Before the emergence of bitcoins and other cryptocurrencies, P2P trading has to be one of the dominant means of circulating products and money. It is undeniable that individuals and organizations need to deal with other parties for the circulation of wealth. It has always been like this and would continue like this for a long time, no doubts. When digital currencies started to gain widespread popularity, they became an important means of transactions between two persons. The purchase of these digital monies increased in such a way that became profitable to be traded on a day to day basis.
However, due to the fact that the transfer of cryptocurrencies are being done online, where 75% of transactions are carried out between two strangers, fraudsters have capitalized on it and made it a profession. Thereby, depriving people of their hard-earned money by disguising either as a buyer or seller. Over the years, thousands of bitcoin fraud cases have been recorded. Therefore, the purpose of this article is to emphasize on the essence of escrow services.
What is Escrow Services? Typically, escrow services is a trusted third party (Intermediary) between a buyer and a seller. Here, the buyer sends the escrow the funds for trading, once the escrow receives the money, he alerts the seller to send the goods or services to the buyer as initially agreed on. When the buyer receives the goods/services he paid for, he alerts the escrow who finally send the funds to the seller, provided the buyer expresses satisfaction on the trade. In the case where the buyer expresses dissatisfaction, the escrow holds onto the funds until the dispute is resolved before releasing to the seller. The use of the third party in 21st-century transactions cannot be emphasized enough especially in the online community as there is a provision of security and credibility.
Blockchain is one of the most sought after technologies in the world of finance and it is the foundation upon which cryptocurrencies are built. However, it has a couple of limitations which is being used as a tool for cybercrimes related to theft and fraud. This is evident in the irreversible nature of cryptocurrency. Cryptocurrency wallet owners have 100% control over their funds. This is why it is being stressed that confirmation of wallet address is done before sending because once the funds have been sent, it can never be recovered if sent to a wrong address or to an online fraudster. Without the use of escrow services, if a buyer sends to a seller in the bid to buy bitcoins or any other cryptocurrency without getting funded, less can be done to reverse the money. Likewise, if a seller sends bitcoins to a buyer without getting paid, the crypto asset can never be reversed if payment is not done, this is where the services of a trusted escrow are needed. As written above, an escrow acts as the intermediary between the buyer and the seller to avoid any conflict of transaction. In other words, creating a safe and secure environment to transact.
The Need for Escrow Services
Traditional escrow services have been in existence long before now and are getting wide acceptance by the day. However, bitcoins P2P trading/exchange is a very sensitive transaction which is why the services of a trusted escrow must never be waived or taken for granted.
Bitcoin is anonymous: unlike fiat currency in which transactions can be traced to one’s personal information, cryptocurrency transactions are anonymous as the transfer of funds from a wallet address to another. The wallet addresses are in the form of public keys which have been encrypted thereby making identity anonymous. On the basis of that, once bitcoin has been sent to another wallet and there is a dispute, it is difficult to track the fraudster. Hence, the use of escrow services will eliminate these insecurities.
Cryptocurrencies are Irreversible: Unlike fiat transactions were funds can easily be reversed upon provision of the proper documents e.g court order, cryptocurrency once sent out of one’s wallet can never be recovered. This is because blockchain which powers cryptocurrency has a decentralised nature which makes funds irreversible after it has been sent. The services of a trusted escrow like Remitano is then needed to take proactive measures to avoid a need for reversal.
Unbiased Dispute Resolution: Asides from preventing scam events, escrow services are also great at being impartial in the case of a dispute during a transaction. A personal experience was during one of my trades on Remitano when it took so long for the buyer to confirm my payment. Remitano made sure the seller's bitcoins were locked until my payment was confirmed and finally released. This doesn’t make either of the involved parties a scammer, but it does mean that someone is going to be left unhappy if there was no escrow. With the use of a trusted escrow service like Remitano, you would have access to an impartial arbitration procedure in which dispute can be resolved by the third party before funds are released. This is because disputes are handled in a professional manner which leaves everyone happy at the end. They will listen to the buyer’s and seller’s arguments, take a look at what was advertised, and then inspect what has been delivered.
Conclusion
There aren’t many options for Bitcoin escrow services, yet there are still trusted services you can use. Remitano is definitely my personal choice and a strong recommendation either you are buying or selling. Dealing with a credible company like Remitano is your safest option. The escrow services hold your funds until the other party is satisfied and vice versa.
On a final note, it is important to note that a lot of traders for the sake of security have resorted to the use of escrow services. With the recorded amount of stolen funds and scam events over the years, one can never be too careful, hence the emphasis on escrow services.
This is just the tip of the iceberg in the wonderful world of bitcoin escrow services. Trading on Remitano gives countless of benefits which includes the use of an unbiased system which is tested and trusted. Remitano offers some of the most comprehensive, secure, and reliable bitcoin escrow services in the world. This is why thousands of buyers and sellers all over the globe prefer trading on Remitano as there is a trusted, impartial and fair third party system to provide security and credibility.
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