Paxful is the biggest peer-to-peer marketplace for buying and selling Bitcoin in Africa. Paxful’s biggest markets in Africa are Nigeria, Kenya, Ghana, South Africa, Mauritania, and Uganda.
In this review, you will learn about the origins of Paxful, how to use the platform, and other interesting features.
Origin of Paxful
Established in 2015, Paxful is based in the United States of America. It was initially promoted as the Uber of bitcoin, bringing bitcoin to everyone in the world.
Paxful immediately became the go-to website for many since so many regions do not have traditional cryptocurrency exchanges that work properly.
Also, the P2P marketplace has offices in Tallinn, Estonia, New York, USA, Hong Kong, and Manila, Philippines.
Paxful Platform Overview
Paxful serves over 800 thousand users in over 80 countries worldwide and has more than 150 employees.
Cryptocurrencies supported by Paxful:
- Bitcoin (BTC)
FAIT currencies supported by Paxful:
- Euro (EUR)
- US Dollar (USD)
- Nigerian Naira (NGN)
- South African Rand (ZAR)
- Zambian Kwacha (ZMW)
- Ghana Cedi (GHS)
- Indonesian Rupiah (IDR)
- Malaysian Ringgit (MYR)
- And 100 more
Supported African countries: Paxful supports trading in all African countries except Burundi, Central African Republic Sanctions, Libya, Somalia, South Sudan-related Sanctions, and Sudan.
Popular payment methods accepted in Africa:
- Mobile Money
- Vodafone Cash
- Airtel Money
- Bank Transfer
- Western Union
- Chipper Cash
- Perfect Money
- 200+ more
The heart of the Paxful platform is a simple service that connects buyers and sellers together. For instance, a buyer in Ghana can find sellers in Ghana who are interested in selling bitcoin for a specific payment method.
Paxful plays the role of an escrow in this situation. To clarify, an escrow ensures that trading is done legitimately, and all parties are satisfied.
When a buyer and seller initiate a trade, the buyer has a limited time to complete the payment. If the buyer fails to do that in the stipulated time, the trade is automatically canceled.
When both buyer and seller verify that the payment has been made, Paxful automatically releases funds to the buyer’s wallet.
In some situations, disputes arise after transactions are made due to false payments or scammers trying to use devious tactics.
Paxful has hired a team of moderators trained to ascertain such issues. After going through all complaints, the moderators will make a decision on who gets the funds.
This hardly happens due to the verification systems put in place on the platform.
Quick steps on how to use Paxful:
- Register at paxful.com.
- Verify your account.
- Select the currency and payment method.
- Enter the amount you want to buy.
- Select an offer.
- Complete the trade.
Step By Step Guide On How To Use Paxful
Step 1: Create a free account.
The initial step is to register for an account on the Paxful. After, you have to verify your account with your email and phone number.
To have access to all features and, you are required to verify your identity (read more about this in the verification section below).
Step 2: Start buying bitcoin.
Once verification is done, you can buy bitcoin on Paxful. Enter the amount you want to buy in your local currency, and you will see how much bitcoin you will receive and the conversion rate.
Now you can select a payment option and click search offers.
Out of the list of sellers that will appear, select any, you feel comfortable with, follow the prompts, and make your purchase.
Paxful Mobile App
The Paxful application is a mobile companion for traders available on iOS and Android. The app operates as a full bitcoin wallet that allows you to send and receive bitcoin.
You can also track your open trades on Paxful from the app and receive notifications every time someone wants to trade with you. The Paxful App can be downloaded on the App Store and Google Play Store.
Paxful Exchange Fees
Buyers don’t pay fees directly to Paxful when they buy bitcoin. However, different sellers charge fees depending on your payment method.
Paxful charges a 1 percent fee for sellers.
Also, you will end up paying bitcoin network fees while withdrawing bitcoin from Paxful, which is not charged by the platform itself.
Paxful Verification and Trading Limits For Africans
You are required to verify your account on Paxful to experience full features. Verification has become necessary on most Paxful exchanges due to regulation by various states.
Here is a table of verification tiers and the limitations for users in Ghana, Nigeria, South Africa, and Kenya.
Email and phone verification.
|Level 2: Level 1 requirements + ID verification.||$10,000||58300.00||1,063,000||3,860,000||186,573|
|Level 3: Level 2 requirements + address verification.||$50,000||291,500||5,315,000||19,300,000||932,865|
|Level 4: Level 3 requirements + enhanced due diligence.||None||None||None||None||None|
These figures are based on the USD conversion rates of the local currencies on 15/04/20.
For most of the African countries supported on Paxful, you can use your Passport and Driver’s License for ID verification. Voters identification works for most states too.
Paxful Affiliate Program
The Paxful affiliate program allows exiting users to earn extra income for referring new users to the platform.
You can refer new users by copying your affiliate link. After users sign up with your link, you receive 50 percent of trading fees paid by the user.
Also, when you referred users refer new users, you earn 10 percent on all fees paid. The Paxful affiliate program is an excellent way to start earning bitcoin.
LocalBitcoins vs Paxful in Africa
Until recently, LocalBitcoins was the most used P2P exchange in Africa. This has changed significantly after new verification requirements have locked Africans out on LocalBitcoins.
This situation has led more African traders to use alternatives, especially Paxful. Currently, Paxful has more trade volume compared to LocalBitcoins.
What’s more, it supports more payment methods in Africa.
How To Avoid Scammers on Paxful
Sometimes some bad actors manage to make it on to the platform. Scams on the platform are not perpetuated by the developers behind it but by sellers who do not play by the rules.
Here are some tips to protect you from fraud while using Paxful in Africa:
- Use Paxful recommended sellers. They have built a reputation for being legitimate over the years.
- Always check the reviews of a seller before making trades when in doubt.
- Never conduct trades out of Paxful even if sellers promise lower fees. It makes it impossible for the exchange to protect you when something goes wrong.
- When buying, remember to click “Paid” after you send your payment. When selling, release funds after you have received payment in full.
Paxful Customer Service
If you ever need any help, your first point of call should be the Paxful FAQ, which was updated recently. The platform also has a chatbox for quick customer support.
I noticed social media sites like Twitter are not the best for getting support. In most cases, replies under tweets don’t get answers due to the large volume of comments.
If you need further assistance, you should contact the support team via email. Response via email is relatively prompt and very professional.
Frequently Asked Questions About Paxful
Can Paxful be trusted?
Yes, Paxful can be trusted if you know how to use the platform. Most bad reviews about Paxful in Africa or elsewhere is because people mistake the actions of users as the actions of the platform itself.
As at the time of writing, Paxful has never been hacked and has had good security thus far.
Can I buy bitcoin with gift cards on Paxful?
Yes, you can use Paxful to purchase bitcoin using gift cards in Africa. You can pay with iTunes cards, Google Play cards, Disney gift cards, Amazon cards, and more.
Bottom Line – Should I Use Paxful in Africa?
Paxful in Africa is generally a great platform used by many due to few exchange platforms in this region. There are always people ready to buy or sell regardless of time, payment method, and country.
In conclusion, it is an excellent platform for users who just want to buy or sell bitcoin on a simple interface.