What is Escrow? A brief introduction
Let’s imagine that you own a boutique with the finest clothing materials in the market. A customer comes over and sees one of your pieces that they like. They make payment for the cloth via mobile bank transfer, but you don’t get the payment immediately.
Just then you receive an urgent call and have to leave, so you give the cloth to your neighbor to hold until you confirm that you have received the payment. On your way, you receive the payment and call your neighbor to remit the cloth to the customer. This is Escrow.
Escrow is a service or process whereby funds are kept with an appointed third party until certain conditions are satisfied.
In the cryptosphere, sometimes a smart contract is used to reserve and secure the funds. Once a specific condition is met, funds would be sent to the appropriate parties.
This type of custody service is beneficial and versatile. It could be used with real estate transactions, Insurance mergers and acquisitions, etc.
It offers a safe, straightforward and transparent transaction between parties. So you won’t have to lose your hard earned money.
How does Escrow work with Bitcoin?
Let’s say you wanted to buy Bitcoin from an account. The seller sends you their account information, but you’ve never done this before, and you don’t know this person. What if you send the money, but they don’t fund your crypto account?
At Valorexchange, we do our best to ensure that all buyers and sellers receive their payments and cryptocurrencies.
If a seller or buyer does not receive what they paid for, our support team would be contacted on the platform, and the issue would be immediately investigated. If you do one time or multiple transactions with someone, you don’t have to worry about losing your funds or crypto as a result.
Why do I need Escrow?
The decentralized nature of the crypto industry ensures that you don’t need to know who you’re buying cryptocurrency from. There are a lot of fraud cases when it comes to money exchanges. When buying cryptocurrencies, you are sending money to a stranger online which is a relatively risky thing to do.
This is where we come in to eliminate that risk. When you pay for your coins, they should get to your wallet without you worrying about whether you’ll receive them or not.
How do I start?
Open an account with Valorexchange and set it up. It is a quick and efficient process. Once you’re all set up then you can enjoy fast and secure exchanges.
We are a community at Valor, and we want to help you learn crypto and grow or earn crypto at your convenience. You can enjoy secure and effortless transfers with Escrow. Join our community to never miss any news updates, free tools and resources.