Paxful Or Localbitcoins Market Is Bigger?
Both Paxful and LocalBitcoins focus on trading in Bitcoin. However, Paxful also allows you to use altcoins to trade for Bitcoin.
Both sites don’t hold the money from either party. The platform provides an escrow service that acts as an intermediary in the deal, ensuring both parties adhere to the transaction criteria, and no one gets a raw deal.
Which One Is Cheaper? Paxful Or Localbitcoins?
Buyers ON Paxful don’t pay any transaction fees to the platform. However, they may have to pay a premium to the seller, and that’s not always clear. Sellers on the Paxful exchange pay 1% for listings. Senders will also have to pay the network fees for processing the transaction on the Blockchain.
Both LocalBitcoins and Paxful require you to produce KYC documentation when using services. Credit card and PayPal transactions are particularly expensive on these platforms.
LocalBitcoins charges the same 1% fee to sellers posting adverts on the site. The good news is that all transactions to LocalBitcoins wallets are for free. When you use site merchant invoicing services, they deduct a 0.5 fee from deposits.
Is Paxful More User Friendly Than Localbitcoins?
Paxful offers users access to the Bitcoin market in two formats.
- Through the website using a form
- Via “virtual kiosk links.”
The virtual kiosk is the platform for the Paxful affiliate program, where affiliates can generate commissions from other people’s purchases when they get them to sign up for the service. Paxful’s affiliate commissions are currently at 2% of the transaction, but check back for policy changes.
Some trades may execute faster than others on the platform. The transaction speed depends on whether the seller is online, and the type of payment processor you’re using in the deal. For example, a wire transfer can take a while to clear, while gift cards and PayPal payments are instant.
What is Escrow?
Paxful and LocalBitcoins run the same model for processing transactions on the platform. Escrow services provide an intermediary in the deal. Escrow keeps everyone honest, ensuring that nobody runs away with anyone’s money.
When you want to purchase Bitcoin on the Paxful or LocalBitcoins platform, you find your seller and review their deal information. After selecting your preferred seller, you contact them and arrange the deal for the set amount of Bitcoin. The seller then moves the coins into escrow, and the buyer then has 24-hours to place the funds in escrow to release the coins.
If the buyer fails to meet the terms of the agreement, the escrow account returns the Bitcoins to the seller. Therefore, when the buyer deposits the money, they have the backing of the escrow that they will receive the Bitcoin, or they get the money returned.
Dealing on the Platforms as a First-Timer
You might find it intimidating to find the right seller on the platform and start your first deal. However, it’s easier than you think, and it only takes a few minutes.
Look for the seller that offers the rate you want, and then make contact through their profile.
Traders on the platform have a ranking, and you can work with the top-rated sellers to select trustworthy sellers that you can rely on to process your transaction promptly.
Then send your money to the escrow account and wait for the reply from the seller. As soon as they have confirmation of your deposit, they’ll release your coins to your nominated wallet on the platform, which you can then move off-site to another wallet.
LocalBitcoins and Paxful both have a huge number of payment processors onboard. You get access to any money sending service, wire transfer, credit cards, cash deposits, and more.
Can We Trade Via Mobile In Paxful And Localbitcoins?
Both Paxful and LocalBitcoins have mobile apps available for download to Android and iOS devices. There’s all the functionality of the desktop app on your mobile device, making it easy to buy and sell your favorite crypto wherever you go.
Personalize your wallet, safely store your BTC, and check your account balance in real-time. Share your wallet address with customers, friends, and family, or use the QR code system within the app.
With both apps, you get updated pricing in real-time for BTC to fiat conversions, and you can receive push notifications about your offers and trades.
Paxful Or Localbitcoins Has Better Support?
Paxful has a 24-hour support ticket system, and you can reach them via email if anything goes wrong with your transaction. The support team is helpful and will resolve your query if it’s possible. Paxful also has a useful knowledge base with FAQ and articles on other frequently encountered issues on the platform for new users.
LocalBitcoins offers the same customer service model, with a comprehensive knowledge database, and support through ticketing or email.