How P2P escrow protects buyers and sellers

Peer-to-peer (P2P) trading connects people who want to buy crypto with people who want to sell it, using payment methods they agree on, such as a bank transfer. The exchange does not set the price and does not handle the fiat payment. What it does provide is escrow, and that is the piece that makes trading with a stranger workable.

The problem escrow solves

Without a middle step, somebody has to go first. If the buyer pays first, they rely on the seller to send the coins. If the seller sends first, they rely on the buyer to pay. Escrow removes that leap of faith by holding the seller's crypto until the payment has been confirmed.

How an order moves through escrow

1. 1A seller publishes an ad with a price, order limits and the payment methods they accept.
2. 2A buyer opens an order against that ad. The crypto for the order moves from the seller's available balance into escrow, so it cannot be spent or sold twice.
3. 3The buyer sends the fiat payment outside the platform, using the details shown in the order, and marks the order as paid.
4. 4The seller checks that the money has really arrived in their own account, then releases the crypto.
5. 5Escrow transfers the crypto to the buyer and the order is complete.

If the buyer cancels before paying, or the payment window runs out, the crypto returns to the seller.

What protects the buyer

Because the crypto is locked the moment the order opens, the buyer knows the seller actually has the funds. If the buyer pays and the seller does not release, the buyer can open a dispute instead of simply losing the payment.

What protects the seller

The seller never releases anything until they have confirmed the payment themselves. A paid status on the order is only the buyer's claim, so the seller should always check their bank or payment app directly, never a screenshot.

When the two sides disagree

A dispute pauses the order with the crypto still in escrow. Both parties can share evidence through the order chat, and support reviews it before deciding where the funds go. Keeping every message inside the order chat makes this process faster and fairer for everyone.

Good habits for P2P trading

• Keep conversation and payment details inside the order, not in outside messaging apps.
• Pay only from an account in your own name, and only to the details shown in the order.
• Read the ad's terms before opening an order, and do not cancel an order after you have paid.
• If anything feels off, stop and contact support before releasing or sending money.