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P2P platform Paxful: buying BTC without transaction fees

P2P platform Paxful: buying BTC without transaction fees

Amid fluctuations in global financial markets, more and more people are turning to cryptoassets in an attempt to preserve their savings. One of the easiest ways to buy BTC is through a P2P platform.

As the popularity of the cryptocurrency industry grows, the question of how to quickly and safely buy bitcoin becomes more and more relevant. Active traders tend to prefer cryptocurrency exchanges, and users conduct exchange operations and arbitrage transactions through P2P platforms. Such platforms act as an intermediary, establishing a connection between the buyer and seller of BTC. At the same time, the site does not independently sell cryptocurrency and does not set prices for it, which sometimes gives the user the opportunity to buy bitcoin more profitably than on the exchange.

One of the trusted and popular P2P platforms for buying bitcoin is Paxful . Last month, she walked in the trading volume of its main competitor – LocalBitcoins, and has gained a leading position in the market. In 2015, the company was founded in New York, and from the end of 2019 it began to enter the markets of Russia, Ukraine and the CIS countries.

As the platform grows, Paxful continues to improve security and expand the number of ways you can pay for your Bitcoin purchase. Now there are more than 350 of them, including bank transfer, Yandex.Money, Qiwi, WebMoney, Paypal, gift cards from iTunes, Amazon and other large companies.

How it works

Paxful is a P2P platform that directly connects a user who wants to sell bitcoin with someone who wants to buy it. The only intermediary in the transaction is the platform itself, which ensures the security of the transaction and minimizes the possibility that one of the participants in the transaction will become a victim of fraudsters.

Most of the modern services popular with people around the world are structured in a similar way, including Ebay and Uber. Basically, Paxful is a modern incarnation of the traditional marketplace, where sellers and buyers communicate directly, can agree on the terms of the transaction and the method of payment. In this case, the participation of other intermediaries, for example, banks, is not required, except for those cases when the user wants to purchase bitcoin using a bank payment method.

Any Paxful user can create an offer to buy or sell BTC and set a price and preferred payment method.

For one-time transactions, use the already published offers of other users, which are grouped by payment method. Viewing the available offers is available to all platform visitors and does not require registration.In addition, all users can participate in the Paxful referral program and earn 50% of the commission from the transactions of people who came through the referral link – the first-level partners, and 10% from the commission of the second-level partners invited by the first-level program members.

How much is it

The buyer of BTC on the platform does not pay any commission even if he creates his own buy offer – this sets Paxful apart from other P2P platforms.

The commission falls on the shoulders of the cryptocurrency seller and depends on the chosen payment method. For example, when paying via bank transfer, the commission will be 0.5%, and when using a credit or debit card, cryptocurrencies, online wallets or cash, the transaction commission will be 1%.

The highest commission will be paid by the seller who has chosen gift cards as a payment method. Since this is the most risky payment method on the platform, the commission will be 3%. Except for iTunes and GooglePlay gift cards – the commission on transactions with them will be 5%. The fee is withheld at the very beginning of the transaction from the total balance of the user’s wallet. If the transaction has not been completed, the commission is returned to the seller’s account.

However, the buyer of bitcoin will still have to pay a commission for withdrawing the purchased cryptoasset to an external cryptocurrency wallet. The commission will be 0.0001 BTC for withdrawing BTC equivalent to $ 0- $ 9.99, for transfers from $ 10 to $ 19.99 – 0.0002 BTC, and for all transactions over $ 20 – 0.0005 BTC. These fees cover the costs of confirming a transaction by miners and help maintain the stable operation of the site.

Purchased bitcoins can be sent to another user and to Paxful’s internal wallet. In this case, no commission is charged, but the number of such free transfers is limited to five per month. After that, you need to pay a commission of $ 1 or 1% of the amount sent – whichever is greater.

How safe is it

It is easy to fall prey to scammers in the cryptocurrency industry, and any P2P platform cannot fully guarantee that there are no unscrupulous users on the site. There is always a risk that the buyer or seller is playing foul play.

One of Paxful’s development priorities is to continuously improve the security of transactions by all available means. The site’s team focuses on the following methods of protecting users:

  • Verification procedure. To make transactions on the platform, you must go through the registration procedure, which includes KYC – confirmation of the user’s identity. The purpose of this check is to improve the security of the site and reduce the likelihood of fraudsters participating in transactions.

  • Prompt support service. In case of disputable situations, the platform support service is responsible for their solution. Currently, this division of the company employs eighty people who speak several languages and are located in different time zones.

The Paxful team recommends opening a dispute in case of problems at any stage of the transaction, rather than canceling it. In this case, it will be easier for the support service to understand the situation and stop fraudulent behavior if necessary. You can contact the Paxful team through the Contact Form in the lower right corner of any page on the site.

How to buy bitcoins on Paxful

The platform only supports Bitcoin trading, since it is the most popular cryptocurrency, and it is it that both newcomers and experienced users who come to the industry most often want to purchase. Despite this, BTC can be bought on the platform with other crypto assets, for example, ETH, LTC and XRP.

To buy bitcoins on Paxful , you need to go through the registration process and KYC. The registration procedure itself is quite standard – in the first window you need to enter your email address and set a password, and then confirm the registration by clicking on the link from the corresponding letter from Paxful.

The platform uses two-factor authentication (2FA) to better protect user accounts. To enable it, you need to enter the phone number and confirm it with the code from the SMS, and then activate the two-factor authentication option on the “Security” tab. On the profile page, you need to change the default username – you can do this only once.

Then you need to ask answers to security questions, which, if necessary, will allow you to restore access to your account, as well as go through the verification procedure. To verify your identity, you need to upload a photo of the document – a foreign passport, passport or driver’s license.

When registering in the web version, you can use your webcam and take a picture of your ID, as well as your face. You can also upload an existing photo of your ID, but you still need a webcam to take a face shot. In total, the user is given five attempts to verify the identity.

This completes the verification process for most users. However, if you need to make large transactions, you will need to verify your home address by sending Paxful your utility bill, phone bill, bank statement or tax return, received no more than three months ago.

Now you can start buying bitcoins. To do this, go to the “Buy bitcoin” tab and set the desired terms of the transaction: the amount you want to spend, the preferred payment method and click the “Find offers” button. If you want to make a deal with users outside of India, you can change the location settings on the same page.

Since the terms of the deal are set not only by the bitcoin buyer, but also by the seller, an inscription may appear under some offers that you do not meet the requirements set by the seller. To make a deal, you must select offers without this mark.

Each user’s name is displayed next to their reputation – the number of thumbs up, and in the offer information – the purchase limits. It also displays information about how much BTC you will receive in dollar terms for $ 1. For example, a seller offers for $ 1 – $ 0.94, which means that the user is selling BTC at a price that is 7.15% higher than the market price.

To find a better offer, you can change the payment method or increase / decrease the amount. Offers on a P2P platform may be higher or lower than the current market price, depending on the payment method, conditions, supply and demand. When an offer with suitable conditions is found, you must click the “Buy” button. However, after that, the transaction does not start – you are taken to the seller’s page with information about the proposed terms of the transaction.If you agree with the terms of the offer, you must click the button “Accept the terms and buy bitcoin”, after which the transaction begins and a chat with the seller opens. Next, you need to follow the seller’s instructions for payment. The deal is limited in time – you must complete it within 30 minutes. After making the payment, you need to press the “Paid” button, and the time timer will stop.

The time of receipt of payment to the seller varies depending on the selected method. After receiving the funds, the seller credits the BTC to the buyer’s wallet, from where they can be transferred to another Paxful user’s wallet or withdrawn to an external cryptocurrency wallet

About author

Experienced Founder with a demonstrated history of working in the newspapers industry. Skilled in Data Research, Management, Investment Research, Teamwork, and Leadership. Influencing the technology, people, and technical analysis of the Cryptocurrency and Blockchain world.
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