Beginner’s Guide to Paxful: Complete Review

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The team behind Paxful aim to provide a simple, fair and secure platform that allows individuals to trade value.  The site acts as a global peer to peer payment logistics platform and facilitates Bitcoin trades in the same way that Ebay facilitates the trading of everyday goods.

Paxful is based in the USA, and was established in 2015 by a group of developers who sought to create a peer-to-peer marketplace that allowed buyers and sellers to interact after posting trade offers. The site operates as a mediator between interested parties and provides a space for its users to interact.

Paxful Website Review

Paxful is a popular option for trading Bitcoin as the site is user friendly and offers the most diverse range of payment methods available online. Payment options include bank transfer, credit or debit card, PayPal, MoneyGram, and Skrill. In addition to these methods, users can also choose to make purchases by using any of a huge number of gift cards such as Amazon and iTunes.  These options make Paxful a handy location for buying and selling Bitcoin.

How it Works

To get started using Paxful, users can head to the site and simply choose an amount of Bitcoin you’d like to purchase and your local currency, the amount in Bitcoin you will get is then displayed.


After creating an account users can search for available Bitcoin sellers.  Common search categories include type of currency and method of payment.

Paxful Payment

From here, users can view all the open orders, a number of sellers will be available and the most suitable vendor can be found by looking at accepted payment methods, minimum and maximum order amounts, as well as  price. Users can also check a seller’s feedback rating and account history in order to determine their suitability.

When a suitable vendor has been found it’s possible to begin a trade by clicking on the “Buy” button. It’s then necessary to choose the amount you would like to buy and make your purchase. This will open up an escrow service and chat option that allows you to communicate directly with the seller and discuss the trade in more detail.


Once the trade has been finalized and payment has been concluded, you can click “Mark as Paid” and wait for the transfer of Bitcoin to your Paxful wallet. When this is completed, you can use your Bitcoin in any way you want.

Visitors to the site who haven’t already created an account will be presented with another way to make purchases. After choosing the currency and amount they would like to buy, visitors can follow the steps outlined in order to complete their purchase.

Purchasing Bitcoin via Paxful is quite a straightforward experience and the site offers users a wide variety of ways to pay, on top of this, the site doesn’t take any fees directly from the buyer when they are purchasing Bitcoin. However, the buyer will be charged a fee chosen by the seller; and this fee can vary greatly depending upon the payment method used.  Paying by gift card often results in the highest fees.

Sellers on the site are charged a 1% fee, there is also a small ‘mining fee’ paid by the seller when Bitcoin is sent from one address to another. Similar to Localbitcoins, Paxful operates as a peer-to-peer marketplace and utilizes a number of key features in order to try and guarantee a high level of usability.

Key Features

Paxful allows buyers and sellers to transact via an extremely wide range of payment methods. These include:

  • Cash Deposits
  • Credit and Debit Cards
  • Gift Cards
  • MoneyGram
  • National Bank Transfer
  • PayPal
  • Western Union

The site also incorporates a number of features designed to help secure trading:

  • Safety of Funds – Paxful creates a wallet that will automatically store your funds when you register for an account. This wallet acts as an efficient way to store and transfer funds on the site. Paxful’s servers are also maintained in accordance with the highest banking specifications.
  • 2 Factor Authentication– Wallets require complex passwords and two-factor authentication to guarantee security.  Enabling 2FA helps keep your wallet protected, and provides an extra layer of protection against hackers.
  • An Escrow Service–When trading on the site, funds are held in escrow until both parties confirm all parts of the transaction.  This acts as a way to protect traders and allow for smoother transactions.
  • Reputation Ratings– Traders are given a ranking based on their activity, in addition their trading history and feedback ratings are open for all to view.
  • Customer Support – Paxful operates a comprehensive support system and the support team are generally quick to respond. Users can contact the support team via a range of options such as direct message, email, phone, and social media.

Due to its low commission fee charges Paxful should be a low cost option. However, similar to Localbitcoins, sellers on the site generally charge more for Bitcoin than the more well-known centralized exchanges. On peer-to-peer marketplaces, vendors often choose to generate profit by slightly increasing their selling prices. Vendors run the risk of selling Bitcoin to individuals that may try to initiate a chargeback (via Credit/Debit Card or PayPal), and as a result prices are higher across the platform in order to mitigate this risk.

Things to Consider

Paxful operates as a decentralized exchange and it’s necessary for users to incorporate certain safety measures when on the site in order to ensure pain free trading. The site has developed a good reputation as being a trustworthy place to buy and sell Bitcoin; however, the wide variety of payment options available on Paxful also attract a good number of scammers who aim to defraud honest traders. As a result it’s best to:

  • Check the seller’s profile and verify that they are suitable for dealing with. When possible look for vendors with an established account and a high positive feedback rating. Accounts should be over a year old, with a rating of at least 98%.
  • Contact the seller and request an exchange through the platform. Do not set up external trades with vendors as this negates the escrow service and opens up the possibility of scams taking place. It’s also best to stick to communicating through the Paxful message box and avoid sending messages via email, mobile, or SMS.
  • Explain your requirements as much as possible and highlight any issues you may have. Prices will generally depend on the payment method you choose and can vary greatly so be sure to confirm a suitable price.
  • Choose a payment method that offers you a good level of protection. Gift cards paid for with cash are preferred by scammers as they are impossible to track. If you run into any issues after using a credit or debit card, PayPal, or a bank transfer you will have an added layer of security.
  • Contact customer support and make use of the forum if you are experiencing any issues, or have any doubts regarding sellers. Whilst the entire process is quite straightforward, it’s always possible for users to run into problems. Make use of the resources available.

Paxful is one of the easiest ways to obtain Bitcoin and the site makes buying and selling Bitcoin accessible to anyone with a computer. There are no buying or selling limits and users can decide on the amount of identification verification they will use during trades. In addition to this Paxful allows users to make purchases via the widest range of payment options currently available.

Much of the site’s attractiveness is due to the fact that it allows for a great amount of payment flexibility. However, when using the site, it’s important to remember that there are untrustworthy buyers and sellers on the site whose main aim is to scam legitimate traders.  This is the main downside to using the site and the team behind Paxful provide extensive customer support, in addition to a forum and resource section that aim to keep users updated regarding everything happening on the site.

For individuals looking to trade Bitcoin while using services such as PayPal, MoneyGram, and Skrill, Paxful is the best option. Also, in order to benefit from greater flexibility with payment methods, users should be prepared to pay above market prices, as vendors choose to charge more for Bitcoin compared to the mainstream exchanges.

Paxful is a popular way for individuals to trade Bitcoin and remains a viable option for many in the Bitcoin community. The site provides buying opportunities for individuals who may normally be unable to purchase Bitcoin. As a result, it is a good choice for both new and more experienced traders. However, Paxful users should make sure to use all the resources necessary to verify sellers and transact in ways that keep them protected at all times.



Ease of Use






Customer Support


Payment Methods



  • Easy to Use
  • Lots of Payment Options
  • Reputation Ratings
  • Variety of Options


  • Need to be Vigilient
  • Slow Customer Support
  • Higher Fees


Eugene holds a BA Honours Degree in Economics and remains passionate about the transformative potential of digital currencies. In addition to writing for Blockonomi, he is also conducts market analysis for Coincodex and Cyptocalibur. Contact


  1. Avatar

    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.

    • Avatar

      funny i keep seeing this spammed everywhere but he never followed up the proof and details

    • Avatar

      I was ripped off by seller Kcano she had a excellent score reputation so i thought i could trust her , i sent $240 thru paypall she told me to send it thru friends and family , if you send any money that way paypall wont reimburse you if something goes bad after she got my money she told me to cancel trade and she would reopen it ,once you cancell a trade you are screwed i contacted paxfull numerous times they won’t do anything custoner service don’t exzest, never cancell a trade if u paid learn from me…..i contacted the trader kcano numerous times thru textes she thinks its cute she ripped me off , i would love to get my hands on her!!!!!!

  2. Avatar

    I actually would recommend Paxful. Did a couple of trades there already and there was this one time I was ripped BUT I contacted support asap through their live chat. Took a couple of days but in the end was able to get my bitcoins back and after checking the profile of the person who ripped me I saw that he was now banned. So kudos to the support team for that.

    • Avatar

      How did you see that persons profile was banned? does paxful reveals clients confidential information?

      • Avatar

        Actually you can see the URL of the users you trade with meaning profiles are public it’s usually

        This is where you users reputation, if they are verified, and how many trades they have and any offers they have up to so it’s not really confidential?

  3. Avatar

    Quite new to cryptocurrencies in general… so when I saw this post I decided to check them out. Liked the interface and was easy for me to navigate. I was able to do my first trade ever with no problems! Will definitely use them again. Thanks for this article bro

  4. Avatar
    He was number one Reply

    I use Paxful more than once a week. Clearly put together website, I love it especially the many payment options is very convenient in trading with different vendors. It is not a scam just read and follow the guides and all will go smooth.

    • Avatar

      There are some vendors in paxful that will redeemed your gift card and send you image that it has been redeemed before you sent it even tho you sent it to them just after you just peel the silver panel off. which will make you very sure that the vendor stole your card but after you open dispute the moderator in paxful will tell you to go and call your gift card provider eg apple. and obviously apple will not give you info about who used the card which will make you reach rock bottom and helpless and they will reward your bitcoin back to the vendor who just rip you off so to me its more like paxful help scammers get away

      • Avatar

        actually what you can ask from apple is the time it was redeemed so that it will give you an idea of who could have redeemed it. Paxful gives proper instructions to this that if you explain to apple they will consider giving you help. Your concern here really is apple and not paxful

  5. Avatar

    Actually their customer support has already greatly improved! I think they announced hiring more people. You can see it in live chat how long they take, it does not take more than 24hrs to get an answer. I’ve experienced some within 20 minutes

  6. Avatar

    what do you think is the way to prevent the buyer from canceling the transaction when he buys with paypal?

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