Is Paxful a Scam or Safe P2P Crypto Exchange?
So, you were introduced to Paxful and you wanted to know if you can truly earn a lot of money or if it is a scam.
You’ve come to the right place because I am going to share with you everything you need to know, even things that Paxful introducers don’t want you to know.
While Paxful helps connect buyers and sellers to exchange Bitcoin and trade cryptocurrencies all over the globe easily, rumors are circulating the Internet that Paxful is a scam.
Multiple issues similar to the one above spread like a wildfire and it got so bad…
To the point that Paxful’s CEO stepped in last April of 2019 to clarify some issues. Especially regarding the multiple reports of users calling Paxful a scam.
It appears that the issue started when Paxful allegedly blocked a number of its Nigerian users from accessing millions of dollars’ worth of Bitcoins in the exchange.
To which, Paxful CEO answered,
“We recently identified indicia of potential activity in violation of our Terms of Service on our platform involving certain Nigerian accounts, and we took appropriate action to rectify these issues.”
Meanwhile, there are also those who look at Paxful as a blessing from the heavens.
So, who’s telling the truth and who should you trust? Let’s figure it out…
Name: Paxful (paxful.com)
Founders: Ray Youssef and Artur Schaback
Bitcoin Trading Fees: Buyers (free), Sellers (1%)
Recommended? No! Check this out instead.
Income Opportunity Rating:
What is Paxful?
In a nutshell, Paxful is a peer-to-peer (P2P) platform for trading bitcoin similar to LocalBitcoin.
Paxful was formerly known as EasyBitz. The company was founded in 2014 by Ray Youssef and Artur Schaback.
One of the most notable features of Paxful is that it accepts more than 300 payment methods for trading Bitcoins.
To name a few, Paxful accepts direct bank transfers, PayPal, ApplePay, Xoom, Western Union, MoneyGram, Skrill, Credit/Debit Card, and even Gift cards.
See the whole list here.
Paxful keeps the Bitcoins involved in a transaction in escrow until the payment is confirmed.
You can also choose to remain fully anonymous depending on the payment method you agreed with the buyer/seller.
Cost To Join Paxful
If you are looking to buy Bitcoins, you can join Paxful for free. Fees only apply to sellers, who pay equal to 1% of the total transaction amount.
The minimum transaction required in Paxful website (paxful.com) is $10.
Paxful provides a free digital wallet which comes automatically once you create your Paxful account.
Users can send and receive Bitcoins with the Paxful e-wallet, while payment options will depend on the agreed arrangement between the buyer and seller.
Paxful Affiliate Program
Other than trading Bitcoins, you can also make money online with Paxful by joining its affiliate program.
For every person that joins Paxful via your affiliate link, you can earn 50% on standard escrow fees from every trade made. You will also receive 10% of all the transactions payments from all of your referral’s referral.
To take part in Paxful’s affiliate program…
You need to visit paxful.com where you can create your account and a digital wallet.
You will then need to log in and go to Paxful affiliate page to get a customized affiliate link that you can share on the Internet thru your social media accounts, blog, website, or email.
You can even share your Paxful affiliate link while streaming your favorite esports on Twitch.
Every person that clicks the link and decides to join Paxful, they will automatically become your referrals.
User Experiences with Paxful
One of the best way to learn more about a company is to see what other people are saying about it. Below are my findings.
Paxful in Bittrust
On Bittrust, a leading website that reviews online merchants that trade Bitcoins, Paxful has an excellent rating.
Out of more than 1100 Paxful reviews in the site, Paxful has an outstanding average rating of over 4 stars.
However, on the same site, there are also those who claim that there are many scammers on the platform.
One thing to note here is that the scam complaints coming from users aren’t actually directed towards Paxful.
But rather, to the other traders using the platform.
And while there are those that openly claims that Paxful is a scam, I haven’t found substantial evidence that supports their claims.
I did however stumbled upon a report that links Paxful into an international money laundering syndicate called Scarlet Widow.
Crime Syndicate using Paxful
According to Agari, an entity that claims to protect organizations against phishing, business email compromise (BEC) scams, and other advanced email threats…
Paxful is being used by a syndicate known as Scarlet Widow to move its dirty money.
One of Agari’s statement reads:
“The primary service Scarlet Widow uses to monetize gift cards is Paxful. Paxful is a US-based “peer-to-peer” marketplace that allows users to buy bitcoin from other users using hundreds of different payment methods, including dozens of different types of gift cards.”
As I am writing this Paxful review, Paxful CEO Ray Youssef hasn’t said anything about this matter yet.
Now, this is a serious concern for Bitcoin traders.
This may not mean that Paxful is a scam but if proven that the platform is indeed being utilized by criminals to move their funds…
Authorities might step in and take action soon. That doesn’t bode well for Paxful’s business operation.
What do you think? Do you believe these accusations from Agari have merits? Please let me know your thoughts in the Comment Section below.
Paxful on Trustpilot
On the brighter side of things, Paxful also maintains an outstanding rating from its users in Trustpilot.
Out of 431 reviews by Paxful users, most of them are satisfied with the platform’s services.
Is Paxful a Scam?
I am not here to pass judgment on Paxful. I haven’t had the chance to use the platform so it would be unfair for me to say one thing or another.
However, base on the things I shared on this Paxful review, I do believe that Paxful is not a scam. That is my opinion.
But what do you think? Is Paxful a scam? Share your thoughts in the Comment Section below.
Should You Trade Bitcoins With Paxful
Paxful can be a convenient option when you’re looking buy/sell Bitcoins. This platform is very straight forward and easy to use.
However, always remember that trading cryptocurrencies such as Bitcoin come with certain risks. One of which is the likelihood of you dealing with online scammers and frauds.
Although Paxful publicly declared that they are doing their best to implement bulletproof security measures within the platform, it is not uncommon that some shady personalities will manage to get through.
If you are interested in starting trading Bitcoins with Paxful, it is best to play it safe and deal only with verified vendors and buyers.
Thank you for taking the time to read this Paxful review of 2019.
I certainly hope that this has been an instrument for you to get a better insight on whether Paxful is a scam or a legit platform to trade Bitcoin.
If you think this could be useful to other people, kindly share this to them.
On the other hand, if you have any information you would want to share to our readers regarding Paxful and its services, feel free to utilize the Comment Section below.
Until here and stay safe out there.