Buying Bitcoins

  • Buying bitcoins

    Bitcoin is very exciting and we are very excited that you are taking this journey with us.

    Before you start buying, make sure you create an account at Paxful. Paxful gives all of the users a free wallet upon sign up. After you create your account, you will get your free wallet instantly.

    This guide will help to find existing offers. If you want to create your own offer, please check this guide.

    Let’s see what are the main steps to buy Bitcoin on Paxful.

    Step 1

    Start searching for an offer by clicking on “Buy Bitcoin”.

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    Step 2


    Set your preferred offer requirements:

    • Choose your preferred payment method from a list of over 300 payment methods.
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    • Select the amount you’ll be spending. 
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    • Choose the currency you wish to deal in. 
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    • Select a country.
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    Step 3


    Сlick “Search For Offers” and you will see a list of offers to choose from. Remember to look at every detail of each offer because all of them play an important role in finding the right offer: how much you get on the dollar, seller’s reputation/activity etc.
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    Step 4


    Choose an offer and click “Buy” or “View Offer”. This will not start a trade but will guide you to the offer details.

    Please note:
    • You can click on a user to open his profile for more details on your potential trade partner.
    • Note the user’s reputation, activity, verification level, BTC volume, amount of trusted by or blocked by, when the user joined Paxful.


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    Alternative version:
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    Step 5


    Read the offer terms and decide if the offer conditions fit you.
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    If you are new to Paxful, feel free to use our guide by clicking on “Take a Tour”.
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    Once you read through the seller’s offer terms and are happy with them, enter the amount you are willing to trade for and click “Buy Now”.
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    Step 6

    This opens the trade with the instructions and the chatbox. Once you have followed all instructions of the vendor, sent the required files and documents, and have made a payment, click the “Paid” button. If you don’t click it, the trade will expire and bitcoins will be released from the escrow back to the seller.
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    Please note:
    • Once a trade has started the amount of BTC in escrow is fixed. It will not change according to fluctuations!
    • There is a time window for you to confirm the payment.
    • You can always cancel the trade.
    • When you click "Paid", the seller cannot cancel the trade anymore.
    • If you see that your trade partner is acting against our Terms of Service, you can start a dispute and wait for our Moderators to step in the argument.
    • You can also register a report, which will be filed on the seller’s profile and will be viewed and investigated later by our dedicated department.

     

    In case of successful trade, the seller releases bitcoins from the escrow into your personal Paxful wallet.

    Useful Tips:

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    • Public receipt:

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    • Do not forget to leave feedback to your trade partner. Feedback on our platform creates your reputation and is extremely valuable for each and every user.

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    Here are some of the more popular payment methods for buying and selling bitcoins:

    1. Want $1-$30? Gift cards might be a good option for you. There is a wide variety of gift cards available on Paxful such as iTunes, Target, Amazon, Walmart, BestBuy, or Gamestop. You can also use OneVanilla prepaid gift cards as well. Just buy one at a drug store and search for a good deal.
    2. Want to buy with a debit, credit, or prepaid gift card? Some vendors may ask for ID and the price might be a little bit higher than other payment methods, but you will get your bitcoins instantly.
    3. Want the BEST PRICE? Buy with bank cash deposit. Start talking to a vendor and get his bank account number and deposit the cash to the teller. You won’t even need a bank account as you’re paying with cash anyway.
    4. Want to buy bitcoins with PayPal, Netspend, Skrill, or other online wallets?


    For more tips on how to buy bitcoin quick and easy, click here.

     

  • Tips for buying bitcoins

    Buying bitcoin can be tough at first but if you follow these simple tips, you’ll be able to buy bitcoin easily, safely, and quickly. 

    To get you started, here are a couple of tips that could help you with your start at Paxful: 

    1. Take note of the minimum trade amount. If you’re buying bitcoin, the current minimum is 10 USD. If you’re selling, then the minimum is 0.001 BTC.
    2. Find a vendor with a good feedback score. A vendor’s reputation is displayed in green with a + before it. For example +1305 -1 means they have +1305 good feedback scores from buyers and only 1 negative. Someone with a feedback score +200 or higher is ideal. Better if the seller is ID verified.

    3. ALWAYS read the terms of the offer BEFORE you start the order. Vendors should mention what they expect and what you will need to provide. For example, for gift cards, many vendors require a receipt showing that the gift card was bought with cash. If they ask for this and you can’t provide it, then it’s better to not deal with them and just look for someone else. If you CAN provide all the requirements, then make sure you have everything ready BEFORE you start the order.
    4. Be aware of the PRICE. Buying bitcoins is never 1 to 1. Vendors charge a fee to convert a gift card or cash into bitcoin. The price of the fee varies among vendors and really depends on who you buy from, so be on the lookout for the best deals. The offer page always includes the price of each vendor.
    5. Read the vendor’s instructions. These are the more specific instructions that follow after you have started the trade. They’re usually given at the very beginning of the chat. If at any point you need help clarifying or complying with an instruction, feel free to ask the vendor in the trade chat.
    6. Click the “Mark as Paid” button ONLY when you have actually paid. Once you’ve clicked the  “Mark as Paid” button, the countdown timer stops and the order can no longer expire. This is important because if you sent the vendor the payment info such as a gift card code and the offer expires, then the escrow is released and you won’t get your bitcoins. The “Mark as Paid” button also provides security from dishonest or forgetful vendors. If you click the “Mark as Paid” button and you haven’t paid, the vendor might think you’re a coin-locker or someone trying to scam him/her. Be sure to click the button only once you’ve paid to prevent complications.
    7. Brokering gift card codes is STRICTLY prohibited on Paxful. Brokering is when you buy a gift card code from someone, thinking you can sell it later to someone else. Even if you checked the code when you bought it, the person who sold you the code can use it anytime without your knowledge, and this is why it is against the Paxful Terms of Service. If you keep trying to give vendors bad codes, you will be reported and banned. It will also not only waste your own time but also the time of others. Remember to only use gift cards you have bought yourself.
    8. Using 3rd parties for doing payments is not allowed. You must be the actual payer and be the original owner of the submitted payment (Owner of the gift card, credit card, bank account, an account of online payment platform). Being a middleman in paying for bitcoins is not allowed and can be considered as a scam.
    9. Only trade for the WHOLE AMOUNT of the gift card. If you have a $50 gift card, then you can’t trade for a fraction of that (ex. Asking someone to take only $33 only out of your $50). Note that the vendor can only take the whole amount so if you start order for $33 and he takes $50, the only way to get your change back in bitcoin is by starting a new trade for the difference. Vendors ranges may not meet that amount or the vendor may take down his offers or go offline, so don’t make this mistake.
    10. NEVER ask the vendor to release the bitcoins first. This is grounds for an instant ban as it indicates a scam. The escrow is there so you know the bitcoins are there and waiting for you until you complete payment.
    11. Be polite to the vendors. They go through a lot of tough customers and being polite can save you a lot of time. Being polite is about a lot more than your language, it’s about following their instructions as well. Note that if there is a dispute, the moderator will take language into account.
    12. Not Interested? Cancel. If you are no longer interested and have not yet paid the vendor, feel free to cancel the trade. It will free up their escrow and let them continue to trade with others. This is considered to be good manners and proper etiquette on Paxful. If you don’t end up cancelling and leave the trade hanging, the vendor will have to file a dispute or report you, which will probably result in you getting negative feedback. You can see all your active open trades on your dashboard. Click “Chat” and go in and cancel them by clicking on ACTIONS and then click the red “Cancel” button.
  • Buying bitcoins with bank transfer

    Bank transfers are a popular payment method on Paxful and it’s extremely easy to buy bitcoins using bank transfers.

    The first step to buying bitcoins with bank transfers is to look for an offer that accepts bank transfers as payment. You’ll also need to input the amount you wish to purchase and the currency you prefer.

    After you find a suitable offer, be sure to read the offer terms before opening the trade. This will show you a brief summary of what the vendor will be requiring from you in regards to payment. Once you have started the trade, a more detailed set of instructions will appear. These are called trade instructions. In some cases, vendors will already have their bank information on the offer instructions but if they don’t, feel free to greet the vendor and politely ask for the bank information.

    After you have paid the vendor and uploaded proof of your payment, be sure to click “Mark as Paid”. If you don’t click on it, the trade will eventually expire and the bitcoins will go back to the vendor.

    The next step is for the vendor to confirm the payment. Please be patient because this may take some time. Once the vendor has confirmed the payment, he/she should release the bitcoins to you and the trade will be complete. The only thing left for you to do would be to leave appropriate feedback for your trade partner.

  • Buying bitcoins with online wallets

    There is a variety of online wallets available on Paxful (such as PayPal and Skrill) and they can be used to buy bitcoins on Paxful.

    The first step of buying bitcoins with online wallets is to look for an offer that accepts that specific online wallet you’re looking for. To do this, you’ll need to input the amount you wish to purchase and the currency you prefer as well as the payment method you’ll be using.

    After you find a suitable offer, be sure to read the offer terms before opening the trade. This will show you a brief summary of what the vendor will be requiring from you in regards to payment. Once you have started the trade, a more detailed set of instructions will appear. These are called trade instructions. What the vendor will require from you will vary depending on which specific online payment you’ll be using. For example, online wallets such as PayPal, Skrill, and Neteller will normally require an image of your ID.

    After you have paid the vendor and uploaded proof of your payment, be sure to click “Mark as Paid”. If you don’t click on it, the trade will eventually expire and the bitcoins will go back to the vendor.

    The next step is for the vendor to confirm the payment. Please be patient because this may take some time. Once the vendor has confirmed the payment, he/she should release the bitcoins and the trade will be complete. The only thing left for you to do would be to leave appropriate feedback for your trade partner.

  • Buying bitcoins with cash

    Cash is a popular payment method on Paxful and it’s extremely easy to buy bitcoins using cash.

    The first step to buying bitcoins with cash is to look for an offer that accepts cash as payment. You’ll also need to input the amount you wish to purchase and the currency you prefer.

    After you find a suitable offer, be sure to read the offer terms before opening the trade. This will show you a brief summary of what the vendor will be requiring from you in regards to payment. Once you have started the trade, a more detailed set of instructions will appear. These are called trade instructions. In some cases, vendors will already have their bank information on the offer instructions but if they don’t, feel free to greet the vendor and politely ask for the bank information.

    Usually, for cash, vendors will require a teller receipt from you. After you have paid the vendor and uploaded proof of your payment, be sure to click “Mark as Paid”. If you don’t click on it, the trade will eventually expire and the bitcoins will go back to the vendor.

    The next step is for the vendor to confirm the payment. Please be patient because this may take some time. Once the vendor has confirmed the payment, he/she should release the bitcoins to you and the trade will be complete. The only thing left for you to do would be to leave appropriate feedback for your trade partner.

  • Buying bitcoins with digital currencies (altcoins)

    It is possible to buy other digital currencies (altcoins) on Paxful and it’s just as easy as buying bitcoins.

    Buying altcoins on Paxful has the same process as selling bitcoins. The first thing you have to do is to make sure that you have bitcoins in your wallet. If you don’t have any balance in your wallet, that means you’ll have to buy bitcoins first. Once you have Bitcoin on your account, you have to click on the Sell section and choose the category you wish to get in return for your Bitcoin.

    In case you do not like the price of the existing offers you could also create an offer of your own. For example, you’re looking to buy Ethereum (ETH) on Paxful. Create a sell offer asking for Ethereum as your payment method and when another user has clicked on your offer, he/she should then send Ethereum to your wallet address. After you’ve confirmed that you’ve received the payment, you can then release the bitcoins to your trade partner. Remember to give clear and concise offer terms and instructions. These will make your trade easier and more efficient.

See all 9 articles

Selling Bitcoins

  • Selling bitcoins

    Selling bitcoins on Paxful is easy and safe. 

    This tutorial is going to explain an overall step-by-step guide on how to sell bitcoins through Paxful. The guide was made to help you better understand the process and make you aware of some risks that you may face when selling your Bitcoin on the site. The current guide will help to find existing offers. If you want to create your own offer, please check this guide.

    Before you start selling Bitcoin through Paxful, you must create an account and top up your wallet with some bitcoins. Once you are ready, you can start selling.

    Step 1

    Hover over the “Buy Bitcoin” button and click “Sell Bitcoin”. 

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    Step 2

    Set your preferred offer requirements:

    • Choose your preferred payment method from a list of over 300 payment methods.

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    • Select the amount you’ll be spending. 

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    • Choose the currency you wish to deal in. 

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    • Select a country.

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    Step 3

    Сlick “Search For Offers” and you will see a list of offers to choose from. Remember to look at every detail of each offer as all of them are important in finding the right offer: rate per Bitcoin, buyer’s reputation/activity etc.

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    Step 4

    Choose an offer and click “Sell”. This will not start a trade but will guide you to the offer details.

    Please note: You can click on a user to open his profile for more details on your potential trade partner. Note the user’s reputation, activity, verification level, BTC volume, amount of trusted by or blocked by, when the user joined Paxful.

     

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    Step 5

    Read the offer terms and decide if the offer conditions fit you.

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    Once you read through the buyer’s offer terms and are happy with them, enter the amount you are willing to trade for and click “Sell Now”.

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    Step 6

    Now trade is open with the instructions and the chatbox. Your bitcoins are in the secured escrow connected to the trade. 

    Follow all instructions of the offer owner: send the required files and documents, provide necessary information for the payment.

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    Make sure you receive funds from the buyer. The buyer must confirm within the trade that he has paid you. 

    Click “Release bitcoins”. Bitcoins will go from trade escrow to the buyer’s Paxful wallet.

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    Please note:

    • Once a trade has started the amount of BTC in escrow is fixed. It will not change according to fluctuations!
    • Do not click “Release bitcoins” button unless you are 100% sure about receiving the payment! Please check our tips on how to protect yourself from scammers.
    • The BTC amount transferred to trade escrow includes a Paxful fee.
    • You cannot cancel the trade before the time limit runs out.
    • You cannot cancel the trade if the buyer confirmed making the payment.
    • If you see that your trade partner is acting against our Terms of Service, you can start a dispute and wait for our Moderators to step in the argument.
    • You can also register a report, which will be filed on the buyer’s profile and will be viewed and investigated later by our dedicated department.

    Now bitcoins are released to the buyer’s wallet and you have received funds with your preferred payment method. 

    Useful Tips:

    •  After a trade, you can always download a public receipt.SellBitcoinStep6.2.png 
    • Public receipt:

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    • Do not forget to leave feedback to your trade partner. Feedback on our platform creates your reputation and is extremely valuable for each user.

     

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    Here are some of the more popular payment methods for buying and selling bitcoins:

    1. Want $1-$30? Gift cards might be a good option for you. There is a wide variety of gift cards available on Paxful such as iTunes, Target, Amazon, Walmart, BestBuy, or Gamestop. You can also use OneVanilla prepaid gift cards as well. Just buy one at a drug store and search for a good deal.
    2. Want to buy with a debit, credit, or prepaid gift card? Some vendors may ask for ID and the price might be a little bit higher than other payment methods, but you will get your bitcoins instantly.
    3. Want the BEST PRICE? Buy with bank cash deposit. Start talking to a vendor and get his bank account number and deposit the cash to the teller. You won’t even need a bank account as you’re paying with cash anyway.
    4. Want to buy bitcoins with PayPal, Netspend, Skrill, or other online wallets?

     

     

  • Rules for selling bitcoins

    Being a Paxful vendor can be very profitable if a few basic rules can be followed.

    To get you started, we’ve compiled a few tips to make selling bitcoin not only easy but safe and secure as well:

      1. You, as a Vendor, should accept ALL risks and liabilities that come with trading. It is up to you to protect yourself.
      2. No brokering is allowed. This applies to gift cards. Brokering is when you buy a gift card code from someone, thinking you can sell it later to someone else. This goes against the Paxful Terms of Service and is strictly prohibited.
      3. You must be responsive to buyers. If you are not at your computer, then please take down all your offers. When a customer shows up, say “Hi” and let them know you are ready to trade and help them.
        For example “Hi, I am ready to help you, please follow the instructions and you can have your bitcoins in no time!“.  Hardly sounds like something you need to mention to any sane merchant, but you’d be surprised how many vendors leave their offers up and take a nap or don’t think that responding to buyers is necessary; that they should just read the instructions or wait for them for a half hour. 50% of cancelled trades are due to an unresponsive vendor.
      4. You must maintain a civil tone with your customers at all times. No foul language or abusive tone is allowed. It’s bad for business.
      5. You must have full offer terms and trade instructions in simple short bullet points. 
      6. If the release of bitcoins happens NOT instantly and you have a specific time frame for the payment confirmation. This must be clearly stated in your offer terms and trade instructions. You as a vendor must make sure that the buyer understands that the release of bitcoins may be reasonably delayed. Release time may not exceed the time stated in your terms. (Remember that Paxful advertises p2p service as instant.) 
      7. Clear and short offer TERMS. This is what you, as a vendor, expect from the customer to complete the purchase. The buyers see this BEFORE the trade begins. It may contain important information about the trade (Ex. things like uploading an ID, uploading a cash receipt, telling them they need to have a physical gift card etc..) There are already many offer tags for the most common terms but CUSTOM terms must be clear and concise. You should use bullet points, be as straightforward as possible, and cut out any and all unnecessary text. Remember! Buyer's don't like complicated terms. Clear offer terms also help cut down disputes and give you a much better standing with Paxful moderators during a dispute. Never ever leave this blank, a buyer will just skip you and find someone else otherwise. Learn how to write optimal offer terms here.
      8. You must have full simple trade instructions of exactly what you want them to do. Use bullet points to keep it short and sweet. Click here for some tips on how to write good trade instructions.
      9. Provide your customers with helpful aids and examples if necessary. For example, if you require them to upload a selfie with photo ID, then put an example picture (one with face and details blurred out).
      10. You may not use multiple accounts to get an advantage in the number of listed offers or its position in the list. This is an unreasonable advantage in the natural market competition which is considered as system abuse.
      11. It’s important that you know what the minimum trade amount is on Paxful. Currently, the minimum trade amount is 10 USD to buy bitcoins. If you are selling bitcoins, the minimum is 0.001 BTC.
      12. No using 3rd parties for payments. You as a vendor are the person responsible for accepting and processing payments. If you have no control over the payment and you transfer responsibility to others this can be considered as fraud.
      13. No off-escrow trades allowed, no sharing contacts or off-site communications. It’s important that you DO NOT give other users your contact info for external trading. Paxful escrow must be used at all times or else you will be banned. No exceptions. This helps to prevent you from being reported for off-escrow trading and unnecessary provocation.
      14. No negotiation. The buyer of bitcoins must pay the exact price that is set for this trade. If the seller needs to make an adjustment, trade must be re-opened for the correct amount. 

    Stick to the rules above and you should be able to make a very profitable living on Paxful.

  • Safety tips

    Gift Cards

    • To avoid gift card de-activation, ask for a receipt and make sure the gift card is bought with cash.
    • Watch out for card re-sellers. If the card was obtained from 3rd parties there is a risk that card becomes invalid during or after the trade. Ask everyone to provide a picture with your username and trade ID. 
    • Be careful when accepting e-codes or gift cards bought with debit/credit cards as any debit/credit card purchase can be charged back.

    Cash

    • This is the payment method with the least risk but the smallest profit margin but purchase amounts are higher compared to gift cards.
    • Make sure the buyer deposits cash to your name and asks for the receipt. 
    • Make sure that you are trading with is the actual person making a deposit. Avoid 3rd parties involved in doing deposits.

    Online Wallets

    • First, make sure that the buyer’s account is verified on that wallet (i.e verified PayPal account)
    • Ask for the ID of the buyer. Make sure the full name matches on both the ID and the online wallet account.
    • Note that it could be easily charged back since every payment is tied to a debit/credit card. If you want less risk, make sure that the buyer is sending the payment from their PayPal balance instead of a debit/credit card.
    • Make sure that you are trading with the owner of the account and no 3rd parties involved. 
    • For extra precaution, you can ask the buyer to write, on a piece of paper, the confirmation of the purchase of bitcoins along with the trade ID, amount, and that the payment as final. You can then tell the user to take a picture of that. In case of a chargeback, you can show it as evidence.

    Debit/Credit Cards

    • This method is just as risky as online wallets as you could easily be charged back. The tips for avoiding the risks for this are the same as online wallets except that the name of the debit/credit card has to match with the one on ID.

Offers

  • Creating offer to buy bitcoin

    Want to purchase Bitcoin? Do you have money in the form of digital currency, cash, prepaid card or any other payment method? In order to set your own exchange rules and create a flow of trades, you need to create your own offers. This guide will give an overview of how to create an offer to buy bitcoins on Paxful. 

    Before we start, make sure to create an account.

    Warning: In order to create an offer, you need to be ID-verified.

    Step 1

    Login into your account. Click on “Create An Offer”.

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    Step 2 

    Choose “Buy Bitcoin”. Now you will create an offer to attract Bitcoin vendors. This offer will appear in Sell Bitcoin section of our website. From our users’ perspective, they will use your Buy offer to sell their bitcoins.

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    Step 3

    Select a payment method.

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    Here you need to choose what you want to buy Bitcoin with:

    1. Select the payment group from the left box.
    2. Choose the exact payment method from the list in the middle.

    If you are not sure which group your payment method belongs to, you can also search for payment methods in the search bar. Simply start typing the name and an option will appear in the second list. If your payment method has been registered already, it will appear for you to select it.

    Cannot find your payment method on our list - suggest it as a new one!

    3. Choose the correct currency. Only one currency per offer is allowed. 

    Please note: With bank transfers, it is important to insert the bank name and the country where your bank account is registered. This will help to avoid any misunderstandings with your potential trade partners.

     

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    Check if all details are correct and click “Next step” to proceed.

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    Step 4

    Setting market rate and trade limits.

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    1. Choose how much you want to earn on each purchase.

    Set a percentage according to the market price of Bitcoin and your personal trading intentions.

    This percentage can be both negative and positive. You can read more about margin here.
    You will see on the screen a clear explanation of how much you will earn according to the percentage selected.

    Please note: Do not set a very low or high percentage to attract customers and negotiate the price within a trade. It is against our Terms of Service.

    As a default, we offer a Bitcoin price which is average ask price between Coinbase, Bitstamp, Bitfinex. For more flexibility click on “Switch to advanced mode”.

    2. Set offer trade limits.

    Here you can choose how much Bitcoin in fiat currency you want to buy.

    You can set a range or click on “Use exact amount” to set the sum you are interested in.
    Once a trade is initiated, the exact trade equivalent in BTC will be moved into escrow.

    3. Choose the offer time limit.

    We appreciate the time of our users and provide an option to set a timeframe for Bitcoin buyers to complete the payment.

    Please note: Some payment methods require you to have BTC on your balance to make your offer publicly visible. For example, Bank transfers need 0.02 BTC. It may be inconvenient if you want to earn your first bitcoins. However, this rule was created to protect our Bitcoin sellers from irresponsible users, who abused our platform. Thank you for your understanding.

    Check if all details are correct and click “Next step” to proceed.

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    Step 5

    Customize trade partner terms and instructions.

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    1. Choose offer tags.

    Offer tags will appear close to the payment method name in the list of offers. It should be something which helps to personalize your offer, add additional information to it. Example: All bank transfers, Instant payment, Long term buyer needed.

    2. Select the offer labels.

    Offer labels will appear under the payment method type and your tag. You can select more than one label. Labels are used to draw attention to the most important specifics of your offer: no ID verification needed, quick release, receipt required and more.

    Please note: For Bank Transfers the bank name is used instead, which you fill in on Step 3 form this guide.

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    3. Write offer terms for sellers.

    This info will be shown publicly in your offer listing. It should have short and clear details: do you want a seller to provide a photo of his ID? Is any receipt or other document needed? Do you want the payment method to be processed in a specific manner? Will you require a considerable amount of time to process the payment? Check more info here.

    4. Set trade instructions.

    Trade instructions will be visible once a trade has started. This should be a clear step-by-step guide for your potential trade partner.

    Click on “Advanced options” for some additional optional settings: 

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    1. Select a target country. 

    You can choose a country where you would like to get your main traffic from. 

    2. Set a verification filter for your trade partners.

    Trading with verified users helps to avoid irresponsible traders. However, the number of your potential trades will be lower as some of the users want to keep their privacy online.

    3. Adjust offer visibility.

    Visibility can be set for your trusted users only. It is useful if you have a list of traders marked as trusted and you want to trade only within this group of people.

    4. Minimum trades required.

    This is useful when you want to trade only with experienced Paxful users. Set a minimum you consider valid for you.

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    5. Set a fiat limit for new accounts.

    You can use this option not to risk big sums with users of a few trades and a low reputation.

    6. Limitation by countries.

    Now you can select users from which countries can see your offer and which will not have it visible. This is related to IP address and smart country detection.

    7. Proxy/VPN limitations.

    Finally, you can also choose whether to trade all users or avoid those with VPN and Anonymizer.

    Check if all details are correct and click “Create offer” to proceed.

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    Please note:

    • You can always return to the previous step by clicking on “Previous step” button.
    • You can change and edit your offer later.
    • Offer cannot be changed once a trade has started.

    Once your offer is created you can check it in your dashboard. Use Vendor dashboard to edit and manage your offers.

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    Now you are good to go. Wait for sellers to start trades. Be aware of our Terms of Service, tips and notifications. In case of any issues, feel free to involve our Customer Experience Team.

  • Creating offer to sell bitcoin

    Want to sell your bitcoins? Paxful provides an opportunity to exchange Bitcoin for more than 300 payment methods. In order to set your own rules and create a flow of trades, you need to create your own offers. This guide will give a short overview of how to create an offer to sell bitcoins on Paxful.

    Before we start, make sure to create an account and top up your wallet with bitcoins.

    Warning: In order to create an offer, you need to be ID-verified.

    Step 1

    Login in to your account. Click on “Create An Offer”.

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    Step 2 

    Choose “Sell Bitcoin” . Now you will create an offer as a Bitcoin vendor. This offer will appear in Buy Bitcoin section for other users as they will be looking for an option to buy Bitcoin.

    2_.png

    Step 3 

    Select a payment method.

    3_.png

    Here you need to choose how you want to get funds for your Bitcoin:

    1. Select the payment group from the left box.
    2. Choose the exact payment method from the list in the middle.

    If you are not sure which group your payment method belongs to, you can also search for payment methods in the search bar. Simply start typing the name and an option will appear in the second list. If your payment method has been registered already, it will appear for you to select it.

    Cannot find your payment method on our list - suggest it as a new one!

    Please note: The escrow fee depends on the payment method.

    3. Choose the correct currency. Only one currency per offer is allowed.  

    Please note: For Bank transfers, it is important to insert the bank name and the country where the bank account is registered. This will help to avoid any misunderstandings with your potential trade partners.

    4_.png

    Check if all details are correct and click “Next step” to proceed.

    5_.png

    Step 4

    Setting market rate and trade limits.

    6_.png1. Choose how much you want to earn on each sale.

    Set a percentage according to the market price of Bitcoin and your personal trading intentions.

    This percentage can be both negative and positive. You can read more about margin here.
    You will see on the screen a clear explanation of how much you will earn according to the percentage selected.

    Please note:
    • Do not set a very high percentage to attract customers and negotiate the price within a trade. It is against our Terms of Service.
    • Escrow fee will be added above the profit percentage.

    As a default, we offer a Bitcoin price which is average ask price between Coinbase, Bitstamp, Bitfinex. For more flexibility click on “Switch to advanced mode”.

    2. Set offer trade limits.

    Here you can choose the fiat amount you want to get for your Bitcoin.

    You can set a range or click on “Use exact amount” to set the sum you are interested in.
    Once a trade is initiated, the exact trade equivalent in BTC will be moved into escrow.

    3. Choose the offer time limit.

    Users can be not as fast or active as needed. We appreciate the time of our vendors and provide an option to set a timeframe for Bitcoin buyers to complete the payment. This helps to prevent your bitcoins from being blocked in a pointless trade with a non-responsive trade partner.

    Check if all the details of your choice are correct and click “Next step” to proceed.

    7_.png

    Step 5

    Customized trade partner terms and instructions.

    8_.png1. Choose the offer tags.

    Offer tags will appear close to the payment method name in the list of offers. It should be something which helps to personalize your offer, adds additional information to it. Example: All bank transfers, Instant payment, All Nigerian banks, Long term buyer needed.

    2. Select the offer labels.

    Offer labels will appear under the payment method type and your tag. You can select more than one label. Labels are used to draw attention to the most important specifics of your offer: no ID verification needed, quick release, receipt required and more.

    Please note: For Bank Transfers the bank name is used instead, which you fill in on Step 3 from this guide.

    9_.png

    3. Write offer terms for buyers.

    This info will be shown publicly in your offer listing. It should have short and clear details: do you want a buyer to provide a photo of his ID? Is any receipt or other document needed? Do you want the payment method to be processed in a specific manner? Will you require a considerable amount of time to check the payment before releasing bitcoins? Check more info here.


    4. Set trade instructions.

    Trade instructions will be visible once a transaction has started. This should be a clear step-by-step guide for your potential trade partner.

    Click on “Advanced options” for some additional optional settings: 

    10_.png

    1. Select a target country. 

    You can choose a country where you would like to get your main traffic. 

    2. Set a verification filter for your trade partners.

    Trading with verified users helps to avoid irresponsible traders. However, the number of your potential trades will be lower as some of the users want to keep their privacy online.

    3. Adjust offer visibility.

    Visibility can be set for your trusted users only. It is useful if you have a list of traders marked as
    trusted and you want to trade only within this group of people.

    4. Minimum trades required.

    This is useful when you want to trade only with experienced Paxful users. Set a minimum you consider valid for you.

    11_.png

    5. Set a fiat limit for new accounts.

    You can use this option not to risk big sums with users of a few trades and a low reputation.

    6. Limitation by countries.

    Now you can select users from which countries can see your offer and which will not have it visible. This is related to IP address and smart country detection.

    7. Proxy/VPN limitations.

    Finally, you can also choose whether to trade all users or avoid those with VPN and Anonymizer.

    Check if all details are correct and click “Create offer” to proceed.

    12_.png

    Please note:
    • You can always return to the previous step by clicking on “Previous step” button.
    • You can also change and edit your offer later.
    • Offer cannot be changed once a trade has started.

    Once your offer is created you can check it in your dashboard. Use Vendor dashboard to edit and manage your offers. 

    13_.png

    Now you are good to go. Wait for buyers to start trades with. Be aware of our Terms of Service, tips and notifications. In case of any issues, feel free to involve our Customer Experience Team.

     

  • Bitcoin price equations for offers

    Every trader is aware that Bitcoin prices may vary on each exchange platform. Paxful values your freedom of choice and provides flexibility to choose Bitcoin rates for your offers the way you find it most convenient and profitable. Creating an offer on Paxful has an option to choose a market source of Bitcoin rate and an option to select a price point. 

    When you create an offer to buy or sell bitcoins, you can decide whether to use the regular rate offered by Paxful or select one of the most popular exchange platforms from the list in the drop-down menu. The price point is also flexible.

    Offer Bitcoin price = source price + margin %

    So you create an offer as usual but on step 2 you can do the following:

    1. Click on "Switch to advanced mode" in the upper left side of the box.PriceEquations1editedlast.png
    2. Select an exchange platform from the drop-down menu for "Custom Price source".PriceEquations2.PNG
    3. Choose a price point from the box "Select a price point to use".PriceEquations3.PNG
    4. Choose your preferred margin.PriceEquations4.PNG

    You can always switch back to simplified offer flow by clicking on "Switch to simple mode".

    PriceEquations5editedlast.png

    How is the regular (simple mode or Paxful last price) Bitcoin rate calculated on Paxful?

    Paxful offers Bitcoin rate which is the average ask price between the following sources: 

    Coinbase

    Bitstamp

    Bitfinex

    What are the available rate sources in advanced mode? 

    In advanced mode Paxful offers you a list of these exchange platforms:

    Binance

    Bitfinex

    Bitstamp

    Coinbase

    Gemini

    Kraken

    How often rate updates happen?

    Paxful updates rates from the exchange source every minute.

    Which price points are available?

    Here is the selection of price points:

    ask - The ask price is the current lowest price that a Bitcoin seller is willing to accept from a buyer. 

    bid - The bid price is the current highest price that a Bitcoin buyer is willing to pay to a seller.

    24 high - The highest Bitcoin price of all completed trades on the exchange platform during the last 24 hours.

    24 low - The lowest Bitcoin price of all completed trades during the last 24 hours.

    avg - The average Bitcoin price of completed trades for the last 24 hours. 

    last - The price of the latest completed trade according to the exchange platform selected.

    How my potential trade partners will see my custom Bitcoin rate?

    When traders will search for Sell offers, they will see the % above/ below market price. Market price, in this case, is Paxful last rate.

    tempsnip.png

    If you want to sell Bitcoin, traders will see how much they will get on the dollar.

    Priceequations6.png

  • Margin. How it works.

    To start trading on Paxful it is essential to understand how to use margin to create attractive and profitable offers. Margin can be set only by offer owner and it is fixed once a trade starts. Offer owner or vendor can buy or sell bitcoins for more than 350 payment methods available on Paxful. 

    Paxful provides an opportunity to set both positive and negative margin for each offer. 

    Positive margin: 

    Let's imagine you want to exchange your bitcoins for money directly. In this case, you create a sell offer for bank transfer. You decide that you want to earn 25% of the profit. In order to do so, you set a margin of 25%. As a result, a seller of bitcoins will get 125% of the transfer value.

    For example, trade for 100 USD bank transfer takes place. So 100 USD is 125%.

    The Bitcoin seller pays 100% to the buyer. Let's calculate how much is 100% from 125%:

    100/125 = 0.8

    This means that the buyer gets 0.8 USD worth of Bitcoin for every dollar of his bank transfer.

    In other words, the buyer gets 80 USD worth of Bitcoin, the vendor gets the 100 USD transfer value and saves 20 USD Bitcoin value from this trade.

    Please note: The escrow fee is always included in the total selling price. Escrow fee will be added to the margin percentage when a trade starts.

    Negative margin: 

    Let's say you want to create an offer to buy bitcoins for your gift cards. You decide to make your offer attractive to Bitcoin sellers and you are willing to set a negative margin of -5%.

    This makes it 95% of the total selling price.

    In an example of trade for 200 USD value gift card, the offer owner receives 190 USD of Bitcoin value. In this case, the seller will profit 10 USD per 200 USD or 5 USD per 100 USD.

    100/95 = 1.05 USD per 1 dollar - Bitcoin seller’s profit.

    Before choosing a margin for your offer, please consider margin limits set for specific payment groups.

    It is strongly forbidden to set margin only for advertising purposes or use margin to mislead customers.
     

  • Margin limits

    Paxful has margin limits for offers. These limits are valid both for offers to buy and sell Bitcoin. 

    Sell offer max margin

    Offers to appear in the buy Bitcoin section of the website.

    Payment group Margin
    Gift cards 80%
    Cash 30%
    Online wallets 30%
    Debit/credit cards 50%
    Bank transfers 20%
    Digital currencies 10%

    Buy offer max margin

    Offers to appear in the sell Bitcoin section of the website.

    Payment group Margin
    Gift cards 80%
    Cash 30%
    Online wallets 30%
    Debit/credit cards 50%
    Bank transfers 20%
    Digital currencies 10%

     

    Note: Margin limits are set to maintain trade balance on the platform and to prevent market manipulations. Having a high offer margin (i.e. 100%, 200%,500%, 900%) that doesn't reflect the actual price that will be paid in trades is considered as fake advertising and is forbidden by our TOS.

  • Writing good offer terms

    The key to good offer terms is being short and concise about what you need.

    The offer terms are a short description of the requirements BEFORE the trade begins.

    Briefly explain to your customers what you expect of them and what they need to have ready to pay you. Give short details on how you wish to be paid, what documents are required, and what other terms they need to follow.

    Use offer tags to give more details to your potential buyer.

    Offer tags can help you describe what you need from the buyer further. “ID REQUIRED”, “CASH ONLY”, “RECEIPT REQUIRED”, etc. are examples of tags that might help the buyer understand what you need. If you can’t find a tag that suits your needs, feel free to suggest a new one on the “Create an Offer” page.

    Remember to make your offer terms short and concise.

    With the offer terms, you have to make sure that the buyer will understand what he/she needs to pay you BEFORE the trade begins. If the offer terms are NOT clear and easy to understand, users will likely cancel the trade because they would not be sure of what happens next, if the offer terms are too long the user may start a trade without reading them. If your offer terms ARE clear and easy to understand, you would have a lot less cancelled trades. Try to be specific enough, yet not overwhelming to the buyer. Also, remember to make sure that your offer terms are in line with Paxful's Terms of Service.

    What NOT to do:

    1. Do NOT suggest to trade off escrow. Any suggestions to trade off-site are strictly forbidden and this kind of activity will get you banned from Paxful.
    2. Do NOT give personal contact information in your terms.
    3. Do NOT give links to outside sites or share URLs.

    Examples of good offer terms:

    iTunes gift cards

    1. This offer is iTunes gift cards ONLY, not Apple Music cards.
    2. Physical card ONLY, e-code pictures or codes will not be allowed.
    3. Cards of 100 dollars or less ONLY!
    4. You will need to upload a picture of the card. Photoshopped or edited images will get you reported.

    Amazon gift cards

    1. I accept only physical Amazon Gift cards which were purchased with CASH.
    2. Have a photo of a physical Amazon Gift card (back side with visible codes)
    3. Have a photo of the receipt confirming the card was purchased with CASH. Cards bought with debit will NOT be accepted!
    4. I can only use the full balance of the cards. For example, if it’s you have a $100 card, you cannot ask me to only take $50. I will ONLY take the WHOLE amount on the card.

    PayPal

    1. Your PayPal account MUST BE VERIFIED.
    2. I do NOT accept funds from credit cards, debit cards, and checks through PayPal.
    3. You must show proof that the funds are already available in your PayPal balance and you must show your FULL screen.
    4. Take a screenshot of the email account that is on your PayPal account. This means that you must show what the address and the email say from the back office.
    5. You MUST provide a link to your Facebook Profile.
    6. I will need you to send me a screenshot of proof that the funds came from your PayPal balance.
    7. Funds must be sent in the form of Goods and Services.
    8. I have the right to stop working with anyone if I suspect fraud. I will report you and do my best to have you removed from Paxful.

    Western Union

    1. CASH PAYMENTS ONLY.
    2. The detail for Western Union payment will be provided when you start a trade.
    3. Send a clear picture of the receipt.
    4. No third party deals.

    SEPA

    1. This is a trade for an EU SEPA bank transfer. If you don’t have an EU bank account, this trade is NOT for you.
    2. Due to several people being scammed recently through identity theft, I have to ask first-time customers to upload identification.
    3. The name on the identification should match the name of the bank account used to send the money.
    4. The BTC will be released once payment is received. If you want to buy more BTC than I have already available here, take into account it takes about half an hour for me to send additional BTC to my wallet here.
    5. Note, I reserve the right to ask for additional verification if I suspect you are not the person on the ID presented. However, you have the option to refuse further verification, in which case the trade is cancelled and I will send the funds back to the bank account it came from.
    6. Users with brand new accounts need to provide a selfie holding up their ID next to their face (in addition to a close up of the ID).
See all 9 articles

Trades

  • Paxful escrow

    Paxful escrow is there to keep your bitcoins safe. So how does the escrow work? 

    Paxful is a peer-to-peer bitcoin marketplace, a place where people can meet and safely exchange bitcoin for over 300 payment methods. Our vendors create offers with the terms they require and set a price. Once a buyer finds an offer that suits him, the trade begins. This automatically triggers the bitcoins from the vendor’s wallet to be reserved on a safety deposit account (escrow), where it will be held until the transaction is complete.

    When both the buyer and the vendor have verified that the transaction has been confirmed and all the terms have been met, the money will be released to the buyer’s wallet.

    If the buyer decides that he does not want to purchase the bitcoins he can simply cancel the trade and bitcoins will be returned back on the seller's account.

    If at any point there is a disagreement between the buyer and the vendor, the process moves along to dispute. Our moderators will then step in and investigate all the info and take into consideration all the details available and make the decision of who deserves the bitcoins. Most transactions go through without the need for dispute, but with Paxful being a peer-to-peer marketplace, there will always be users that will try to take advantage of others. This is why we have a 24/7 dedicated customer support team. Your business and money are our top priorities, and we do all that we can to keep them safe.

  • Paxful trades flow

    All Paxful trades flow the same way.

    Generally, the steps to all Paxful trades are the same. If you familiarize yourself with the process, it’ll make trading on Paxful a lot easier.  

    Step 1. Find or Create a suitable offer

    These offers are shown in the best way possible: according to your preferences. All the things you input on your search bar (as well as the reliability of other users) are all taken into consideration when you are showed the offer list. 

    If you’re selling bitcoins, you’ll be the one to create the offer.

    Step 2. Open trade for the amount you wish to pay

    Choose the best offer for you! Look for offers that have reliable potential trade partners and that have a good price.

    In the case of selling bitcoins, you’ll have to wait for someone to choose your offer.

    Step 3. Read/Write the trade terms and instructions

    The offer terms and trade instructions are one of the more essential parts of the offer as they contain detailed requirements that the buyers will have to comply with.

    Step 4. Talk to your trade partner for more information

    If there are any confusions during the trade, feel free to send your trade partner a message. The last thing you’d want is a miscommunication.

    Step 5. Provide/Confirm payment

    It is now up to the buyer to follow the offer terms and instructions VERY carefully (ignoring offer terms and instructions may become a disadvantage in case of a dispute). Remember that you can ask questions and talk to your trade partner via trade chat.

    If you’re the buyer and you’ve provided your payment (according to all the requirements of the vendor), be sure to mark the trade as paid and wait for the vendor to release the bitcoins.

    If you’re the vendor and the buyer has provided the payment, be sure to confirm if the payment is valid. NEVER release the bitcoins until you’ve made sure that the payment is good.

    Step 6. Wait for the bitcoins to be released/ Release the bitcoins

    As a buyer, your job is done as soon as you provide all that the vendor needs. You just need to wait for the bitcoins to be released from escrow.

    As a vendor, be sure to release the bitcoins as soon as you’ve confirmed the payment. As soon as the buyer marks a payment as complete, it keeps the trade from expiring automatically. It is your duty as the vendor to automatically release the bitcoins from escrow as soon as you verify the payment. If you don’t release they bitcoins, they will remain in escrow.

    Step 7. Leave feedback

    Leaving feedback plays an important role in Paxful’s reputation system. It’s important that you leave appropriate feedback for every trade that you do.

  • Trade status

    Trade statuses determine the progress of your trades. 

    Each trade on Paxful has a status. There are eight statuses your trade could possibly have:

    Active funded the trade is open, and funds have been transferred to escrow.

    Paid the buyer has marked the trade as paid.

    Expired every trade has a payment window for the buyer to make a payment. When the trade is funded, but the buyer failed to mark it as paid, the payment window expires.

    Cancelled the buyer/seller has willingly cancelled the trade.

    Dispute open either the buyer or the vendor has opened a dispute (a dispute can be started 3 hours after the trade was marked as paid).

    Successful the vendor has released funds from the escrow to the buyer’s wallet.

    Awarded seller a dispute has taken place, and bitcoins were awarded to the seller.

    Awarded buyer a dispute has taken place, and bitcoins were awarded to the buyer.

  • Writing good trade instructions

    Trade instructions are the more specific and detailed requirements that appear when the individual trade begins. These are the requirements that you set for when they pay you.

    Unlike the offer terms, you would want the offer instructions to be as detailed as possible. Give clear instructions of what you need from the buyer and explain the steps that lie ahead (such as info on documents such as receipts or photos you may require). Remember that user sees trade instructions when the trade starts, so here you can put the information that you want to provide after the user accepts the offer terms. Make sure that your instructions are in line with Paxful's Terms of Service.

    What NOT to do:

    1. Do NOT suggest to trade off escrow. Any suggestions to trade off-site are strictly forbidden and this kind of activity will get you banned from Paxful.
    2. Do NOT give any personal contact information.
    3. Do NOT give links to outside sites or share URLs. You must process the payment on Paxful.

    Examples of Trade Instructions:

    iTunes gift cards

    1. Please upload a picture of your physical card with the code SCRATCHED off and clearly visible. For blurry photos, please type the code into the chat also.
    2. If your card doesn’t mark the value, please tell me the denomination.
    3. Wait for me to check the card and release bitcoins and remember to click the “Mark as Paid” button.
    4. If for any reason you do not want to continue the trade with me, then cancel the trade so I can trade with others instead.

    Amazon gift cards

    1. Please upload a picture of your physical card with the code SCRATCHED off and clearly visible. For blurry photos, please type the code into the chat also.
    2. Upload a picture of the receipt showing that the card was purchased with CASH.
    3. Wait for me to check the card and release bitcoins and remember to click the “Mark as Paid” button.
    4. If for any reason you do not want to continue the trade with me, then cancel the trade so I can trade with others instead.

    Paypal

    1. Upload a picture of your FULL screen showing that the funds are already available in your PayPal balance and it is VERIFIED. Remember that you must show your FULL screen!
    2. Give me your PayPal email.
    3. Give me your Facebook Profile link.
    4. Show proof that your account is verified
    5. After you have done the above, I will then send you the email account to send funds to.
    6. Funds must be sent in the form of SERVICE, and I will send you the next steps.
    7. I have the right to stop working with anyone if I suspect fraud.

    Western Union

    1. Send the Funds Via Cash to the following NAME_HERE, ADDRESS_HERE etc…
    2. Provide me with the following info in the chat: sender name, sender city/state, sender phone number, MTCN code, and exact payout amount in USD or LOCAL CURRENCY
    3. Click the “Mark as Paid” button and wait for me to pick up the funds and release bitcoins.
  • Unresponsive trade partner

    Unresponsive trade partners are a common sight.

    Are you selling bitcoin and your buyer ends up not responding?
    Don’t worry because as long as the buyer has not clicked “Mark as Paid” then your bitcoins will be freed from escrow once the trade expires. If the buyer clicks “Mark as Paid” but you didn’t receive any payment, you can ask the buyer to cancel the trade as no payment has been provided. If the buyer won’t cancel then a countdown will appear. Wait for that countdown to finish then you’ll be able to click “Dispute”. Once a dispute has started, give time to the moderators to look into it. You should eventually be rewarded back the bitcoins. Note that verified vendors have an advantage here. 

    The same goes for buyers who started trade with the unresponsive vendor. If you have started trade and vendor seems to be offline or doesn’t reply to you the best you can do is cancel the trade and try your luck with the other vendor.  If the vendor was responsive, approved the payment and then become unresponsive, you need to “Mark trade as Paid” so that trade doesn’t expire. If the trade expires, the seller gets his bitcoins back from the escrow. If you forget to click on “Mark as Paid”, but payment has been already done then it’ll be much harder to get your coins.

    For more information on disputes, click here.

  • Potential risks when trading cryptocurrency

    Like with any other type of investment, there are risks that are involved with trading bitcoins on Paxful.

    It should always be in your best interest to protect your investment and part of protecting it includes familiarizing yourself with all the risks that come with it. If you familiarize yourself with all these risks, you put yourself in a better position of making a good profit on Paxful.

    Risks when buying bitcoins on Paxful

    If you are new, some of the dishonest users may use that to their advantage. Here are a few ways they can attempt to get at you:

    Vendors asking you to cancel the trade after you have paid

    A common tactic used by scammers includes them asking you to cancel the trade after you have paid. If you’re using a gift card and you upload all your gift card details, then you put yourself at the risk of giving them those details for free. They will then rip the value off of that card and if you cancel it, the bitcoins will be released from escrow and go back to the vendor.

    If a vendor ever asks you to cancel after you’ve paid, refuse to do so. Click “Mark as Paid” and open a dispute. The moderators will then investigate the trade and award the coins to whoever is in the right. Be ready to provide additional proof just in case the moderators need more. If you don’t click “Mark as Paid”, the trade will expire and the coins will go from escrow back to the vendor. Another tip for preventing yourself from having your card ripped is making sure that the vendor is present before uploading any documents and making any payments.

    Note that brokering of gift cards is against Paxful Terms of Service and is strictly prohibited. Make sure that you buy gift cards from the shop and you are the original owner of the gift cards. If you received a card as a gift, you must be able to reach the gifter at any time and ask for the receipt and additional information if it is needed. 

    Trading off escrow

    Many scammers will try to get you to trade outside of Paxful’s escrow. They will ask for your contact details and try to get in touch. If you trade off escrow, there’s no way to protect you. After you’ve made a payment, there are no guarantees that the seller will send you the bitcoins. Paxful’s escrow system is there to protect both the buyer and the seller.

    Risks when selling bitcoins on Paxful

    Just like buying bitcoins, there are also a few risks that you have to look out for when it comes to selling bitcoins on Paxful. Familiarizing yourself with these risks will help you optimize the offers you create.

    Reversible payment methods

    It’s important to know that some payment methods on Paxful are reversible (such as PayPal or credit cards). One common tactic that scammers use is to do trades with these payment methods and then later ask for a chargeback. For example, they would tell their credit card company that it was not them who made the transaction. In the instance of PayPal, they would say that they did not receive the goods. PayPal normally sides with the buyer first but you can submit your evidence and hope that they refund your money.

    So what do you do when you get a chargeback? The first step is to go to your vendor dashboard and click view past trades. Click the trade wherein you got the chargeback and you should be able to see the trade page. Scroll down and under your instructions, you should be able to see the receipt of the trade.

    Gift cards that have already been redeemed

    This is another common method that scammers use. Buyers would add gift card details and images that may have already been used. 

    It’s important that you NEVER release the bitcoin before you check the gift card balance. Make sure to redeem it and have it in your account before you release the bitcoins. Try not to wait too long as buyer may try to sell the card to another vendor at the same time. Usually, scammers will try to hurry you up by saying that they’re in a hurry and ask you to release the bitcoins already. Remember not to fall for that and make sure to ONLY release the bitcoins when you’re sure you have the gift card balance.

    Using a fake ID or a stolen credit card

    Credit card companies usually cover their users from fraud. In the case of a stolen card, they will always refund and chargeback the transactions. This is why it’s important to check the users’ identity and ask for a selfie to see if the two match. Beware of blurry images where the face and names might not be visible. If a user truly wants to buy bitcoin, they should be able to provide a decent enough photo. Although some might refuse to give ID as it is sensitive information, it’s up to you what you accept for the trade but keep in mind that the more evidence you have, the more leverage you will have against the scammer.

    The user is “very busy”

    The user is “very busy” is usually a red flag when you’re trading on Paxful. As mentioned earlier, some users might rush you into releasing the bitcoins quickly, telling you that the payment has already been made or that they are doing currently in the process of doing it. What happens is that the buyer gets the bitcoins, sends them quickly into a different wallet (outside of Paxful), and doesn’t even bother to make a payment. Be EXTRA cautious of users that say they are really busy. It may not always be the case that the user is a scammer, but keep your guard up at all times. Both parties buyer and seller must carefully follow trade instructions and finish the trade when all conditions that they agreed on were met.

See all 15 articles

Disputes

  • Why did I lose a gift card dispute?

    You could lose your dispute due to any of the following reasons:

    • Not providing valid evidence requested within 12 hours of the dispute.
    • Unable to prove that you are the original owner of the gift card. We do not advise selling a card that you did not originally buy. No brokering of gift cards is allowed.
    • Selling a used or invalid gift card.
    • A violation of the other party’s offer terms and/or trade instructions.
    • You redeemed a valid gift card and did not release the bitcoin.
    • Other violations of Paxful’s Terms of Service. 

    Warning: Some of these reasons could lead to you being permanently banned from our platform.

    Supporting the trade of gift cards for bitcoin is complicated. The guidelines we follow are to protect the Paxful community when a gift card trade is disputed.

    What to do during a gift card dispute?

    Paxful conducts thorough investigations to resolve gift card disputes, despite minimal support from gift card services. If you enter a dispute, you must be prepared to prove that you are the owner of the card. If you are not the original owner of the gift card, this makes proving the validity of the gift card very difficult. For this reason, sellers of bitcoin are highly favored in such disputes. 

    What do we ask for in gift card disputes?

    • A photo of the original gift card with your Paxful trade chat clearly visible in the background
    • A complete photo of the original receipt (no cut-offs)
    • For electronic codes (e-codes), an invoice of the original payment and video recording of your bank statement as proof of purchase
    • Proof of conversation with the gift card issuing company’s customer support
    • Any additional evidence as required by Paxful (Example: ID Verification)

    Note: Gift card disputes may take up to three weeks to resolve. Following the moderator's instructions and being responsive in the trade chat is important in resolving the dispute in a timely manner. Here’s a detailed article about the dispute process.

    As per our Terms of Service, we remind you that Paxful is not a licensed gift card vendor nor an authorized dealer of any gift card issuer - and brokering or reselling gift cards is strictly prohibited on our platform. Paxful understands that gift card disputes can be quite challenging and we are continuously working towards solutions to make the trading experience safe and secure for all our users.

  • Disputes

    Paxful offers an opportunity for our customers to freely trade bitcoin with each other. Although the vast majority of the trades go smoothly and successfully, there are cases that require the intervention of a third party our moderators. On Paxful we have our own dispute system through which we settle conflicts between our users in the best way possible. This article will give you an overview of the dispute resolution process. 

     

    Video

    Here’s a short and informative video on the topic:

    Cases to start a dispute

    There are different situations when you should consider starting a dispute with your trade partner. Here is the list of such cases you will find on our website:

    As a buyer

    • Payment issue You have followed the seller’s instructions, paid for the bitcoin, but the seller refuses to release the bitcoin to you.
    • Unresponsive vendor — You have made the payment but the seller has stopped responding to your messages and has not released the bitcoin to you.
    • Other — You can always start a dispute if you notice any violation of Paxful’s Terms of Service (link). For example: If your trade partner impersonates a Paxful moderator, attempts to steal your Paxful account details, forces you to continue a trade outside Paxful website, and so on. 

    As a seller

    • Coin-locker The buyer has marked trade as “paid” but is unresponsive and inactive.
    • Payment issue the buyer is active, is stating that they have made an attempt to pay you, but you see an issue with the payment.
    • Other — You can always start a dispute if you notice any violation of Paxful Terms of Service. For example: If one of the parties impersonates the moderator, attempts to steal your Paxful account details, or forces you to continue a trade outside Paxful website.

    Timeframes for disputes

    Although you can start a dispute and invite moderators to assist you with the trade, when you can do so depends on certain conditions as elaborated in the table below:

    Condition Bitcoin Seller Bitcoin Buyer
    Before a trade is marked as “paid”. Cannot start a dispute. Cannot start a dispute.
    A trade is marked as “paid” within five minutes from when it was started. Can start a dispute in 30 min. Can start a dispute in 3 h.
    A trade is marked as “paid” after more than five minutes since it was started. Can start a dispute in 3 h. Can start a dispute in 3 h.

    Note: You cannot dispute canceled or completed trades. In this case, you must start a new trade with the same user or report an issue by contacting Support.

    Steps to start and win a dispute


    1. In the trade chat, click Dispute.

    Dispute1.pngThe Dispute dialog box appears.

    2. Select a dispute reason from the list and explain what happened clearly in the text box below.

    Here are the dispute options for sellers and buyers:

    • Bitcoin seller: Coin locking, payment issue, other.
    • Bitcoin buyer: Unresponsive vendor, payment issue, other.

    For more info about dispute types, see Cases to start a dispute.

    3. Click Start dispute and check your trade chat for a message from a moderator.

    Dispute2.png

    4. Provide as much evidence as you can, such as:

    • Proof of payment (transaction receipt, a screenshot of payment, video proof)
    • Proof of ownership (transaction receipt, receipt from the store of the gift cards, online receipt,
    • Operation screenshots or video recording.
    • Phone call recording of a conversation with the third party’s customer support.
    • Any additional proof as requested by our moderators.

    The dispute will be investigated by our moderators and a decision will be made based on the evidence provided by both parties. Paxful moderators resolve disputes by evaluating trade terms, offer instructions, evidence of payment, trade chat interaction, user reputation, past trading history, as well as data submitted and or collected in accordance with the Privacy Policy.

    Note: 

    • Once you have submitted a dispute request, you do not have to contact our Support. Our moderators will definitely look into your case as soon as possible and reach out to you.
    • Dispute investigation is a complicated process and may take time (up to three weeks). We are grateful for your patience and understanding.
    • Don’t flood the chat with messages as it may hold up the moderator. Wait for the moderator to join the dispute for investigation.

    How to cancel your dispute?

    If you have started a dispute but changed your mind and want to cancel it, do one the following:

    • If you started a dispute as a seller and you see that the buyer has resolved the issue from their side, click Release bitcoins.
    • If you started a dispute as a buyer and you see that the issue has been resolved, click Cancel.

    Tip: To ensure the best solution possible, wait for a moderator and let them decide on how to solve the dispute.

    Reasons for losing a dispute

    If you lose a dispute, it could be for several reasons. The most common reasons are:

    • You were not able to provide clear reasons and evidence as requested by the moderator
    • The evidence you provided was not enough

    We also check the trading history of both parties to see if you were able to follow the trade instructions or offer terms of the previous trades. A decision is made only when the investigation is finalized to the moderator’s satisfaction. Read more here: Why did I lose a gift card dispute? 

    Read more on how to protect your funds from scammers in our security guide. If you trade with gift cards, check out these articles: Gift Card Trade Specifics.