Why You Should Embrace Escrow Service for Crypto Transactions

3 min readJan 18, 2023

The craze to own digital currencies has fueled cases of scams in the crypto industry. The 2021 Chainanalysis Crypto Crime report indicates that crypto-related crimes have spiked to a record 79% globally. As such, the importance of securing your crypto transactions cannot be underscored.

The advent of escrow seeks to cure cases of fraud that are now threatening to cripple growth in the crypto sector. Generally, escrow transactions are encrypted, which offers a highly secure trading environment for crypto enthusiasts.

An escrow service not only acts as a neutral party in transactions but also helps create confidence between two parties. Therefore, if you are looking for ways to avoid fraud on online platforms, escrow is the way to go.

Similar to traditional escrow, DeFiX Escrow acts as a neutral third party and secures transactions between buyers and sellers. While the buyer is protected from losing funds to scams, sellers are protected from losing their digital assets in fraudulent deals.

The good news about using DeFiX Escrow over other platforms is that it allows users to carry out transactions smoothly without involving a third party. This means the funds are held securely until the transaction is completed over the blockchain.

Here are some of the reasons why you need escrow for your crypto transactions.

Minimizes Risk

Escrow plays a significant role when it comes to securing your crypto transactions. This means the funds are only released after every party is satisfied. In the long run, you not only minimize the risk of losing your funds but also protect sellers from losing their digital assets to fraud.

While the seller and the buyer are all protected through escrow, the buyer enjoys more protection from the transaction process. For example, should the deal fall short of the buyer’s expectations, the buyer is assured that the escrow account holder will refund the amount in question.

Escrow acts as a third party by holding the amount deposited and only releases once the seller meets the expectations of a buyer. Therefore, in case you don’t trust a platform or a seller, using escrow for transactions is a brilliant idea.

In other words, escrow safeguards a seller against any risk of fraud that may result in the loss of funds. This is because escrow shifts control of funds from the buyer to an independent party.

Money-Back Guarantee

Another key advantage of using escrow is customer protection. Should a seller fail to meet his or her end of the bargain, then the buyer is at liberty to request a refund. In this case, either the buyer or seller can initiate a transaction in the refund process.

Escrow gives buyers peace of mind when purchasing from platforms or individuals they do not trust. Whichever amount is involved in the purchase, you are assured of a full refund should the seller and the buyer disagree on the terms of the deal.

Therefore, if you are new to crypto and wonder how you can secure your transaction, you can use a credible escrow platform like DeFiX Escrow. The platform not only secures transactions but also protects the interests of both parties involved.

Buyer Protection

Buying cryptocurrency randomly on online platforms exposes you to the risk of being scammed. If you can’t ascertain the trustworthiness of a platform, then you risk falling into the trap of fraudsters. With the DeFiX Escrow platform, funds aren’t released until an account holder is satisfied with the offer.

Irrespective of the number of digital assets that you intend to buy, DeFiX Escrow protects you from the risk of falling into the trap of unscrupulous sellers.

Conclusion

Escrow is a powerful and effective platform that is now embraced by many crypto users globally. Whether you are new to crypto or an established crypto user, transacting through escrow is a perfect idea.

With the DeFiX Escrow platform, the protection of all parties involved in crypto transactions is guaranteed.