An escrow is a legal agreement where a third party holds an amount of money temporarily until a specific condition is met. It is commonly used in property leasing and high-volume banking transactions. But how are escrows related to El Dorado?
Here we will explain it to you! Because this is the key to keeping your money and transactions safe.
El Dorado has a peer-to-peer (P2P) marketplace where you can exchange cryptocurrencies like bitcoin, digital dollars, and euros using your local currency, this space guarantees security, but for this, you must follow some rules, one of which is to make a security deposit.
Unlike transactions such as property rentals, you do not need to make an additional deposit because it is generated automatically when a sale transaction is initiated. In other words, if you decide to sell any of the cryptocurrencies in your wallet, the platform will hold them immediately until the transaction is completed.
How does the security deposit work?
So that you better understand how this mechanism works, we will explain it to you below, with all the detailed steps.
Step 1
Create a sale order in the "Announcements" section and wait for a buyer to accept it; the time may vary depending on the supply and demand of the cryptocurrency at that moment.
Remember that another user will make the transaction, so there are orders 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 safeguards the transaction amount in a security deposit. It is essential to mention that when an order is accepted, the counterparty may decide to buy the entire amount offered or may prefer to buy only a part of it, in which case the escrow deposit will be for the amount the buyer wishes to purchase.
For example, if you are selling cUSD 100, 2 scenarios can occur:
- The buyer decides to buy the 100 cUSD.
- You must carry out several operations until you sell the 100 cUSD.
Step 3
Use the platform's chat to communicate with your counterpart; this will be essential since if a disagreement occurs, the entire chat history will be available to be analyzed in case of a dispute.
Step 4
Once you have verified that the counterparty made the agreed payment, you must confirm in our app that you received the payment, the platform will automatically release the funds held in the escrow, and your counterparty will immediately receive the cryptocurrencies.
Step 5
Transactions are generally completed without problems; however, there are cases where the counterparty does not respond or does not comply with what was agreed.
In these cases, the guarantee deposit is a fundamental part of the process since the affected user must open an appeal. El Dorado verifies what happened and grants the funds withheld 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 from each party.
How do security deposits help you?
This mechanism protects you and all El Dorado users from scammers; For the guarantee deposits to fulfill their function, you must maintain communication in the chat of our app. Ignore the invitation if any user asks you to talk outside of our chat.
Avoid communicating outside the platform! Because if you make a deal outside the platform, we will not be able to guarantee your safety or protect you from scammers.
In our P2P, it is not usual to find scammers, but there are times when disloyal people want to take advantage of the rest. While the reputation system helps you know 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 Bolívares, and you find an offer with a better price than the rest, but the seller has no previous orders, although this is not an indicator that the other is a scammer. How can you know that he will keep his part of the deal?
In these cases, the guarantee deposit is a mechanism that provides confidence since both parties know that the money is safe and that they must comply with the conditions established for it to be released.
In the event of a disagreement, our customer service will objectively observe both parties' versions and decide to release the funds in favor of the affected user. It does not matter the transaction amount; security deposits protect every transaction!
Would you like to start buying cryptocurrencies safely and with your local currency through El Dorado? Register here and discover the marketplace's multiple payment methods and alternatives for euros, dollars, and Bitcoins from Latin America.
