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Why is Paxful Closing Down?
Peer-to-peer (P2P) trading platform Paxful has announced that it will be shutting down its marketplace and requested its users to withdraw their funds. The decision comes at a time when the cryptocurrency industry is recovering from a year-long slump.
The company’s co-founder and CEO, Ray Youssef, revealed that Paxful’s closure was due to some key staff departures and regulatory challenges in the peer-to-peer market, particularly in the US. Furthermore, the company faced a lawsuit from one of its co-founders, who was ousted a year ago, which resulted in the departure of senior-level staff and left the company with a $6 million compliance bill. Youssef defied a court order preventing him from closing down the company, citing ethical concerns about operating an unsafe platform.
Paxful was a popular P2P trading platform in sub-Saharan Africa, recording a 140% rise in users in the year to November 2022, and had an average weekly trading volume of KSh297.9 million ($2.23 million) in Kenya alone. Despite the closure of the platform, users are not expected to lose any funds.
Paxful Alternatives
Following the closure of Paxful, users may want to consider transitioning to other P2P trading platforms. The crypto market has grown substantially in the past few years, and there are now many more options available for users to choose from. In this article, we will go through some of the top crypto exchanges in the world that can serve as a great alternative for Paxful.
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1. Binance
Binance is a well-known name in the world of cryptocurrencies. It is a Hong Kong-based cryptocurrency exchange platform that has quickly risen to fame due to its popularity and trustworthiness. Binance is currently considered the largest cryptocurrency exchange platform in the world in terms of daily trading volume and liquidity. One of the key reasons for its popularity is its sophisticated all-in-one platform, which includes a smooth account creation process, low trading fees, and advanced trading tools for experienced investors. Unlike many other cryptocurrency exchanges that focus only on promoting popular currencies like BTC, ETH, and Litecoin, Binance has hundreds of altcoins on its platform. That makes it a go-to platform for investors who want to explore newer and lesser-known cryptocurrencies.
Additionally, Binance launched its own cryptocurrency, Binance Coin (BNB), in 2017. Since then, BNB has gained a reputation among cryptocurrency investors as a lucrative currency to invest in. The token is used for paying trading fees on the Binance platform and has seen a significant rise in its value over the years, making it an attractive investment opportunity for many. With its growing reputation and popularity, Binance has expanded its services to include a range of products, such as Binance Smart Chain, Binance Launchpad, and Binance Academy, making it an all-encompassing platform for cryptocurrency investors.
2. eToro
eToro is a popular online trading platform that was founded in Tel Aviv in 2007. Originally focused on forex, indices, and commodities trading, the platform has since expanded to include cryptocurrency trading as well. In fact, eToro was one of the earliest adopters of crypto trading, adding support for Bitcoin all the way back in 2014.
Today, eToro is a trusted exchange that continues to attract new users thanks to its user-friendly and interactive platform. One of eToro’s unique features is its “social trading” functionality, which allows users to learn from one another and even copy the trades of successful investors. This can be especially helpful for beginners who are still learning the ropes of the crypto market.
In addition to social trading, eToro offers a feature called “CopyTrader“, which allows users to automatically copy the trades of top-performing investors. This can be a great way for new users to learn the ins and outs of the market without having to make all the decisions on their own.
While eToro currently only supports trading in around 30 cryptocurrencies, it does include many of the most popular and valuable ones, including Bitcoin and Ethereum.
Overall, eToro is a great alternative to Paxful for anyone looking to start trading in cryptocurrencies. With its beginner-friendly interface, social trading functionality, and strong reputation in the industry, it’s no wonder that eToro has become one of the most popular crypto exchanges around.
3. Bybit
Launched in 2018, Bybit has been rapidly gaining popularity within the crypto community. One of the primary reasons for its success is its exceptional 24/7 customer service and user-friendly website. Unlike many of its competitors, Bybit has no system overloads, providing users with a seamless trading experience. What’s more, the leadership team behind Bybit is continuously pushing the boundaries of what a crypto trading exchange can offer. For instance, the platform enables users to deposit not only Bitcoin but also altcoins and trade with them, making it stand out in the market. Interestingly, the founders of Bybit have an impressive background, having previously worked for companies such as Tencent and Morgan Stanley.
Apart from offering spot trading, Bybit also offers margin trading, and users can leverage up to 100x. However, it is essential to note that completing the Know Your Customer (KYC) process is mandatory for trading more than 2 BTC per day. The process requires users to submit identity proof to comply with the platform’s strict security measures.
In conclusion, Bybit offers a unique and seamless trading experience with a robust leadership team and top-notch customer service. It’s innovative features and commitment to security make it a reliable option for both novice and experienced crypto traders alike. Make sure to read our complete Bybit tutorial before trading Bitcoin
4. Kraken
Kraken, a veteran player in the crypto market, offers a reliable and secure alternative to Paxful. Founded in 2011 and launched in 2013, Kraken has established itself as one of the most trusted exchanges, with a spotless security record. Unlike other exchanges, Kraken has never been hacked, making it a preferred choice for users looking for a secure platform to trade on.
In addition to its security features, Kraken offers advanced trading features like margin and futures trading, making it an attractive option for experienced traders. The exchange also offers a staking service that allows users to earn passive income from their staked assets. With over 220 cryptocurrencies available for trading, including popular coins like Bitcoin, Ethereum, Cardano, and Litecoin, Kraken offers a diverse range of options for users to choose from. Kraken has also been expanding its services, recently launching a mobile app for both iOS and Android users, making it more accessible to a wider audience.
The exchange is also known for its robust security measures, such as two-factor authentication and cold storage for users’ assets. Kraken has a strong reputation in the crypto community and is regulated by multiple financial authorities, including the US Financial Crimes Enforcement Network (FinCEN). Moreover, Kraken has a user-friendly interface and offers excellent customer support to its users. With its long-standing reputation and reliable security measures, Kraken is a solid choice for users looking for a trustworthy Paxful alternative.
5. PrimeXBT
PrimeXBT is a dynamic cryptocurrency exchange that stands out in the market for its innovative features and services. The exchange offers high leverage and low fees, making it an attractive option for both novice and experienced traders. One of the most notable features of PrimeXBT is its copy trading function, which allows users to automatically replicate the trades of successful traders. This feature is particularly useful for new traders or those with limited experience who want to learn from the experts.
The platform is built on advanced technology, ensuring fast and reliable execution of trades. Additionally, PrimeXBT prioritizes transparency and security, offering a user-friendly interface that allows for easy monitoring of trades and account balances.
PrimeXBT offers trading in a range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, among others. The exchange is constantly expanding its offerings, adding new cryptocurrencies to its list of available assets.
Overall, PrimeXBT is a great alternative to Paxful, offering users a unique and modern trading experience. Its innovative features, reliable technology, and commitment to security make it a top choice for cryptocurrency traders. You can also read our detailed PrimeXBT review by clicking on the highlighted text.
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Final Thoughts:
In conclusion, if you’re looking for a reliable and secure alternative to Paxful, there are a variety of options available to you. Each of the exchanges mentioned in this article has its own unique features and benefits, whether it’s Binance’s vast range of trading pairs, Bybit’s excellent customer service, Kraken’s advanced trading options, PrimeXBT’s user-friendly platform, or eToro’s social trading features.
Ultimately, the best alternative for you will depend on your specific needs and preferences. It’s important to do your own research and take into account factors such as fees, security, user experience, and available cryptocurrencies. With so many great options to choose from, you’re sure to find the right alternative that suits your trading needs and goals.
