With bitcoin, Ripple and other altcoins being one of the most convenient ways of completing peer-to-peer exchanges, many users are slowly starting to adapt to this new currency. Both investors and enthusiasts are trading millions of dollar daily in major exchanges, with more being transferred directly through online wallets. Like the normal fiat currency, cryptocurrency requires to be stored in a safe place to avoid losing your investment.
Aside from being kept in a secure place, it’s important for buyers and sellers to feel comfortable with the sales process. Escrow services ensure that both parties can trust each other when transacting in crypto coins, by allowing the buyer to see that the seller has the funds he/she intends to sell. More importantly, it allows the buyers to easily find any coins that they want to adopt.
So, what’s does an escrow service mean?
Great question for those interested in cryptocurrencies!
An escrow service is a third party platform that works by keeping your funds safe in a deposit account that gives protection to both the seller and the buyer. As you can expect, the foreign party in this transaction acts as the conduit between the two parties, controlling both currencies during the transaction.
After both parties have met all the terms, the buyer receives his end of the bargain, same as the seller. However, the seller gets a little percentage as a transaction fee. The escrow services are relevant and crucial for both large and small transactions, as long as the security of money is important.
Investors and crypto coin lovers who want to enjoy the security of an escrow can easily find a third-party platform that uses this platform. Aside from that, it would be wise to purchase coins from exchanges such as Cryptomate and paxful (among others), if you can’t find a trustworthy platform. This indicates that you may need to research a little about the escrow platform that offers what you need.
Choosing an escrow services
Unlike buying your digital currency in Cryptomate or other exchanges available on the cryptocurrency market, trading in an escrow is a bit. That because you will be entrusting your money to a stranger and a third party in the transaction. Here are is a list of all the features that you need to look for when choosing one:
- Terms of services
As we all know, the devil is in the details. This means that you need to check an escrow’s terms of service before signing up, to ensure that nothing will work against your intentions. However, reputable companies usually have great terms of services.
Being the main reason why escrow services are established, it’s important to ensure that your money is safe and secure. This means that the system needs to be impenetrable by hackers and other dubious individuals.
- Banking methods
Whether you have funds in your credit card, PayPal, bank account or in a gift card, you can easily transact in cryptocurrency through various escrows. That means you need to consider the methods of payments available for you and compare with what you need.
All things considered, escrow services are very important when selling or buying digital coins. You only need to create an offer, by indicating your terms and filling in the payment details to initiate the transaction. Once the buyer has satisfied all the conditions, you can release the escrow and successfully complete the transaction.