Pepperstone - Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for traders at all levels.
2. XTB - Founded in 2002 in Poland, XTB now serves more than 1 million clients. The forex and CFD broker combines a heavily regulated trading environment with an extensive selection of 6400+ assets and a commitment to trader satisfaction, featuring an intuitive in-house platform with superb tools to support aspiring traders.
3. CMC Markets - Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.

Paxful Feature Comparison

Trading Instruments Comparison

Paxful vs Other Brokers

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