With the scam levels in internet transactions, especially in crypto markets, buyers and sellers are looking for a level of protection or safety for their deals or payments.
Transactions that involve funds, money, cryptos, or any form of transfer of payment solutions may be open to a scam attempt in the marketplace. A crypto seller wants to easily do business by selling their crypto without being scared that the process may be at risk of fraud. This is where escrow services come into the equation. Crypto escrow services protect the purchase and sale of cryptos by companies or other parties.
What is A Cryptocurrency Escrow Service?
An escrow company acts as a mediator that is involved in adding a layer of protection for currencies used in a transaction. It safeguards the funds until sellers transfer the crypto to the buyer in the marketplace. Online cryptocurrency escrow services ensure that the contract entered into by the buyer and seller is fulfilled before the funds’ release system is triggered. The crypto must have been transferred to the address of the buyer before the funds are released. Using this service normally comes with a fee attached to its solutions. When a dispute comes up, the cryptocurrency escrow services acts as an arbitrator.
Reviewing Cryptocurrency Escrow Services:
1. BTC Asia
BTC Asia is one of the few Bitcoin Escrow services that do not request any registration by users. All that is needed is a BTC address and an email.
Its fee is affordable, but BTC Asia does not mediate when an issue occurs between the buyers and sellers. Using this online escrow service is quite easy, and it works only for Bitcoin transactions.
2. IBC Group
IBC Group acts as both a fundraising and a Bitcoin escrow service. Like its counterpart above, it handles only Bitcoin transactions. As a licensed Escrow service, IBC Group forces its users to undergo a thorough KYC process which may be stringent. Anonymous transactions can not be done using IBC Group. The buyer is given a stipulated period to deposit currencies, and the fund deposited will be transferred solely when the buyer has seen the item and is satisfied.
This is a Carding Forum that also acts as a cryptocurrency escrow service. It has garnered attention as a trustworthy platform, but it comes with a serious issue. Its fee is expensive, as it charges 5% of the exchange value.
Another disadvantage is that it does not refund the fees if an issue should occur during the transfer. Only regular members are charged, while the VIP members pay nothing.
This escrow service is not automated, meaning that the user has to be involved in a lot of manual typing and contact with other members. Administrators make the final decisions if any issue should occur.
Like some others, Global Escrow focuses mainly on Bitcoin transactions. The system asks for tracking data if physical objects are involved in the transaction. Every contract has terms that can be set by buyers and sellers. A period of 15 days is given for the seller to offer the product, and the buyer to approve the transaction. This period is an auto-refund period. To use this platform, the fee that must be paid is 1%.
WhalesHeaven is a multisig and noncustodial escrow service. As a multisig service, it ensures that a high level of security is attached to transactions carried out within its platforms. Other escrow services that have been mentioned above are custodial in nature, making them easy to be preyed by attacks from hackers. WhalesHeaven is solving that issue, as it acts as an escrow service without the risk that comes with holding someone’s funds.
The fee a customer pays for using the functionalities within the WhalesHeaven world is so low compared to others, and in some periods (during a promo or celebration period), it may be free. Anonymous transactions can be carried out because the KYC process is optional. A customer can do private transactions securely within this app or site. Using WhalesHeaven is a walk in the park because the process is seamlessly tailored to be utilized by anyone. A person can search or post an auction deal within WhalesHeaven and attract potential customers.