Paxful now secures their hot wallet with BitGo integration

Paxful, a bitcoin exchange that is one of few in the space that focuses solely on a person-to-person trading platform, is now using BitGo as their exchange hot wallet provider.

Being a bitcoin exchange these days is a tough job. With hacks, extortion, and DDoS attempts being almost a regular thing now, securing your hot wallet funds is a top priority. And it seems Paxful is not taking any risks in their move to switch to BitGo.

BitGo is a wallet, but more than that they are a SaaS company that several bitcoin exchanges use to secure their funds, outsourcing the hard labor and responsibility to BitGo to manage while leaving the exchange with full control over their funds. BitGo’s wallet uses a 2-of-3 multi-signature scheme which removes all single points of failure by using 3 keys: a private key, a offline backup key and BitGo’s co-signing key. Each transaction requires 2 keys for signing giving exchanges full control.

Paxful said that BitGo’s platform has allowed them to focus on their core competency by providing them with the ideal and secure blockchain connection. Ray Youssef, CEO of Paxful said,

Bitcoin hot wallets are now the target of every hacker in the world and we feel safe with Bitgo securing our Hot Wallet and doing all blockchain transactions for us.

Paxful has recently had a steady rise in customers as their claim to fame was when the classifieds site Backpage was forced to remove credit cards as a form of payment, and Paxful stepped up and was integrated into Backpage for users buy bitcoins in order to pay for ads on the site.

Share this story:

David Shares

David is a writer, researcher, and developer who is passionate about bitcoin and blockchain. He writes for Bitcoin.com, Blockchain.com, and is the founder of Bitcoinx.io (which was acquired by Bitcoin.com). David previously used to write and curate for Myspace and has worked in the fintech and payments space for over 15 years.

comments powered by Disqus.

In Case You Missed It

Coinex Chain Launches Two Tokens Anchored to BTC and BCH

On November 15, the digital currency trading platform Coinex announced the launch of two Coinex Chain tokens that are anchored to BTC and BCH. The two collateralized coins will be used for trading on the Coinex Dex and will be ... read more.

'Lost Coins' Study Estimates BTC's True Supply

Many people like the fact that Satoshi Nakamoto introduced a capped supply of 21 million coins when he created the Bitcoin protocol. However, there’s been a lot of speculation aimed at guessing the number of 'lost coins' that will never ... read more.

Cointext Founder Publishes New 'Postage' Specs for SLP Tokens

On November 18, Cointext founder Vin Armani published a blog post that describes a new system called the ‘Simple Ledger Postage Protocol.’ The SLP concept allows wallets to send SLP tokens without having to use bitcoin cash (BCH) as 'gas' ... read more.

Crypto Debit Card Targets Generation Z With a Promise of Financial Freedom

From video games to fizzy drinks, teens have their own spending agenda. Raised in the digital age, generation Z also has a special sense of freedom, a product of unrestricted access to the internet and mass availability of new technology. ... read more.

Bitcoin.com to Launch $200 Million BCH Ecosystem Investment Fund

Bitcoin.com is planning a major step toward promoting the growth of the BCH ecosystem. A $200 million fund will empower developers to offer new capabilities to bitcoin cash users as well as give institutional investors a chance to capitalize on ... read more.

Binance Acquires Major Indian Exchange Wazirx - CEO Explains the Changes

A major Indian cryptocurrency exchange, Wazirx, has been acquired by Binance. News.Bitcoin.com talked to Wazirx CEO Nischal Shetty to find out the implication of this acquisition and the changes users in India can expect. Meanwhile, the "India Wants Crypto" campaign ... read more.

Devs Reveal BCH Cashchannels and Simple Escrow Contracts

Bitcoin Cash (BCH) supporters have been introduced to two new concepts that allow people to leverage the BCH network in a variety of innovative ways. On November 15, former Bitpay developer Jason Dreyzehner revealed his recurring payments system for BCH ... read more.

Cash Games Adds Dozens of New Options for You to Play

Online gaming is a big global industry and one that had a major role in the early adoption of cryptocurrency. Bitcoin.com has long offered a platform for players to use their digital assets on classic games and recently it greatly ... read more.

The Many Facts Pointing to Hal Being Satoshi

The identity of Bitcoin's pseudonymous founder is the subject of endless and dedicated speculation among the hardcore crypto crowd, and for good reason: the mystery truly is enticing. While the oft-cited candidates are many, there's something special about avid runner, ... read more.

Restrictions Worldwide Show Why It’s Vital to Be Your Own Bank

As capital controls and banking restrictions continue to affect various populations worldwide, standing in the way of individuals and their hard-earned savings, some are looking to safer options and even cryptocurrencies. Lebanon, Zimbabwe, and India are just a few of ... read more.

NY Regulator Licenses Fidelity for Bitcoin Trading and Custody

Fidelity Investment's digital currency arm has been licensed by the New York Department of Financial Services to operate a platform on which individuals and institutional investors can store, purchase, sell, and transfer bitcoin. The regulator also revealed that it has ... read more.

10 Tax Tools to Help Crypto Owners

While tax laws on cryptocurrency vary by jurisdiction, there are many useful tools to help you calculate crypto taxes, lower your tax liabilities, and simplify your filing — no matter where you are. Many of them work globally, supporting tax ... read more.