Paxful | Bitcoin WalletApp Store
Our wallet review process
We examine wallets starting at the code level and continue all the way up to the finished app that lives on your device. Provided below is an outline of each of these steps along with security tips for you and general test results.
Application build test result
(Analysis from Android review)
According to their TOS:
The hosted digital currency wallet service provided by Paxful is a secure method of storing, sending, and receiving digital currency. Paxful does not store or custody any Digital Assets. Digital Assets are always stored on its respective networks or blockchains.
and further down:
Paxful reserves the right to refuse to process any transaction if required by law or if we deem the transactions to be against our terms and conditions in this Agreement.
So although they claim “does not store or custody”, they also claim to be a “hosted […] wallet” and to have the power to “refuse to process any transaction”.
That sounds an awful lot like a custodial service.
Our verdict thus is: not verifiable and probably custodial.
Tests performed by Leo Wandersleb
Do your own research
In addition to reading our analysis, it is important to do your own checks. Before transferring any bitcoin to your wallet, look up reviews for the wallet you want to use. They should be easy to find. If they aren't, that itself is a reason to be extra careful.