Two Factor Authentication (2FA) is an additional layer of security where the user provides two different authentication factors to verify themselves. This is often used to protect the user's credentials and any resources the user is trying to access (such as the Paxful platform). Only the user can access their specific 2FA alert, and these alerts are sent as an SMS to the user’s phone or Google Authenticator (GA).
Anti-money Laundering (AML)
AML refers to a set of laws, regulations, and procedures intended to prevent people from disguising illegally obtained funds as legitimate income. Paxful takes AML protocol seriously, and we abide by all laws, regulations, and procedures.
A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
Bitcoin address types
There are three bitcoin address formats currently in use:
- P2PKH addresses start with the number 1.
- P2SH addresses start with the number 3.
- Bech32 addresses also known as "bc1 addresses" start with bc1.
- QR Codes can also be used as a wallet address.
Paxful allows withdrawals to P2PKH, P2SH, and Bech32 addresses.
- P2PKH addresses start with the number 1.
Bitcoin wallet address
A set of letters and numbers which Bitcoin can be sent to and from. A Bitcoin address can be shared publicly, and like sending a message to an email address, a Bitcoin address can be provided to others that wish to send you Bitcoin.
Here is an example of a Bitcoin wallet address:
A wallet address can also be presented as a QR code.
Block chain, blockchain
The Bitcoin block chain is a public record of all Bitcoin transactions. You might also hear the term used as a “public ledger.” The block chain shows every single record of bitcoin transactions in order, dating back to the very first one. The entire block chain can be downloaded and openly reviewed by anyone, or you can use a block explorer to review the block chain online.
Coin Locking or a coinlock is when a buyer holds onto a seller's cryptocurrency in a trade escrow without an intention to make payment and complete the trade. This is a common case of cryptocurrency fraud.
A cold wallet is a Bitcoin wallet that is in cold storage. It is considered hardware that is not connected to the internet. When you are not connected to the internet, your Paxful wallet becomes a cold wallet.
A confirmation means that the transaction has been verified by the network, through the process called mining. You receive a confirmation for sending out Bitcoin. Once a transaction is confirmed, it cannot be reversed or double spent.
Cryptocurrency or digital currency is a type of currency that uses cryptography instead of a central bank to provide security and verify transactions. Bitcoin is the first developed cryptocurrency.
Your Paxful Dashboard is your hub for all your cryptocurrency trading needs. It is your personalized tool for accessing all the information you need. There are 4 different types of dashboards on the Paxful website: Classic, Vendor, Merchant, and Affiliate Dashboard.
Classic Dashboard: This is the default dashboard where you will see your active trades and shortcuts for buying and selling cryptocurrency. On this dashboard, you can also create and edit your offers, see your past trades, see the overview of your affiliates, and account activity.
Vendor Dashboard: On this dashboard, you can see your active trades, an overview of your affiliates, your sales charts, offer stats, feature requests, and canceled trade survey results. You can create and edit offers here.
Merchant Dashboard: This dashboard exclusively applies to users who are using the “Pay with Paxful” feature. The Merchant Dashboard is where merchants can see their sales for the last 28 days.
Affiliate Dashboard: This is the dashboard to track your affiliates and your affiliate commissions from the Paxful Affiliate Program. You can find your affiliate link on this dashboard to share it with your network. On the affiliate dashboard, you can create unique trackable links in the ‘Track ID’ section.
A dispute is an argument or disagreement between people or groups. Disputes on Paxful are useful when a trade does not go as planned. When arises misunderstanding, miscommunication, disagreement or any other controversion between parties. When a dispute is started, a moderator will intervene to help settle the trade.
An escrow fee covers the cost for the escrow service being provided.
ETH or Ethereum
ETH or Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications. Like Bitcoin, Ethereum is a distributed public blockchain network. the Ethereum blockchain focuses on running the programming code of any decentralized application. In the Ethereum blockchain, instead of mining for bitcoin, miners work to earn Ether, a type of crypto token that fuels the network.
An exchange or cryptocurrency exchange is a digital marketplace where traders can buy and sell crypto using different fiat currencies or altcoins. Cryptocurrency exchange platforms match buyers with sellers. Like a traditional stock exchange, traders can opt to buy and sell cryptocurrency by inputting either a market order or a limit order.
Fiat or fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material from which the money is made. Fiat money only has value because the government maintains that value, or because two parties agree on said value. Fiat money was first introduced as an alternative to commodity-backed money.
Google authenticator or GA
Google Authenticator is a mobile application that implements two-step verification services using the time-based one-time password algorithm and HMAC-based one-time password algorithm for authenticating users of mobile applications by Google.
Authenticator provides a six- to eight-digit one-time password which users must provide in addition to their username and password to log into Google services or other sites. The Authenticator can also generate codes for third-party applications, such as password managers or file hosting services. Previous versions of the software were open-sourced but subsequent releases are proprietary.
1) A unique identifier of a Bitcoin transaction.
2) A mathematical function that Bitcoin miners perform on blocks to make the network secure.
A hot wallet is a Bitcoin wallet that resides on a device that is connected to the internet. A wallet installed on a desktop computer or smartphone is usually a hot wallet.
Know Your Customer (KYC)
KYC is a term used to describe how businesses, such as Paxful identifies and verifies the identity of its users. KYC is part of AML. For more information on Paxful’s KYC protocol visit our page in the Help Center.
A physical or electronic log book containing a list of transactions and balances typically involving financial accounts. The Bitcoin blockchain is the first distributed, decentralized, public ledger.
Margin is an amount added on top of the cost price to get to the final selling price or the gross profit.
It can be calculated in a fiat amount or in a percentage. A margin can be both positive and negative, and a negative margin means that you expect the buyer to pay for the item less than its cost price.
A computer or group of computers that add new transactions to blocks and verify blocks created by other miners. Miners collect transaction fees and are rewarded with new bitcoins for their services.
Bitcoin miner fees are small amounts of bitcoin given to incentivize bitcoin miners (and their operators) to confirm Bitcoin transactions.
Bitcoin mining is the process of using computer hardware to do mathematical calculations for the Bitcoin network in order to confirm transactions. Miners collect transaction fees for the transactions they confirm and are awarded bitcoin for each block they verify.
We’ve recently added NGNT as a payment method. NGNT is a Naira token, which is a pegged stablecoin against the Naira. You can buy and sell both Bitcoin (BTC) and Tether (USDT) with NGNT in the Paxful marketplace.
For more information on how to buy and sell crypto in the Paxful marketplace, check out these articles:
On Paxful, offers are specific trade proposals that are split into two types: Buy offers and Sell offers. These proposals have offer options that include fixed currency rates (USD, Euro, etc), cryptocurrency exchange rates, and many different payment methods.
Buy offer: This is a trade proposal created by users who are trying to buy cryptocurrency in exchange for a different payment method (i.e. gift cards, fixed currencies). Payment methods are set by the buyer in this instance. Users can find buy offers here.
Sell offer: This is a trade proposal created by users who are trying to sell cryptocurrency in exchange for a payment method set in the offer. Users can find sell offers here.
Who can create an offer?
An offer can be created by any user. It is important to note that some of the offers require a bond, a minimum balance in your Paxful wallet or KYC.
Why create an offer?
You can trade on Paxful by searching for existing offers. But in this case, you depend on the terms of others. Creating your own offer gives an option to set your own terms, trade partner-related requirements, and create a flow of trades.
An offer term(s) is a short description of the requirements needed before a trade begins. In the offer term, buyers can describe additional information needed to complete the sale of the offer. An offer term often includes the buyer’s preferred payment method and a list of actions that the seller needs to complete to make the trade successful.
Note: Offer terms must be in accordance with Paxful Terms of Service.
Paxful Affiliate Program
An automated electronic program that involves a Web advertiser and recruited webmasters. A relationship in which a merchant pays you (the “affiliate”) for links from your site to his site. Usually, the affiliate is paid only when an actual sale is made by the merchant as a result of your link. The Paxful Affiliate Program is a quick way to make a few extra bucks by sharing the platform with friends, family, and even followers.
Paxful Pay is a button you can put on your personal webpage on any shopping cart or app that lets buyers pay without bank accounts or credit cards. Payments go through Paxful website which allows buyers to pay with their Paxful wallet balance or by using one of the available payment methods.