FULL ULTIMATE PAXFUL REVIEW

Welcome to this Full Ultimate Paxful Review.If what you need is to buy criptocurrencies from a trusted entity and have your own personal wallet there, then Paxful is what you are looking for. Paxful will bring you with the best offers in a peer to peer marketplace and with more than 300 methods of payment available to use.We’ll cover all of that in this Full Ultimate Paxful Review.

• What’s Paxful
• How can we get started
• Why should I use Paxful, other alternatives
• How reliable is Paxful
• How profitable an investment using the Paxful platform is

Without further ado, let’s get started

If you would like a more visual presentation, feel free to check our youtube video.

What’s Paxful

Paxful is leading peer-to-peer bitcoin marketplaces used by millions around the world

What is the main purpose of Paxful

Empower the forgotten four billion unbanked and underbanked, so they have control of their money in a way they’ve never had before.

According to a 2019 report by the Federal Reserve, 22% of American adults (63 million) are either unbanked or underbanked.

Main Keywords:

• People-Powered Technology
• Free Crypto Wallet
• Secure

Basic requirements:

• You must be 18 years old or older.
• Have an Email address.
• Provide some sort of personal information for identification.
• Your country of citizenship is not on the list of banned countries.

How to get started

Creating an account on Paxful is pretty easy, just follow these steps:

1-Go to Paxful.com.

2-Click on get started and the click on create account.

3-Fill up the blanks with your information.

4-You will need to provide ID Identification and they should be up to date.

5-We are ready to go.

Alternatives to Paxful. The mayor and biggest alternative to Paxful is LocalBitcoin. This Full Ultimate Paxful Review will cover all the aspects needed two know between these two peer to peer platform.

Let’s compare these two:

Paxful and Localbitcoin

1-Design

2-Security

3- Methods of payment

4-Transaction fees

5- Reviews (Trustpilot)

Design

Localbitcoin has a classic design, it looks like it came right out of the 90s.

Paxful has a modern design and is better when considering the user-friendly interface.

Security

• Two Factor Authentication, or 2FA
• KYC: A Know-Your-Customer
• Escrow Feature

Two Factor Authentication, or 2FA, is used to make sure the security of online accounts beyond just an email address and a password

KYC: A Know-Your-Customer system while creating an account you need to provide valid personal documentation to prove your identity.

Both Localbitcoin and Paxful have escrow feature that aims to ensure a fair-trade experience for the buyer and seller.

What is escrow?

Escrow.com is the world’s most secure payment method from a counterparty risk perspective – safeguarding both buyer and seller, all funds transacted using escrow are kept in trust.

So what’s the process when using escrow.

1. Buyer and Seller agree to terms and condition of the trade
2. Buyer submits payment to Escrow
3. Seller delivers goods or service to buyer
4. Buyer approves goods or services
5. Escrow.com releases payment to seller

Methods of payment:

Paxful and localbitcoin have a lot of payment methods available: Bank Transfer, Online Wallet, Credit Card/ Debit Card payment, Cash,Digital Currencies, etc…

Transaction fees:

Localbitcoin

Registering, buying, and selling Bitcoin is completely free.

LocalBitcoins users who create advertisements are charged a 1% fee for every completed trade.

Transactions to wallets of other LocalBitcoins users are free.

Transactions to other Bitcoin wallets are subject to a sending fee.  The size of the fee changes depending on the current network congestion

When receiving bitcoins to a LocalBitcoins wallet, a deposit fee is deducted from the deposit. The fee varies on how congested the Bitcoin blockchain is. If your deposit amount is smaller than the deposit fee, the deposit will not be processed.

Paxful

When buying and selling cryptocurrencies, fees may apply varying from the payment group and if you are the seller o buyer.

Fees to the seller.

•  Paxful gets a 0.5% fee if the payment is made by Bank Tranfer
• 1% for Credit/Debit Cards, Digital currencies, Online Wallet,Cash, Goods and Services.
• 3% for all gift card types
• 5% iTunes and Google Play cards

There is no fee deducted by Paxful when buying cryptocurrencies. When purchasing cryptocurrency from another customer you are buying cryptocurrency at a rate set by the customers themselves.

Reviews(TrustPilot):

Localbitcoin:

Currently LocalBitcoin has about 26 reviews giving them a poor classification.

Paxful:

Currently Paxful has about 1,878 reviews giving them a poor classification.

Comparing Paxful and LocalBitcoin ratings Paxful seems slightly better with a 2.6 star rating compared to LocalBitcoin which has a 2.3 star rating.

How do TrustPilot work out the overall star rating and TrustScore?

It’s all based on reviewer feedback! And it’s more than just an average of all review star ratings. It takes a bunch of things into account, like the age of reviews and the number of reviews.

Those bad reviews come mainly from unexperienced buyers that get scammed trading on the platform, not by the platform itself. Overall Paxful is a better platform.

Here at Topemesh we give it a 4.5-star rating.

How profitable an investment in the Paxful platform is?

This Full Ultimate Paxful Review will explain mathematically and technically in details the profitability of the platform.

To find out, let’s do a real case study.

First we need to get our past trades on paxful. To do so, we followed these steps.

1. Go to paxful.com.

2. At the upper-right corner hover over the arrow pointing downwards, then click on Trade History.

A table like shown here should appear.

Here as you can see: We have the method of payment of the trade made by the account, which happen all to be Bank transfer or Domestic Wire Transfer. To the right we have the amount bought in BTC.it shows you the amount paid in your local currency, in this case is DOP, (Dominican Republic’s currency) and how much it’s worth in BTC at the moment of the purchase. And right below that we have the rate in which it was bought. This rate varies as the bitcoin price goes up or down and the rate set by the seller.

We now proceed to input these values into a spreadsheet that will help us determine the profit made after all expenses and the rates at which we bought our coins.

All values but Average rate shown in this table can be found in “Trade History” of Paxful.

To determine the average rate simply just add all the amount spent on Bitcoin and divide it by the total amount of coins earned.

In this case it gave us a rate of 47,741.78 USD/BTC.

Among the 5 trades made. This account earned about 0,02211173btc. And at that exact moment It was worth 1,124.13 USD.

So, we can get the rate by dividing the USD over the total bitcoins earned by that account, and that give us a value of 50,838.627.

So how profitable was my investment.

We’ll find that out with this equation.

• Let H be the amount of USD dollar in btc now.
• Let V be the average amount of USD in btc when first bought.
• Let P be the paxful fee.
• Let E be the total amount spent on bitcoin.
• A is the profit made after all fees.

Let say this is the case of John, who wants to cash out in a Bitcoin ATM nearby. For this he’ll need to send bitcoins from his paxful wallet to the atm wallet.

Paxful charges a 0.0004 bitcoins per transaction. So that’s our paxful fee. This Paxful fes is almost standard considering that they charge you that when the amount to be send is greater than 20 dollars, a small amount by the way.

So, let’s begin.

This is the equation used to determine our profit after all rates and fees.

• H=50,838.27 (We already calculated that amount)
• P=0.0004, That is the Paxful fee.
• E= 61,000 D.O.P in USD that amount right now is 1,055.654. For the sake of simplicity, we took the rate D.O.P over USD at this moment. However, this D.O.P over USD hasn’t change much, so we are good here.
• V= 47,741.78 USD, that’s the average rate USD over bitcoin we bought.

Let’s enter these values into the equation.

The Paxful fee in this case was 20.33 dollars. That give us a 48.14 USD net profit passively. First trade was in February 5^th. To this day March 3rd. It’s almost a month so we got a 4.56% return in a month. But that doesn’t mean that this is the ROI monthly that we should be getting always.

If Shervin Pishevar a venture capitalist and angel investor who co-founded Hyperloop One and Sherpa Capital prediction is right that by 2022 bitcoin will reach a price of 100,000 USD. That is H=100,000 USD.

Our Profit A would be equal to 1,115.52 USD. And the Paxful fee to be paid is about 40 dollars. 3.5% of the total profit. So, 2022 is currently in 10 months. So overall we’ll need 11 months to get to the 100,000 USD.That give us a 101.4 USD Monthly or a 9.09% return of investment monthly.

As we can see it can be very profitable at the current Paxful fee of 0.0004 bitcoin. The big factor here is whether bitcoin will reach that amount or not. So long term investing is key if you are just buying.

The Stock Market And Bitcoin

This Full Ultimate Paxful Review comes with a detailed explanation of the profitability of the Paxful platform comparing it to the avarage performance of the stock market.

Let’s compare it to the average stock market return for the last 10 years.

By looking at the S&P 500 from 2010 to 2019, the average stock market return for the last 10 years is 11.805%, which is a little over the annual average return of 10%.

What would be bitcoins equivalent annual return?

So, as you may know

• A=100,000 USD.
• r is the interest rate which is yet to be determined.
• n is the number of times interest is compounded per year, which in this case is equal to 1
• P is value of the investment, which in our case is 1.055,654
• T is the time in years, in this case is 11 month or 0.917 years

So, our rate r would be:

If that is the case, we should get a 142%-year return that’s 14.2 times average stock market performance yearly. Nevertheless, you should notice that this prediction expect bitcoin to double in value, which is something rare to happen for any stock on average, that’s why its yearly return equivalent is so high.

We have also to consider that cryptos are risky investment, even more than stocks.

Let’s get our hands dirty with another problem

How long should we wait before we can cash out our bitcoins or send them to an external wallet without netting a loss in our initial investment due to Paxful’s fees.

To address this, you should consider the following:

It depends on how much bitcoin goes up in value from the exact moment the bitcoins were bought

Take a look to this equation:

• Let X be the rate of change of bitcoin from the moment you bought the coins and now
• E as we know is the initial investment. How much you spent buying bitcoin
• H is the current bitcoin value in USD
• P is the Paxful external fee

This Full Ultimate Paxful Review will help you with that!

To break even you need the following:

Your initial investment needs to be big enough So that the bitcoin change in price X, won’t be a large percentage..

In the preview example our ROI was 48.14 USD. And X was equal to (50,838.627/ 47,741.78) = 1.065, that’s a 6.5% change in the price of bitcoin.

But what if I wanted to send my bitcoins to an external wallet right after I bought my bitcoins, what rate of change in bitcoin price would be necessary?

Remember John?, What if he told us that when the 1 bitcoin was worth 50,838.627 USD, he was able to send the bitcoins from the his paxful wallet to his coinbase wallet, without losing or gaining any profit. How much did bitcoin increase in value since his purchase in the paxful platform.

But what if I wanted to send my bitcoins to an external wallet right after I bought my bitcoins, what rate of change in bitcoin price would be necessary?

Or a 1.93%. That means that if I were to send bitcoins to an external wallet right after buying bitcoins without losing money the price of bitcoin must go up 1.93 percent. A small amount given that bitcoin increase and decrease in value around that percentage very often.

So there’s a relationship between the amount of bitcoins bought, also the rate at which bitcoins grows in value, and the profit to be made.

We start to earn profit when bitcoin grows in value  X times from the moment of the purchase.

You already know how it looks in a mathematical point of view.

We can see it graphically though, and here it is:

Constant: H and P

H = 50,838.627 USD.

P=0.0004 Bitcoins

As you can see a small investment require that bitcoin goes up in a very large amount if we want to take those coins out of the Paxful wallet. If we want to cash out or use it in an exchange like binance or Coinbase.

Investing an amount below the 500s (5 up to 20 percent increase in bitcoin price), isn’t a very bright idea.

You should notice also that if the price of bitcoin goes higher, in our case we used a bitcoin price of 50,838 USD, if we were to use 100,000 USD instead that 500 dollar recommended amount of investment shifts up to 1000 dollar, if the Paxful fees remains the same.

This Graph shows you how X changes as we increase the amount invested (E) in bitcoin. X Is huge when the initial amount is low, around 100 USD, and X will reduce as shown as we increase the initial amount

To Recap

• Paxful is currently the best peer to peer bitcoin marketplace.
• Paxful is secure enough nevertheless you need to open your eyes, scammers are everywhere.
• Investing in bitcoin can astonishingly outperform stocks.
• Paxful is suitable when buying if you hold for a long period of time if your investment is a small amount or if your investment is big enough to cover for all fees and make some profit.
• Long term investment and a buying big amount of bitcoin is the best way to make profit on paxful.

What are you waiting for, start investing now, remember the best time to start was yesterday the next best time is now.

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