Is Paxful a Legit Exchange For Buying Bitcoin?
Paxful began its operation in 2015 and is incorporated in Wilmington, Delaware, USA. Founded by Ray Youssef and Artur Schaback, it is a platform that allows peer to peer trading of bitcoin on a global basis. Paxful enables individuals to buy and sell Bitcoin against various other assets in all of the countries it operates.
Paxful hosts the top 10th busiest bitcoin wallet, by the number of transactions. Although, the volume of bitcoin sent and traded is far below centralized exchanges. Paxful aims to bank the unbanked in economies with high financial insecurity and emerging markets of the world. Its mission is to bring financial freedom to those who need it the most, by allowing them to buy, sell, and store Bitcoin irrespective of their nationality.
The exchange is amongst the famous place for Peer-to-Peer bitcoin exchanges. The Bitcoin sellers on the platform are not authorized by Paxful rather they are people who are individually trading Bitcoins. If you are a new buyer you need to perform due diligence before placing an order, or any seller may take advantage of you.
Besides, it also matters what payment method you are using to buy Bitcoin. The majority of the payment gateways on the platform don’t entertain reserving transactions. If you have sent money to a seller and he does not release the coins from escrow there is a probability you might be getting into trouble. The problem is not getting scammed on Paxful, but how their support handles the situation.
Is Paxful Legit?
Paxful is a good site to buy Bitcoins securely but it certainly has some flaws. In a peer to peer platform, anyone can be susceptible as a scammer, especially when if he is a new member. Hence, it is advisable for traders to take precautions when dealing with anyone on Paxful. Remember, many individuals mistake the platform’s integrity with that of the seller’s integrity even though both of them are different. Paxful is legit and safe to use, and they also have controls to ensure that your Bitcoins are safe in their wallet. However, when making a trade it all comes to the seller and his reputation. If you are dealing with a new seller, here are the things to consider to keep your trade safe.
Safety Tips when using Paxful
Reputation: Every trader on Paxful has reputation readings based on their previous trades and reviews. The rating helps improve trust among buyers, allowing them to make a more precise decision when choosing a trading partner.
Use Recommended Sellers: Paxful also features its recommended sellers for each country. These sellers are legit and safe to trade with it. If you are unsure of whom to trade with, placing an order with a recommended seller is always an option.
Communication and Activity: Never engage in communications outside of Paxful even if the seller asks to do. Document everything you talk and keep a record of screenshots when you send money to buy Bitcoin. Moderators will only be able to help you if you have a record of everything in case of a dispute. Also make sure that the user you are placing the order with, is online with in the past 48 hours.
Buy in small amounts: If you are new to the platform, it is best to start with small trades. Don’t place an order for $5000 before testing the exchange and the sellers.
When it comes to dispute Paxful customer support can only investigate and provide resolution based on proofs and conversation between you and seller. In other words, Paxful is legit when it comes to buying Bitcoin, but the odds might not be in your favor against some sellers if you don’t investigate their profile.
The good news many buyers is that they are safe at Paxful as their escrow protects you. However, one drawback is that you may need to undergo ID verification when buying from certain vendors, but this also proves legitimacy on both sides. For many people interested in Bitcoin, peer to peer exchange is their only choice because of many reasons.
Paxful brings people the ability to buy and sell Bitcoins with a lot of payment methods. The user experience and the platform is easy to use. While everything seems great for new buyers, they should still take precautions when placing an order. Remember, to check the seller’s reputation and the number of trades done by him. Document everything including the invoices, and don’t open trades with significant values unless you are sure about the legitimacy of the seller.