There are many ways to make money online with your smartphone or laptop and one of them is cryptocurrency trading.
The cryptocurrency market is a multibillion-dollar market from which crypto enthusiasts can amass wealth through crypto trading. Crypto trading does not happen in an empty space, there must be a medium through which the trade will take place.
Several cryptocurrency trading platforms have emerged over the years, each offering its unique services to crypto traders. Good examples of such popular platforms are Paxful and Coinbase.
As a crypto trader, you may have come across both trading platforms but you’re unsure of the best between both or the features they both possess as crypto trading platforms.
Since Paxful and Coinbase top the list of most crypto traders, this article seeks to compare and contrast the features of both platforms to help you make a more befitting choice.
Features and Services
A. Paxful:
Paxful is a major peer-to-peer(P2P) crypto trading platform for the leading market cryptocurrencies. Paxful was launched in 2015 and since then, it has been the best choice for many users, especially users who enjoy P2P trading.
On Paxful, buyers and sellers interact and agree on the prices of their digital assets without the intervention of any third party.
The platform avails users of many payment methods such as; Bitcoin payment, American Express, gift cards, debit/credit cards, PayPal, Neteller, Skrill, Visa, wire transfer, Ethereum payments and Google wallets.
Users are entitled to a free digital wallet after signing up on the platform. This digital wallet securely stores the user’s digital assets on the platform.
Paxful is known for very high transaction fees compared to other crypto exchanges. There’s no fee when you buy and receive crypto on Paxful and sellers are charged a fee of 1% on all digital assets and 5% on gift card trades.
Security on Paxful is top-notch, given that BitGo which supports multi-sig wallets empowers the Paxful wallet, and the users are assured of large security opportunities.
Additionally, the platform is imbued with an Escrow service which ensures that each party involved in a trade are equally satisfied. How does this happen?
The Escrow service holds the Bitcoin in its account until both parties confirm their satisfaction with the trade.
Paxful identifies users and also establishes trust among buyers and sellers and encourages them to be on their best behaviour through its know-your-customer (KYC) policy and its rating system. Each trader’s credibility can be accessed by other traders by their rating on the platform while the escrow system helps to establish trust among platform users.
B. Coinbase:
Coinbase is a crypto trading platform where users can buy, sell and trade over 200 types of cryptocurrency. This exchange is a large one and it has been in the crypto space since 2015, with over 100 million active users and active in over 100 countries. The exchange migrated to a more advanced trading platform known as “Coinbase pro”.
This advanced version of Coinbase was created for more experienced traders, imbued with more advanced trading tools and charges lower fees compared to the traditional Coinbase brokerage service.
The platform allows users to utilize different payment methods such as; wire transfer, bank account ACH, debit/credit cards, PayPal, Apple pay, Google pay, and cryptocurrency deposits.
Coinbase trading fees can be vague sometimes due to its fee structure which is not very clear and understandable. You can only know the fee you’ll be charged until the order creation process and this depends on the payment method, market condition and order size.
However, Coinbase’s old fee structure showed that the platform charges a 1.49% fee for most transactions and 3.99% for bank card transactions.
Coinbase is quite secure for your cryptocurrency as the platform offers a crypto wallet called the “Coinbase wallet” and other several security services to users which ensures their assets are safe. Some of these security services include; 2-step verification, password management, Coinbase vault, enhanced account protection, lock my account, security prompt etc.
User Experience
A. Paxful:
The Paxful trading interface is very easy to use without prior knowledge of the app. The platform is available as a webpage and mobile app. All you need to do after signing up is to click on the “New order” button to place a bid or ask for an order.
In the case of any confusion or trouble, customer support is always active. You just need to click on the live chat button to initiate a conversation with one.
Also, the FAQs are well-equipped with enough answers that may suit any of your needs.
According to customer reviews online, the Paxful trading platform offers good quality services and makes crypto trading effortless. Most Paxful users are very satisfied with the platform’s quality of service.
B. Coinbase:
Coinbase crypto exchange has an awesome and well-designed interface both in the webpage and mobile app versions. This makes the platform very simple and easy to use without much stress.
Just like Paxful, Coinbase curated a large volume of FAQs where users can find solutions. However, the live chat button from which users can chat with customer agents is also available on the platform.
You can also use their best toll-free number 0091888-908-7930 to get to them.
According to numerous customer reviews online, Coinbase has very slow customer support. Many users have expressed their dissatisfaction with the low-quality customer service given by the crypto exchange.
Cryptocurrency Availability
A. Paxful:
There is a limited number of cryptocurrencies offered by Paxful compared to other platforms. You can only buy and sell cryptocurrencies such as Bitcoin, Ethereum and Tether(USDT) on Paxful.
There is a limit to a user’s trade depending on their verification. Level 1(phone number) users have a trade limit of $1000, level 2(email and ID) is $10,000, level 3(address) is $50,000 while a fully verified user or level 4 can trade above $50,000.
B. Coinbase:
Coinbase crypto exchange offers quite a good number of cryptocurrencies more than Paxful. Some of the most popular coins you will find on Coinbase include; Bitcoin, Ethereum, Litecoin, Shiba Inu, USD coin, Solana, Avalanche, Polygon etc.
There is no trade limit to how much crypto you can trade on Coinbase but sometimes accounts can be limited by an algorithm which considers factors such as location, transaction history, verification steps completed, payment method, account age etc.
If you’re looking for an exchange with varieties of cryptocurrencies, then Coinbase should be your best shot but remember that the trade limit on your account can change or be restricted at any time compared to Paxful where trade limits are officially defined.
Conclusion
Paxful and Coinbase are great crypto exchanges where you can easily trade your crypto depending on your needs. The future of crypto trading is safe with the two exchanges as they continue to equip users with the best and most convenient means of trading crypto.
While Paxful offers users a P2P setting with limited listed coins for crypto trading, Coinbase gives options for more varieties of cryptocurrency coupled with advanced trading tools.
Though fees on Paxful are quite lower and more precise than Coinbase, both platforms are secure and easy to use. So you can be the judge and choose the most suitable one for you.
