• 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 (or it could be used against them if the trade ever goes to 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.

  • 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.
  • Potential risks when selling 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. Some buyers even download images and details off the internet and try to scam those that are unaware.

    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. 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.

  • Trade status

    Trade statuses determine the progress of your trades. 

    Each trade on Paxful has a status. There are 6 statuses that your trade could possibly have:

    Trade funded - when a trade is opened and the funds are transferred to escrow

    Trade Paid - when the buyer has marked the trade as paid

    Expired or cancelled by the system - Every trade has payment window for the buyer to make a payment. When the trade is funded but the buyer did not mark it as paid, therefore allowing the payment window to expire

    Cancelled by the buyer - when the buyer cancels the trade

    Trade disputed - when either the buyer or the vendor opens a dispute (Dispute can be started in 3 hours after the trade was marked as paid)

    Trade released - when the vendor released the funds from escrow to the buyer’s wallet

  • 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.

  • Increasing trade limits

    Do you want to trade even more on Paxful? Are your desired trading volumes higher than 10,000 USD per trade? You can increase your trading limits easily by following these steps: 

    1. Complete our KYC procedure by applying to ID verification and address verification through your account. KYC documents include ID, proof of address, a selfie with ID, etc. 

    2. Contact our support team and we will modify your trading volume limits according to your request. After you submit the required information, Paxful KYC team will review the application and amount will be manually increased. Please note that this step is valid only in case your trade volume is equivalent to 10,000 USD per trade or higher.

    Feel free to contact our support team with any additional questions: [email protected]

  • Feedback and reputation

    Feedback and reputation system which Paxful has is a good way of filtering honest users from users who are less honest.

    Paxful’s feedback and reputation system basically show a score on a user’s public profile. Each user can give one feedback per user per trade. Only successful trades are eligible for feedback.

    If you fail to give feedback on a trade on a user, you can go back at any time and leave one. If you already provided feedback on a user, you can also go back and change it.

    There are three types of feedback: positive, neutral, and negative. Aside from giving feedback, you can also trade or block a user.  

    Please do not leave a negative feedback for no reason as it makes harder for vendors to trade if their reputation goes too bad.

    Be aware that intentionally ruining vendor reputation is considered as malicious action and will lead to account ban.

    Faking reputation by doing fake trades is not allowed and such accounts will be banned.

  • Minimum amount for a trade

    Currently, the minimum trade amount is 10 USD to buy bitcoins. If you are selling bitcoins, the minimum is 0.001 BTC.

  • Paxful bond for gift card trades

    Paxful bond is for the vendors who trade bitcoins for gift cards.

    A bond is like a security deposit which borrows the funds for a defined period of time.

    Every seller on Paxful who trade bitcoins using gift card offer is required to put up a bond to ensure the safety of a Paxful buyer. On Paxful, the required bond is 0.1 BTC. 

    These are the rules for bonds:

    • Bonds are for gift card sales only. For other payment methods like cash deposits, online transfers, and debit/credit cards, bonds are not required.
    • If you don’t have enough BTC in your account to cover the bond, your offer will not be visible.
    • You can get your bond back 7 days after your last gift card trade.
    • You can issue a bond and get it back from your vendor dashboard.

     

    Transfer and retrieve bond layout for Classic Dashboard:

    classic_bond.PNG

          retrieve_classic.PNG

    Transfer and retrieve bond layout for Vendor Dashboard:

     

        vendor_bond.PNG

        retrieve_bond_vendor.PNG

     

  • 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 a trade with the unresponsive vendor. If you have started a 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.