As cryptocurrencies become more popular—often driven by the inflation of local currencies—more and more people around the world are getting their hands on Bitcoin and other digital assets. By 2030, the number of crypto owners is expected to hit a staggering 1 billion, up from over 560 million in 2024.

Popular peer-to-peer (P2P) platforms like Paxful or Binance might be the first stop for new cryptocurrency buyers, each offering an excellent way to swap in and out of crypto and fiat currencies.

Choosing a platform with the best user experience, safety, and security can be overwhelming. While cryptocurrency marketplaces may look similar at first glance, appearances can be deceiving. Looking beyond the surface to stay safe and get the best deals on this new asset class is essential.

This detailed comparison delves into the P2P offerings of Paxful and Binance, two of the most popular cryptocurrency marketplaces. We’ll examine the signup journey, verification requirements, supported cryptocurrencies, available payment methods, fees, and user experience.

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How does Paxful P2P work?

Paxful is the world’s longest-running marketplace to buy, sell, swap, and save Bitcoin (BTC), Tether (USDT), Ethereum (ETH), and USDC. Here’s how trading on Paxful works:

1. Sign up and verify: Create a Paxful account in seconds using your phone number or email address. Verifying your account adds an extra layer of security. You’ll also get a free Paxful account to store your crypto, and you can access Paxful on the web, iOS, or Android.
2. Find a buyer or seller on the marketplace: Buy or sell your preferred asset by browsing the list of available trade partners. Pay or get paid for crypto using over 450 payment methods, including online wallets, bank wires, and payment apps.
3. Initiate trade: Having reviewed available offers and checking your trade partner’s profile, specify the amount of crypto you want to buy and start the trade.
4. Secure escrow: Paxful holds the crypto in institutional-grade, independent escrow, ensuring your funds are safe until both sides complete the trade.
5. Complete payment & receive crypto: Follow the seller’s instructions to complete your payment. Once your payment is confirmed, Paxful releases the crypto directly to your wallet.
6. Leave feedback: Both you and the seller can leave feedback for each other, building trust for future trades on Paxful.

Ready to buy or sell Bitcoin (BTC), Tether (USDT), Ethereum (ETH), and USDC with over 450 payment methods? Create an account today and experience the convenience of P2P trading.

How does Binance P2P work?

Like Paxful, Binance P2P connects you with other users for direct crypto trades. Here’s a simplified breakdown:

1. Search for crypto deals: Use Binance’s marketplace to find offers to buy or sell cryptocurrencies with your preferred payment methods.
2. Pick your perfect match: Narrow down your options by selecting an offer that meets your desired price, currency, and payment method.
3. Binance keeps it secure: To ensure a smooth transaction, Binance also holds the seller’s crypto in escrow until you complete your payment.
4. Pay with ease: As outlined in the offer details, send the payment directly to the seller using their preferred method.
5. Crypto arrives in your wallet: Binance promptly transfers the cryptocurrency to your secure wallet once payment is confirmed.

Key Differences Between Paxful vs Binance

Here’s a breakdown of some key differences between Paxful and Binance P2P:

1. Supported Cryptocurrencies

Paxful and Binance P2P take vastly different approaches regarding the number of supported cryptocurrencies. From the beginning, Paxful has catered mainly to Bitcoin enthusiasts, building the best possible Bitcoin marketplace. While it offers a handful of other “blue chip” cryptocurrencies like Ethereum and Tether, its focus is facilitating smooth, cheap, and highly liquid Bitcoin P2P transactions using various payment methods.

On the other hand, Binance P2P boasts over 350 cryptocurrencies. You’ll find other lower-market-cap tokens like Litecoin and Ripple and a constantly expanding selection of altcoins alongside Bitcoin and Ethereum. This extensive selection gives Binance P2P an edge for cryptocurrency speculators looking to trade in more volatile tokens, but it can also lead to a messy marketplace.

2. Payment Methods

Paxful shines in terms of payment method flexibility with over 450 payment options, including bank transfers, debit/credit cards, online wallets, and, in some regions, even cash deposits in person.

This wide variety caters to users who prefer non-traditional payment methods or might need access to conventional banking options. Trading on Paxful does not require a bank account.

Binance P2P offers a more limited selection of payment methods, focusing on widely used options like bank transfers, credit/debit cards, and some third-party payment processors.

3. Fees and Costs

Paxful has zero fees when you buy or receive crypto. Paxful only charges a 1% service fee to cryptocurrency sellers. Conversely, sellers can set their margins to cover any potential fees or exchange rate fluctuations. Furthermore, comparing offers on Paxful is essential to find the best deal. Find more details on Paxful fees here.

Binance P2P utilizes a different approach. Instead of a buyer fee, it charges trading fees based on the traded cryptocurrency and the maker/taker model (the maker creates liquidity, and the taker removes it). These fees can vary widely from one cryptocurrency to another, and fees should be checked on Binance before trading. Additionally, withdrawal fees for converting your crypto to fiat currency may apply. However, Binance offers discounts on trading fees for using their native token, Binance Coin (BNB).

4. Security Features

Both Paxful and Binance P2P offer two-factor authentication (2FA) to add an extra layer of security to your account. This is a standard security feature you’ll find on many online platforms.

While Binance and Paxful each offer an escrow service, Paxful utilizes an independent institutional-grade 3rd party to provide our users with maximum peace of mind. This holds the buyer’s funds until the seller successfully delivers the cryptocurrency, ensuring a smooth and secure transaction for both parties.

Paxful also takes preventative measures to protect our marketplace from scams and fraudsters. It utilizes the best human experts and AI-powered tooling, constantly interpreting thousands of marketplace data points to prevent suspicious users and transactions.

Read here for more information on Paxful’s security practices: Is Paxful Safe?

5. Regulatory Compliance

Regulations surrounding cryptocurrency are constantly evolving. As a US-based and regulated financial business, Paxful strives to comply with global regulations by implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. The specific requirements may vary depending on your location. For example, Paxful is licensed by some of these regulatory bodies:

• The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN)
• Office of Foreign Assets Control (OFAC)

Binance, on the other hand, has encountered regulatory roadblocks in certain areas due to its global services and wide variety of offerings. However, it also holds licenses in many jurisdictions.

6. Customer Support

Paxful offers 24/7 support through a ticketing system—accessible via a chat widget at the bottom right of certain pages—and a knowledge base containing FAQs and troubleshooting guides.

Paxful warns users to be wary of fraudulent customer support agents and only to use the official channels. Paxful agents will never ask for personal information or payments for services.

Binance provides customer support through a live chat option and a comprehensive FAQ section. While users have a variety of opinions on the support provided by either platform, Trustpilot ranks Paxful at 4.5/5 for safety, support, and simplicity compared to Binance.

7. User experience

Paxful has a reputation for being user-friendly and accessible, particularly for beginners. The platform is designed to facilitate easy buying and selling of cryptocurrencies through various payment methods, making it convenient for users to engage in P2P transactions.

Binance’s P2P platform offers a peer-to-peer marketplace and a range of trading features. The P2P marketplace seamlessly integrates with the exchange, providing a comprehensive trading environment that may appeal to users familiar with Binance’s interface.

Paxful: pros and cons

Pros:

• Escrow service: Paxful acts as a middleman, holding buyer funds safely in the institutional grade secure escrow until the seller delivers. This minimizes the risk of fraud for both parties.
• Top-notch security: The Paxful account boasts a strong security record, keeping your crypto safe. Some measures include BitGo & Fireblocks wallet Integration, 2FA integration, and KYC and AML processes.
• Unparalleled payment methods: Over 450 options! From bank transfers to online wallets and even cash deposits, Paxful caters to users with diverse payment preferences.
• Responsive customer support: While experiences may vary, Paxful offers support through a ticketing system and a knowledge base that is available 24/7.

Cons:

• Limited Cryptocurrencies: Primarily focuses on Bitcoin, with only a handful of other options available.

Binance P2P: Pros and cons

Pros:

• Wide selection of cryptocurrencies: Binance P2P offers a wide selection beyond Bitcoin. Explore popular altcoins and expand your trading horizons.
• Advanced trading features: Appeals to experienced traders with tools and options for more sophisticated crypto strategies.
• Binance Coin (BNB) advantage: Using BNB grants discounts on trading fees, making transactions more cost-effective.
• Binance Affiliate program: The program enables users to earn commissions by referring new traders to the Binance platform. Affiliates receive a percentage of the trading fees paid by their referred users, providing a passive income opportunity.

Cons:

• Regulatory hurdles: Binance has faced regulatory challenges and is prohibited in some regions. For example, Nigeria has filed tax evasion and foreign exchange manipulation charges against Binance.
• Limited payment methods: While offering popular options like bank transfers and credit/debit cards, the selection isn’t as extensive as Paxful’s.

Bottom line: Choosing the right P2P platform depends on your priorities

• Are you looking for a P2P marketplace with diverse payment options? Paxful’s escrow service, robust security, and mind-boggling 450+ payment methods make it a compelling option.
• Crypto adventurers seeking variety? Binance P2P presents a long list of cryptocurrencies beyond Bitcoin for those looking to speculate. Remember the potential for regulatory hurdles and a less comprehensive range of payment methods than Paxful.

Ready to buy or sell Bitcoin (BTC), Tether (USDT), Ethereum (ETH), or USDC without needing a bank account? Get started on Paxful now.