Paxful Security Guide for Traders
At Paxful, they put your cryptocurrency security first.
Paxful takes this very seriously, and Chainalysis, a team of blockchain analysis experts trusted by major banks and governments, calls Paxful one of the most secure trading platforms in the world.
One of the quick and easy ways to transact easily and securely is to check the user’s verification status.
Paxful has several verification levels, which are strictly scrutinized by Paxful’s team.
The higher the verification level of a user, the more it shows that they are honest and willing to trade.
When creating an offer, you can even set pre-conditions for the deal, requiring the counterparty to authenticate or display their full name.
If the trader shows their full name, be sure to double-check that the identity of the counterparty is the same as the sender of the funds.
In addition to ensuring that your trading partner is authenticated when creating an offer, you can tick some additional requirements when using streamlined trading.
While Streamlined Transactions is only for traders who use PayPal as a payment method, it’s still helpful to have a look.
A streamlined transaction is an automated transaction process where you don’t have to chat with the person you’re transacting with, and you can make some mandatory requirements to verify the buyer’s identity.
You can make the following requests:
- Selfie of transaction partner holding ID card
- Receipt, payment or transfer confirmation
Be sure to review user feedback before trading with them.
Users with lots of positive reviews are usually good.
Who would leave a bad review for a quick and easy trading experience? If you want to be more cautious, you can check out traders’ negative rating scores to see what others are saying.
Note that positive feedback is not the only way to tell if someone is reliable.
Paxful partners, ambassadors, or users with corporate accounts are subject to additional security checks by Paxful.
These users are also identified by successfully completing transactions and following Paxful guidelines.
Their medals are as follows:
These logos will appear on the user’s profile. Note that users with the above badges will also have a trusted icon next to their username when you view bids in the marketplace.
When you start chatting with a trade partner, be sure to keep it professional and to the point.
Make sure to only discuss trading topics in chat so that your counterparty can trade more effectively with you.
However, if you encounter any problems, we recommend that you cancel the transaction and contact Paxful’s customer support team.
Be sure to let the customer service team know what happened and who you’re dealing with. Next Paxful will help you.
Paxful’s escrow system is a third-party system where sellers’ BTC is deposited once a transaction begins.
Remember, once BTC goes into escrow, Paxful does not hold it.
Escrow can be thought of as a virtual safe, where users store BTC in a safe place for both parties to use, and can only enter this safe when payment is received and confirmed.
This is why we strongly advise against out-of-custody transactions.
When you are out of custody and trade on other information platforms, Paxful cannot guarantee the safety of your funds.
If you trade on Paxful, you can easily initiate a dispute should anything go wrong.
When a dispute arises, Paxful’s mediators review the dispute and award funds to the party who deserves it.
If you receive a message from the other party posing as a mediator or Paxful employee requesting you to conduct an out-of-custody transaction, we recommend that you initiate a dispute immediately.
Paxful’s mediators will never ask you to trade outside of escrow.
Two-factor authentication (2FA)
An easy way to protect yourself is to enable two-factor authentication for your account, which is the best way to verify account logins, transactions, sending and withdrawing funds.
This is also the first line of defense to prevent others from stealing your account.
You should also enable security questions with answers that only you know.
If you need help activating two-factor authentication, please visit the Help Center.
While you don’t necessarily need to provide a paper receipt when selling BTC, you do need proof of purchase. Please keep this type of “receipt”, it’s the best way to help you win in the event of a dispute.
What is a good receipt on Paxful? It depends on the payment method you use.
Let’s take a gift card transaction as an example.
A good, acceptable receipt can be a high-quality photo of the gift card with the code on the back of the actual receipt you purchased the gift card from.
For bank transfer transactions, it may be a deposit slip.
Be sure to save proof of purchase to support you in the event of false claims or misinformation.
By now, you may have heard about the controversy.
If you encounter a problem, the Dispute button is here to help you at any time.
However, knowing when to file a dispute will not only protect your money, it will save you time as well.
In order to trade effectively on Paxful, it’s important to familiarize yourself with all the security information we’ve mentioned, so you’ll know when you need the help of a mediator.
Your safety is Paxful’s top priority
At Paxful, they put your safety first.
Paxful will do the best to create a safe trading environment for everyone.
If you encounter any issues, you can always check the current status of the systems or contact the customer support team.
Please take these recommendations seriously to protect your money and your own safety.
In addition to this, these trading how-tos can also help you become a master trader. Now, let’s start trading!