Should you ever find yourself in a situation where you are looking to either buy or sell something for Cryptocurrency, there is one golden rule of thumb you need to be aware of : use an Escrow service!
The reason this needs to be expressed is because a lot of people tend to forget that payments with Cryptocurrency are non-reversible. If you do an online payment with traditional means, such as a credit card or PayPal, and something isn’t to your satisfaction, there is always the option to obtain a refund within a reasonable time limit.
Cryptocurrency works slightly different that way. As all Cryptocurrency users are pretty much anonymous, and there is no corporation handling and regulating transactions, there is also no way to get your money back once it’s sent. Luckily for us, some brilliant people also realized this, and have come up with a simple yet efficient solution.
An Escrow service is basically a “middleman”. If you are the buyer of an item, you send your Cryptocurrency to the “middleman”, or Escrow. Once that payment has been sent & confirmed as received, the seller must e-mail or ship the item to you. Once you then confirm the item is in satisfactory condition, the Escrow, or “middleman”, will send the funds to the seller.
If something would go wrong along the way, or the goods are damaged, the Escrow, or “middleman”, will send you your funds back. Do keep in mind that most Escrow services are not completely free, but they do operate on very small fees. In comparison , PayPal also asks for a small fee on each transaction you perform, for the use of their “platform”. So it’s no different.
To find a trustworthy Escrow in the Cryptocurrency world, you don’t have to look far. On the BitcoinTalk Forums, there are several reputable members offering Escrow services, either free of charge or for a very low fee.
Some websites, like Coingig for example, have a built-in Escrow system, so you don’t even have to contact someone from outside to oversee the completion of the transaction. In our upcoming free digital magazine, we will do an extended review of Coingig and their Escrow system, both from a buyer’s and seller’s perspective.
Using an Escrow can save you a lot of trouble, headache, and not to mention, money in case things go south. Always be careful when trading in non-reversible payment options, as there are a lot of people out there who WILL take advantage of you.