The primary purpose of an escrow for sales of cryptocurrency which may entail Bitcoins and other Altcoins is to have a trusted, neutral stakeholder (Mdoreh.com) receive, hold and swap both the funds and the cryptocurrency, between the buyer and the seller when both of them have been received. The cryptocurrency escrow is not a factor of transaction partners location as the transaction can be carried out anywhere at any time.
Our duties in the cryptocurrency escrow include; following the instructions given by the principals and parties to the transaction in a timely manner; handling the funds and cryptocurrency in accordance with the instruction; paying all bills as authorized; responding to authorized requests from the principals; closing the escrow only when all terms funds in accordance with instructions and provide an accounting for same : the closing or Settlement Statement.
Why do you need an Escrow?
Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed. We have the obligation to safeguard the funds and/or documents while they are in our possession, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.
When you are dealing with someone you do not know, you also need an escrow like Mdoreh to validate the documents and identity of both transaction partners in-order to make dealings safe to both the buyer and the seller.
The challenge of Cryptocurrency Escrow
Using the previous 3 S.E.P, buyers of cryptocurrencies usually deny receiving the cryptocurrency of purchase. Most of them complain of giving a wrong cryptocurrency wallet address thereby putting the escrow transaction in an indefinite loop of returning or keeping the funds for further investigation.
In some other cases, the seller will bluntly refused to send the cryptocurrency to buyer for unknown reasons.
How do Mdoreh handle Cryptocurrency Transactions
Cryptocurrency transactions follow the 4 S.E.P.
When a transaction is initiated, the broker serves the terms and conditions for both the buyer and seller to agree to. When the terms are accepted, the broker creates a payment transaction for both the buyer and the seller for a transfer to Mdoreh.com.
When both transactions are received, Mdoreh swaps the transaction by sending the cryptocurrency to the buyer and sending the funds to the seller.
The Introduction of the 4 S.E.P was a major change effected by Mdoreh late 2017 for a safer and better way for cryptocurrency purchase escrow.