Paymium unlike some rivals is not an over the counter exchange, i.e. you do not deal directly with other buyers and sellers but instead trade via the exchange. For example, if you have a Bitcoin the easiest way to sell it is for the current market price. You simply enter the quantity and click sell, then your sell request is matched against what others are prepared to pay and you receive the funds in your Paymium account. You can also issue a sell order where you set the price – in this case when another buyer matches or exceeds your price you sell your Bitcoins. Buying operates similarly but in the other direction of course.
Paymium has enough participants and hence liquidity to mean that provided you are trading at a fair price your trade will normally go through pretty quickly. However, in order to use the service you must upload real money to it. This in effect means you are depositing funds with them, so you need to trust them that they will not run off with your cash. So far (and I’ve been using it for months) I have had no problems. They also promise that all your cash is held in account in your name at a licenced payment organisation.
Fees are 0.59% for each party with a 99c fee charged for withdrawing any money to your bank account. There are also no fees for any incoming or outgoing Bitcoin transactions or for uploading funds – which compares favourably to other sites.
The site is simple and quick to use. As are are dealing via the market you also completely avoid the need to manually arrange payments to other users or to check for incoming payments yourself. The time taken to receive incoming Bitcoins has also improved significantly from when I first used the service.
The setup process was slower than for other websites, but this is entirely down to their security checking procedures for all new accounts. Their support was always quick and responsive to my requests.
Would I recommend Paymium? The answer is yes, its quick, simple and a whole lot easier for newcomers to get their head around than over the counter markets.