In recent years, peer-to-peer bitcoin marketplaces have seen a rise in popularity. Contrary to traditional bitcoin exchanges, peer-to-peer marketplaces add a more personalized touch to the trading process, which creates an easier and more efficient way to trade.
One of the biggest peer-to-peer bitcoin marketplaces in the world is Paxful. The platform has over 2 million users and more than 350 payment methods to choose from—including bank transfers, a wide variety of gift cards, online payments like PayPal or Skrill, and many more. With Paxful recently celebrating its 4th anniversary, it would be interesting to see why the platform consistently rests as a top-tier platform in the bitcoin industry.
Paxful, a peer-to-peer juggernaut
Over its 4 years of existence, Paxful has come to obtain several key characteristics, which have been reflected in the way they operate their business. Here are some that really stand out:
When you sign up on Paxful, you’re immediately gifted a free bitcoin wallet so that you’re ready to start trading as soon as possible. From there, you can start searching for offers that suit your preferences. Offers give as much detail as possible to make sure you’re able to choose one that will best meet your needs. This includes how much bitcoin you’ll be getting on the dollar, what currency the vendor prefers, step-by-step trade instructions, and sometimes even the country of the vendor. The point is, there are a lot of ways for vendors to personalize their offers and there are plenty of ways for buyers to filter out offers they don’t prefer. This makes trading extremely quick and efficient.
There is also a reputation system that allows traders to determine if another user may have bad intentions. Paxful has also implemented an ID verification program to ensure that people who trade on Paxful are doing so in a safe environment. With a good escrow service and a dedicated 24/7 customer support team, Paxful is one of the safest places to buy and sell bitcoin.
There are tons of ways to make money
With Paxful being a peer-to-peer marketplace, there are a lot of opportunities for money-making. There are also a lot of ways to save money. A good example would be the use of gift cards. Paxful specializes in gift cards, allowing people to get them at discounted prices. Instead of using a credit card, you can obtain gift cards with bitcoin! Just head over to the offer list and look for users that want to trade their gift cards for your bitcoin. In most cases, these will come at discounted prices, making it cheaper and faster than going to the nearest convenience store.
The thing is, any peer-to-peer marketplace will tell you that there are a ton of ways to earn money on their platforms, but Paxful steps it up a notch by providing one of the best bitcoin affiliate programs in the world. It’s one of the best because it comes in two tiers:
- Tier 1 affiliates – These are your direct affiliates. They’re the users who signed up on Paxful using your direct link. From these affiliates, you’ll get 50% of the collected escrow fee for every completed transaction.
- Tier 2 affiliates – If your tier 1 affiliates are those that signed up using your link, tier 2 affiliates are those that signed up using the link of your tier 1 affiliates. From these tier 2 affiliates, you’ll get 10% of the collected escrow fee for every completed transaction.
With a great affiliate program like this, you can work your way towards earning a steady passive income.
The big picture
With everything that has been said, it should be noted that sometimes, there’s more to all of this than just bitcoin—and Paxful understands that completely. Their #BuiltWithBitcoin campaign is an example of the good that can come from digital currencies. It’s their way of showing the world that there are many real-use cases of the charitable causes bitcoin can contribute to.
The #BuiltWithBitcoin campaign, in partnership with ZamZam Water, has led to the construction of two schools in Rwanda (as well as irrigation systems), a donation of 13,000 rands worth of bitcoin to GROW with Educare Centers, and the issuance of educational scholarships for female Afghan refugees.
Why Paxful is huge in Africa
Along with the two schools and irrigation systems that were built in Rwanda, Paxful has really made a name for itself in many countries throughout Africa. They have hosted several events there, including blockchain meetups and campus tours, all with the purpose of educating Africans about bitcoin/cryptocurrency and what it can do for their communities.
Since then, Africans have taken advantage of cryptocurrency in a good way by discovering real-use cases. Here are a few examples of how Africans are using cryptocurrency to fix real-life problems:
Traditional remittances require the services of Money Transfer Operators (MTOs) and Remittance Service Providers (RSPs). Sometimes, this can be a slow and expensive way to send money abroad. These services aren’t always the most transparent when it comes to the status of your funds. Cryptocurrency remittances have proven to be the perfect way to circumvent the fees and long waiting times, and it has become a popular way to use cryptocurrency in places like Africa, where the population is severely underbanked.
Just like the way it’s used for remittances, bitcoin and other cryptocurrencies make it easy for people to pay for a wide range of things. Credit cards in Africa may have low spending limits, sometimes as low as $100 USD, which may be too low to make critical purchases. Cryptocurrencies provide an alternative to making payments—an alternative without limits.
Africa’s economy has and may continue to experience a significant amount of inflation. In fact, this is happening to fiat currency in Africa today and people are using cryptocurrencies as a means to preserve their wealth. By putting their money into cryptocurrency instead of leaving it in their fiat form, their funds will be protected from extreme inflation.
Give it a shot
Paxful is easy to use and it’s the type of platform that actually listens to its users. Try investing a small amount of money at first and try your hand at buying/selling on the platform. If you have friends that are interested in joining, you can use your affiliate link to start earning passive income.