Trading Digital Items: Best Practices.
Digital Item Ownership is here thanks to the security of blockchain and the innovations of Enjins’ ERC-1155 standard on Ethereum. As this movement grows so too will the value of the digital items that people own.
This guide will provide a few tips on how to safely trade, sell and buy those coveted digital goods.
First things first, trading via a secure “smart contract” will always be the safest way to trade items and cryptocurrency. A smart contract is a trusted 3rd party that is coded to do a specific thing, such as holding onto certain items and only releasing them when specific requirements have been met.
For instance: Sam wants to buy Alice's rare armor that she is selling for 1,000 ENJ. Using a smart contract, Sam would send 1,000 ENJ to the smart contract and Alice (if she hasn’t done so already) would also send her rare armor to the contract. Once the item and payment have been sent, the smart contract will send Alice her 1,000 ENJ and Sam will be the new owner of the armor!
This example is the perfect “trustless” way to trade without any fear of a bad result.
Simple contracts like this are still being developed and will be the go-to route for most traders and sellers, but what happens until then? Trading peer-to-peer (p2p) is the solution.
Example: Sam wants to buy Alice’s rare armor that she is selling for 1,000 ENJ. In a p2p transaction, after Sam and Alice agree to the trade, Sam would use his Enjin Wallet to send Alice 1,000 ENJ, and once Alice confirms that she has the payment Alice would send Sam his new rare armor.
This example is based on “trust” which leaves the opportunity for Alice (if she is a “scammer”) to keep Sam’s 1,000 ENJ and never send the rare armor. This, unfortunately, is the risk we must take when trading p2p — but there are a few steps we can take to minimize that risk:
1. Use a website
Such as Token Oasis or a well known trading group to find people who are interested in trading, selling, and buying the digital items you are interested in.
Communities generally self-govern and weed out bad actors (scammers).
2. If you are a buyer
Always ask for the seller’s wallet address to ensure the seller owns the item he or she is trying to sell by checking the address via EnjinX.io or ENJ1155.com. This can be done easily on Token Oasis by visiting the sellers profile and clicking the Enjin/Eth Wallet link:
All “Trusted Traders” on Token Oasis have also signed their wallets to ensure they actually own the address.
If you are the seller or person who posted the token/digital item, you should never send until the funds/token have been confirmed in your wallet (very few businesses let a person have an item without paying for it, why should you?)
3. Look up the person you are transacting with.
Normally someone will be able to vouch for the person in the communities if you look for previous trades the person may have made in the channel.
For Telegram, click the magnifying glass to the right before you search for a name to only see past references in that specific group:
4. Report any bad deals to an admin or moderator.
If after following the previous 3 guidelines something bad happens and one party does not fulfill their part of the deal, it will help the communities to remove and inform others so the same bad actor cannot continue to scam others. Traders who commit such offenses be removed from the group, and in the case of Token Oasis their registered wallet address will forever be known as a bad actor.
Following these 4 simple practices will lead to strong trading communities and environments where we can all do what we enjoy: Gaming, collecting, and even generating income — CONFIDENTLY!
Please reach out with any suggestions or questions: