What Paxful has learned over five years in the cryptocurrency space

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This year marks Paxful’s fifth year in operation and it’s taking some time to reflect on its journey thus far.

That’s not to say the firm has anything to regret, quite the opposite.

Paxful now boasts 4.5 million registered wallets and recently reached a trading volume of $4.6 billion. On top of that, each year has seen one million new users signing up to the platform with an additional two million expected to join Paxful by year’s end.

On its journey, the firm has learned a few lessons and one of those lessons is that while there might be a few big players in the cryptocurrency sector, there is still room for newcomers.

“We welcome seeing more players enter the space, as it raises awareness and educates the public on the crypto-economy and P2P finance. It contributes to the growth of economic opportunity and financial inclusivity for people around the world as more individuals are using bitcoin in their everyday lives,” says co-founder and chief executive officer at Paxful, Ray Youssef.

So with opportunity seemingly available, what can Paxful share with others looking to get into the space.

Safety, safety, safety

It should be obvious that the safety of users should be paramount but above and beyond implementing safety measures, it’s about constantly investing in new safety measures, keeping up with compliance and managing risk.

Over and above that, many users are still very confused by cryptocurrency and incidents such as Silk Road and Dread Pirate Roberts, and robberies of cryptocurrency exchanges don’t help the cause.

It’s for this reason we see firms like Paxful and Luno embarking on education campaigns to inform users about what cryptocurrency is and why it’s rather safe.

Emerging markets growing fast

Cryptocurrency is popular all over the world, but Paxful says that in emerging markets there is a growing appetite for financial tools.

“Bitcoin continues to change the way people manage their finances. Our customers in Latin America, Africa and Southeast Asia are getting around the limitations of their financial systems by realizing the full potential of the Bitcoin-economy, using it for both personal finance needs and entrepreneurial ventures including paying bills, purchasing goods and services, and building businesses,” says Youssef.

But beyond just appetite from users, there is growing demand for professionals versed in blockchain.

Mindful of this, Paxful highlights how important investing in the next generation of talent is. We saw this last week with the announcement of several free webinars that the public can attend to learn about cryptocurrency, and blockchain.

In addition to nurturing talent, Youssef also says that partnerships in this industry are vital.

“We are witnessing more industry collaborations that successfully play to each other’s strengths, adding value, increasing functionality and unlocking more trading options for customers. We are always excited to partner with businesses who share our passion and vision of economic freedom, a world where everyone has equal access to finance, no matter who they are, or where they are from,” the co-founder says.

Partnerships of note include Paxful and OKEx, one of the largest cryptocurrency exchanges in the world.

Locally, we’ve also seen partnerships between Luno and several firms which have made the platform more accessible or even earn interest on cryptocurrency holdings.

It’s clear that rather than going at it alone, sometimes, especially when it comes to managing digital currency, a trusted partner may be a better avenue to pursue.

Brendyn Lotz

Brendyn Lotz

Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.