Over-the-counter (OTC) bitcoin deals are often complicated, due to the lack of regulation in the market and the fact that assets are irrevocable once sent. This means it is understandable that many sellers have concerns during the negotiation process.
One of the main reasons why many sellers are cautious during negotiations is because they may have been burned by past experiences with unscrupulous buyers.
Overall, the fact that most parties prefer to stay anonymous in the early stages of the deal means that gaining trust is very difficult. In particular, providing proof that the seller has the coins, and that the buyer has the necessary funds, can present a challenge when parties prefer to remain anonymous.
Even for legitimate and ready-to-close parties, it is usual that neither side wants to be the first to show their asset and leave themselves vulnerable. While all business deals require a degree of faith in the other side, the nature of Bitcoin means that trust is particularly important, yet difficult to develop.
The key to advancing the deal, therefore, is to foster that trust between the parties while also preserving anonymity. The solution here is to use a third party asset verification platform such as UpVerified.
UpVerified.com is built specifically for OTC bitcoin deals and helps build trust between sellers and buyers. The buyer and seller work independently with UpVerified to have their assets verified, while their anonymity is preserved.
The fact that both parties are ready to close can, therefore, be confirmed by UpVerified easily.
Traditionally, this confirmation of readiness occurs through a small amount of coins being sent to the buyer’s wallet. The downside of this is that it runs the risk of revealing the seller’s wallet address to the unknown buyer.
On the other hand, UpVerified allows sellers to shield their wallet address while confirming the balance of their coin wallet. Once the balance has been verified, the digital letter of attestation is available to be viewed by the buyer, through entering a secure access code provided by the seller through a private link.
All of this occurs on UpVerified, and the platform automatically notifies the seller of the results once the buyer is verified.