Paxful is a peer-to-peer market where anyone can list and sell their bitcoins. Think of it as eBay for bitcoins except you control how you get paid. There are over 300 ways to sell Bitcoin on Paxful.
A 2 Minute Video On Paxful
The top 5 most popular payment methods might even be able to get you started as a seller today. If you don’t see a payment method that you want to accept listed on Paxful you can submit it to be added to the categories. There are categories for everything from Xbox Live cards to Cash by Mail.
The general ‘profit rule’ is the bigger the risk, the more sellers charge for the exchange. I recommend sticking to low risk trades especially as a new seller.
Selling Bitcoin for cash can be a little side gig or even a stay at home opportunity. So when people ask me how to make money quickly from their bitcoins I tell them about Paxful. Legacy sellers and top traders make a few hundred to thousands a week.
Of course there are tons of ways to buy and sell bitcoins, Localbitcoin, Kraken, bitrex, coinbase, etc.. but since Paxful is what got me into crypto, I figured pass on what I’ve learned.
So as promised here is my breakdown: Selling Bitcoins on Paxful.
What is the goal of a Paxful Seller?
The goal of a Bitcoin seller on Paxful is to make a profit off of the sale of bitcoin. So as an example;
If one Bitcoin is valued at $3000, as a Bitcoin Seller if you were to charge 3% to exchange your Bitcoins you could make $90 from that sale.
Since this is a decentralized industry and Paxful is a peer-to-peer exchange you are free to charge whatever you’d like.
Also keep in mind, as a seller you have to pay attention to the rate you buy bitcoin at. From my experience, there are always ways to make gains selling bitcoin even if you start at a loss point (Charge a higher percent to cover your loss) however, if you buy bitcoin low and sell when bitcoin is a bit higher, you make money two ways.
How Much do Sellers Make on Trades?
Sellers can easily make 4%-10% per sale. I’ve seen sellers make more than 250% on a single trade.
It all comes down to demand and the methods of payments that you accept. I’ve experimented with a lot of methods on the site, learned about the safe ways to sell and messed up a bit dealing with the risks associated.
When it comes to risk assessment on Paxful the two main issues you want to be aware of are the scammers and the chargebacks. (Usually the scammer is the cause of the chargeback)
A ‘chargeback‘ is when you sell bitcoins for a payment method other than cash and after the exchange is done, the buyer chargesback the payment, or reverses it. Leaving you with no bitcoin and now no money. So it’s imperative to your success as a seller to keep them at a minimum.
How to avoid chargebacks?
•Avoid doing high risk trades.
•If you do them vet your buyers.
•Only take small amounts.
•Make sure the buyer is the owner of the payment method.
•Make sure pictures are not photoshopped.
•Make sure gift cards were purchased with cash by requiring the receipt.
•Avoid large risky trades.
•Never release your coins from escrow before confirming/receiving your payment.
•Always double-check everything.
•You always reserve the right to cancel trades if someone is fishy.
•Look at the buyers feedback and trade history for red marks.
As you get more experience in selling on paxful experimentation with the payment methods is a good thing, just keep in mind the general rule of any investment —
Never put in more than you can risk to lose.
What You Need To Sell: An ID To Pick up Your Money Transfer
Cash Bank Deposit
What You Need To Sell: A Bank Account or Credit Union That Accepts Walk In Cash Deposits from Non-Members.
What You Need To Sell: A Verified PayPal Account in Good Standing.
Visa/MasterCard Gift Cards
What You Need To Sell: A Credit Card Processor
Cash in Person
What You Will Need To Sell: A mobile phone or tablet that can access Paxful
Once you decide what payment method you want to accept and you have bitcoins in your Paxful wallet, its time to create an offer. This is pretty much an advertisment for your bitcoins. A buyer contacts you based on your offer and you message them with your seller instructions.
How To Create an Offer
1. Log in your Paxful account and go to your Dashboard
2. Create New Offer
3. You then select I want to Sell Bitcoin
4. Choose the currency you want to accept,
5. In payment method type in Western Union or MoneyGram.
6. Enter your % markup $$
For WesternUnion and MoneyGram
Generally markups for these methods are between 4% and 13%.
7. Select your minimum trade amount and maximum trade amount
Or select predetermined amounts.
8. Your payment window is how long the trade is open before it
automatically cancels. WesternUnion and MoneyGram trades
take between 30 minutes to90 minutes
depending on how fast the buyers send and you pick up.
9. Write up your *Offer Terms* these are important.
They are shown to the buyer before they open the trade to show what’s
required and what to expect when trading with you.
For Western Union and MoneyGram terms can say things like
– When the trade is opened, type “Hi”
I will send you the name, city and state to send payment to
-Take a Clear Picture of your WesternUnion
receipt with the MCTN circled.
-Type Out Full Name, City and State used to send.
– Allow me XX minutes to pick up the payment, once payment is
received I will release Bitcoin from Escrow.
-If directions are not followed I reserve the right to refuse trade.
In trade instructions you can reiterate your terms and/or give the
information they need to send you cash.
10. Then click Create Offer.