3 Signs of a Reputable Bitcoin Escrow Service
Buying or selling Bitcoin (BTC) can be daunting if you don’t know the other person involved in the transaction. Fortunately, using a Bitcoin escrow service mitigates the risks of getting scammed. But before you hand over your money or Bitcoin, do your research. Here are some signs of a reputable BTC escrow service.
1. Escrow Experience
Just like with any service, you want to find a Bitcoin escrow service that has years in the industry behind it. The challenge is that Bitcoin escrow services are breaking new ground entirely. Bitcoin was created in 2009, and escrow services followed a couple years later. As a result, most Bitcoin escrow services have only been active for a few years.
You can still find a reputable BTC escrow service if you find one with a traditional escrow experience. Even though tradition escrow is with real estate and not BTC, that experience still shows how trusted the service is. An unreliable escrow service won’t stay in business for long. The founding partners behind Anaiv Capital have spent over thirty years working with traditional escrows. We’ve built a strong reputation for protecting the buyer and seller in every transaction and leaving them both satisfied.
2. Regulatory Compliance
Although Bitcoin is a safe option for transactions, it is less regulated than other forms of payment. This makes it even more vital for Bitcoin escrow services to comply with the regulations that are in place. At Anaiv Capital, we implement the most effective Bitcoin safety measures. This includes adhering to AML/KYC (Anti-Money Laundering/Know Your Customer) regulations to keep both the buyer and seller safe, even in transactions with anonymous parties.
3. Storage Security
The safety precautions that a Bitcoin escrow service does (or does not) follow while storing Bitcoin is a tremendous indication of their credibility. Escrow services will use either hot or cold storage to secure Bitcoin before a transaction settlement. Hot wallets are connected to the internet while cold are not. If an escrow service uses web-based storage, Bitcoins will be more vulnerable to hackers. Cold storage is the way to go. It’s completely offline, which makes it the much safer option for storage. Reputable BTC escrow services like Anaiv Capital know this, which is why we only use cold storage.
Despite Bitcoin’s tumultuous year, the interest in Bitcoin is trending upward. A reputable BTC escrow service can make all the difference in Bitcoin transactions that might otherwise be operating on blind trust. Whether you are a looking to buy or sell Bitcoin, there is no better way to ensure safety and satisfaction than by using a Bitcoin Escrow service.