Topic: Setting balance between security/liquidity (Read 165 times)

I can't say which is better but "big risk, big reward"
If you can't afford to lose then you should check their identity, would be good if you check their identity not so detail (just some things you really need to check)

You are right, but at least you have an effort to avoid yourself from become a victim to scammers. Not all scammer is smart enough, by checking your customer identity you can assume that you have eliminated those stupid scammers.

Russia, I don't understand how it changes anything...


Sorry, do you mean my overall trade volume on platform or upper limit of trade offer? I already have traded $500 or so

It's customary to require some kind of verification if buyers are using a reversible payment method. I suppose you could scrap the ID requirement for anyone who already has Level 2+ verification on Paxful. Maybe even Level 1 for really small trades. Obviously this exposes you to the risk of hacked Paxful accounts.

Increasing the value of your offers could help. People trading $1,000 are less likely to be bothered by KYC since Paxful already requires phone verification at $1,500 total volume and ID verification at $10,000.

Are you charging a premium? How much feedback do you have and is it all positive? Are you using popular payment methods? Maybe the verification procedure isn't the only problem.

May I know your country please? It would help me to give you a better reply.

personally I also don't like to provide my ID to a random stranger who is trading on Localbitcoins or Paxful or any other similar platform, especially for a small value trade like $150 or so! I would simply overlook any trader who would ask for my ID for such a low value trade because I have lots of options to bypass such demand. If not, I would definitely like to blur all my details and keep the name intact if it suffices the requirement of the trader!

So looking at the trade amount you are having, I would suggest you to drop the idea of collecting ID from people. It would certainly give your offers more attraction and probably it will lead to more sales and more profit. If you are planning to extend your trade volume to $700+, you may re-think of asking IDs, but it literally doesn't make sense at this amount!

I'm not sure if this sort of question should go to this forum branch, please suggest a better forum section if you think this topic has to be moved.

I'm paxful trader, and sometimes I see notifications about users looking at my offers, but not taking them. I am sure this is partially because of my identity check procedure, where a customer should present a photo of his passport(if he doesn't wish some data to be shown, he can blur it) with his payment method's account name. Honestly I don't like it myself when I am being asked to do it, but how can I otherwise check a user is not fraud/hacker/etc?

My offer limits are within range of $10-$150, perhaps I'll extend it in future. This is not big money, maybe I shouldn't worry about fraud with these offer limits at all? Who knows, many customers are living in countries where $150 is treasure. There are some from USA and EU, of course.

Do you think I should set this $10-$150 offer without id check requirement?

How can I check my customer's identity if I should at all? There are people who can in fact "sell" their identity to his partner, register accounts for themselves, and give him control over it. My checking procedure is just senseless against them. But having my own accounts blocked for suspicious transfers is not good as well.