US investors permitted
A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of Paxful consists of four parts: general information, fees, deposit methods and security.
Paxful is a cryptocurrency exchange based in USA. As such, US-investors should be able to trade here. In any event, as always, US-investors should do their own independent assessment of any problems arising from their residency or citizenship.
Paxful is a peer-to-peer Bitcoin marketplace. Simply select your preferred payment method and type in how many bitcoins you need. Nothing more, nothing less. However, you can buy Bitcoin using a record-breaking number of different payment methods. You can pay with over 300 different payment methods (PayPal included). In the history of Paxful’s existence, more than 40,000 Bitcoins have been sold/bought. This is a very impressive feature of this peer-to-peer marketplace.
Paxful’s fees consist of deposit fees, service fees and withdrawal fees.
Deposit fees vary dependent upon how you deposit.
Service fees are 1.00% per trade, but it is only paid by the seller. Buyers can trade free of charge.
Withdrawal fees are fixed at 0.0005 BTC for BTC-withdrawals.
Paxful Trading fees
This exchange primarily charges one fee, being the “service fee”. The service fee is paid by the seller and amounts to 1.00%. This is higher than the ordinary trading fees for regular exchanges being around 0.25%. But a user should remember that the service is also a bit different. The buyer doesn’t pay any fees at all.
Paxful Withdrawal fees
Paxful also charges a withdrawal fee amounting to 0.0005 BTC when you withdraw BTC. This fee is below the industry average (industry average being 0.0008 BTC) and constitutes an advantage against the majority of other top crypto exchanges in the market.
As mentioned above, Paxful is probably the exchange in the world with the most available deposit methods. This must be their crown jewel (their deposit method availability). We applaud this offering by Paxful and can only hope that other exchanges will follow suit.
One might ask why the security is even a feature that we at Cryptowisser have looked for at the different top crypto exchanges. Two reasons:
- Exchanges store a massive amount of valuable personally identifiable information.
- Exchanges handle of course a lot of cash or coin deposits and withdrawals.
Paxful’s security score is B, when performing the test at Observatory by Mozilla (https://observatory.mozilla.org/). This is far above average when it comes to the top crypto exchanges. Actually, the majority of all the exchanges in our Cryptocurrency Exchange List actually only receive an F. This makes Paxful’s security score even more remarkable. Great work, Paxful!
There are only a few exchanges that – like the above exchange – receive Mozilla Observatory-scores of B or higher. The following list includes 9 other such exchanges with very impressive security scores: