Top Paxful Alternatives – Websites Similar to Paxful (2024)

Paxful was a leader in the P2P marketplace, but they decided to shut down around April 2023.

Now, if you are someone who has been using Paxful, and looking for sites similar to Paxful, we got you covered. In this guide, we will share all the top Paxful alternatives to use in 2024 and beyond.

Best Paxful Alternatives	Key Features
1. Binance P2P	✓ Simple & easy to use interface ✓ Zero Fees & Fast transactions ✓ 150+ payment methods ✓ Post trade advertisements ✓ Cash-in-Person Transactions
2. Bybit	✓ High no. of sellers ✓ 400+ payment methods ✓ No fees on buying and selling ✓ Supports more than 40 fiat currencies
3. LocalCoinSwap	✓ No KYC – stay anonymous ✓ Large no. of sellers ✓ 300+ payment methods ✓ Buying and selling are free ✓ 1% fee if you create an offer
4. Wazirx	✓ Easy-to-use interface ✓ Auto-matching P2P engine ✓ Zero transaction fee ✓ Safe with verified traders ✓ For Indian users
5. Noones	✓ Intuitive interface ✓ Buying is easy & streamlined ✓ 250+ payment methods ✓ Available globally
6. HODL HODL	✓ Low fee – 0.3% trading fees ✓ No KYC – stay anonymous ✓ 100+ different payment methods ✓ Lock the user’s funds in multisig escrow ✓ Available globally
7. Remitano	✓ Intuitive user interface ✓ Plenty of buyers and sellers ✘ 1% fee of the complete trade ✓ Highly secured ✓ Good customer support

Top Paxful Alternatives – Competitors and similar websites

1. Bybit P2P

Bybit which is one of the top 5 crypto exchanges by volume has a popular P2P solutions for traders around the globe. As in certain countries it’s not possible to buy cryptocurrencies using traditional banking method, Bybit P2P features aim to solve it.

Bybit P2P (Peer-to-Peer) is a trading platform that allows users to trade cryptocurrencies directly with each other, without the need for intermediaries.

Some of the key features of Bybit P2P include:

1. Wide range of cryptocurrencies: Bybit P2P supports various popular cryptocurrencies for trading, allowing users to diversify their portfolios and access a broad selection of digital assets.
2. No middleman: Bybit P2P enables direct trading between users, eliminating the need for intermediaries and potentially reducing transaction fees and delays.
3. Competitive prices: The peer-to-peer nature of the platform allows users to find competitive prices for their trades, as they are determined by the market participants themselves rather than a centralized authority.
4. Security features: Bybit P2P implements robust security measures, including two-factor authentication (2FA) and cold storage of user assets, to help protect users’ funds and personal information.
5. User-friendly interface: The platform offers an intuitive and easy-to-use interface, making it accessible for both experienced traders and beginners alike.
6. Customer support: Bybit P2P provides responsive and helpful customer support, ensuring that users can quickly resolve any issues or get answers to their questions.
7. KYC account – Bybit P2P buyers and sellers need to do Level 1 KYC. This prevents bad actors from scamming innocent users. Also, Bybit customer support is always there to resolve any disputes.

You can read our review of Bybit to learn about this platform. Watch the below video to understand how to create an account on Bybit, and get started.

2. Binance P2P –

Binance is a world’s popular crypto exchange that also offer P2P services. Using Binance P2P, you can buy cryptocurrencies or even sell in your desired payment method.

To start trading on Binance P2P, you need to open a free account (click here), and you need to complete your account verification. Email and phone verification is must in order to use Binance P2P.

Fees:

As a buyer, there are no fees for buying via Binance P2P. However, seller pays a nominal fees of 0.075% for every transaction.

The volume on Binance P2P is one of the highest, and the escrow service offered by them is one of the best. Binance P2P is available in all the jurisdiction apart from countries like USA, Singapore, Sanctioned countries and a few others.

You can read our earlier guide on Binance P2P and watch the below video to get started.

3. Noones

When Paxful was shut down, the founder Ray Youssef recommended Noones to all of its users. While Binance P2P, and Bybit P2P deals in all the cryptocurrencies, Noones only focuses on Bitcoin and USDT/USDC.

I do feel it’s a noble idea to focus only on one cryptocurrency, but as the crypto market is maturing, it is a good idea to offer more crypto to its users. I have talked more about Noones in my earlier guide on best P2P exchanges.

Noones is registered out of Europe and the United Arab Emirates. For KYC, the trade/send-outs volume threshold is $700 a day. Users will be alerted when they reach this limit.

Brief history of Paxful

Here’s a picture of the founder. When there are faces behind the company, it makes me feel more safe using them. I have names in case I need to report Paxful to the police (I’m kidding!)

Paxful was founded in 2015 by Ray Youssef and Artur Schaback. I did a bit of digging around LinkedIn and here’s what I found ….

Ray Youssef is the CEO and he was an ex software engineer. Artur Schaback, the co-founder of Paxful, was the founder of Kaizern, a software company that specialized in blockchain app development. 

Before Paxful.com, Paxful was involved in the bitcoin ATM industry. They also own Netcoins.app

According to their website, they have offices in New York City, Hong Kong, Manila, and Talllin. Nice! 

Okay, sounds great. But why should you use Paxful instead of Binance? Good question. 

Paxful differs from Binance in many ways. 

How useful is Paxful? Examples …

It’s Christmas and your relatives are visiting; they’re gorging themselves on turkey and baked beans. 

“Happy Christmas, sonny boy! Here are some gift cards and sweaters for you!” says Uncle Jim, half drunk.

He hands you a fistful of gift cards. 

But you want cash and crypto, not some useless gift cards to buy more pizza. You want to stack your bitcoins and retire on a private island before your 30th birthday. 

Imagine another scenario: 

An African man in Japan needs to send money back home to Africa but he doesn’t want to pay the outrageous 8% remittance fee. Is there another alternative?

Oh! Here comes Paxful: you can exchange your gift cards for crypto. Or you can sell Japanese fiat to buy crypto and send the money home (and bypass the outrageous 8% remittance fees)

(What I especially like about Paxful is that you can sell “obscure” Giftcards like Chili restaurant gift card and Forever 21 gift cards. It’s like they have the whole gift card market covered!)

You can do cash in person, cash by mail, cashier’s check, Money Gram, Bitcoin ATM. Wow! 

Hmm, that sounds wonderful. What about the process of buying crypto on Paxful? How does that work? 

I’m glad you asked because I’ll walk you through the process … 

How to buy and sell Bitcoin on Paxful?

You can buy crypto on Paxful in 3 simple steps:

1. You see a seller you like, start a trade
2. You send the payment and wait
3. The seller sends you the crypto

How do you know that the seller won’t run away with your crypto? 

Paxful acts as an escrow, which ensures the safety for you and the seller. 

Note: Paxful isn’t going to reimburse you if you’re doing business with a scammer. Always take precautions! (I’ll give you some tips below) 

When the trade is successful, leave the user a rating and comment. And tell the seller to do the same for you. After all, the feedback is a testimonial. 

The better your reputation, the easier the trade. People trust you more because your account has a good reputation.

Trading on Paxful is simple and streamlined. 

But wait, there’s more! I’ll talk about the fees, how to bitcoin anonymously, and precautions you should take when trading. 

What are the Paxful fees like?

If you’re buying, I have good news for you. It cost you $0 fees to buy because the burden is on the seller. 

If you’re buying bitcoin using bank transfer, credit card, online wallets, cash, or gift cards then there are no fees (however, the bank will charge you a service fee, won’t they …) 

However, if you’re going to use a debit card to directly buy bitcoin then the cost is going to be higher. I would recommend to you another site like CEX or Coinmama if you’re buying using debit directly.

What if you’re selling on Paxful?

There’s a fee.

However, if you’re the seller, then the fees range from 0.5% – 5%. Debit cards, cash, and online wallet have 1% fee and gift cards range from 3-5%. 

Here’s another important question …

What about ID? Could you buy bitcoin anonymously?

You can use cash and gift cards to buy BTC anonymously.

Paxful won’t ask you for ID if you have a tier 1 account. And if you’re buying BTC with gift cards, the merchant won’t ask for ID. However, if you’re using bank transfer then some merchants will require ID.

If you want to buy anonymously, you can always meet the person at your local coffee shop and exchange coins — “Hey! Here’s my cash. Now gimme some coins please …”

Is Paxful secure? 

Paxful hasn’t been hacked. 

When it comes to security, you need to keep your account secure. This means having a good password and using 2FA. 

The theft case in Paxful is minimum and there’s 24/7 customer service on the website, should you need any help. 

Warning! Take these precautions when buying or selling on P2P

The #1 problem is dealing with the merchant. 

You must only do business with people who have a high rating. This means the account is aged and has plenty of positive customer feedback. 

What if you send the money but the person doesn’t you the bitcoin? You can open a dispute and a moderator will look into the case. Hopefully, you won’t have to dispute. 

Oh yeah, there have been cases of Paxful freezing customers’ accounts. You shouldn’t leave your bitcoin on Paxful’s wallet. As the old saying goes “not your wallet, not your bitcoin.” 

Prevent your Paxful account from getting hacked! 

Hackers have hacked into Paxful accounts and sold them in the dark market.

Note: Paxful.com wasn’t hacked. Instead, the hackers tricked the users into giving their usernames and passwords via phishing attack.

So you want to make sure your account is safe with 2FA (2 Factor Authentication). You also need a strong and secure password. If possible, use Linux or macOS instead of Windows. 

Side note: I have heard stories of Paxful locking an account. But because the algorithm flags your account for being suspicious. For example, using Paxful to launder money or your account has too many disputes. 

If you’re using Paxful to only buy bitcoin, you should be fine. 

The #1 scam to watch out for

If you’re selling crypto on Paxful, you need to watch out for scams.  

What is a common scam?

Someone sells you a gift card but the card is already redeemed. Ouch. Avoid headaches by only doing business with well-established accounts. 

Carefully select who you’re doing business or else you’ll regret it. 

Which is your favourite Paxful alternative? What do you like about it? And why do you recommend the same?