How to sell bitcoin for profit, earn passive revenue with our affiliate program and get paid as a merchant.
Selling bitcoins - Part I - register an account and start selling
Selling bitcoins on Paxful is not only easy, it’s also very safe. Learning how to use your wallet is the very first step.
This tutorial is going to explain the benefits, risks, and an overall step-by-step guide on how to sell bitcoins through Paxful. This guide was made to help you better understand the process involved and make you aware of some risks that you may face when selling your bitcoin on the site.
If used correctly, there is a lot to gain by using our website. There are a lot of accounts that are managing to make significant profits by using Paxful and it is in the interest of the Paxful team to keep you informed on how you can gain from it as well.
Your Personal Bitcoin Wallet
Before you can start selling through Paxful, you must first top up your account with some bitcoins. To do this, log into the site then proceed to the link at the top, labeled as “Wallet”:
Wallet Balance & Address
Once you have clicked on this link and the page loads the content, you should see your balance and your personal bitcoin address:
If you are unsure about any of this, please click on “HELP USING WALLET” button. This will take you through the page to help you better understand the different parts of the page. If you believe you would like to go through this process, take a few seconds and run through the help tutorial. You can also access your wallet to send bitcoins from to any other bitcoin address.
Deposit & Wallet Address
On this page, you will also see a section that contains your bitcoin address. You can copy the address by using the button – as shown in the image – or by simply highlighting the wallet address and copying it manually. This address can be used to receive bitcoins from anywhere in the world. Think of it as your personal bank account number. Though unlike bank accounts, you can generate a new address every single time you want to receive more bitcoins.
Generate New Address (Optional)
If you do want to generate a new address – some people do this for better privacy or for personal record keeping purposes – then click on the down arrow next to “Copy address” then proceed to “Generate new address”.
Transactions & Addresses
Below this section, you will find another section outlining your transactions (buy/sell) and addresses you have used to receive bitcoins. You can explore these further once you have made a few transactions and/or received bitcoins to your account.
Transactions & Addresses
Once you receive your bitcoin, you will get both an email and website notification to confirm that your bitcoin has come through.
You are now ready to start selling!
You can now go to the SELL BITCOIN section by clicking on the down arrow/tab on the BUY BITCOIN button.
For more tips on how to be a good vendor on Paxful, click here.
Selling bitcoins - Part II - validating profiles and selling directly
Minimize the risk of trading on Paxful by learning how to filter the profiles.
In Part I the basics of the wallet, loading it with bitcoin, and monitoring transactions was covered.
Now that the account was topped up with bitcoin and reached the “Sell Bitcoin” page, one can start choosing the currency and method of payment that best matches one's criteria. In some cases such as the Amazon gift cards, one may notice that prices offered for bitcoin can reach up to 2 times the current price of Bitcoin. There will be things to note to keep one's Paxful experience safe and secure. In some cases, offers may be too good to be true and if that’s the case, it’s important to take some time to understand the risks that are involved.
Get familarized with the search bar:
The search bar allows one to select:
- The amount one wants to sell
- The desired currency
- The method of payment one prefers
- Give me the best (brings one the best offers based on when the buyer was last online and their rating)
In this example, $20 worth of bitcoin will be sold, selecting USD as the currency with the Amazon Gift Card as a way to receive the money. There are over 300 payment methods on Paxful with each having their own benefits and risks attached, depending on one's personal choice.
Selecting an offer:
This is one of the most important parts of the entire process. As can be seen, there are several things which are highlighted here:
- Last seen online: This shows one the availability of the user. This is important because it shows if they are ready to make a trade or not.
- Positive feedback Shows the number of positive feedback that person has. One can use this to evaluate the risk when making a trade. Note: a higher number does not automatically mean that they are to be trusted. Some people can do insider trading with themselves on different accounts to increase the number. Please check their profile, their trade volume, and a number of ways they have verified themselves.
- Min-Max amount: This is the amount bracket the person is willing to purchase. Perhaps the person has a minimum or maximum limit that is below or beyond what one has in mind. It is also recommended to do the trades in small amounts until one can trust the person.
- Rate per bitcoin: This rate can change depending on the person. One can usually assume that if it is too good to be true, it usually is.
For the sake of this tutorial, Paxful will give an idea of how to make a trade:
So in this instance, Paxful has selected a person who is giving us $1.9 for every $1 which is traded with them in the form of an Amazon Gift Card. It seems like a pretty good way to save on purchases!
Note: Paxful recommends in such cases to ask for a receipt and that the person shows the proof of payment for the gift card – ideally the gift card would have been paid for by cash.
User Profiles (Poor/Unsafe):
It is always a good idea to check the user profile of the person one is making a trade with. Highlighted in this example:
- Verification: This indicates whether the person has gone through all the verifications possible on the site. It is good to make sure they have both options verified!
- Trades: This number indicates the number of trades a person has completed on the website. Ideally, one wants a person that has completed more than 20 trades and has at least 10 trade partners. It would mean that a person is experienced enough on our platform and can guide one through the process.
- BTC Volume: The volume can be used as an indicator to analyze the integrity of the trades the person has committed to.
- Trusted by: This shows how many people have trusted this person. Keep in mind that anyone can trust another user without even having performed a trade with them.
- Blocked by: This shows how many people have blocked the person, indicating not to trade with the person. Sometimes, these might just be trolls or vendors blocking each other. It’s important to look into the profile and feedback further before performing any sort of trades. Keep in mind anyone can block another user without even having performed a trade with them.
- Joined: This refers to the length of time the user has been registered on Paxful. Ideally, one wants a member that has been a member for at least a month. Being a new member does not have to mean something negative, but if one is doing larger trades, Paxful recommends someone that has been around for a longer period. A longer period may not mean a higher trust, but it is a good way to know that at the least the person has been around and not performed any fraud during that time. It wouldn’t make sense for users to stick around that long just to commit fraud.
Overall – For this specific case, this profile would probably be unsafe for large trades based on a few reasons:
- The user is a new member with only a few days passed since registration. For larger trades, one wants someone who has gotten to know the in’s and out’s of how to use Paxful.
- The user has only performed 3 trades with very low volumes.
- The user’s phone number has not been verified. This isn’t something that’s necessarily negative, but having one's phone number verified shows the level of commitment that the user has to the platform.
User Profiles (Good/Safe):
In the previous example, an example was shown of a profile that Paxful deemed unsafe. For this example, one can see what a safe profile looks like.
Verifications: In this example, the person has verified both of their contact details. This is a great starting point.
Trades: In this case, they’ve done so with over 240 trades: a much greater amount than the previous example. This shows that this user has a great deal of experience on Paxful.
BTC Volume: In this example, it can be seen that the user has traded a greater amount of bitcoin, showcasing that he can be trusted with our money.
Trusted by: Shows how many people have trusted this person. In this case, 24 is a good number, though again keep in mind anyone can trust another user without even having performed a trade with them.
Joined: This is an important aspect as users who have joined a long time ago can help guide us through the process and take away our worries. If they were to be unsafe, they would have been banned or reported already. There is the possibility to access a longer history of comments, feedback and reputation points when making a decision.
Overall – This profile would be rated as safe and a worthy vendor willing to purchase for the following reasons:
- Has performed over 20 trades
- Has been a member for longer than 3 months
- Phone number and email have been verified
- Comments left by users seem thorough, not just a simple one-word review
User Reputation (Good/Safe):
This is a good example of a good or safe user because he or she has been registered for more than 7 months, done 242 trades, and a positive reputation. With the exception of one negative review and 3 neutral reviews, the user has a solid positive reputation of 215. If this were a real case, one would be ready to push through with the trade.
Chat Dialogue (Average):
In this trade, a buyer was approached who was assessed and marked to be a safe member based on their many previous trades and other factors listed above. Once a trade is initiated, one can see a more detailed view on their mobile phone – assuming they have verified it. This allows one to see the provider and whether it is a normal network or purchased via a VOIP/Google phone service.
The partner had set their location to the USA, though after a short look, please note that the mobile number was from China.
Please also note that the coupons were for the German Amazon website. This coupled with the location of the mobile phone, raised our concerns and diverted our attention towards needing to address this with the buyer.
When proceeding to question the situation, it was noted that the buyer did not provide a receipt for the gift card. This all pointed to an unsafe sale, though the user cancelled the transaction.
Usually, the timeframe in which one can follow instructions varies from user to user. Ideally, one would want someone that can do this fairly quickly so that one does not have to wait for them to communicate and finalize the process.
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:
- You, as a Vendor, should accept ALL risks and liabilities that come with trading. It is up to you to protect yourself.
- 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.
- 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.
- 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.
- You must have full offer terms and trade instructions in simple short bullet points.
- 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.)
- 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.
- 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.
- 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).
- 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.
- 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.
- 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.
- 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.
- 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.
- To avoid gift card de-activation, ask for a receipt and make sure 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.
- 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 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.
- First, make sure that buyer’s account is verified on that wallet (i.e verified PayPal account)
- Ask for 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 they payment as final. You can then tell the user to take a picture of that. In-case of chargeback, you can show it as evidence.
- 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.