Paxful is a leading peer-to-peer (P2P) cryptocurrency marketplace that empowers users to buy, sell, and trade digital assets securely and directly with one another. Built on the foundation of financial freedom and accessibility, Paxful has become a go-to platform for individuals seeking flexible payment options and decentralized trading. This in-depth review explores Paxful’s core features, security measures, fees, and user experience to help you understand how to make the most of this powerful P2P exchange.
What Is Paxful?
Paxful is a peer-to-peer crypto exchange founded in 2014 by Artur Schaback and Ray Youssef. Originally launched as EasyBitz, it was rebranded to Paxful with a mission to provide financial inclusion through blockchain technology. The platform functions as a digital marketplace where users connect directly to trade Bitcoin (BTC) and Tether (USDT), bypassing traditional financial institutions.
With over 4.8 million users worldwide, Paxful supports more than 300 payment methods — including PayPal, gift cards, bank transfers, and mobile money — making it accessible even in regions with limited banking infrastructure. By leveraging an integrated escrow system, Paxful ensures secure transactions for both buyers and sellers.
👉 Discover how P2P crypto trading can give you more control over your finances.
Key Features of Paxful
Free Built-in Crypto Wallet
Upon registration, every user receives a free and secure Bitcoin wallet. This wallet supports BTC, USDT (on the TRON and Ethereum networks), and ETH, enabling seamless storage and transfers within the platform.
Virtual Kiosk & Pay with Paxful
Paxful offers two unique commercial tools:
- Virtual Kiosk: An affiliate-style link allowing users to promote the platform and earn a 2% commission on purchases made through their referral.
- Pay with Paxful: A widget merchants can embed on websites to accept crypto payments using any of Paxful’s 300+ supported payment methods.
These services expand Paxful’s utility beyond personal trading into e-commerce and passive income generation.
Getting Started on Paxful
Create Your Account
To begin, visit the official site and click “Get Started.” Enter your email, create a password, and verify your account via the confirmation link sent to your inbox.
Complete Verification
Paxful operates under a tiered verification system to comply with global regulations and enhance security:
- Level 1: Email + phone verification — $1,000 monthly limit
- Level 2: Government ID submission — $10,000 monthly limit
- Level 3: Proof of address — $50,000 monthly limit
- Level 4: Enhanced due diligence — No trading limits
U.S.-based users must complete up to Level 3 to trade.
How to Buy Bitcoin or Tether (USDT) on Paxful
- Search for Offers
Select your preferred currency (e.g., USD), payment method (e.g., PayPal), and desired amount. Browse offers based on price, seller reputation, and feedback score. - Initiate the Trade
Click “Buy” to start the transaction. Funds are held in escrow. Use the built-in chat to communicate with the seller and follow their payment instructions. - Confirm Payment & Receive Crypto
Once you’ve sent payment, confirm it in the app. After the seller verifies receipt, Bitcoin or USDT is released to your wallet.
The process for buying USDT mirrors that of Bitcoin, ensuring consistency across assets.
Selling Crypto on Paxful: Step-by-Step
- Set Your Terms
Specify how much BTC or USDT you want to sell, your preferred payment method, and currency. - Review Buyer Offers
Evaluate potential buyers based on their verification level, trade history, and feedback. - Start the Trade
Confirm the sale. Your crypto is locked in escrow. Wait for the buyer’s payment confirmation before releasing funds. - Leave Feedback
After completion, rate your counterparty to help maintain community trust.
👉 Learn how secure escrow systems protect your P2P trades.
Understanding Paxful Fees
While Paxful doesn’t charge direct trading fees to buyers, sellers may incur an escrow fee upon successful completion. Here's a breakdown of key cost structures:
Wallet Transaction Fees
- Bitcoin (BTC): Free internal transfers; after five monthly outgoing transactions, a fee of $1.00 or 1% (whichever is higher) applies.
- Tether (USDT): Incoming deposits incur network fees based on Ethereum gas rates. Transfers between Paxful users are free.
- Ethereum (ETH): Standard network fees apply for withdrawals.
Conversion Fees
Crypto conversions within the app may include third-party or counterparty charges, clearly displayed before confirmation.
Supported Cryptocurrencies & Payment Methods
Paxful primarily supports Bitcoin (BTC) and Tether (USDT), with limited support for Ethereum (ETH). Despite not holding fiat directly, the platform enables trades using over 300 payment methods, including:
- PayPal
- Amazon gift cards
- Bank transfers
- Western Union
- Mobile money (in select regions)
⚠️ Note: Payment methods prone to chargebacks (like PayPal) often come with higher premiums due to fraud risk.
Escrow Protection: Your Safety Net
Every trade on Paxful uses automated escrow:
- When a buyer initiates a purchase, BTC/USDT is moved into a neutral holding account.
- The seller waits for confirmed payment before releasing crypto.
- If disputes arise, Paxful moderators review chat logs and evidence to resolve fairly.
This system minimizes fraud and builds trust in a decentralized environment.
How to Stay Safe While Using Paxful
Even with strong platform protections, user vigilance is critical:
- Always keep communication within Paxful’s chat system.
- Only trade with online users to avoid auto-cancellation.
- Never release crypto until payment is confirmed in your account.
- Avoid sending money you cannot afford to lose.
👉 Explore best practices for secure P2P crypto transactions today.
Mobile Experience: Trade On the Go
The Paxful mobile app (available on Android and iOS) lets you manage trades, check balances, and send crypto anytime. It includes full wallet functionality and real-time notifications, making it a reliable companion for active traders.
Availability & Customer Support
Paxful operates globally but restricts access in sanctioned countries including Iran, North Korea, Syria, Cuba, and Crimea. The platform offers 24/7 customer support via a contact form for assistance with account issues or disputes.
Frequently Asked Questions
Is Paxful legitimate?
Yes, Paxful is a legitimate P2P crypto marketplace with robust escrow protection and millions of users worldwide.
Can I get scammed on Paxful?
While Paxful provides security tools, scams can occur if users bypass guidelines. Always follow escrow procedures and avoid off-platform communication.
How do I contact customer support?
Use the official contact form on the Paxful website for 24/7 assistance.
What cryptocurrencies does Paxful support?
Primarily Bitcoin (BTC) and Tether (USDT), with limited Ethereum (ETH) support.
Are there fees for sending crypto?
Yes — outgoing Bitcoin transactions incur fees after five free monthly transfers. USDT deposits include network fees based on Ethereum gas prices.
Does Paxful offer two-factor authentication (2FA)?
Yes, enabling 2FA is highly recommended for added account security.
Core Keywords: Paxful review, P2P crypto exchange, buy Bitcoin, Tether USDT, escrow service, crypto wallet, Paxful fees, peer-to-peer trading