Cryptocurrency

Paxful

Paxful (founded 2014), originally named EasyBitz, is a peer-to-peer marketplace for buying and selling bitcoin with more than 300 payment methods.

Overview

Ray Youssef and Artur Schaback founded EasyBitz and renamed it Paxful in 2014. Their singular goal in building the company was to make bitcoin easier to use and more accessible for everyone.

Paxful is a leading peer-to-peer bitcoin marketplace that connects buyers and sellers for business. The platform offers 300 payment methods available which makes it easy for almost anyone to buy bitcoin. For example, you might find someone willing to sell you bitcoin through Venmo, Zelle, Cash App, cash by mail, PayPal, TransferWise, AirTM, MoneyGram and many more methods.

The price of bitcoin on Paxful is set by the customers themselves. The rates are based on numerous factors such as verification status, payment method, currency pair (such as USD, EUR, CNY), order size and more.

Paxful also offers around the clock customer support to accommodate anyone who wants to buy bitcoin, regardless of their experience with cryptocurrency. The company employs over 200 people in their offices in New York City, Hong Kong, Tallinn, and Manila.

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The platform has over 2 million users and is growing healthily.

In May 2020, data from Paxful showed a huge surge of interest in cryptocurrency peer-to-peer trading in Russia, with 350% growth on a year-over-year (YoY) basis. According to the study, from the period of May 2019 to May 2020, Paxful saw an average monthly trading volume of $4M in Russia. The company said that this number “exceeds expectations,” together with the YoY usage increase figures. The last three-months saw a 42% increase, with May recording the best monthly performance amid the COVID-19 pandemic. The virus is one of the major drivers of growth according to Paxful.

Wallet

The Paxful wallet has been used by over 3,000,000 people to send and receive more than 400,000 bitcoin.

Fee Structure

There are no fees for purchasing bitcoin on the Paxful platform, but there are fees for sellers. The fee is centered around the method of payment being accepted by the seller:

  • Bank Transfer: 0.5%
  • Credit/Debit Cards: 1%
  • Digital Currencies: 1%
  • Online wallets: 1%
  • Cash: 1%
  • Gift Cards: 3% for all gift card types (except iTunes and Google Play), 5% iTunes and Google Play.
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This escrow amount is deducted from your Paxful wallet at the beginning of the trade. After the trade has been completed, Paxful receives the escrow fee. If the trade is not completed, the bitcoin is released from escrow back to the bitcoin seller and Paxful takes no fee.

Paxful also charges small fees for sending bitcoin their wallet to an external address:

  • $0 -$9.99 = 0.0001 BTC
  • $10 -$19.99 = 0.0002 BTC
  • $20+ = 0.0005 BTC

Partnership With OKEx

Paxful partnered with decentralized exchange, OKEx to act as a fiat-to-cryptocurrency ramp and allow users to buy bitcoin with over 160 different national currencies. The partnership will make it possible for lots of new users to access a variety of trading options on the OxEx platform including option trading on OKEx’s DEX platform.