Why escrow matters in peer-to-peer trading

What escrow actually does during a trade, and why it is the difference between a safe trade and a leap of faith.

When two strangers trade, someone has to go first. Without escrow the buyer sends money and hopes the crypto follows, or the seller sends crypto and hopes the money does. Escrow removes the hope.

The crypto is locked first

On CoinHubX the seller's crypto is locked by the platform the moment a trade opens. The buyer can see it is there before paying a penny. The seller knows it cannot be released until they confirm the payment.

Release is the seller's decision

The buyer marking a trade as paid does not release anything. Only the seller, after checking their account, releases the escrow. That is deliberate: it is what stops a buyer claiming a payment that never happened.

Disputes freeze everything

If the two sides disagree, the escrow stays locked while a CoinHubX mediator looks at the trade chat and the proof of payment. The crypto goes to whoever is in the right.

What it does not do

Escrow covers the crypto, not the fiat payment. That side goes directly between you and the other person, so always pay through the trade's payment method and keep proof.

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