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Bitcoin => Bitcoin Discussion => Topic started by: ImHavingAGreatTime on August 23, 2016, 01:28:31 PM



Title: Is it possible to profit on Bitcoin escrow services?
Post by: ImHavingAGreatTime on August 23, 2016, 01:28:31 PM
I already knew about Waterhole, and after reading this article (https://cointelegraph.com/news/meet-your-seller-how-bitcoin-escrows-use-innovative-ideas), it got me thinking - is it possible to make a profit using a Bitcoin escrow service? Like if I download this Waterhole app, is there an undiscovered opportunity for a larger return, compared to trading on a regular exchange?

Bitcoin escrows are a tool, which is used to solve a specific problem. And that problem is not to trade bitcoins at the most efficient price, but rather at the highest degree of security, which, I'm assuming, means that the prices of each trade there should have a larger spread, hence more opportunity for profit. What are your thoughts?


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: konovalets on August 23, 2016, 01:39:20 PM
It's a very competitive area with low margins, so if you need fast profit you'd better look at some other field. 


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: ImHavingAGreatTime on August 23, 2016, 01:45:41 PM
It's a very competitive area with low margins, so if you need fast profit you'd better look at some other field. 

Do you mean trading in general, or Bitcoin escrows in particular?


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: ImHavingAGreatTime on August 23, 2016, 01:47:00 PM
It's hard to build trust in here because there's many scammer, you have to compete with escrow who have better reputation.
Also, i see few escrow who offer their services for free. Usually it's only to build their trust though.

So, i think it's still profitable, but you must build trust and promote your services. If you're looking for profit, you better do something else.

I think you misunderstood my meaning. I was talking about trading on a dedicated escrow market (as opposed to a regular exchange like Bitstamp, or CEX.io), not becoming an escrow myself.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Hazir on August 23, 2016, 01:48:26 PM
I read this article and I wonder about something: "For instance, they (Waterhole) allow an optional three-step verification for the users, consisting of ID, photo and video verification."

So if you need to practically give them your DNA sample, then what is the reason behind escrow at all?


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Pursuer on August 23, 2016, 01:53:00 PM
It's hard to build trust in here because there's many scammer, you have to compete with escrow who have better reputation.
Also, i see few escrow who offer their services for free. Usually it's only to build their trust though.

So, i think it's still profitable, but you must build trust and promote your services. If you're looking for profit, you better do something else.

I think you misunderstood my meaning. I was talking about trading on a dedicated escrow market (as opposed to a regular exchange like Bitstamp, or CEX.io), not becoming an escrow myself.

I have read the article and also a little bit about waterhole but I don't see how it is different from localbitcoins. maybe they have more steps for verifying users on the site (which many may even find intrusive) also a better interface to find local sellers on your phone but I don't really see how it is different also don't understand the part about escrow.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: 50cent_rapper on August 23, 2016, 01:54:23 PM
Go the classic routine - invest in altcoins.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: ImHavingAGreatTime on August 23, 2016, 01:54:55 PM
I read this article and I wonder about something: "For instance, they (Waterhole) allow an optional three-step verification for the users, consisting of ID, photo and video verification."

So if you need to practically give them your DNA sample, then what is the reason behind escrow at all?

Well, it also says that you don't HAVE to do it, but that's besides the point. I'm more interested in potential profit, rather than keeping my privacy.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: ImHavingAGreatTime on August 23, 2016, 02:00:41 PM
It's hard to build trust in here because there's many scammer, you have to compete with escrow who have better reputation.
Also, i see few escrow who offer their services for free. Usually it's only to build their trust though.

So, i think it's still profitable, but you must build trust and promote your services. If you're looking for profit, you better do something else.

I think you misunderstood my meaning. I was talking about trading on a dedicated escrow market (as opposed to a regular exchange like Bitstamp, or CEX.io), not becoming an escrow myself.

I have read the article and also a little bit about waterhole but I don't see how it is different from localbitcoins. maybe they have more steps for verifying users on the site (which many may even find intrusive) also a better interface to find local sellers on your phone but I don't really see how it is different also don't understand the part about escrow.

Well, Localbitcoins is an old service with a huge audience, while Waterhole is at an early stage, growing fast. This early stage instability, coupled with the element of chaos coming from the physical contact, could lead to higher potential for profit. At least, that was my assumption. Sadly, from the responses I got so far I see that I may have been wrong. Let's wait for other's opinions.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Jeremycoin on August 23, 2016, 02:01:43 PM
Escrow is not that profitable because usually, the fee of escrow is just 1% which is so low. But if you got a request for escrow service with a big amount of money (like 1BTC), it could be profitable.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: TraderETH on August 23, 2016, 02:03:10 PM
I think it is possible to profit on bitcoin escrow services and take the fees from it, although it will need much time and will be hard because the most difficult is get believe from users. You must be patient if you are realy will make its services.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Hazir on August 23, 2016, 02:05:36 PM
I read this article and I wonder about something: "For instance, they (Waterhole) allow an optional three-step verification for the users, consisting of ID, photo and video verification."

So if you need to practically give them your DNA sample, then what is the reason behind escrow at all?

Well, it also says that you don't HAVE to do it, but that's besides the point. I'm more interested in potential profit, rather than keeping my privacy.
And you also don't have to verify your identity when you are selling bitcoins on pretty much every bitcoin exchange I dealt with.
But when you sell more that $XXX amount and they will ask you nicely to send them your ID and until then they will block your account.

I suspect this might be the case here. But I am not 100% sure yet.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: OmegaStarScream on August 23, 2016, 02:07:31 PM
It will take you a lot of time till anyone starts trusting you (as you need to build some trust over the years). I mean you could get few clients in the next few months If you are trustworthy but only small transactions, If you want to go big, It's going to take some time.
Even after having enough trust , you will need to compete with other escrow as some of them offer transaction with low fees so I personally would look somewhere else , It probably doesn't worth it. It's more like an extra income


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: davis196 on August 23, 2016, 02:14:32 PM
I already knew about Waterhole, and after reading this article (https://cointelegraph.com/news/meet-your-seller-how-bitcoin-escrows-use-innovative-ideas), it got me thinking - is it possible to make a profit using a Bitcoin escrow service? Like if I download this Waterhole app, is there an undiscovered opportunity for a larger return, compared to trading on a regular exchange?

Bitcoin escrows are a tool, which is used to solve a specific problem. And that problem is not to trade bitcoins at the most efficient price, but rather at the highest degree of security, which, I'm assuming, means that the prices of each trade there should have a larger spread, hence more opportunity for profit. What are your thoughts?

Escrow service fees are very small and there any many already established escrows with good

reputation.It`s hard to compete against them.

I doubt that you can make any profit.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: extrabyte on August 23, 2016, 02:16:54 PM
Escrow is not that profitable because usually, the fee of escrow is just 1% which is so low. But if you got a request for escrow service with a big amount of money (like 1BTC), it could be profitable.

I think it is possible to profit on bitcoin escrow services and take the fees from it, although it will need much time and will be hard because the most difficult is get believe from users. You must be patient if you are realy will make its services.

I think you both, didn't read the OP and other comments above properly.
OP is not asking about that type of escrow or being a escrow provider.
he's asking some kind of bitcoin trading which built in some type of escrow. I my self didn't tried these type of services to don't know how much it is profitable or not.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: ImHavingAGreatTime on August 23, 2016, 02:24:28 PM
Escrow is not that profitable because usually, the fee of escrow is just 1% which is so low. But if you got a request for escrow service with a big amount of money (like 1BTC), it could be profitable.

I think it is possible to profit on bitcoin escrow services and take the fees from it, although it will need much time and will be hard because the most difficult is get believe from users. You must be patient if you are realy will make its services.

I think you both, didn't read the OP and other comments above properly.
OP is not asking about that type of escrow or being a escrow provider.
he's asking some kind of bitcoin trading which built in some type of escrow. I my self didn't tried these type of services to don't know how much it is profitable or not.


Yes, you're completely right.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Digitalbitcoin on August 23, 2016, 02:28:00 PM
If you keep certain amount in storage in fiat as well as bitcoin currency so it can give profit for trading surly but escrow service might be not that much profitable.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: allyplus on August 23, 2016, 02:29:18 PM
of course,  escrowhelp to make secure our transaction, then we pay it for his service.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Doamader on August 23, 2016, 05:35:25 PM
I dont know how many people here doing escrow, but sure the reputable will get more work then a person who is begining, and their fee is 1% soo since you arent risking nothing its pure profit, and you are helping others.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: WiseOldSage on August 23, 2016, 06:26:29 PM
Your prediction is not entirely wrong, at least it wasn't for Localbitcoins a couple of years ago. Check this thread (https://bitcointalk.org/index.php?topic=485893.0).

As you can see, that guy could make profit due to the fact that prices on Localbitcoins are less competitive than on a large regular exchange, such as Coinbase, which is probably explained by the comparative maturity of both platforms. Localbitcoins has grown pretty well since then, but Waterhole is still young, as you've said it yourself, so you can go ahead and try making money there.

However, be advised that there are also some risks, which are too covered in that thread.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: franky1 on August 23, 2016, 07:17:06 PM
due to things like multisig being part of LN. i dont think it will be long until escrow 'services' are a thing of the past. people will start using LN in different ways to do the things like escrows but without the middleman. because code will take care of it instead

same with mixers.. LN hubs will take over that role too.

in short the chances of setting up a business to be a middleman is starting to become obsolete, because essentially thats why this technology was created, to get rid of fat cats charging fee's to hold/service our funds.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: starsoccer9 on August 23, 2016, 09:53:11 PM
I think eventually yes, they will be, but I think we have a while to go for now. a lot of things currently can not be automated enough for escrow disputes, but eventually it will be possible.

due to things like multisig being part of LN. i dont think it will be long until escrow 'services' are a thing of the past. people will start using LN in different ways to do the things like escrows but without the middleman. because code will take care of it instead

same with mixers.. LN hubs will take over that role too.

in short the chances of setting up a business to be a middleman is starting to become obsolete, because essentially thats why this technology was created, to get rid of fat cats charging fee's to hold/service our funds.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Jeremycoin on August 23, 2016, 10:16:53 PM
Escrow is not that profitable because usually, the fee of escrow is just 1% which is so low. But if you got a request for escrow service with a big amount of money (like 1BTC), it could be profitable.

I think it is possible to profit on bitcoin escrow services and take the fees from it, although it will need much time and will be hard because the most difficult is get believe from users. You must be patient if you are realy will make its services.

I think you both, didn't read the OP and other comments above properly.
OP is not asking about that type of escrow or being a escrow provider.
he's asking some kind of bitcoin trading which built in some type of escrow. I my self didn't tried these type of services to don't know how much it is profitable or not.


You're actually right, it was my fault. But I thought the OP talking about Bitcoin escrow service in general, but it turned out the OP talking about the other thing.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: gilangIDR on August 23, 2016, 10:20:38 PM
it is very possible. you can earn money from the profits into escrow. escrow usually attracts a fee for every transaction made. it will make the escrow become one of the lucrative job.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: countryfree on August 23, 2016, 11:02:13 PM
No, don't think about it. The only person who can legitimately make a profit from escrow is the person providing the service, and his profit is very, very small. There's no way you could get a cut from that, and more than that, it would not be legitimate. Also, there's a lot of competitions between companies provoding escrow services. The margins are thin.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: shinratensei_ on August 23, 2016, 11:54:32 PM
Escrow is not that profitable because usually, the fee of escrow is just 1% which is so low. But if you got a request for escrow service with a big amount of money (like 1BTC), it could be profitable.

I think it is possible to profit on bitcoin escrow services and take the fees from it, although it will need much time and will be hard because the most difficult is get believe from users. You must be patient if you are realy will make its services.

I think you both, didn't read the OP and other comments above properly.
OP is not asking about that type of escrow or being a escrow provider.
he's asking some kind of bitcoin trading which built in some type of escrow. I my self didn't tried these type of services to don't know how much it is profitable or not.


Yes, you're completely right.
Maybe if I'm correct that is referred into building bitcoin trading using escrow system. but I don't think so, maybe that is will giving more profitable but I think that will giving a more charge into trader for using that. but I think you can just applying escrow system just for payment or withdrawal gateway, and like this, i wanna withdraw my money and I will get my first charge for my withdrawal from the trading site and the second I get from the escrow gateway.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: relq on August 24, 2016, 12:16:58 AM
I think yes, it's possible to get profit with a bitcoin escrow service, but people need to trust you on this forum and it's hard to make people trust you, especially if you are new on this forum.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Strongkored on August 24, 2016, 01:05:24 AM
I think yes, it's possible to get profit with a bitcoin escrow service, but people need to trust you on this forum and it's hard to make people trust you, especially if you are new on this forum.

Yeah gain the trust of the people it is very difficult and takes a long process to be trusted. Moreover, many rivals existing ecrow services and some even free. But I think if he was going to get serious in this endeavor, should be tried first. thank you


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: MingLee on August 24, 2016, 01:36:39 AM
It is entirely possible to profit from escrow services, considering there is basically next to no overhead involved with their ownership and operation, however the people who do run escrow services typically run at very low percentages when it comes to fees, and so it might not be worth the time due to some many people being able to do the same thing, and only trust changing whether someone is a relatively good escrow service or not. If you want to run one go ahead, but the money you'll make is probably on the lower end.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: electronicash on August 24, 2016, 05:25:58 AM
Even the trusted ones still get to be doubted by users especially what happen months ago with masterp.
There are websites doing escrow business but i don't see it used thru the transactions here. iCOs prefer to use exchanges as escrows.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Herbert2020 on August 24, 2016, 05:42:00 AM
from what i have seen from escrows, sometimes it is a lot of work for little reward. so if you are looking for profit i doubt that you can find it by escrowing even in this new system, especially because it is kind of new and there are fewer people using it.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: lemipawa on August 24, 2016, 05:46:26 AM
from what i have seen from escrows, sometimes it is a lot of work for little reward. so if you are looking for profit i doubt that you can find it by escrowing even in this new system, especially because it is kind of new and there are fewer people using it.
This is true, specially for those escrowing for Bitcointalk account, you dont only act as the 3rd party, you also act as the one who will verify the account if there's no hidden problem that may arise once deal is done and escrows name is on the line with that as well as being the person who checked the account first and you will be paid only a small amount that one can even say its a tip.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: yayayo on August 24, 2016, 10:09:55 AM
Personally I would trust an individual escrow of my choice here at bitcointalk a lot more than Waterhole, regardless if photo ID was provided or not. We already had numerous scams where scammers did provide all kinds of identity proof. I consider demanding personal data unethical, useless from a security viewpoint and even dangerous taking a privacy perspective. So there is no reason to use a more expensive service like Waterhole. A great advantage of selecting an escrow here at bitcointalk is that you are able to browse the member's post history, which can often be used as a good indicator for trustworthiness.

Talking about the profit side of providing escrow, I think it is very difficult to live from it. There are a lot of free (donation-based) escrow providers, so the potential margin is very low. In addition you have to cover the risks associated with this kind of service. In my view, you should see providing Bitcoin escrow primarily as a way to help people (and the Bitcoin economy in general) and not as a good to make profit.

ya.ya.yo!


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: Palodar on August 24, 2016, 10:17:49 AM
Personally I would trust an individual escrow of my choice here at bitcointalk a lot more than Waterhole, regardless if photo ID was provided or not. We already had numerous scams where scammers did provide all kinds of identity proof. I consider demanding personal data unethical, useless from a security viewpoint and even dangerous taking a privacy perspective. So there is no reason to use a more expensive service like Waterhole. A great advantage of selecting an escrow here at bitcointalk is that you are able to browse the member's post history, which can often be used as a good indicator for trustworthiness.

Talking about the profit side of providing escrow, I think it is very difficult to live from it. There are a lot of free (donation-based) escrow providers, so the potential margin is very low. In addition you have to cover the risks associated with this kind of service. In my view, you should see providing Bitcoin escrow primarily as a way to help people (and the Bitcoin economy in general) and not as a good to make profit.

ya.ya.yo!

yes it is difficult because you must first build trust in the forum and i think it will took too long time and can cause a lot btc to prove that you are a trusted user here.
the best example here is buying a physical  coin in marketplace to trusted seller then pay it without hassle in that case they might give you a trusted feedback. but escrow service is not a good source of  income.
you must join campaign rather than that service if you really want to earn.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: universe_ on August 24, 2016, 08:07:45 PM
it is very possible. you can earn money from the profits into escrow. escrow usually attracts a fee for every transaction made. it will make the escrow become one of the lucrative job.
yeah of course it is possible, in my opinion if you are actually a trusted person you can earn a lot of money with the fees


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: wintermeasures on August 26, 2016, 01:41:09 AM
I already knew about Waterhole, and after reading this article (https://cointelegraph.com/news/meet-your-seller-how-bitcoin-escrows-use-innovative-ideas), it got me thinking - is it possible to make a profit using a Bitcoin escrow service? Like if I download this Waterhole app, is there an undiscovered opportunity for a larger return, compared to trading on a regular exchange?

Bitcoin escrows are a tool, which is used to solve a specific problem. And that problem is not to trade bitcoins at the most efficient price, but rather at the highest degree of security, which, I'm assuming, means that the prices of each trade there should have a larger spread, hence more opportunity for profit. What are your thoughts?
According to me Firstly You Have To Build Some Trust Because Many Scammers Exist Here Then At First You Have To Offer your Escrow Service Free Of Cost Because It Helps You to Build Some Trust and Gain A User Base.....
Only Then You Can Make Profit With This Way.....


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: takingthis4 on August 26, 2016, 12:17:36 PM
it is very possible. you can earn money from the profits into escrow. escrow usually attracts a fee for every transaction made. it will make the escrow become one of the lucrative job.
well you are right, though you have to be a really trusted person in order for people to use your services


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: LFC_Bitcoin on August 26, 2016, 12:41:58 PM
@OP - I wouldn't bother trying to offer escrow services at your rank. I'm just being brutally honest. There are dozens of high ranking accounts who already offer free or very low fee escrow here.

You need to be at least a Hero Member & have positive, green trust to make money as an escrow.


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: universe_ on December 05, 2016, 12:46:51 AM
it is very possible. you can earn money from the profits into escrow. escrow usually attracts a fee for every transaction made. it will make the escrow become one of the lucrative job.
yeah of course it is possible, in my opinion if you are actually a trusted person you can earn a lot of money with the fees


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: zahra4577 on December 05, 2016, 12:53:40 AM
I read this article and I wonder about something: "For instance, they (Waterhole) allow an optional three-step verification for the users, consisting of ID, photo and video verification."

So if you need to practically give them your DNA sample, then what is the reason behind escrow at all?
Escrow provides good protection against fraud in small as well as big transactions.
If some trade involves less amount and one of the party cheated other, the victim is not likely to take legal course as money involves is less and legal fee will be much higher. In such cases,escrow provides fast and secure transactions


Title: Re: Is it possible to profit on Bitcoin escrow services?
Post by: btcdiggingmaster on December 05, 2016, 02:48:30 AM
Yes you can provide the service of escrow for bitcoin but the fee is very low and you need to spend lot of time according to work that you accepts. In starting it may be very low if you are accurate and fine with work you can manage many escrow service projects in that case you will make more profit from it.