Crypto Escrow Services: Effortless, Stress-Free Transactions
Escrow is the word used when an impartial third party safeguards assets or funds on behalf of two parties in a contract and will hold onto them until all preset obligations or conditions are met before finally releasing those assets or funds.
You’ve undoubtedly heard of escrow in different fields such as joint ventures, real estate, and asset sales. Now, it has gained a lot of traction in the crypto space.
Purpose of Bitcoin Escrow Services
The primary goal of escrow is to give the highest level of protection to the parties involved in a transaction.
The goal is to avoid any harmful consequences that may arise due to one party’s dishonest behavior towards another.
That’s why this method is widely popular in different situations, especially in peer-to-peer deals. It’s because it ensures both the buyer and the seller act honestly at every step of the process. Neither party wants to tarnish their reputation by violating the protocol.
An Escrow Service: Real-Life Example
Let’s say you’d like to exchange your bitcoin for a gift card. How can you be confident that once you’ve sent the coin, the buyer will pay you back the same value in gift cards? If they do not provide you with the card, you will have no chance of recovering the money. In other words, the coin is probably lost for good.
So, is there a way that you could’ve prevented this? Yes, by using a bitcoin escrow service.
A bitcoin escrow service can solve this very problem by securing the bitcoins in a deposit (or an escrow) account, giving the buyer and seller peace of mind. The escrow service provider is the independent third party present with complete control over the account and all the crypto inside it.
By doing so, escrow transactions are completely safe because there will be no payment if the terms have not been met. For instance, the terms here could state that the buyer’s coins can only be released when the seller submits the gift card.
So this serves as a cushion when conducting one-time or repeated transactions with a complete stranger or someone with whom you don’t have a legally binding arrangement. Both buyer and seller can proceed with the transaction without fear of losing anything or being scammed while the money is in escrow.
Instead of drafting contracts or agreements, both the seller and the buyer can save themselves a lot of headaches by simply using bitcoin escrow services and making the exchange immediately with no time wasted.
Escrow is a Solution Unlike Any Other
Transaction security has always been a hot topic in the crypto space. With the growing popularity of bitcoin and other cryptocurrencies, many approaches and measures like Bitrated’s payment system have been designed to protect both the buyer and the seller.
That’s why some people, maybe even you, wonder why we should use bitcoin escrow services when we already have so many tools at our disposal. It’s because you can:
Prevent Fraud Despite Anonymity
It’s easily possible to trace fiat currency transactions because there is access to the buyer/seller’s personal information. That’s not the case with bitcoin transactions, where anonymous parties transfer funds from one wallet address to another.
The wallet addresses serve as public private keys that effectively hide the user’s identity. As a result, it is impossible to catch the scammer based on the private key once a bitcoin is transferred to another wallet and a conflict has emerged. Hence, a cryptocurrency escrow service is the only proactive solution to prevent this situation and eliminate concerns.
Safely Send Irreversible Bitcoins
Unlike fiat money transfers, where you can quickly retrieve funds by providing funds necessary documentation, such as a court ruling, your bitcoin will never come back once it leaves your wallet.
This is because all cryptocurrencies, including bitcoin, operate on a decentralized platform that is blockchain, making them irreversible once they leave the wallet. The only practical solution is to safeguard the bitcoins until all terms are met, using an escrow service provider like ICODA.
It is unthinkable to send irreversible bitcoins to an anonymous party simply based on an agreement, no matter how trustworthy they are.
That’s why bitcoin escrow services are so practical, especially in P2P payments, because they eliminate the need to establish trust. The bitcoin escrow service will guarantee transaction security by holding on to the assets until all contractual obligations are fulfilled.
Besides preventing scams, escrow services are excellent at being unbiased in case of conflict resolution between the two parties.
For example, the buyer may take a long time to verify the payment during one of your trades.
Bitcoin escrow websites like ICODA can create smart contracts to ensure the seller’s coins are held in escrow until the terms are met and released.
This does not make any of the parties involved a scam, but it does prove that someone will definitely leave the deal unsatisfied without escrow.
What Makes a Good Escrow Provider?
There are just so many cryptocurrency escrow providers on the market that it may be a bit overwhelming to find a reliable option. We at ICODA have four distinct advantage points:
Offers Maximum Visibility
The ICODA platform offers customers a comprehensive set of updates during the escrow procedure. Both the seller and the buyer in the transaction can clearly see where they are in the exchange process and completely understand what they need to do to finalize the deal.
Supports Various Payment Options
We at ICODA can deposit a wide range of cryptocurrencies in the escrow account. People can buy cryptocurrency using any of the various options on our platform, such as credit cards and bank transfers. To protect the value of the buyer’s assets, the bitcoins are sent to ICODA cryptocurrency escrow services and held as USD currency until all obligations are fulfilled in the process.
Users may feel confident that they will be able to complete their transaction even if prices fluctuate dramatically. If certain issues don’t let the deal go through, ICODA will convert the USD amount back to the original cryptocurrency.
When exchanging crypto using ICODA’s escrow services, the funds are held in a protected, non-interest-bearing account until buyers and sellers agree that the deal is closed. Such services protect both parties from refunds, fraud, and poor-quality products.
Saves Money & Time
In the traditional world of finance, banks and other financial institutions served as intermediaries, which meant spending a lot of time dealing with paperwork and a lot more money on hiring lawyers to take care of legal matters.
But, since cryptocurrencies operate on blockchain and come with in-built security, there’s no need to bring in lawyers or even spend money on international transactions. Plus, you won’t be dealing with legal complications to validate transfers. Therefore, a bitcoin escrow service becomes an affordable, efficient option.
Provides 24/7 Support
With a professional service provider like ICODA, you’ll have qualified experts by your side to guide you through every step of the process. On top of that, you can access customer support for extended hours. We are just a phone call or email away, ready to answer your questions.