An escrow is a legal agreement in which a third party keeps a quantity of money temporarily, until a specific condition is met. It is very common to use it in sectors such as real estate leasing and high-volume banking transactions. But... How are escrow related to El Dorado?
Here we explain it to you! Because it's the key to keeping your money and transactions safe.
El Dorado has a peer-to-peer (P2P) marketplace where you can exchange cryptocurrencies such as bitcoin, dollars and digital euros using your local currency, this space guarantees you security, but for this you must follow certain rules, one of which is to make a security deposit.
Unlike transactions such as real estate rentals, you don't need to make an additional deposit to have this mechanism, since this is automatically generated when a sales operation is initiated. In other words, if you decide to sell any of the cryptocurrencies that are in your El Dorado wallet, the platform will hold them immediately until the transaction is completed.
How does escrow work?
For you to better understand how this mechanism works, we explain it to you below, with all the detailed steps.
Step 1
Create a sales order through the “Announcements” section and wait for it to be accepted by a buyer of El Dorado, the time may vary depending on the supply and demand of the cryptocurrency at that time.
Remember that the transaction will be made with another user of the platform, so some orders are completed in minutes, while others take longer.
Step 2
As soon as another El Dorado user chooses your order to buy the cryptocurrencies, The platform secures the amount of the transaction in an escrow. It should be noted that when an order is accepted, the counterparty can decide whether to buy the entire amount offered or that he prefers to buy only part of it, in this case the security deposit will be for the amount that the buyer wants to purchase.
For example, if you're selling cUSD 100, 2 scenarios can occur:
- The buyer decides to buy the 100 cUSD.
- You must perform several operations until you sell 100 cUSD.
Step 3
Use the platform's chat to communicate with your counterparty, this will be essential, since if a disagreement occurs, the entire chat history will be available to be analyzed in case a dispute is created.
Step 4
Once you have verified that the counterparty made the agreed payment, you must confirm in our app that you received the payment, automatically The platform will release the funds held in the escrow and your counterparty will immediately receive the cryptocurrencies.
Step 5
Generally, transactions are completed without problems, however, there are cases in which the counterparty does not respond or does not comply with what was agreed.
In these cases escrow is a fundamental part of the process, since the affected user must file an appeal, so that El Dorado can verify what happened and grant the funds held in the deposit to the corresponding user. If it is confirmed that the buyer did not make the payment, El Dorado returns the cryptocurrencies to the seller, while if it is the seller who does not release the funds, El Dorado is responsible for releasing the funds and delivering them to the buyer, after reviewing all the evidence on each party.
How do escrow help you?
This mechanism protects you and all users of El Dorado from scammers; for escrow deposits to do their job, You must maintain communication in the chat of our app, if any user asks you to speak outside of our chat, ignore the invitation.
Avoid communicating outside the platform! Because if you make a deal outside the platform, we will not be able to guarantee your safety nor protect yourself from scammers.
In our P2P it is not usual to find scammers, however, there are times when disloyal people want to take advantage of the rest. Although the reputation system is useful for knowing who to trust, escrow is the key to keeping your money safe from scammers.
Imagine that you want to use P2P to buy USDT with Bolivares, and you find an offer with a better price than the rest of the users, however, the seller has no previous orders, although this is not an indication that the other is a scammer How can you know that he will keep his end of the deal?
In these cases, escrow is a mechanism that provides trust, since both parties know that the money is safe and that they must meet the conditions established in the order for it to be released.
In the event of a disagreement, our customer service will observe the versions of both parties objectively and decide release the funds in favor of the user who has been affected. It doesn't matter if the amount of the transaction Every transaction is protected by escrow!
Would you like to start buying cryptocurrency safely and with your local currency through El Dorado? Sign up here and discover the multiple payment methods and alternatives offered by the marketplace for euros, dollars and Bitcoins in Latin America.
