Following the announcement by LocalBitcoins, a popular peer-to-peer cryptocurrency exchange, that it will be shutting down its operations, millions of its users are now searching for alternative P2P exchanges to resume buying and selling cryptocurrency and continue earning passive income. LocalBitcoins had built a great reputation among its users, particularly in Africa, where it had a large client base in countries such as Nigeria, South Africa, Kenya, Ghana, Cameroon, Morocco, and Egypt. Despite facing stiff competition from other major exchanges like Binance and Paxful, LocalBitcoins managed to secure a significant market share in the region.
The recent announcement of LocalBitcoins’ closure has presented an opportunity for its competitors to gain new customers. On February 14, 2023, Paxful wasted no time and swiftly invited LocalBitcoins users to import all their data to a new Paxful account. The company created a form to simplify the process, encouraging users to switch over before they seek other alternatives like Binance. The move by Paxful has resulted in a significant increase in its client database, as many LocalBitcoins users have migrated to the platform with ease.
How therefore does Paxful operate?
Paxful is a peer-to-peer (P2P) cryptocurrency exchange platform that allows buyers and sellers to trade digital currencies directly with each other. It works by providing a platform where users can post offers to buy or sell cryptocurrencies, and other users can accept those offers and complete the transactions.
To start trading on Paxful, users need to create an account, verify their identity, and add funds to their account using one of the available payment methods. Once the funds are added, users can browse the available offers or create their own offers to buy or sell cryptocurrencies.
When a user finds an offer they like, they can accept it and start the trade. The buyer will then transfer the payment directly to the seller, and the seller will release the cryptocurrency to the buyer’s Paxful wallet once the payment is confirmed. Paxful acts as an escrow service to ensure that both parties complete the transaction successfully.
Paxful supports a wide range of payment methods, including bank transfers, online payment platforms, gift cards, and cash deposits, allowing users to trade cryptocurrencies using their preferred payment method. The platform also provides a dispute resolution process to help users resolve any issues that may arise during the trading process.
In summary, Paxful works as a P2P marketplace that connects buyers and sellers of cryptocurrencies, allowing them to trade directly with each other using a wide range of payment methods while Paxful acts as an escrow service to ensure the security of the transaction.