Everyone is looking for a more convenient way to buy and sell cryptocurrency without involving any third party inside which is why peer-to-peer (P2P) trading is rapidly becoming popular in the crypto market.

In a peer-to-peer trading like that of Binance exchange you will observe that once you have placed a sell order, with a buyer, you will not be able to cancel the order, but the buyer or the system can cancel your order once the time elapsed.

The reason why you can not cancel your order once placed is that an escrow service will automatically hold your funds for the safety of the transaction until you and the buyer have agreed.

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A Peer to Peer Escrow

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An escrow is a service that holds your cryptocurrency until an agreement is reached between you and the person who is either buying or selling. This simply means an escrow is a service that stands between two parties which is a buyer and seller.

In P2P trading when a trade is placed it will automatically be forwarded to an escrow that will handle the exchange of the cryptocurrency between the two parties for the safe delivery of each party's funds.

As we have earlier mentioned the Binance peer-to-peer trading system is very safe, for buying and selling cryptocurrency for Fiat money. The escrow is what safeguards every transaction, that happens between buyers and sellers in the Binance P2P trade.

With escrow service being put in place both buyers and sellers trade with peace of mind because it is a very trusted service that ensures smooth delivery of transactions.

As a buyer once you have placed an order, and notified the seller that you have made the payment, the seller will have to confirm if you have made the payment, before releasing the cryptocurrency which once done will automatically be transferred from the seller's account to your account (buyer). Although, once an order is placed an escrow will hold the cryptocurrency until the two parties agree.

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Can there be a discrepancy?

In a situation where the buyer has made a payment and the seller refuses to release the cryptocurrency, the buyer can file an appeal for the Binance team to come in. And while an appeal is ongoing the seller will still not have access to the cryptocurrency because it is in the hands of an escrow service.

Now, once the Binance team or the team of the platform has come in place and collected the evidence of the two parties (buyer and seller), the team will determine who is the real owner of the cryptocurrencies, which will then be released to either the buyer or seller. One good thing that you should know about peer-to-peer escrow is that it is trustworthy, secure, and 100% ready to solve any dispute.

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how Peer to peer (P2P) Escrow work

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Using Binance as an example for this illustration since it is a popular exchange. As a trader who wants to buy or sell cryptocurrency, what you have to do is visit Binance P2P and follow the steps shared below.

Step1: You have to first place your order to either buy or sell. Once your order has been placed the crypto will be held by the exchange (Binance P2P escrow) until the transaction is completed successfully.

Step2: Initiate a conversation with the buyer or seller since you are trading with someone you don't know. This can be done using the chat box for your communication.

Step4: Release the cryptocurrency once the buyer has made the payment and mark the order as paid or Make your payment and Mark the order as paid. Note; in this case, If you are the seller, ensure you confirm the payment before releasing the coins for the buyer ASAP.

Step4: If the other party is not responding after you have made a successful transaction, you can then file an appeal, by clicking on the Appeal tab for an Escrow service which is the team of the exchange to know the reason why the cryptocurrency has not been released.

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Conclusion

_{An escrow helps protect both buyers and sellers from performing any fraudulent transaction. It helps transactions to go smoothly and fast which is 100% accurate.}

_{Note using an escrow outside that of an exchange like those on WhatsApp, telegram, etc is very risky, which means if you want to trade on P2P, make sure you have a reliable exchange.}