Paxful safely serves over 14 million users across 150 countries, offering a safe and easy-to-use peer-to-peer marketplace.

Over the years, users from diverse backgrounds—from the Global North and Global South alike—have relied on, and trusted Paxful to buy, sell, move, and store cryptocurrencies.

Now with close to 10 years as the largest and most trusted, here is what you need to know about Paxful:

  1. Paxful is a US-based, licensed, and regulated company that has operated securely since its start without any security incidents.
  2. World-class escrow services and user verification processes that enhance security and keep users like you safe.
  3. Seasoned professional team with a deep understanding of security, regulatory compliance, and digital assets
  4. In 2022, Paxful was recognized as one of Time Magazine’s 100 most influential companies, appears regularly in the press and major crypto events, and enjoys a 4.5 Trustpilot score.
  5. To date, Paxful has been home to millions of transactions totaling over $5 billion in trade volume and continues to be one of the primary ways for many people to access the global economy.
  6. Paxful offers 24/7 global support and dispute resolution and we’re dedicated to quickly and fairly resolving all questions or concerns.
  7. Paxful has dedicated compliance and legal departments ensuring that all global rules and regulations are followed.

Is Paxful legit? 

Paxful is a legitimate and safe platform that prioritizes secure cryptocurrency trading for millions of users who use us as critical, global financial infrastructure – especially for the underbanked.

We offer over 400 payment options, all supported by an institutional-grade escrow service to hold your cryptocurrencies until each trade is complete, designed to protect both parties.

Furthermore, Paxful enforces a strict user identification policy (also known as “Know Your Customer”(KYC) to minimize fraudulent activity and guarantee every user is who and where they claim, ensuring a safe and reliable trading environment.

Only verified users can then connect to save, move, or earn money by trading popular cryptocurrencies via over 400 payment methods such as bank wires, gift cards, or local payment apps.

Is Paxful a scam?

Paxful is a legitimate, long-standing cryptocurrency marketplace run by seasoned professionals dedicated to minimizing fraud, and suspicious activity, and proactively eliminating any scams before they affect our global users.

This has made the platform safe and reliable. 

Coinlocking, underpayment scams, chargebacks, and other types of fraud are mostly prevented by Paxful’s escrow and extensive dispute system. At the same time, Paxful’s team is scanning for scam patterns 24/7 by relying on both expert human talent and AI-powered tooling fed by thousands of data points from our marketplace.

Users who break Paxful rules or attempt to take advantage of their fellow traders are promptly and permanently banned from our marketplace by an attentive and impartial support team.

If a trade is disputed, Paxful moderators review the trade chat logs and resolve the case in favor of the victim, potentially terminating or banning the offender’s account.

The feedback system allows users to rate their experiences, fostering a community of trust and quickly rooting out bad traders. Both buyers and sellers are held to high standards, requiring them to maintain positive feedback and comply with the platform’s terms and conditions.

All these proactive measures have made Paxful reliable and trustworthy, earning the platform a strong 4.5 of 5 rating on TrustPilot.

Is Paxful legal? 

Paxful is a fully registered US-based company and holds the relevant licensing at both the federal and state level. Here are some of the regulatory bodies that have licensed Paxful:

  • The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN): Paxful is registered as a Money Services Business, complying with anti-money laundering (AML) policies, the Bank Secrecy Act, the FATF Travel Rule, and other regulations to combat illicit activities and protect its users.
  • US Financial Crimes Enforcement Network: This registration makes Paxful legal to use in most countries, with exceptions in certain regions. For instance, users from a few US states are restricted from accessing the platform.
  • Office of Foreign Assets Control (OFAC): Paxful complies with OFAC sanctions and prohibits users from countries on the OFAC-banned list.

Paxful is dedicated to working closely with global policymakers and law enforcement to abide by all rules, sanctions, and regulations to deliver a compliant, best-in-class trading experience.

Does Paxful protect user data and funds?

Paxful has instituted multiple layers of security— such as network security, working with a secure wallet provider, and data encryption—to protect user data from unauthorized access. 

Collected data is used as explained in the Paxful privacy policy. Moreover, we work with reputable data protection firms to strengthen this commitment to data protection and safety. 

Should any Paxful user wish to no longer receive marketing or other notifications from us, they may opt out at any time, and even delete both their account and customer data.

Paxful uses BitGo and Fireblocks for its wallet service, allowing users to enjoy independent, institutional-grade crypto storage. Each is a leader in digital asset custody, used by hundreds of crypto exchanges thanks to their best-in-class security and insurance policies. 

How to guarantee every trade is safe, secure, and successful on Paxful

Paxful has instituted robust safety measures to ensure a safe and secure trading marketplace. However, as with any peer-to-peer marketplace; it’s important to stay vigilant and educate yourself on the potential risks associated with any people-powered trading platform.

Here’s our top advice for maintaining security while buying and selling on Paxful, especially for newcomers to the world of peer-to-peer trading:

1. Be vigilant against phishing

Be extra cautious when you receive an email that appears to be from Paxful, PayPal, Venmo, or any other of the over 400 payment methods we support.

Always double-check the sender’s email address by comparing it with previous communications such as promotional emails and newsletters, account activity notifications, etc. Moreover, watch out for typos (such as @paxfull.com, and @paxfuil.com) as well as grammar errors – these are red flags!

Real Paxful emails ALWAYS come from @paxful.com

Furthermore, be careful with messages containing attachments and avoid clicking links from unknown senders.

For social media channels, all official channels use the handle @paxful. Our channels are accessible here: Facebook, Twitter, YouTube, Telegram, and Instagram.

Learn more about how to contact customer service and watch out for phishing schemes here.

2. Beware of fake Paxful moderators

Real Paxful staff and moderators will never ask for your login details (username, password, 2FA code). If someone demands this information, it’s a scam and you should report it immediately to protect yourself and your fellow traders.

Here’s how you can spot fake Paxful moderators:

  • Suspicious communication: Watch out for messages that seem strange, unclear, or create a sense of urgency. Such as: “Your account will be suspended if you don’t click here!” or “Hello! I am from support, please tell me about your Paxful support issue!”
  • Personal information requests: Legitimate moderators won’t ask for your password or other sensitive details associated with your account.
  • Unverified profiles: Look for the official Paxful logo and “Paxful Moderator” tag beside their username. 

Paxful Moderators may ask for the following information when resolving a query: your account ID or transaction I.D, these serve the following purposes:

  • Unique identifiers: An ID acts as a reference number for your specific account or transaction. They don’t hold any sensitive information like passwords or social security numbers.
  • Tracking purposes: Customer service reps use these IDs to pull up your account details and transaction history to assist you efficiently.

Learn more about how to identify genuine Paxful moderators here.

3. Keep conversations on Paxful

To protect yourself, and ensure a smooth trading experience, always communicate through Paxful’s trade chat. It’s the safest and most reliable way to interact with your trade partner.

By keeping communication on Paxful, you leave evidence of communication that you can use in case there’s a dispute. 

Paxful’s trade chat messages are recorded and used as evidence in disputes, providing you with protection. 

When you move off the platform, you lose these safeguards and open yourself up to potential risks.

4. Safety first: verify payment before releasing crypto

Some unscrupulous buyers may try to deceive or pressure you into releasing crypto from escrow before their payment is processed.

Never do this.

If you find yourself in such a situation, don’t be afraid to walk away. All trades are done voluntarily.

Here’s how to stay safe:

  • Double-check the transaction: verify the payment has been credited to your account before releasing your crypto. You will receive an email notification when this is successful.
  • Don’t cave to pressure: real buyers understand verification takes time. 

5. Act Fast: secure your funds after every trade

After a successful trade, you need to immediately secure your funds to avoid additional risks such as chargebacks. 

Chargebacks—a reversal of payment—are enabled on PayPal, credit cards, debit cards, and some online wallets.

To protect yourself, quickly transfer your funds to a separate account after each transaction. This helps safeguard against scammers posing as buyers who might reverse the transaction. 

Learn more about how to avoid chargebacks here.

It is particularly important to select a payment method carefully as Paxful can’t get involved in chargeback. Even if a trade goes smoothly and our dispute process is finished, the buyer’s bank might still reverse the payment. In these cases, Paxful isn’t responsible for getting your money back.

For more, read our terms of service here.

6. Capture the gift card redeeming process on video

When buying gift cards with Bitcoin on Paxful, it’s crucial to protect yourself from potential disputes or fraudulent sellers. A simple yet effective way to do this is by recording the redemption process on video.

This serves as clear proof that you’ve successfully redeemed the gift card and can be used as evidence in a dispute. Moreover, this protects you in case the seller claims the card was invalid or already used. 

Make sure to capture all the essential information, including the following: gift card details, the redemption process, and the confirmation message.

7. Report suspicious activities

Paxful thrives on a community that looks out for one another. If you ever come across something that seems off, whether it’s an offer, a user, or some unusual activity – don’t keep it quiet!

By reporting your concerns as soon as possible to the support team, you’re playing a vital role in maintaining a secure environment for everyone on Paxful.

Contact the support team by clicking on the help button as shown in the image below:

paxful help button

8. Trust your gut

In any marketplace, Including Paxful, trusting your gut is an important attribute to mitigate against potential losses. 

If something feels wrong, it probably is.

When in doubt, slow down and investigate. Don’t be afraid to pause a trade or to walk away from a deal that feels off. 

For additional tips on safe trading, check out Paxful’s Trust and Safety policy.

9. Keeping you safe at Paxful: A collaborative effort

At Paxful, your security is our top priority. We invest heavily in expert staff, cutting-edge security software, and exceptional customer service to create a safe trading environment. However, peer-to-peer trading and cryptocurrencies come with a shared responsibility for security.

Here’s how we work together to keep you safe:

  • Paxful takes security seriously: We invest in top-notch security experts, advanced software, and responsive customer service to safeguard your transactions.
  • Vigilance is key: While peer-to-peer transactions offer easy access, users must stay vigilant at all times.
  • Best practices matter: Following recommended practices as explained above ensures a safe trading experience.
  • Continuous improvement: Paxful is constantly learning and adapting to keep the marketplace secure, efficient, and fair for everyone.

Let’s work together to make Paxful a trusted, and go-to platform for everyone. In case something goes wrong with your trade, you can always file a dispute and our team will help you resolve it as soon as we can.

Ready to get started? Create an account now and explore how we can empower your crypto journey in a safe and secure platform.