How Does Bitcoin Escrow Work?

If you’re new to Bitcoin (BTC), you might be concerned about its level of security. We already debunked that in our blog The Safety of Bitcoin. But even with its superior security, there are still scams to be wary of in the Bitcoin marketplace. These risks go up when you’re making an exchange with someone who wants to remain anonymous or who lives thousands of miles away. Bitcoin transactions are traditionally non-refundable, so if either the buyer or seller does not deliver on their portion of the agreement, there’s nothing the other party can do about it.

 

Serving as a Neutral Third-Party

One of the best ways to increase the security of your transaction is a Bitcoin escrow service like Anaiv Capital. A BTC escrow service operates similarly to a traditional real estate escrow service. We serve as a neutral third-party between the buyer and seller, mitigating the risks of either party getting scammed during the transaction. Anaiv Capital specializes in heavier over-the-counter business transactions where more money is on the line.

 

Securing Funds and Bitcoin

The first step to hiring a Bitcoin escrow service is agreeing to the terms and conditions of the transaction. Next, the buyer and seller surrender their payment and Bitcoin to Anaiv respectively. We protect both the funds and the Bitcoin. By securing the Bitcoin in an escrow wallet in cold storage (offline), Anaiv prevents anyone from accessing it. This is the safest way to store Bitcoin.

 

Tracing Bitcoin Origins

Anyone can view the history of a Bitcoin through its blockchain. If a merchant discovers through this blockchain that a Bitcoin has been tainted by criminal activity, he or she may not accept that Bitcoin. Anaiv Capital will trace the origin of the Bitcoin you’re buying before you reach a settlement. This protects you from receiving Bitcoin you can’t use in future transactions.

 

When both parties have fulfilled their agreement, Anaiv Capital transfers payment to the seller and the Bitcoin to the buyer. Often these transactions are completed in just minutes.

 

Anaiv Capital’s 30-plus years of experience working in traditional escrow transactions makes us the perfect option for your BTC escrow. The buyer or seller can hire us individually, or they can split the cost of our services. Our 0.5% fee is much more affordable than our competitors, as discussed in A Guide To Best Practices Beyond The Marketplaces. As a Bitcoin escrow service, we help eliminate uncertainty and ensure smooth transactions in the Bitcoin marketplace.

 

Keywords: Bitcoin escrow, BTC escrow