Tips for Buying Cryptocurrency

Modified on Wed, Oct 16 at 1:56 PM

Buying cryptocurrency can be tough at first, so we've prepared a guide to get you started and help you complete a trade on Paxful.


The minimum trade amount on Paxful

If you’re buying Bitcoin, the current minimum is 10 USD or its equivalent in other currencies. If you’re selling, then the minimum is 0.001 BTC.


The seller’s reputation and activity

A seller’s reputation is displayed with a green thumb.  


This is the total of all of the positive feedback the seller has received.


Clicking on the seller's name will show their full profile, where you can see how much negative feedback they've received in addition to the positive. You can also see their location, all of their active offers, and other important information about them.


 
Pay attention to each type of 
feedback: positive and negative.


For example, despite having more than 10,000 positive feedback scores and 1,000 negative feedback scores, you should still be cautious about such a user. Pay attention to the percentage of negative feedback in relation to the negative and positive ones. Also, do not forget to check for 
how long a user has been present on our platform.


It is also much better if the seller is 
ID-verified. This means that we have checked his documents and background.
Additionally, check when the seller was 
last seen online on Paxful. This will help to make sure that you will have a quick trade without any delays from the seller’s side.


Always read the terms of the offer and the seller's instructions before you start a trade.

Sellers should mention what they expect and what you will need to provide.

For instance, with Bank Transfers, sellers need a confirmation receipt to verify that the transfer was successful. If you’re asked for this information and can’t provide it, it’s advisable not to proceed with the trade. However, if you can meet all the requirements, ensure you have everything prepared before beginning the transaction.


Be aware of the price.

The Bitcoin price on Paxful is never equal to its official market rate, as sellers charge a fee to convert traditional currency into Bitcoin.


The price of the fee varies among sellers and depends on who you buy from. So be on the lookout for the best deals. The offer page always includes the rate for each seller. What should interest you the most is how much you get per dollar.



Click the Paid button only when you have made a payment.

Once you’ve clicked the Paid button, the countdown timer stops, and the trade can no longer expire. 


This is important because if you send the seller the payment information, such as bank account details, and the offer expires, then the escrow is released and you won’t get your cryptocurrency.


The Paid button also provides security from dishonest or forgetful sellers. If you click the Paid button and you haven’t paid, the seller might think you’re a coin-locker or someone trying to scam them. Be sure to click the button only once you’ve paid to prevent complications.




Don't cancel the trade after you've already paid.

We know that problems sometimes arise during trades, but it's important to never cancel the trade after you've already paid the seller. 


If you've paid for your crypto but something has gone wrong, you can start a dispute! Beginning a dispute brings a Paxful Moderator in to help with the situation. If you cancel the trade, Moderators aren't able to help, and getting a resolution will take longer.



Using third parties to make payments is not encouraged

You must be the actual payer and the original owner of the submitted payment (Owner of the credit card, bank account, or account on an online payment platform). Being a middleman in paying for the cryptocurrency is not allowed and can be considered a scam.


Always trade for the whole amount of the prepaid card

If you have a $50 prepaid card, then you can’t trade it for a fraction of that (e.g., Asking someone to take only $33 out of your $50).


Note that the seller can only take the whole amount, so if you start an order for $33 and he takes $50, the only way to get your change back in cryptocurrency is by starting a new trade for the difference. Seller’s ranges may not meet that amount, or the seller may take down their offers or go offline.


Never ask the seller to release the cryptocurrency first.

This is grounds for an instant ban as it indicates a scam. We have a trade escrow service, so you know the crypto is there and waiting for you once you complete the payment.


Be polite to sellers.

They go through a lot of tough customers, and being polite can save you a lot of time. Being polite is about a lot more than your language; it’s about following their instructions as well. Note that if there is a dispute, the moderator will take language into account.


Not Interested? Cancel!

If you are no longer interested in the trade and have not yet paid the seller, feel free to cancel the trade. It will free their escrow and let them continue to trade with others who are interested.


If you don’t cancel the trade and leave it hanging, the seller will have to file a dispute or report you, which will probably result in you getting negative feedback. You can see all of your active trades on your dashboard. Click Chat to open the trade, and click Cancel to cancel it.



Also, remember that any price negotiation is strictly forbidden. If you do not like the offer, do not insist on changing the price in the same trade. Just start a new trade with new values to avoid any disputes or misunderstandings with the seller.


If you need any assistance from our Support team, do not hesitate to contact us. Check out this article on How to Contact Support.