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.
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 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 (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)
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 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.
- Nigerian Naira Token (NGNT)
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.
Peer-to-Peer is a type of network where participants communicate directly with each other rather than through a centralized server. The Bitcoin network is a peer-to-peer network.
This is a currency where the value is designed to remain the same as a designated asset. In the cryptocurrency world, the term “pegged” usually stands for a digital currency with its price connected directly to the price of a stable conventional currency, such as USD or EUR. A pegged cryptocurrency is also referred to as a stablecoin.
Tether is one of the most popular pegged cryptocurrencies. Here are three examples of Tether being pegged to conventional currencies:
- 1 USDT is pegged to 1 USD.
- 1 EURT is pegged to 1 EUR.
- 1 CNHT is pegged to 1 CNH.
A Power Trader is a special user status on Paxful. In our marketplace, Power Traders are users who gained extra recognition due to their professional and impeccable behavior when trading with others. In addition to following Paxful’s buying and selling guidelines, Power Traders also have high trading activity. All Power Traders have additional benefits and receive a badge that indicates their status to other Paxful users.
A price point is the suggested retail price of a product, and it is determined in a way that competes with prices of other products. A product may be introduced with a specific price point, but the price may be altered depending on current demand and competition. Some price points may not be available for the public, and every exchange platform sets its own price points.
A private key is a string of data (letters and numbers) that shows that you have access to Bitcoins in a specific wallet. Think of a private key like a password; private keys should not be shared with others as they allow you to spend Bitcoins from your Bitcoin wallet through a cryptographic signature. It is similar to your password when online banking.