Paxful is another peer to peer Bitcoin marketplace, that is, it’s a platform where buyers match with sellers to buy and sell Bitcoin.
|Trade volume||$52 million weekly average at the time of writinghttps://coin.dance/volume/localbitcoins||$15 million weekly at the time of writing https://coin.dance/volume/paxful|
|Security||2FA, login guard||2FA (phone, google authenticator, authy)|
|Fees||1% paid by BTC seller||1% paid by BTC seller|
|Cash in person Bitcoin price (USD)||6250-7200||7190|
|Payment methods||Over 100||Over 100|
|KYC||Yes, certain payment methods and amounts trigger KYC||No|
Localbitcoins vs Paxful comparison results
Localbitcoins has been around longer than Paxful, has 3-4 times the volume of Paxful and a lot more offers. Same way, there are way more scam reports about Paxful sellers (especially in the past) than about Localbitcoins ones. Please note however, that most scams on Paxful deal with gift cards that get redeemed by a party that does not send the necessary Bitcoin payments – if you do not wish to trade gift cards then you are even less likely to get scammed.
Both sites have 2-factor authentication systems in place, Paxful gives an option to use Google Authenticator and Authy. Localbitcoins, however, offers a login guard feature that will allow you to limit your logins to just one browser, OS, and IP.
Both services have similar fees (seller pays 1% of sold BTC), but please keep in mind that sellers also include their fees into the Bitcoin price they are asking. In this regard LocalBitcoins is more favorable – simply because there are more offers and a competitive environment. As a result there are more offers and some sellers ask for lower prices in order to sell faster.
Localbitcoin’s recent KYC policy could be a deal breaker for many. The logic behind verification requirement is not very clear – it’s often triggered by certain large amounts of coin, or certain payment methods, and certain monthly volume.
Paxful has no KYC implemented, the platform will not require any documents from you, however separate sellers may require some sort of proof – IDs, pictures of your gift cards and receipts from their purchases and so on. Make sure you follow safety rules and do not send anyone pictures of your documents or credit cards. Read more in our Paxful review.