Is Paxful a Good Crypto Exchange for Beginners?
It is important for novice cryptocurrency traders to choose the right crypto exchange. Not all companies can be used when you are just starting your path in trading, which is why the success in cryptocurrency trading depends on making the right choice. Beginners often wonder whether Paxful is a good crypto exchange to start trading with. In this article you will learn whether Paxful is good for beginners, what its pros and cons are and what a novice trader needs to know.
Short summary about the broker Paxful
The Paxful exchange is a peer-to-peer trading platform for Bitcoin, Tether, and Ethereum trading instruments. There are over 350 ways to buy and sell these cryptocurrencies. The company has its offices in 21 countries and has almost 5 million active users. A free cryptocurrency wallet, which is provided when registering on the exchange, is among the distinctive features. The security system is based on a safekeeping account, where the funds of the seller and the buyer shall be reserved to avoid the dishonesty of one of the parties.
| 💰 Account currency: | XBT |
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | No |
| 💱 Spread: | Fixed commission on transactions |
| 🔧 Instruments: | Cryptocurrencies Bitcoin, Tether, and Ethereum are bought/sold for any world currencies |
| 💹 Margin Call / Stop Out: | No |
Paxful Pros and Cons
👍 Advantages of trading with Paxful:
•minimum registration and verification requirements;
•the platform is fully localized and translated into 21 languages;
•hundreds of tools for cryptocurrencies buying and selling;
•many payment methods, from bank transfers to e-wallets;
•over 12 thousand reliable sellers, as well as buyers;
•free Bitcoin wallet with BitGo is enabled;
•simple and profitable affiliate program.
👎 Disadvantages of Paxful:
•there are only three cryptocurrencies on the website which are Bitcoin, Tether, and Ethereum;
•the broker focuses on several regions, such as the USA, Nigeria, China, and India;
•the website provides almost no analytics.
What is a Good Crypto Exchange for Beginners?
In order to choose the right broker for a beginner, you need to consider several aspects.
Here are the main ones:
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Education. It is important for novice crypto traders to learn how to trade. An exchange can offer educational courses, video tutorials, articles, webinars, etc. The more learning opportunities there are the better.
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Availability of a demo account. You will need this account to practice. It provides an opportunity for a beginner to trade risk free and try out trading strategies.
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Availability of a simple method to buy cryptocurrencies. An exchange service or a P2P exchange would be an advantage for an exchange.
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Low fees. The level of income of the trader depends on the level of the fees. Therefore, it is important to choose a company that charges minimum fees. Crypto exchanges mostly use the Maker and Taker fee model. It is important that you study them.
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Instruments for passive investing. In addition to active trading, passive income is also important for beginners. Pay attention to availability of copy trading or staking.
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Trading platform. It is important for a novice trader to choose the simplest trading platform that will be easy-to-use for trading.
In addition to these factors, you also need to consider how customer support operates, as it will also be important. Bonuses for beginners are also a nice perk.
Trading Conditions for Paxful Users
Before you start working with an exchange, it is important that you evaluate its trading conditions. Paxful offers traders the following conditions.
| 💻 Trading platform: | Proprietary browser platform |
| 📊 Accounts: | Free bitcoin-wallet |
| 💰 Account currency: | XBT |
| 💵 Replenishment / Withdrawal: | Bank accounts and cards, e-wallets, cryptocurrency wallets, over 350 options |
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | No |
| 💼 PAMM-accounts: | No |
| 📈️ Min Order: | From 0 |
| 💱 Spread: | Fixed commission on transactions |
| 🔧 Instruments: | Cryptocurrencies Bitcoin, Tether, and Ethereum are bought/sold for any world currencies |
| 💹 Margin Call / Stop Out: | No |
| 🏛 Liquidity provider: | No |
| 📱 Mobile trading: | No |
| ➕ Affiliate program: | Yes |
| 📋 Orders execution: | A limit order, Market order |
| ⭐ Trading features: | All contracts in Bitcoin, personal Bitcoin wallet, any payment methods |
| 🎁 Contests and bonuses: | n/a |
Commissions and Fees
The size of commissions and fees is also an important factor of choice. Traders Union analysts have prepared a short review of Paxful commissions and fees. In this section, you will find trading fees of the exchange as well as withdrawal fees.
The exchange doesn’t charge a fee for using the bitcoin wallet. Also, there are no commissions charged when buying cryptocurrency. The service only takes a commission on sales. All incoming transactions on the wallet are free, all outgoing is is subject to a commission. Fees differ for Bitcoin, Tether, and Ethereum. A conversion fee is also charged.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $0.5 depending on the transaction type | From $1 or 1% upon reaching the amount of $1,000 |
Investment programs of Paxful
It is important for novice traders not only to trade actively, but also earn passive income. Passive investing can help you earn extra profit, and also compensate for the losses you may incur as a result of active trading. Paxful offers the following passive income options.
Investment Programs, Available Markets, and Products of the Crypto Exchange
Paxful doesn’t offer investment programs. However, there is a section on the paxful.com website describing the company's proprietary development called the Bitcoin Stand. The stand can be installed on any resource and therefore you can have an interest from user transactions, as Bitcoins are bought and sold through it. This is not an investment program, but a profitable opportunity for passive earnings without investment.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of thedeal and all the steps from signing up to withdrawal of profits.
Paxful’s affiliate program:
The cryptocurrency exchange has an affiliate program that allows you to make money on attracted users (referrals). To make a profit, the user shall be active on the platform. The algorithm for generating income from referrals is as follows:
You invite a user; he registers on the website and starts trading;
You get 50% of the transaction commission amount from each transaction of the user attracted;
if the user attracted by you invites other users, then you get 10% of the commission amount for each transaction they make;
users attracted don’t need to be verified to make a profit.
Withdrawals from the affiliate program account become available when the amount obtained from referral transactions reaches $10 in Bitcoins. Then, the amount can be withdrawn to your bitcoin wallet, and then to any other system.
Conclusion. Is Paxful good for beginners?
The Paxful cryptocurrency exchange will be an excellent choice for beginners. The exchange offers a convenient trading platform, which a beginner can learn to work with rather quickly. There is an excellent education center with a large number of materials for novice traders. Also, traders can earn passive income on good conditions. Therefore, Paxful could be considered as a good cryptocurrency exchange for a start.
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FAQ
What do I need to know about the fees charged by cryptocurrency exchanges?
The majority of cryptocurrency exchanges use the Maker/Taker fee model. As a rule, they use a multi-level system for traders that depends on the trading volume. The higher the trader’s trading volume, the lower the fees.
How do I choose a reliable cryptocurrency exchange?
Crypto exchanges mostly operate without licenses, as the majority of countries haven’t adopted legislation to regulate them. In order to choose a reliable exchange, you need to find out about its reputation and read the reviews about user experiences with it.
How many cryptocurrencies could a crypto exchange offer?
The number of cryptocurrencies on the listing of a cryptocurrency exchange may be very different. Some platforms offer less than 10, while others – several hundreds. It is important that you check the choice of cryptocurrency before registering on the exchange.
What are the risks of investing in cryptocurrencies?
Investing in cryptocurrencies carry high risks due to their high volatility. It could cause substantial losses, which is why it is important to observe the rules of risk management.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.