Potential Risks When Selling Bitcoin on Paxful

3358 views July 19, 2017 July 19, 2017 ray 83

We are working on making Paxful as safe and secure as possible. We keep your coins in escrow until you have confirmed that you’ve safely received the payment however, it is a peer to peer marketplace and  sadly there will always be people who will try and take advantage of others. Here’s a few things you need to keep in mind to protect yourself

Potential risks

Reversible payment methods

There are some payment methods that are reversible, for example PayPal, Credit Cards. A common tactic by scammers is to do a trade or a few even, buying bitcoin and then later ask for a chargeback. For example telling their card company that they’ve not made this transaction or Paypal that they didn’t receive the goods. Paypal normally sides with the buyer first but you can submit your evidence and luckily they do come forward and refund you the money.

What to do when you get a chargeback?

Go to your Vendor Dashboard and click View past trades.

Click on the trade you got a chargeback for and you will see the trade page.

Scroll down and under your instructions you will see View Receipt.


Share this receipt link with the card company or Paypal with your explanation.


Gift card has already been redeemed.

This is a common way criminals try to scam vendors. They add gift card details and images that they may have already used or just downloaded an image off the internet.

What to do?

Never release your bitcoin before you have the gift card balance checked, redeemed and in your account! Scammers will try and hurry you up, this is a common way. They say they’re in a hurry, need bitcoin fast and ask you to release the coins. Don’t fall for that. Only release the coins when the gift card balance is truly in your control.

Fake ID or using a stolen card

Now this can get a bit tricky. Credit card companies cover their users from fraud. In the case of a stolen card, they will always refund and charge back the transactions. This is why you need to do your due diligence, check the users’ ID, good idea to ask for a selfie to see if these two match. Beware of blurry images where the face and names are not visible. If a person truly wants to buy bitcoin, they can take a decent photo. Now some also may be reluctant to share their ID as it is sensitive info, it is up to you what you accept for your trade but keep in mind that the more evidence you have the more opportunities to get your money back from the fraudster.

User is very busy

This is a common warning sign. If a buyer is trying to hurry you along to go through the trade process fast, something is normally wrong. You may either miss something or accept fewer documents than normally. A common tactic is to ask the vendors to release the coins quickly, telling them that a payment has already been made or that they are doing it right now. What happens then is that the buyer gets the bitcoins, sends them out from Paxful quick and doesn’t make a payment.

Be extra cautious of users that state they are really busy. Of course, it may not always be the case, a buyer may genuinely be busy and everything could go swiftly but it is best to keep your guard up.


If you do get into a disagreement with a buyer, click the dispute button on the trade page. Our moderators will investigate and award the coins to the party they belong to.

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