An escrow system works safely by keeping the funds in a safety deposit account to protect both the buyer and the seller. This means that the money is then placed in the control of an independent third party. This secures the transactions by keeping the payment safe until all the terms have been met. Using a 3rd party escrow service to handle a cryptocurrency payment is a good idea when transacting with an untrusted party. Escrow protects sellers from fraudulent buyers by requiring the cryptocurrency to be deposited upfront. Escrow also protects buyers from the sellers who refuse to send them coins after they submitted payment.

Articles in this section

See more