All you need to know about escrow services for Bitcoin
An escrow service to handle Bitcoin transactions is the better way to keep your funds protected, especially if you are doing dealings with an untrusted party.
The escrow service provides protection to users. In one hand, protects buyers in case the seller does not deliver the service or the goods. In the other hand, protects sellers from scam buyers by requiring the Bitcoin be deposited in first place.
If a dispute takes place between parties, the escrow service will proceed as an intermediary judge and decide who should receive the Bitcoin funds.
An escrow service has as goal protects parties and create a safe environment for Bitcoin transactions.
Several Bitcoin marketplaces offer an own escrow service, for example, BitPremier, CryptoThrift, and LocalBitcoins. If your Bitcoin marketplaces do not provide this kind of service, you can find many escrow services on the Internet with a solid reputation and trusted by the Bitcoin community.
Characteristics of an escrow services
Those are the principal features that you can find in an escrow service:
Usually, a Bitcoin escrow process can be accomplished in a few, fast and easy steps. The users only need to register the basic data about the transaction and that is all.
This kind of services are very friendly and you can follow the steps without problems.
The charge corresponding to the fee per transaction is low. Even some escrow services permit to split the tax with the other party.
The users can create an escrow transaction in a few minutes, also they can view the status immediately.
The communication between the escrow service and the users is rapid. Normally, the service responds the support requests as soon as possible.
No matters what kind of escrow service do you take, your funds are secure.
Escrow services types
There are different types of escrow service, so you can select the most convenient for you.
The service provides the user with a Bitcoin wallet address and solicits to deposit funds in the account. The funds are sent to offline wallets (also known as cold storage) which is one of the most highly developed ways of wallet security.
Regular Escrow Pegged to Traditional Value
The Bitcoin funds are deposited into an account handled by the service. Following the deposit, the funds are pegged to conventional value.
This kind of service secures your Bitcoins through a multi-signature operation. The coins cannot be withdrawn except all the signatures are correctly provided. The service holds only one of the user’s private keys.
Multi-Signature Escrow Pegged to A Fiat Value
This service is alike to the “Multi-Signature Escrow”, the funds are reserved in a secure multi-signature transaction by “Nubits” or “Omni” to peg the value.
In this kind of escrow service, the transactions are handled through a wallet which can have multiple owners. To execute a transaction, these wallets need the signatures of implicated parties. If a wallet is owned by three persons and two of those three choices to make a transaction, the order is accomplished.
This is an optional service. You can make use of the escrow thread on BitcoinTalk which has numerous users that provide escrow services. These users all have exceptionally high trust rankings.
The best Escrow Services
There are several escrow services online and these are the better::
One of the best bitcoin Escrow services in the web, very fast, trustable, easy to use, work out of the box, with no need to wait, reliable, and won the highest score in the user rating
Escrow100 is the leading bitcoin escrow website, and it has more escrow feature, which allows you to create other escrow services besides marketplace, for example, bet escrow and more.
Escrow My Bits
This escrow service has become one of the most used for Bitcoin users.
The most important benefit of Escrow My Bits is that if a transaction takes longer than estimated, the user can still peg it to the fiat currency and the exchange rates will not have an effect on it.
The service deducts 1% per transaction in charges. It also offers an extensive diversity of services types to escrow bitcoin.
Bitrate work like a multi-signature wallet.
The major advantage of Bitrate is that the site does not hold the private key of the users so it cannot steal Bitcoins funds.
Use an escrow service and keep your Bitcoins funds protected.