Paxful, a peer-to-peer (P2P) platform for trading Bitcoin (BTC), has announced its suspension of operations just two months after LocalBitcoins, another P2P platform, closed its platform to millions of users. This news has come as a shock to African P2P traders from countries such as Nigeria, Kenya, Ghana, Cameroon, South Africa, Egypt, Uganda, etc., who used Paxful as a source of daily income. Paxful had previously invited LocalBitcoins users to transfer accounts to its platform. However, the recent announcement has caused frustration among users, who have now switched to other alternative P2P platforms like Noones and Binance, both of which have some of the best offers, like Paxful.
Youssef, the founder of Paxful, has expressed frustration with U.S. regulators, stating that the company has been trying to comply with the highest standards for the past five years, but the regulators still don’t seem to understand. This move has forced traders who have built a long-lasting and strong reputation with Paxful to start all over again as new traders on a completely new platform. Despite this setback, Paxful has been one of the most trusted P2P trading platforms and has impacted many African youths through community education programs about Bitcoin and blockchain technology. The news of its suspension of operations is indeed a new beginning for traders in Africa.
Paxful allows users to buy and sell Bitcoin and other cryptocurrencies using various payment methods, including bank transfers, gift cards, and mobile money. Here are some ways that African traders made money trading with Paxful:
Buying low and selling high: African traders buy Bitcoin and other cryptocurrencies at a low price on Paxful and sell them for a profit when the price goes up.
Arbitrage trading: Paxful allows traders to buy and sell Bitcoin and other cryptocurrencies at different prices across various countries and payment methods. African traders can take advantage of these price discrepancies to make a profit.
Providing liquidity: African traders can provide liquidity to the Paxful platform by creating buy-and-sell offers that attract buyers and sellers to the platform. They earn a commission on each trade executed on their offers.
Affiliate marketing: Paxful has an affiliate program that rewards traders for referring new users to the platform. African traders can earn a commission for every user they refer who completes a trade on the platform.
Trading gift cards: Paxful allows traders to buy and sell gift cards for Bitcoin and other cryptocurrencies. African traders can buy gift cards at a discount and sell them for a profit on the platform.
It is important to note that trading cryptocurrencies comes with risks, and traders should only invest what they can afford to lose. African traders should also be aware of the regulations and laws governing cryptocurrency trading in their respective countries.
Francis Chinedu is a Nigerian-born digital marketing specialist, a bitcoin and blockchain enthusiast, and a YouTuber who enjoys covering events that empower young Africans, especially in technology.