Bisq is one the most well-known decentralized exchanges. Before we get to the details of Bisq, let’s first understand the differences between a central and decentralized exchange.
To facilitate trading, decentralized exchanges use peer to peer networks. It’s like Craigslist, a marketplace that connects buyers to sellers. You may prefer a brokerage that is directly involved in your trades if you are using cryptocurrency to diversify stock portfolio. You can connect directly to a decentralized exchange. There is no middleman.
Bisq Cryptocurrencies
Bitcoin can be exchanged for more than 120 digital currencies as well as a variety of fiat currencies depending on the amount of users who add to it. The following crypto options are available:
- Ethereum (ETH).
- Litecoin (LTC).
- Monero (XMR)
- Dogecoin (DOGE).
- Dash (DASH)
- BSQ (BSQ).
- Grin (GRIN)
Bisq is not centralized so you don’t need an account to start trading. Bisq suggests that you create a new wallet to facilitate trades and send security deposits. You can also pay trading fees. Instead of using cloud-based software online to sync, the wallet file (along with the password and encryption) is stored offline and connects to the blockchain only when coins are exchanged.
There are over 50 payment methods available, ranging from sending U.S. money to exchanging an Amazon eGift card. You can choose from over 50 transaction methods, including sending money via the Postal Service or exchanging Amazon eGift cards. You must connect another wallet that accepts altcoins to trade Bitcoin. Currently, Monero and Ethereum are the most sought-after altcoins.
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Cryptocurrency assets are volatile in nature. Buy and trade at your own risk.
73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
You and another user will agree to purchase or sell Bitcoin. Once this is done, you’ll communicate with Bisq to coordinate payment details. As a sign of good faith, both parties will deposit money on Bisq. This will be refunded after the trade is completed.
What is Bisq?
Instead of visiting a website to make a trade, the app must be downloaded. The desktop application requires that users install it on their computers. Once the application is installed on your computer, you can add the bank account or choose a payment method to enable traders to trade on the platform. The platform is P2P, which means that there is no central server. This allows traders to verify transactions and store them on their own servers.
Centralized exchanges may ask clients to show a photo ID (passport, driver’s licence) or proof that they are residents (any utility bill such as an electricity bill, telephone bill, etc.). Wait for their approval. Traders can, however, immediately start trading on Bisq after verifying their accounts.
Bisq Working Procedure
Here’s how Bisq operates when a trade takes place:
- The trader decides whether or not to accept a trade offer from the crypto community. The Bisq connects them all.
- The wallet will then be opened by both users. The security deposit to the wallet is required in order for both users to be able to follow the trading rules. Sometimes it is used as collateral in the event of an error.
- Once everything is done, such as the trading fees and mining fees being processed, Bisq trades may be placed in a 2-sig multisig wallet.
The arbitrator is then randomly selected to make sure everything runs smoothly. Once all three parties have signed off that everything went well, the trade is finalized.
The majority of Bisq reviews indicate that users like the platform for its security, accessibility and decentralization. There are no third parties to coordinate trades on the platform so traders can just trade with each other. Bisq is a more independent cryptocurrency trading platform than a brokerage service that allows people to trade on different cryptocurrency exchanges.
Bisq Fees
Buyers set the price at which they wish to purchase Bitcoin, and sellers list the prices they will sell it for. Logging in will show you the most current offers from both sides.
When considering an exchange, you should be aware that some offers might be lower or higher than the Bitcoin market rate and fees at other exchanges. You’ll also enjoy anonymity through peer-to-peer trading. You don’t need to register with major crypto exchanges like opening a bank account. Instead, you can trade your Bitcoin and exchange very limited information.
Bisq charges transaction fees to you when you and another user agree to a sale. This fee is then paid into the decentralized autonomous community (DAO). According to the company, its DAO is based upon a self-contained economy in which governance is determined by the community but guided by software. The DAO is responsible for maintaining Bisq software online and setting transaction fees quarterly.
You can pay the trading fees using Bitcoin or the Bisq community token BSQ. The trading fees are 1% of the trade amount when paid using Bitcoin. Buyers will pay 0.88% and sellers 0.12% respectively. Paying in BSQ reduces the fees by half, as the tokens directly support community members. Members of the DAO adjust the exchange fees every quarter.
Trade Fees per 1 BTC Exchanged
| BTC | BSQ | |
| Seller | 0.0012 | 12.78 |
| Buyer | 0.0088 | 89.44 |
Depending on the payment method used, the Bisq community has per-trade limits. You can buy and sell Bitcoin with Amazon eGift cards. Your per-transaction limit for Bitcoin is 0.25 BTC. The transaction takes 24 hours. Face-to-face deals, in which you meet in person, have a one Bitcoin transaction limit. There is a four-day window for the exchange.
Bisq Features
Bisq provides the following core functions to its users:
Ease-of-Use
Because of the simplicity of Bisq’s interface, traders can trade on it in a matter of minutes. Many decentralized exchanges have complicated designs that make them difficult to use. This is why many traders prefer centralized exchanges even though they can switch to decentralized ones. Bisq’s developers have solved this problem and created an easy-to-use interface that traders can use to get the benefits of a centralized exchange.
Bisq Security
Bisq exchange values security and designed the system to maximize traders’ safety. P2P networks have their risks. It is not a central exchange and therefore traders are not at risk from cyber hackers.
Privacy
Bisq trading is transparent in every way. Users are not asked for personal information or any other data.
Functionality
Bisq trade execution requires the intervention of Arbitrators to ensure everything goes according to plan. This can make the process quite complicated. The platform’s functionality is otherwise quite seamless. Transactions can take some time depending on which payment option traders select.
Coins
Bisq exchange supports many altcoins such as ETH, DASH DOGE, DOGE, ZEN, and DOGE. The exchange’s dashboard allows traders to view the full list of supported altcoins and coins.
Pros and Cons
| Pros | Cons |
| Decentralized exchange | Decentralization is not for everyone |
| Different payment options | The application is quite simple |
| Instant approval | Fraud potential |
| Geo-restrictions not applicable |
Conclusion
Bisq is an excellent platform trading platform for bitcoins and other major cryptocurrencies. Because the exchange is decentralized, it’s very secure and does not require third-party platforms to trade bitcoins. Bisq allows anyone to trade for a small fee in Bitcoin. Let’s say traders feel comfortable using a P2P network, but are willing to pay a high fee. Bisq exchange could be a great platform for crypto enthusiasts who want to feel 100% anonymous, secure, and decentralized.
It is an excellent option for investors who are comfortable working on DEXs (decentralized exchanges) and have a solid understanding of the market. However, it can be limited for traders who are new to cryptocurrency and prefer working with a broker.
