In every industry, there’s always a rivalry between two perceived good products. The debate will continue to linger despite the many comparisons because it’s pretty challenging to choose the best between two things that possess almost the same features.
In the crypto industry today, many platforms offer crypto trading services and other financial services to people. Good examples of these platforms are Paxful and Binance.
These two platforms were mainly established for crypto trading, and both are Peer-to-Peer trading platforms. Binance was just a crypto exchange before the P2P platform was inculcated.
However, the two platforms have many similarities and some dissimilarities, which have created controversies and debates about a better platform.
This article will compare both crypto trading platforms, their features, services, pros and cons.
Features and Services
Paxful is a P2P crypto & digital assets trading platform where buyers and sellers can interact on the prices of assets, the condition of payments and methods of payments without the intermediation of a third party. Paxful users enjoy a variety of payment methods, such as;
American Express, Ethereum payments, Google walkers, Neteller, Paypal, Visa, Skrill, Bitcoin payments, Wire transfer, Credit/Debit cards.
Paxful is a secure platform for crypto trading, imbued with a high-security protocol. Users are also advised to add a second layer of security to their Paxful accounts by setting up two-factor authentication(2FA).
Given that Paxful is a P2P platform with many users whose identities may not be known, the platform protects two parties in a trade from fraud using an Escrow system. This locks the fund or asset being traded until the parties have confirmed their mutual satisfaction with the trade.
Paxful is quite easy to navigate thanks to the platform’s simple user interface. Without any prior tutorial, one can efficiently execute a successful trade on Paxful.
Binance is the world’s biggest cryptocurrency, established in 2017. The success of Binance can be attributed to the large pool of trading pairs on the platform. About 353 coins are listed on the platform, with more than 1390 trading pairs available.
Binance users enjoy the availability of various payment methods on the platform, such as; Bitcoin payments, Credit/Debit cards, ACH transfer, Visa, Flutterwave, Mastercard, Google wallets, Ethereum payments, Samsung Pay etc.
There are no fees on Binance deposits, but users pay a flat fee for withdrawals. However, this fee is not fixed; it fluctuates according to some factors, like network congestion. The less congested the network is, the less the withdrawal fees and vice versa.
The best medium to enjoy the Binance platform is the Binance mobile app, which is available in both the Apple and Google Play stores.
Pros and Cons
If you’re looking to trade with a Paxful P2P crypto trading platform, then you should know some of the benefits and disadvantages you may incur from the platform. Some of these advantages include the following;
- Fixed Trading Fees: Paxful platform charges selling fees of 0.5% for bank transfers, 1% for crypto and credit/debit cards, and 3% fees on gift cards.
- Biometric Verification: Users can operate their accounts with their biometric verification, making it quite difficult for intruders to tamper with them.
- Over 300 Payment Methods: Paxful offers its users more than 300 payment methods, giving them a pool of options.
- Quick Customer Support System: Paxful is well-known for having a responsive and quick customer support system ready to help users.
- High Exchange Rates: Sometimes Paxful users experience high exchange rates while converting fiat to crypto on the platform.
- Unregulated Digital Currency Exchange: If you’re looking for a regulated platform, then Paxful may not be your best choice. This platform is not held in any country, though it complies with the KYC standard.
- Probability of Seller Scams: Even though the platform ensures the verification of users, especially sellers, there is still a probability of scam cases.
Binance is also an excellent crypto trading platform, especially if you’re considering P2P crypto trading; here are some pros and cons to consider before using Binance.
- Multiple trading pairs: Binance offers users multiple fiat-crypto and crypto-fiat trading pairs.
- Simple User Interface: The platform has a simple user interface which anyone can easily navigate.
- Low Trading Fees: Even though the trading fees are not fixed, Binance is known to have relatively low trading fees.
- Fast Trades: The fastest platform to trade crypto pairs is the Binance platform.
1. Complex Verification Procedure: The verification procedure of Binance is quite complex and rigid; sometimes, new users may get frustrated by the whole process.
- Poor Customer Support: The platform may be good in trading and customer welfare, but customer support needs improvement.
- Limited Country Support: Binance does not operate in every country of the world, especially in those where crypto is prohibited. The platform doesn’t operate in all US states.
Paxful has a perfect customer support system that users can leverage whenever they need help on the platform. The platform is imbued with Paxbot, an automated assistant through which users can file a support ticket and get a response from [email protected].
Users can also get help from any of the Paxful social media platforms.
Unlike Paxful, Binance customer support is not so swift and decisive. Given many users’ reviews, the Binance platform’s customer support is not available and quick in response.
Users can always use the live chat option on the app or reach out using Binance customer support.
Paxful and Binance are both good crypto trading platforms depending on the type of crypto trader you are. You will enjoy Paxful more as a P2P trader who majors in Bitcoin. The platform will give you the benefit of choosing from varieties of prices and numerous payment methods.
Binance, on the other hand, can serve as a P2P crypto trading platform(Binance P2P) and a crypto exchange where traders can trade large fiat and crypto pairs.
By now, you should be about to know which exchange is best suited for your crypto trading needs and go with it.