To secure the marketplace, Paxful employs various protocols, such as escrow, to prevent fraud and make trades safe for everyone. Paxful’s escrow feature aims to ensure a fair trade experience for both parties. Paxful is a peer-to-peer cryptocurrency marketplace where people can meet and safely trade crypto using over 300 payment methods. When a trade starts, the cryptocurrency from the seller’s wallet is automatically moved into a temporary safe deposit account (escrow) where it will be held until the transaction is complete.
So how does the escrow work?
When a trade starts, the seller’s crypto is automatically transferred into our secure escrow.
Note: The amount transferred into the escrow is the trade amount plus escrow fee.
How escrow helps cryptocurrency buyers: If you as a buyer make the payment but the seller refuses to release your crypto, the secure escrow serves as a guarantee. The seller’s cryptocurrency will stay in escrow until our moderators step in to investigate the situation and award the cryptocurrency to the deserving party.
How escrow helps cryptocurrency sellers: Sometimes a buyer may not be able to finalize the payment for the cryptocurrency. If you’re the seller in this case, then your cryptocurrency is safely returned back to your wallet.
Once the payment is made and confirmed, the seller can release cryptocurrency from escrow to the buyer, and this will mark the completion of the trade.