Have Paxful owners conspired with Nigerian scammers? Are alternatives better? Find out the answers to important questions. See this Paxful review now.
You’ll learn the opinion of Reddit community. You’ll also learn the reason Paxful fees are far from zero.
Every important detail about Paxful.com is explained here. So please bookmark this review right now.
As a bonus, I tell you about one thing you need to keep your bitcoin secure.
Disclosure: this page has affiliate links that may make me money. But the content is objective and trustworthy.
Are Paxful Owners Connected To Nigerian Scammers?
A lot of users have reported that they were scammed by Paxful. Let’s put this in context: Paxful doesn’t sell or buy bitcoin; instead, it gives you a platform to buy or sell bitcoin. So think of it as Craigslist of bitcoin. Then ask yourself: “Are there many scammers on Craigslist?”
Even if you’re a person with positive mindset, you would have to say “yes”. There are indeed many scammers on Craigslist. That’s why it instructs everyone to deal only locally and never to wire any money to anyone, especially to a Nigerian prince who wants to turn you into a millionaire.
There are many Nigerian princes on Paxful. According to statistics website Alexa, whopping 37.1 percent of Paxful visitors are from Nigeria. It’s not possible to know how many of them are Nigerian princes.
So it’s not Paxful that scammed those people. Some naughty Nigerian princes scammed them. So there’s no proven connection between US-based Paxful owners and naughty Nigerian princes.
Paxful Users Complained On Reddit
Moderators can do better. Paxful users have complained about them on Reddit. According to complaints, moderators take at least three days to resolve a dispute; sometimes they take a week. On top of that, they often take the side of a person with lots of positive ratings.
Apparently, it’s pretty easy to fake those positive ratings. Paxful’s rating system is unreliable. It’s especially dangerous if you’re using PayPal. By they way, you should never use PayPal to buy or sell bitcoin because PayPal would close your account for any Bitcoin-related activity.
So at least find another Paxful seller if your chosen one that accepts PayPal has broken English. But even then, you’d be living dangerously like a freaking renegade. He may still be a Nigerian prince in disguise. So avoid what the old lady in the picture did.
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Is Paxful Safe To Buy Bitcoin? And What Are The Alternatives? And How Should You Secure Your Bitcoin?
Considering the number of scammers on Paxful, it’s definitely not the safest of bitcoin platforms. It’s somewhat dangerous to use. So when compared with centralized bitcoin exchanges that ask for your ID, it poses a greater risk. However, it’s faster that many of them.
There’s a centralized exchanges that’s as fast as Paxful though, if not faster. That exchange is the fastest legitimate way to buy bitcoin. It’s also one of the best reviewed. It’s name is PayBis.
Talking about safety, keep in mind that web wallets aren’t secure. So you should immediately transfer any significant amount of cryptocurrency from a web wallet to your own hardware wallet.
Great Paxful Alternative For A Privacy-Conscious Person
BitQuick is definitely better if you’re spending less than 400 dollars. That amount doesn’t require verification. So it’s essentially the same thing but more secure. But if the amount is bigger, Paxful.com is the next best option for a no-verification purchase.
Does Paxful Have Any Advantages?
Yes, it does. So if you want to buy bitcoin anonymously without verification, keep reading for two reasons. First, there are only a few sites that allow you to buy bitcoin this way and Paxful is one of them. Second, Paxful does have a few other advantages that I describe below.
Advantage #1: Easy-To-Use Interface
As you can see from screenshot above, Paxful has easy-to-use interface. Indeed, most people agree that Paxful is one of the easiest bitcoin platforms even though it has many scammers.
Plus, its design is intuitive and the website is fast. Furthermore, their website has comprehensive FAQ section that answers many common questions. So you’ll be able to use it without reading any guides.
Advantage #2: No Verification
You don’t have to be verified. So you can buy bitcoin almost instantly without providing any documents. I know I said it above already, but there’s more to this.
While some companies allow you to buy one hundred dollars worth of bitcoin without any verification, none allow you to buy one thousand or more without verification. That’s Paxful’s advantage. But do keep in mind the risk described above.
Also, keep in mind that some bitcoin sellers on Paxful require you to upload an ID. But that’s less intrusive than when your information is stored on some centralized exchange. That centralized exchange has to comply with many complex government regulations. This slows down buying process.
Advantage #3: Less Government Intrusion
While some will say they have nothing to hide, you never know what stupid law the government will make next. As more and more money flows into cryptocurrencies, more and more taxes will be levied on its users. And by using centralized exchange, you expose yourself to government’s greedy hands.
When you use Paxful or other peer-to-peer platform such as BitQuick or LocalBitcoins, you’re somewhat free from government intrusion. You don’t provide your information to centralized exchange which stores it.
That said, Paxful is far from being anonymous. It’s at best pseudonymous if you aren’t using your real name. So is bitcoin.
Paxful Review Resumed: Advantage #4: Many Ways To Pay
Paxful offers more than 300 ways to pay. Most exchanges have only a few options. One notable exception is PayBis, which also has many payment methods.
Multitude of payment methods sounds convenient. But at Paxful that means more risk.
Many payment methods, especially PayPal, have a risk of chargeback. However, bitcoin transactions are irreversible. So it’s a bad idea to sell someone bitcoin for PayPal. You wouldn’t be able to cancel bitcoin transaction while the receiver of bitcoin could cancel PayPal transaction.
Plus, as you already know, PayPal would close your account for any Bitcoin-related activity.
Because the above is important, Paxful itself cautions you against using payment methods like PayPal:
“Beware of RISKY Payment Methods! Even if you have received the funds many payment methods can be REVERSED and charged back so you will lose your funds and your bitcoin, additionally if you are using a risky payment method like PayPal, Venmo, etc.. they may also shut down your account.”
“So what payment methods should I be using on Paxful?” You may be asking yourself right now. Well, the guys at Paxful advise you to “Use SAFE methods like Western Union, MoneyGram or Bank cash deposit etc…”. They give such advice because it’s not easy to reverse these payment methods.
While it does seem like Paxful staff are trying to help you, their platform does have one significant disadvantage that is beyond their control. Please continue reading this Paxful review to find out that significant disadvantage.
Main Disadvantage: High Prices Of Paxful Offers
As you can see from screenshots below, Paxful offers have prices that are much higher than average market price.
These prices have nothing to do with Paxful management. Each bitcoin seller on Paxful can set any price he wants. So you must decide whether you’re willing to pay premium for a fast delivery of bitcoin.
However, I wouldn’t haggle over bitcoin price on Paxful. There are many bitcoin buyers. So most of the time Paxful bitcoin sellers get prices they want. So if you decide to use Paxful to buy bitcoin, you should find Paxful seller that has the best combination of low price and safe payment method.
Second Disadvantage: Paxful Fees
There’s no such thing as free lunch. There are some exceptions of course, like if you got elected to Congress and taxpayers are paying. Paxful, however, isn’t one of these exceptions.
It’s true that Paxful doesn’t charge you, the buyer, anything. However, it charges the seller one percent. So your fee is built into the seller’s price.
Plus, bitcoin price is much higher on Paxful than on most exchanges because the seller can charge anything. So Paxful fees are significant even though you never see them on your screen.
Conclusion Of This Paxful Review
|Ease Of Use|
Though you’ve read this Paxful review, you may be asking yourself: “Should I use Paxful or not?” That depends on your priorities. So if you’re still not sure, ask yourself the following question: “Are speed and anonymity more important to me than price and reliability?”
If speed and anonymity are your top two priorities, use Paxful because there are few ways to buy bitcoin anonymously without verification. Keep in mind though that bitcoin is pseudonymous.
If you still aren’t sure, get free personalized advice for buying bitcoin by answering 7 questions.
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