Today, it’s about buying Bitcoins you usually access a Bitcoin broker (for example, Coinbase and Coin mama) or a Bitcoin trading platform (e.g., Bit stamp and Kraken). However, some of these exchanges do not reduce it – either because of their accepted payment methods or geo-restrictions (for example, Coin abase does not accept people from many countries of the world).
In this case, you can always use something that can be better described as “the eBay to buy Bitcoin”. Networks of Bitcoin vendors around the world that allow almost all Bitcoin buyers. Today, there are two platforms that provide this type of service: Paxful review and local Bitcoins. I reviewed local Bitcoins in the past and today I want to take this opportunity and look at Paxful too.
In his heart, Paxful review is very similar to local Bitcoins. You choose the number of Bitcoins you want to buy and your payment method, then you receive the available sellers. Each seller has a reputation for past transactions and each time specifies its Bitcoin exchange rate.
The exchange rate is much higher than what you will find on regulated trading platforms like Bitstamp and this is explained by the fact that sellers are much more at risk when selling Bitcoin to foreigners. Since Bitcoin transactions are irreversible, if someone pays the seller and refuses to make the transaction, the seller can end up without Bitcoins and no payment.
In addition, some sellers allow you to buy Bitcoins with less traditional payment methods (for example, Amazon gift cards, Skype gift codes), so they tend to charge more.
Finally, the seller will also display specific details that he deems relevant for the transaction. You will see if the seller is currently online so that you can discuss the transaction once it is in progress.
The process is quite simple.
• Choose the number of Bitcoins you want to buy
• Choose the currency to which you want the exchange rate to be
• Select a payment method (there are dozens)
Then you have the opportunity to search the complete list of sellers or simply the best possible sellers according to the criteria of Paxful.
Once you have chosen a provider and click “redeem”, you will be redirected to the business page and you will be able to chat directly with the seller via live chat. Once they respond to you, follow their payment instructions, click Mark As Paid and wait for them to release bitcoins directly on your Paxful wallet.
Most transactions are instant, but it depends on the payment method and if the seller is online. Paypal and gift cards, for example, are instant. Cash deposits from the bank and CO-OP, Western Union, Moneygram take time because you have to leave your house at their branch and deposit cash. Usually, they occur in less than an hour.
When trade begins, the seller’s bitcoins are automatically transferred to the secure escrow of Paxful and at this point, the seller can not cancel the trade. Only a buyer can cancel a trade at any time and bitcoins will be transferred from escrow to the seller’s wallet. If the buyer has not delivered the payment and has not marked the payment as completed within the payment window, a transaction will be automatically canceled and the bitcoins will be transferred to the seller’s wallet.