Is Paxful Safe? An Honest Review
Have you recently dived into the world of cryptocurrency and are looking for a secure platform to buy and sell Bitcoin? In that case, Paxful might be a promising option to consider.
Paxful was started with a simple vision, and that was to allow people to have control over their funds. Initially, this marketplace only catered to the trade of Bitcoins, but now you can also buy and sell Tether and Ethereum.
This P2P exchange helps you connect with people interested in buying and selling Bitcoin. You can shop around at your pace and choose a buyer or seller that offers the best value.
What’s more, Paxful has some easy-to-use and hassle-free features, making trading pretty easy and fun for both novice and professional traders. However, Is Paxful legit and safe? And has it been involved in any Paxful scam?
Regardless of its popularity, if you are still looking to find answers to these questions, this article will help you. So keep reading to know all the required details.
Is Paxful Safe? How is Paxful Protecting Your Money?
Fortunately, Paxful is pretty safe, and that’s because the exchange platform follows many strict security measures to keep your money protected.
For starters, Paxful follows all the applicable regulations and laws. In addition, Paxful has an astringent and well-constructed anti-money laundering policy to ensure all your money is kept under tight security.
Paxful only operates in a few selected countries. As a US-based company, it follows the Foreign Asset Control (OFAC) rules that keep an eye on regimes or countries that may pose a terrorist or fraud threat. One of the best things about Paxful is that it is run by a top-class compliance team that helps to make your cryptocurrency more safe and secure.
What’s more, there are many other things that Paxful practices to protect your money on its platform. Here is the list:
Account Suspension
Whenever a user violates the Terms of Service on Paxful, the team suspends their account and restricts them from using the trading platform for some duration. This exercise saves you from trading with people who may be involved in conducting wrong activities through the currency.
Locked Accounts
Paxful also locks accounts if a particular user has been involved in violating a security measure. To unlock their account, the user should confirm their identity and ownership to the team before trading again.
Frozen Accounts
Paxful also freezes accounts to make activities such as withdrawing, selling, and buying funds temporarily unavailable. This measure is again taken to stop users from conducting trading that might be against Paxful’s rules.
Accounts On Hold
The exchange platform also puts accounts on hold that don't seem honest. The user will then have to confirm their identity before starting trading again.
So, to put it simply, Paxful does everything functional to protect honest users from traders that might be aiming to perform fraud. These account restrictions are designed to save your money from all the bad actors who might be looking for opportunities to conduct a scam. In addition, the platform keeps an eye on all people who might be using multiple fake accounts or making payments through different means to hide their true identities.
How is Paxful Regulated by Governments?
Unfortunately, Paxful is not regulated by any government or authority. However, that doesn’t mean that Paxful is an illegal or unsafe platform. On the contrary, it is a legit exchange that abides by all KYC (Know Your Customer) standards and doesn’t create an account without getting your ID for verification.
Moreover, since Paxful follows strict anti-money policies, anyone can use the platform without worrying about their funds. Paxful’s team also looks after any users' complaints against certain sellers or accounts on the platform.
Has Paxful Had Any Security Compromises?
There have been no episodes where the security has been compromised. However, there were wrong claims made by another marketplace recently where an article mentioned how the platform has access to the data of millions of Paxful users. Paxful answered the claims after confirming that no third party has conducted any breach or has access to any confidential data from the exchange.
Can I Use Paxful In the US?
Yes, you can. Paxful offers its services to the citizens of the USA, and if you are one, you can use the exchange to buy Bitcoin pretty quickly. The platform conveniently converts your USD into BTC, and you can get your Bitcoin at the most competitive rates.
Other than the USA, Paxful is also available for the citizens of other countries. For instance, Paxful is also available for the people living in Nigeria, India, China, and Russia.
However, it doesn’t offer its services to traders living in North Korea, Cuba, Iran, Iraq, Syria, Yemen, etc. The platform bans these countries for many different reasons, including terrorism and fraud.
Paxful Security Rules
There are many security rules that Paxful follows to keep your funds safe at all times. Here are some below.
Paxful Escrow
Paxful has an escrow feature that allows a fair trading experience between the buyer and the seller. Paxful makes sure that the seller’s cryptocurrency is automatically shifted to a safe and secure escrow whenever a trade starts.
So, suppose you are a buyer who has released the payment, but the seller refuses to send you your crypto; the escrow works as a strong guarantee. The seller’s currency remains in the escrow until Paxful’s team integrates the situation and finds a fair solution to the problem.
However, if you are a seller and your possible buyer hasn’t come up with a final amount for cryptocurrency, the amount transferred to escrow is returned to your account immediately.
Biometric Verification
Paxful doesn’t let anyone make an account without them providing a real identity or fingerprints for verification. So again, this security rule ensures that anyone who is joining the platform is an authentic trader with a valid identity. Moreover, this method also restricts fake and multiple accounts from being a part of the Paxful community.
Two-factor Authentication
Paxful has very tight security as it practices two-factor authentication. Google Authenticator helps conduct this process and ensures an extra safety layer for anyone trying to access their account.
Wallets from BitGo
All Paxful wallets are created and secured by BitGo. BitGo is a pretty secure and popular service that provides bitcoin wallets to this industry.
Quick Customer Service
One of the most impressive features of Paxful is its quick and vigilant customer support. In addition, Paxful has a pretty responsive team that investigates every matter professionally.
Paxful Pros and Cons
There is no doubt that Paxful is a safe and legit exchange. However, like any other similar platform, it also has pros and cons. So, before you decide to open an account, go through some crucial points below.
👍 Paxful Pros
• Paxful practices extraordinary security measures and follows the rules such as two-factor authentication and biometric verification to prevent fraud.
• The facility of Paxful escrow provides an added security to both the buyer and seller.
• It is pretty convenient to open an account with Paxful, and all the trading fees charged are fixed.
• Paxful gives its users 300 different payment methods for convenient trading.
• The support team at Paxful is pretty responsive.
• Paxful provides safe wallets provided by BitGo.
👎 Paxful Cons
• Unfortunately, Paxful offers high exchange rates.
• Since the platform is unregulated, scams and fraudulent episodes are pretty high.
Is Paxful Good For Beginners?
Yes, Paxful is a brilliant platform for anyone who is a beginner or a less professional crypto trader. The signing-up process is pretty straightforward. Moreover, since the platform is well-secured, the risk of losing money is relatively low.
However, if you haven’t dealt with a crypto seller before, make sure not to decide in haste. Instead, check the seller's background regardless of an attractive price that they may offer.
Summary
If you have been thinking of making an account with Paxful but doubted its security before, know it is a safe and secure exchange platform. Paxful is a legit marketplace that allows you to connect with sellers verified by the exchange through biometric verification.
Besides, you can trust the platform with your money with features such as two-factor authentication and Paxful escrow. While it is not regulated, Paxful follows excellent anti-money laundering policies and has strong KYC to make every trading experience smooth.
Top 10 Paxful Reviews
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Comment
My experience with Paxful has been negative, marred by unreliable customer support, security concerns, and high fees. The lack of protection for users' assets is unacceptable and undermines trust in the platform as a safe and reliable marketplace for buying and selling cryptocurrencies. As a client, I cannot in good conscience recommend Paxful to others, and I would advise anyone considering using the platform to proceed with caution and explore alternative options that offer a more reliable and user-friendly experience.
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Comment
I opened a mini account in this scam, worked out a strategy and what a blessing that I first decided to test the withdrawal technology before opening a normal trading account. Now I put everything that was there on the withdrawal, namely $ 500! They can't even return the money!
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Initially, I did not plan to trade on Paxful for a long time, it was interesting to try and compare the conditions with my then exchange. I registered, quickly passed the verification (so that, if anything, quickly withdraw the deposit) and replenished the account. There is no demo, but it is not needed with such and such minimum requirements: just a dollar is enough to deposit. On the plus side, there are many ways to replenish. But the base currency here is XBT, and I had to get confused. In terms of trade - an average option. I would not say that Paxful is very different from its competitors. There are really no analytics, and trading here is mainly due to three cryptocurrencies. Three! I won’t say that Paxful is a bad exchange, but I didn’t find anything interesting here for myself.
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Comment
I support positive reviews about Paxful. The first thing that caught my eye when visiting this P2P platform is an intuitive interface, presented in 21 languages. This means that the company is open to cooperation with traders from different countries. And now, 2 years after registering on this site, I understand that the first impression was not deceptive. I am satisfied with the cooperation with the Paxful exchanger, if not for 100%, then for 99% for sure. Trading here is comfortable, there are no technical failures, so the execution of transactions is always on top. Honestly, I'm not surprised that the pool of buyers/sellers on Paxful is growing every day.
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Comment
Paxful simply does not fail you. I registered on this exchanger following a recommendation from a friend. To be honest, I wouldn't have noticed it myself. It does not appear in the leaders, the trade turnover is quite modest. Well, it is understandable, only three cryptocurrencies were listed - bitcoin, ethereum and tezer. When I started working with this P2P platform, I realized why it was being praised. There is a really large pool of buyers and sellers here (according to rumors, the services of this crypto exchange are used by about 12 thousand people). At first, I traded on Paxful and on other platforms at the same time, but now I completely abandoned them.
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Comment
I believe that Paxful does not reach the solid top five. Although the crypto exchange offers loyal conditions for trading (a starting deposit of $ 1, a commission only for the sale of coins, etc.), there is a huge variety of payment channels, but there are also significant disadvantages. Here I have a question: why does this P2P platform expand the range of services, add all sorts of features like a bitcoin kiosk or a multi-level affiliate program, and there are only three cryptocurrencies for buying/selling? I have never seen such a poor choice on any other site.
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Comment
It seems to me that Paxful is not suitable for everyone. Unlike other exchanges, it does not provide investment programs for generating passive income (except for an affiliate program). By the way, there are no demos and risk-free deals for training here either. Although the crypto exchange talks about loyalty to newcomers, it did not take care of a high-quality training base and analytical services. They just be like, figure it out for yourself. Although I must pay tribute to its support team for their patience and desire to help. As for the terms of trade, everything is OK. The commission is taken only when selling coins, and the amount of fees depends on each cryptocurrency. But the choice of coins on the P2P platform is more than modest - bitcoin, ether and tezer, but in general, it will do for a start in trading.
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Comment
In general, Paxful suited me. The trading conditions here are adequate, and the commissions are even lower than on top crypto exchanges with high liquidity. I traded here for several months, but then decided to leave (now I actively use Bitmex). The reason is simple: there is a limited choice of cryptocurrencies for making transactions. Although I did not completely refuse to cooperate with Paxful. I use the "bitcoin kiosk" of this P2P platform on my website. Payment from one transaction made by the user - 2%. It seems like a trifle, but in a month it can boost up to $ 1,000. For those who are interested, I will immediately say: the cryptocurrency exchange does not make any special requirements for web resources, you can even install such a service on the entertainment portal.
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Comment
The fact that the Paxful P2P platform is trustworthy is unequivocal. I've been working here for almost a year and I can't make any claims. To be honest, I registered on this platform out of pure interest, I wanted to try myself at crypto trading. The entry threshold is only $ 1, which I was very happy with. I started with a minimal amount, and then I realized that this business is really profitable, and the trading platform really deserves attention. Additionally, it is necessary to note the convenience of the exchanger. It is even possible to filter by the accounts of sellers and buyers. When you look at the statistics (the number of transactions, trade turnover, etc.), it becomes crystal clear how profitable it will be to cooperate with this or that person. Overall, the Paxful crypto exchange is as customer-oriented as possible, care is felt in everything.
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Comment
I switched to Paxful from the Binance platform and immediately noted that the commissions here are more adequate. Yes, there are no exotic currencies, but I don't need it. Transactions are mostly conducted with bitcoin, sometimes with ether, other coins are not a matter of my interest. I quickly figured out the functionality of the platform for exchanging cryptocurrencies. The interface is intuitive, there are detailed statistics on buyers/sellers, hints, etc. Paxful exchanger provides a bitcoin wallet immediately after registration, the service is absolutely free.
FAQs
Paxful safe and secure?
Yes, Paxful is a legit platform safe for both the buyer and the seller.
How to not get scammed on Paxful?
You can verify all your withdrawals, send-outs, and transactions through two-way factor authentication.
Are reviews on Paxful honest?
Yes, every review featured on Paxful's website is legit and from honest customers.
Is Paxful available in the UK?
Yes, the platform gets thousands of Bitcoin buyers from the UK.
Team that worked on the article
Alex Smith is a professional day trader for a proprietary trading firm within the foreign exchange (forex) and crypto markets. His area of expertise is day trading and swing trading within the 15min-4hr time frames for both the London and NY open. At Traders Union, Alex is a firsthand experience expert, providing explanatory videos and tutorials on brokerage companies, how to open a trading account, how to withdraw profit, etc.
Johnathan M. is a U.S.-based writer and investor, a contributor to the Traders Union website. His two primary areas of expertise include finance and investing (specifically, forex and commodity trading) and religion/spirituality/meditation.
His experience includes writing articles for Investopedia.com, being the head writer for the Steve Pomeranz Show, a personal finance radio program on NPR. Johnathan is also an active currency (forex) trader, with over 20 years of investing experience.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.