In a peer-to-peer trade the crypto and the payment move through different channels, which creates an obvious problem: whoever goes second could simply not go.
Escrow is what solves it. The platform holds the seller's crypto the moment the order opens, so the seller cannot vanish, and releases it only once the payment is confirmed, so the buyer cannot either. Everything that makes the system safe lives inside that order - the escrow, the record, the appeal. Which is exactly why moving the conversation or the payment outside it removes the protection and keeps the risk.
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/peer-to-peer
Trading crypto from Dubai since 2019.
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