There are a lot of different ways to purchase bitcoin these days. It might be confusing for some people in the very beginning, but thanks for and coin base are two different ways to start the investment process. While Paxful is a peer-to-peer option for people to turn to, Coinbase is more of a broker that helps with each and every transaction.
With such polarizing differences, it is easy to see why so many people are strongly for one over the other. The true fact is, there are advantages to both, and it really depends on each individual. Here is a closer look at Paxful vs Coinbase, hopefully helping people make a smarter decision overall.
What is Paxful?
For some people, using a marketplace to purchase and sell Bitcoin is the best way to go about things. Paxful was developed to make everything easier overall, as they connect buyers and sellers from all around the world.
In order to get started, a person just needs to select their preferred payment method and the amount of Bitcoin they are looking for. From there, they will be shown a number of options that definitely can be considered.
Currently, the user base is around 50,000 people. It is continuing to grow, and many enjoy the different type of platform compared to some of the others. Bitcoin can be purchased with a bank transfer, PayPal, Amazon gift card, iTunes gift card or Western Union. Along with those very popular options, there are hundreds of other ways to make a payment.
What are the Pros of Paxful?
If Anonymity is something that a lot of people are looking for, Paxful is going to be the only way to get that. This is great for people who want to be a bit more discreet with their investments, and it is simply unavailable with Coinbase.
Paxful is very quick when it comes to getting Bitcoin and transferring the currency. A person does not really have to wait at all, as just about every transaction goes down instantly.
Another thing that can slow some people down with Bitcoin is having to go through verification. There is no verification process with Paxful, as a person is dealing with another peer directly. Of course, the lack of verification goes both ways, so a person is less protected.
What are the cons of Paxful?
It can be fairly expensive to deal with packs for on a regular basis, because the fees do get up there overall. If a person plans to make a lot of transactions, it might be better to look elsewhere.
Lack of safety features
Bitcoin does have the reputation of drawing some less than desirable people to work with. Since it is a peer-to-peer platform, a person needs to do their own due diligence before making any transaction. There are not a lot of safety features compared to Coinbase. Each person’s individual experience with the platform is going to be dependent on the individual seller.
What is Coinbase?
Many people who are used to trading stocks or making purchases in a traditional matter will gravitate towards a company like coin base. It is the leading bit coin exchange service out there right now, and they pry themselves on being the most secure option available for those interested in bitcoin.
Every single transaction is overlooked by the broker, so a person doesn’t really have to fear the chance of being ripped off. Customers have a lot of different payment methods, although not as many as on Paxful. The most common payment methods include a bank account, debit card, Interac Online and SEPA transfer.
What are the pros of Coinbase?
Coinbase is one of the most protective platforms out there when it comes to getting and selling bitcoin. While it might feel restrictive at times to some, it helps to protect each person. There is an identity verification process that each person needs to go through, and they need to deposit a certain amount of money in the account before moving forward.
Pricing is a little bit better with Coinbase compared to Paxful, but the fees can still add up a little bit. It goes up to 4% in some cases, but a lot of people are willing to pay that amount to have the extra bit of security. It is definitely a trade off for some, but it is about average for overall fees.
If a person is just starting out with Bitcoin, there is a lot to digest in a short amount of time. It can be a little overwhelming for some, which is why Bitcoin veterans usually recommend coin base for those just starting now. Everything is thoroughly explained, there are a lot of checks and balances and just about everyone is familiar with how things work.
Coinbase also has a pretty useful customer service option for people who still have questions. They are available during normal business hours, which is always a plus if a person feels a bit overwhelmed.
What are the CONs of Coinbase?
Paxful really pride itself on having anonymous options, but everything is tracked on Coinbase. In fact, some people might feel like they are being tracked a little bit too much. The company has access to how users spend bitcoin and all of their transactions as well. This might not be something that many people are all that happy with.
Process can be drawn out
Since there are a lot of checks and balances with Coinbase, each transaction is going to take a little bit more time than most people are willing to budget for. Sometimes a single transaction can take weeks if there is a slight hiccup.
Since the two platforms are very different, it is hard to recommend one over the other. Those who are just starting out are probably going to gravitate towards Coinbase, but veterans might find Paxful to be a little bit less restricting.
There’s nothing against having an account on both, but Coinbase is probably the better place to start early on.
Arnold Webb received a Masters Degree in Computer Science from Harvard University. Arnold currently is a full-time researcher and trader in the cryptocurrency industry. Arnold contributes content to CryptoCelebrities.co, The Bitcoin Magazine and several other publications.