Escrow

A protected holding mechanism that releases funds only when conditions are met.

Explanation

In P2P trading, escrow helps protect both sides: the buyer’s payment is matched with the seller’s asset, and the asset is released once the trade requirements are satisfied.

Why it matters

  • It reduces “pay and run” risk by tying the asset release to the trade flow.
  • It makes disputes resolvable because the platform can verify steps and evidence.
  • It lets you trade with strangers more safely than off-platform deals.

Examples

  • “Escrow is holding the crypto until payment is confirmed.”
  • “Don’t release from escrow until you have final proof of payment.”

Common mistakes

  • Releasing escrow due to pressure before payment is final.
  • Moving chat or payment off-platform (hard to prove in disputes).
  • Ignoring the trade instructions for proof/notes.

Safety tips

  • Keep all communication on-platform.
  • Release only after you can prove the payment is final.
  • Collect clear proof of payment (receipts, timestamps).

Related pages

Related terms

FAQ

What does “Escrow” mean?
A protected holding mechanism that releases funds only when conditions are met.
Where is this term used on the site?
This glossary page is the canonical definition. Use the related links below to jump into guides and hub pages where the concept is applied.
Is this financial advice?
No. These pages provide definitions and safety-oriented explanations, not investment advice.