Paxful vs Coinbase: In this comprehensive comparison, we evaluate the key aspects of both platforms to assist you in determining which exchange aligns better with your specific trading requirements. We look into factors such as KYC verification procedures, supported countries, product and cryptocurrency variety, transaction fees, deposit options, and beyond. Continue reading to uncover the ideal exchange for your trading and investment endeavours!
Paxful and Coinbase are two well-known cryptocurrency exchanges that cater to different needs and audiences.
Coinbase was founded in 2012 by Brian Armstrong and is US-based exchange and wallet provider known for its user-friendly interface, security, and regulatory compliance.
Coinbase exchange
Coinbase offers a range of services, including spot trading, recurring buys, staking, and Coinbase Learn & Earn, an educational program that rewards users for learning about cryptocurrencies.
The platform supports more than 200 cryptocurrencies including Bitcoin, Ethereum, Solana, Cosmos, Avalanche in addition to multiple fiat currencies.
Coinbase has over 100 million users worldwide, mainly based in countries in North America and Europe. It is available on both Android and iOS with 10 million downloads and a 4.1-star rating based on over 750,000 reviews.
Coinbase app
On the other hand, Paxful was founded in 2015 by Ray Youssef and Artur Schaback with a focus on providing a peer-to-peer platform for buying and selling digital currencies.
Paxful peer to peer exchange
Its mission is to empower the unbanked and underbanked population. Paxful allows users to buy cryptocurrencies and convert money with the choice of over 350 payment methods, including gift cards, debit and credit cards, bank transfers, online wallets, and more.
Paxful has headquarters in New York with offices in Estonia, the UK, Dubai, and other countries. It has over 400 employees and has bootstrapped its exchange to over 10 million global users.
Paxful is also available on both Android and iOS with over 1 million downloads and a 3.3-star rating. However, Paxful only supports the buying and selling of four cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), USDT (Tether), and USDC (Circle).
So while Coinbase stands out for its extensive range of cryptocurrencies, features and services, Paxful focuses on providing accessibility and a wide range of payment methods, targeting the unbanked and underbanked population.
Paxful vs Coinbase KYC Requirements
When it comes to signing up for cryptocurrency exchanges like Paxful and Coinbase, the process is relatively quick and straightforward, but there are some variations in the KYC requirements.
Signing up for an account on Paxful can be done by providing either an email or a phone number.
Once the email or phone number has been verified, users are prompted to complete the KYC process in order to start buying and selling Bitcoin. KYC is mandatory on Paxful, and no transactions can occur without a verified account.
Users who conduct phone verification can buy up to $1,000 worth of Bitcoin, while those who also verify their identity with a valid government ID can buy and sell up to $10,000.
Paxful KYC
The signup process on Coinbase is also quite swift, taking about 1 minute to complete as users just need to enter full name, email and password to get started.
Coinbase signup
KYC is required on Coinbase as well. The KYC verification process for Coinbase involves submitting the required documents which usually takes a few minutes to complete, and can be approved in a few hours.
So in terms of KYC requirements, both Paxful and Coinbase have a straightforward signup process that can be completed in a matter of minutes. KYC verification is required for both exchanges in either way.
Paxful vs Coinbase Crypto Products
Paxful is a peer-to-peer (P2P) cryptocurrency exchange platform that primarily focuses on the buying and selling of Bitcoin and Ethereum. It provides a marketplace where users can directly connect with each other to facilitate transactions.
Buy BTC on Paxful
Paxful offers more than 300 payment methods, making it highly accessible for users around the world.
Paxful wallet
When a trade is initiated, the Bitcoin being sold is held in escrow by Paxful until both parties confirm that the transaction is complete. This P2P model allows individuals in underbanked countries to access cryptocurrencies using various local payment methods.
However, the product offering on Paxful is limited to the buying and selling of Bitcoin and Ethereum, and the user experience is centered around P2P trading.
Sell BTC Paxful
Coinbase is one of the largest cryptocurrency exchanges that offers a wide range of features and services. It allows users to buy and sell more than 200 popular cryptocurrencies like Bitcoin and Ethereum through spot trading.
Coinbase spot trading
Coinbase also offers lending and borrowing services, allowing users to earn interest or get loans using their digital assets. The exchange provides staking services for users who hold Ethereum, Solana, Cardano, and other supported cryptocurrencies.
Coinbase earn
Users can also participate in the Coinbase Learn and Earn program to learn about cryptocurrencies and earn digital assets as rewards. Coinbase has its own non-custodial Web 3 wallet and a Coinbase Card that allows users to spend cryptocurrencies and earn cashback.
Coinbase web 3 wallet
Additionally, Coinbase recently introduced its own NFT marketplace to cater to the increasing demand for digital art and collectibles.
In terms of user experience, Paxful offers a different exchange experience compared to Coinbase. Paxful's platform is designed to cater to people in underbanked countries, and the interface is more focused on P2P trading.
Prices on Paxful can vary widely, as they are set by individual users who can set their own prices. This can result in higher transaction costs compared to traditional exchanges.
In contrast, Coinbase provides a beginner-friendly and easy-to-navigate website. When it comes to spot trading volumes, Coinbase has a much higher liquidity compared to Paxful with frequent daily spot trading volumes exceeding $1 billion. Coinbase also caters to institutional clients with offerings like Coinbase Custody and an OTC trading desk.
When it comes to trading fees, Paxful and Coinbase have slightly different approaches. Let's take a closer look at each exchange's fee structure and what it means for their users.
Paxful charges a 1% sell fee for users selling via various methods such as bank transfers, credit/debit cards, digital currency, online wallets, or even goods and services. However, if you're selling gift cards, the fees increase to a 5% commission.
One notable aspect of Paxful's fee structure is that it only charges sellers, meaning buyers don't have to worry about any additional fees.
Coinbase does not currently offer futures trading, so users looking for those options might have to explore other exchanges.
However, Coinbase does provide an opportunity to lower trading fees if monthly trade volumes exceed $10,000. So, for active traders or high-volume users, this could be a substantial advantage.
Both exchanges have their own perks and conditions when it comes to their fee structures. Paxful's fees are relatively straightforward and great for buyers who don't have to worry about any costs while Coinbase overall has lower maker and taker fee then Paxful's sell fee.
Paxful and Coinbase differ in terms of the deposit methods they offer. Paxful does not support any type of fiat currency deposits.
This means that users cannot directly deposit traditional currencies such as USD, EUR, or GBP into their Paxful accounts.
Instead, the only option for depositing funds on Paxful is through cryptocurrencies and Paxful does not charge any fees for deposits.
Users can deposit Bitcoin, Ethereum, Tether USD, or Circle USD into their Paxful accounts, which can then be used for trading or other transactions on the platform.
On the other hand, Coinbase offers more flexibility when it comes to depositing funds. Coinbase supports three fiat currencies: USD, EUR, and GBP.
Coinbase fiat deposits
Users can deposit these currencies directly into their Coinbase accounts using various methods. For USD deposits, users can choose to deposit funds via ACH (Automated Clearing House) transfer, which is free of charge.
Wire transfers, on the other hand, incur a fee of $10 USD. For EUR deposits, users can use SEPA (Single Euro Payments Area) transfers, which have a deposit fee of 0.15 EUR. GBP deposits can be made via Swift transfer, and there is no fee associated with this method.
Starting with Paxful, we need to first highlight that it does not support any fiat currencies for withdrawal. Instead, users can withdraw cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), USDC, and USDT.
The withdrawal fees for Bitcoin vary depending on the amount being withdrawn. For smaller amounts under $10, the fee is 0.00008 BTC, while for amounts over $20, the fee is 0.0004 BTC.
The withdrawal fees for Ethereum range between 0.002 ETH and 0.0005 ETH. As for USDT and USDC, the fees are dynamic and can range from $1 to $10, depending on network activity.
Moving on to Coinbase, this exchange offers a wide range of withdrawal methods for both fiat currencies and cryptocurrencies.
For fiat withdrawals, users can choose from options such as ACH, Wire, SEPA, and Swift. ACH withdrawals are free of charge while Wire withdrawals come with a fee of $25 USD. Coinbase SEPA withdrawals have a fee of 0.15 EUR and Swift withdrawals have a fee of 1 GBP.
When it comes to cryptocurrency withdrawals on Coinbase, the fees vary depending on the specific cryptocurrency being withdrawn.
For Bitcoin, the fee is 0.0002 BTC while for Ethereum, it is 0.000768 ETH. Solana withdrawals come with a fee of 0.008 SOL and for USDT (ERC-20), the fee is 3.55 USDT.
Paxful and Coinbase provide users with different options when it comes to withdrawing funds. While Paxful focuses solely on cryptocurrencies and offers dynamic fees based on network activity, Coinbase offers a wider range of withdrawal methods for both fiat currencies and cryptocurrencies.
In conclusion, Paxful and Coinbase are two well-known cryptocurrency exchanges that cater to different needs and audiences.
While both exchanges have their unique strengths, Coinbase appears to have an advantage in terms of extensive features and services offered.
Coinbase stands out for its user-friendly interface, security, and regulatory compliance. It provides a comprehensive platform for trading, investing, and learning about cryptocurrencies, making it suitable for both retail and institutional investors.
Additionally, Coinbase supports over 200 cryptocurrencies, offering a wide range of options for users.
On the other hand, Paxful focuses on providing accessibility and a wide range of payment methods, targeting the unbanked and underbanked population.
It allows users to buy and sell only 4 cryptocurrencies in Bitcoin, Ethereum, USDT, and USDC via over 350 payment methods.
When it comes to the signup process, both Paxful and Coinbase require KYC verification before their users can user any services.
In terms of trading fees, Paxful charges a 1% sell fee, with higher fees for gift card transactions. Coinbase, on the other hand, has a different fee structure with spot maker and spot taker fees that start at 0.40% and 0.60%.
When it comes to deposit methods, Paxful only supports cryptocurrency deposits, while Coinbase offers the flexibility to deposit funds in USD, EUR, and GBP through various methods.
Coinbase as such is clearly the more versatile and user friendly exchange while Paxful was design to cater mainly to a very specific use case of P2P-transaction in underserved countries.
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Author
Jack Moreau
Jack is a crypto writer and reviewer who has been active in the space since he caught the crypto bug in 2017. With a passion for trying out new shiny things, Jack is always eager to try the latest cryptocurrency exchanges, wallets or DeFi applications.