Peer-to-Peer (P2P) trading allows you to buy and sell cryptocurrencies directly with other users using your local currency. However, trusting a stranger can be risky. EXTRACTBIT eliminates this risk with our secure P2P Escrow Service, ensuring that every transaction is fair and protected.
How the Escrow Works
Our escrow service acts as a neutral third party in every P2P trade. Here is the lifecycle of a secure trade:
- Order Placed: When a buyer places an order, the seller's crypto assets are immediately "locked" by EXTRACTBIT's escrow service. The seller cannot withdraw or use these funds.
- Payment Made: The buyer sends payment to the seller via the agreed-upon method (bank transfer, wallet, etc.) outside of the platform.
- Confirmation: The buyer clicks "I have paid" on EXTRACTBIT.
- Release: Once the seller confirms receipt of the money in their bank account, they release the crypto. The escrow service then instantly transfers the assets to the buyer's wallet.
Dispute Resolution
What happens if something goes wrong? If a buyer claims they paid but the seller denies receiving it, our dispute team steps in.
Because the crypto is held in escrow, the seller cannot run away with the funds. Our support agents will review proof of payment (bank receipts, screenshots) and chat logs. If the buyer can prove payment was made, we will release the crypto from escrow to the buyer, even without the seller's cooperation.
Safety Tips for P2P Trading
- Never release crypto before receiving payment: Check your bank account login directly; do not rely on SMS or email notifications which can be faked.
- Keep communication on the platform: Use the EXTRACTBIT chat for all trade-related conversation. This serves as vital evidence in case of a dispute.
- Verify the name: Ensure the sender's name on the bank transfer matches the verfied KYC name of the buyer on EXTRACTBIT.
With EXTRACTBIT's P2P Escrow, you get the flexibility of peer-to-peer trading with the security of a centralized exchange.