bisq

Overview of bisq

Established in 2014 in China, Bisq is a cryptocurrency trading platform that allow users to trade Bitcoin and other cryptocurrencies directly with one another without the need for a centralized intermediary.

The platform does not require users to provide personal information or undergo KYC verification, preserving user anonymity. Users also benefit from a wide range of payment methods for fiat transactions, including bank transfers, PayPal, Revolut, TransferWise, and more.

Bisq operates outside regulatory oversight and the platform often experiences lower trading volume and liquidity compared to major centralized exchanges, which can result in slower trade execution and wider spreads.

Pros and Cons

Pros

• Decentralization: Bisq operates without a central authority, reducing the risks associated with centralized exchanges, such as hacking and fraud.

• Privacy and Anonymity: Users do not need to provide personal information or undergo KYC (Know Your Customer) verification, preserving privacy and anonymity.

• Control Over Funds: Users retain control over their funds throughout the trading process, as Bisq does not hold users' assets.

• Variety of Payment Methods: Bisq supports a wide range of fiat currencies and payment methods, making it accessible to users worldwide.

Cons

• Liquidity: As a decentralized exchange, Bisq often has lower trading volume and liquidity compared to major centralized exchanges, which can lead to slower trade execution and wider spreads.

• Miscellaneous Fees: While Bisq avoids the fees associated with centralized exchanges, users still need to pay trading fees and Bitcoin network mining fees, which can add up, especially for smaller trades.

• Low Speed: The peer-to-peer nature of Bisq can result in slower trade execution times compared to instant trades on centralized exchanges.

• Limited Support: Without a centralized customer support team, users must rely on community forums, documentation, and self-help resources, which may not provide the same level of assistance as dedicated support services.

Regulatory Authority

Bisq operates outside regulatory oversight.

Without regulation, risks escalate due to potential lack of transparency and accountability. Consumers face increased vulnerability to exploitation, fraud, and inadequate service standards.



Security

Although Bisq is not regulated by any major authority, it has several robust security features designed to protect users and their funds:

1. Decentralized Architecture: Bisq is a decentralized exchange (DEX), meaning it has no central point of failure. Users trade directly with each other, reducing the risk of hacks that target centralized exchanges.

2. User Control of Funds: Users maintain control over their funds at all times. Trades are conducted using multi-signature wallets, ensuring that neither party can access the funds unilaterally without the other party's consent.

3. Multi-Signature Escrow: Each trade involves a multi-signature escrow system. This system requires both the buyer and the seller to sign off on the transaction, adding a layer of security to ensure that both parties fulfill their trade obligations.

4. Security Deposits: Both parties in a trade must place a security deposit. This deposit incentivizes honesty and adherence to trade terms. If either party fails to meet their obligations, the deposit can be forfeited.

5. End-to-End Encryption: Communication between users is end-to-end encrypted, ensuring that sensitive information is not intercepted or compromised.

6. Open Source: Bisq's code is open source, allowing for public scrutiny and audits. This transparency helps identify and fix potential vulnerabilities quickly.

7. Privacy Features: Bisq does not require users to provide personal information or undergo KYC (Know Your Customer) verification, enhancing privacy and reducing the risk of identity theft.

8. Peer Arbitration: In the event of a dispute, Bisq employs a decentralized arbitration system. Trusted arbitrators help resolve issues fairly, and their decisions are enforced through escrow and security deposit mechanisms.

9. Regular Updates: The Bisq development team and community continually work on improving the platform, releasing updates and patches to address any security vulnerabilities that arise.



Cryptocurrencies Available

Bisq supports a wide range of cryptocurrencies for trading. Here are some of the major cryptocurrencies typically available on Bisq:

1. Bitcoin (BTC)

2. Ethereum (ETH)

3. Monero (XMR)

4. Litecoin (LTC)

5. Dash (DASH)

6. Zcash (ZEC)

7. Bitcoin Cash (BCH)

8. Dogecoin (DOGE)

9. Bitcoin SV (BSV)

10. Decred (DCR)

11. Horizen (ZEN)

12. PIVX (PIVX)

13. Qtum (QTUM)

14. Siacoin (SC)

15. SYScoin (SYS)

In addition to these, Bisq often supports many other altcoins, depending on user demand and community contributions.



Trading Market

Bisq supports a variety of trading markets, including:

1. Fiat-to-Crypto Markets: Users can trade fiat currencies (e.g., USD, EUR, CAD) for cryptocurrencies like Bitcoin. This market is particularly useful for individuals looking to enter the cryptocurrency space directly from traditional fiat currencies.

2. Crypto-to-Crypto Markets: Users can trade one cryptocurrency for another. Popular pairs include BTC/XMR, BTC/ETH, and BTC/LTC. This market is beneficial for those who want to diversify their cryptocurrency holdings without converting back to fiat.

3. Bitcoin as the Primary Asset: Most trades on Bisq involve Bitcoin as one side of the trading pair. For instance, you can trade Bitcoin for Monero (BTC/XMR) or Bitcoin for Ethereum (BTC/ETH).

Examples of Trading Pairs:

- Fiat to Crypto:

- USD/BTC

- EUR/BTC

- CAD/BTC

- Crypto to Crypto:

- BTC/XMR (Bitcoin/Monero)

- BTC/ETH (Bitcoin/Ethereum)

- BTC/LTC (Bitcoin/Litecoin)

Fees

Trading fees are calculated as a percentage of trade size: 0.1% for makers and 0.7% for takers if paid in BTC and about half of that if paid in BSQ. Keep in mind that you'll also need to pay mining fees for the on-chain transactions, as well as a deposit to lock into the multisig escrow. You'll get the deposit back in full after the trade completes successfully.



Payment Method

Bisq offers several payment methods to buy and sell bitcoin for fiat currencies or other cryptocurrencies.

Every offer on Bisq designates a payment method for traders to settle payments. The Bisq software does not actually integrate with any payment methods—all non-Bitcoin fund transfers are made outside of Bisq software.

Unlike cryptocurrency transfers, many fiat payment transfers are riddled with flaws and limitations that require Bisq to employ special measures to encourage fair and honest trades. One of these measures is lower per-trade limits, which are covered below. Another key measure is account signing.

Fiat payment methods

The payment methods vary in chargeback risk, regional availability, transaction size, fees, privacy, verifiability, and other characteristics. The top consideration for maintaining payment methods is chargeback risk. PayPal, Venmo, and Cash App are not supported on Bisq because chargebacks for payments made with those services are relatively easy.

Bisq supports a wide range of payment methods for fiat transactions, including but not limited to:

• Bank transfers (SEPA, ACH)

• Revolut

• TransferWise

• Western Union

• Zelle

• Cash deposits

• Various other local payment methods

This diversity in payment options and the decentralized nature of the platform makes Bisq a versatile choice for users worldwide, catering to both fiat-to-crypto and crypto-to-crypto trading needs.

Altcoin payment methods

Bisq also supports a variety of cryptocurrencies for buying and selling bitcoin, like XMR, ETH, ZEC, L-BTC or LTC. Because altcoin transfers are irreversible and relatively quick, altcoin trades can be up to 2 BTC in size right away (no need to wait for account aging or account signing).



How to Buy Cryptos？

Below is a detailed, step-by-step guide on how to purchase cryptocurrencies on Bisq:

• Download the app, or build it from source.

• Add your national or crypto currency accounts.

• Create new offer or take an existing one.

• Follow the user interface to finalize the trade.



Is Bisq a Good Exchange for You？

In summary, Bisq is a good exchange for those who prioritize privacy, security, and decentralization and are comfortable with a peer-to-peer trading environment. However, it might not be the best fit for users seeking high liquidity, fast trades, or immediate customer support.

Customer Support

Bisq operates differently from traditional exchanges, so its customer support model is also unique. Since it is a decentralized platform, it does not have a centralized customer support team. Instead, Bisq relies on community support and self-help resources:

• Community Forum: Bisq has a community forum where users can ask questions, share experiences, and get help from other community members and contributors.

• GitHub: Issues and bugs can be reported on Bisqs GitHub repository, where developers and other community members can assist with technical problems.

• Social Media and Chat: Bisq is active on various social media platforms and has chat groups (e.g., on Keybase), where users can seek help and interact with the community.



FAQ

Q: How does Bisq ensure the security of trades？

A: Bisq uses a multi-signature escrow system, where both the buyer and seller must sign off on the transaction. Additionally, both parties place security deposits, which help ensure that trade obligations are met.

Q: Do I need to provide personal information to use Bisq？

A: No, Bisq does not require users to provide personal information or undergo KYC (Know Your Customer) verification, allowing for greater privacy and anonymity in trades.

Q: What cryptocurrencies can I trade on Bisq？

A: Bisq supports a wide range of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Monero (XMR), Litecoin (LTC), and many others.

Q: What payment methods are available on Bisq？

A: Bisq supports numerous payment methods for fiat transactions, including bank transfers, PayPal, Revolut, TransferWise, Western Union, and various other local payment options.

Q: How are disputes handled on Bisq？

A: Bisq has a decentralized arbitration system where trusted arbitrators help resolve disputes between trading parties. The outcomes are enforced through the platforms multi-signature escrow and security deposit mechanisms.

Q: How does Bisq maintain user privacy？

A: Bisq maintains user privacy by not requiring personal information or KYC verification. All communications between users are end-to-end encrypted, and users control their funds through their own wallets.

Risk Warning

Cryptocurrency exchange investments come with inherent security risks. It is important to be aware of these risks before engaging in such investments. Cryptocurrency exchanges are susceptible to hacking, fraud, and technical glitches, which can result in the loss of funds. It is recommended to choose reputable and regulated exchanges, stay updated on security measures, and be vigilant in detecting and reporting any suspicious activities. Please ensure that you understand the risks involved and note that the information contained in this article is for general information purposes only.