Is it possible to profit on Bitcoin escrow services?

[ImHavingAGreatTime]

I already knew about Waterhole, and after reading this article, 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?

[konovalets]

It's a very competitive area with low margins, so if you need fast profit you'd better look at some other field. 

[ImHavingAGreatTime]

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?

[ImHavingAGreatTime]

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.

[Hazir]

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?

[Pursuer]

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.

[50cent_rapper]

Go the classic routine - invest in altcoins.

[ImHavingAGreatTime]

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.

[ImHavingAGreatTime]

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.

[Jeremycoin]

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.

[TraderETH]

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.

[Hazir]

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.

[OmegaStarScream]

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

[davis196]

I already knew about Waterhole, and after reading this article, 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.

[extrabyte]

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.

[ImHavingAGreatTime]

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.

[Digitalbitcoin]

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.

[allyplus]

of course,  escrowhelp to make secure our transaction, then we pay it for his service.

[Doamader]

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.

[WiseOldSage]

Your prediction is not entirely wrong, at least it wasn't for Localbitcoins a couple of years ago. Check this thread.

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.