Decentralized Exchange

Bisq DEX Review 2020

Only Platform to Exchange Cryptocurrencies with complete anonymity.

  • Want to exchange fiat currency such as dollars, euros, or yen for bitcoin?
  • Are you looking for a secure and trustworthy P2P exchange platform? 
  • Do you wish your transactions protected against surveillance of banks, governments or any regulatory agencies?

Well, here I have a solution for you!!!

Bisq is formerly known as Bitsquare decentralized exchange, one of the popular P2P Cryptocurrency exchanges that are decentralized. It means the users will have complete control over their funds without making any account verification with the confidence in funds security and anonymity as it is a Decentralized exchange. 

Tip You can also read about more decentralized exchanges listed on Coinpedia 

Did You Know?

– The top 10 cryptocurrency exchanges earn about $62 million per month no matter whether the value is increasing or decreasing.
– About 99% trade happens on the centralized platform but decentralized is considered as a highly secured platform.
– Trade carried on decentralized exchanges are based on blockchain and transactions fees are comparatively lower.

A Brief Introduction to Bisq DEX

Bisq DEX is basically a free software released under version 3 of the GNU Affero General Public. It provides a secure, private and censorship-resistant way of exchanging bitcoin for fiat currencies over the internet.

Here,

  • Secure means the safety of user’s funds from hacks and thefts. 
  • Private means the ability to control access to their own information and
  • Censorship-resistant means voluntarily trade with one another without interference from the third party.

Where Bitcoin’s motto is ‘Be your own bank’, Bisq’s motto is ‘Be your own exchange’.

Recently on 08 April 2020, Bisq halted its trading after a hacker was successful in exploiting a flaw and stole Bitcoins worth $250,000 from users wallets. 

Bisq also issued a STATEMENT on critical security vulnerability.

Bisq Wallet Features

  1. Instant Access:- Enrolling with identity verification is not mandatory to start with the Bisq exchange.
  2. Bisq is Decentralized:- Transactions within the decentralized framework are distributed and hence are highly secured and cannot be hacked easily.
  3. Private:- Every single data is stored locally. Bisq doesn’t clutch your private data.
  4. Open and Simple:- Bisq’s undertaking is straightforward and the code is completely open-source. Its UI is also user-friendly no matter you are new in the crypto world.
  5. Safe and Secure:- Bisq never holds your assets as it utilizes a decentralized intervention framework. And Bisq’s Correspondance is encoded from end to end and routed over. 

How to Get Started?

The first step is to Download and Install from  The Bisq downloads Page

Once the installer is finished, open Bisq. Be patient as it would take a little more time as it connects to the Tor network and syncs with Bisq’s peer-to-peer trading network.

The first screen you should see is,

Market overview screen

The next step is to configure with the national currency account. Click on ‘Buy BTC’, page appeared will be,

Offers disabled before configuring national currency account

Initially, all the offer buttons will be disabled. Only after configuring with the payment account, all the offers are enabled.

How to set up a Payment Account?

  • Click on Create New Offer to Buy BTC with USD on the top right corner.
  • Fill all the details and click on ‘Save new account’ and go back to the ‘Buy BTC’ page. Now you can see, enabled options.
Configuring a national currency account

Security Deposits

Bisq charges some security deposits in the form of trading and mining fees to help prevent fraud. It is done basically but funding the account with Bitcoin. Both Buyers and Sellers are subjected to pay 0.006 BTC as a security deposit. 

So for the first time if you want to but 0.01 BTC you need to pay 0.061BTC  including security deposits.

Once you have enough bitcoin for your security deposits and fees, you can move it into Bisq’s built-in wallet. This is optional but recommended as the fees would be readily available during performing the trade.

How to Trade on Bisq

Now when we have set up the account and funded with enough Bitcoins, the next step would be surely trading.

Select an offer

First click on ‘TAKE OFFER TO BUY BTC’ which is enabled.

Deposit details

Next, is to fund your trade by adding the required bitcoins in your wallet.

Once you fund the wallet with the bitcoins, you will find the review or confirmation page. Something like this,

Confirm trade details

Make sure all the entered details are correct and click on ‘CONFIRM TAKE OFFER TO BUY BITCOIN’  which will initiate your trade.

The next step is to send payment. After taking the offer, you need to send the payment. After confirmation of the trade, Bisq will wait for the Bitcoin network to confirm the transaction and then you will see a pop-up page with the seller details. 

Seller payment details

Go ahead and pay the seller through the agreed payment method.

Once you have sent the payment, do mark the payments as sent in Bisq by clicking the Payment started button.

Mark payment as sent

 Once you click on this button, the seller will receive a notification that lets him know that his payment is on the way.

The final step is to complete the trade. The seller will mark as received as the payment is received in Bisq and release the Bitcoin with your security deposit. 

You can keep your new bitcoin in your built-in Bitcoin wallet by clicking on ‘Move Funds to Bisq Wallet’ or send it else were by clicking ‘Withdraw to External Wallet’.

Complete trade

Congratulations!!! You’ve completed your first trade on Bisq.

Supported Currencies and Payment Methods

The national currencies like Dollars, Euros, and Yen can be used to trade to get Bitcoins in Bisq DEX.

The payment methods supported are

  • Advanced Cash
  • AliPay
  • Cash Deposit
  • Chase QuickPay
  • Face to face (in-person)
  • Faster Payments
  • HalCash
  • Interac e-Transfer
  • Japan Zengin Furikomi
  • MoneyBeam (N26)
  • MoneyGram
  • National bank transfer
  • Perfect Money
  • Popmoney
  • PromptPay
  • Revolut
  • SEPA
  • SEPA Instant
  • Swish
  • Transfer with the same bank
  • Transfer with specific banks
  • Uphold
  • US Postal Money Order
  • WeChat Pay
  • Western Union
  • Zelle (ClearXchange)

Pro’s of Bisq DEX

  1. It is a decentralized exchange providing high security and fewer chances of hacking any transaction.
  2. The user need not provide any verification process nor the banks or the government can have a close look at them.
  3. The interface is user friendly and any new user can easily trade on the platform.
  4. No registration required or approval from a central authority.

Con’s of Bisq DEX

  1. Decentralized exchanges are generally considered as low in liquidity.
  2. Slow trading process.
  3. No compensation for losses.
  4. Limited functionality

Conclusion

An abstract idea of decentralized exchanges is a good idea. It would be highly secured and difficult to hack. And hence Bisq DEX could transact all your transactions securely. 

Bisq Review

David

Functionality
Reputation
Security
Support
Fees

Summary


Bisq exchange was launched back in 2014. At that time it was one of the first Decentralized Autonomous Organizations (or simply DAO).

4.4

FAQ’S


How Bisq is different from other decentralized exchanges?


Many decentralized exchanges do not accept fiat currencies or operate with a client-server architecture. But Bisq accepts fiat currencies and operates on the client-server architecture.


Is there any limit set for the trade?


To discourage fraud in fiat transactions, Bisq imposes limits on trade amounts. But there is no limit on the number of trades you do.


How if there is any dispute with the trade?


Bisq provides a 3-layer mechanism for resolving disputes:- trader chat, mediation, and arbitration. You can see Documentation for more details.


What happens in the case of software bugs?


If Bisq recognizes any bugs, it displays a ‘Support Ticket’ button. Your arbitrator will forward your bug report to the developers and try to solve it at the earliest.


What is Bitcoin ‘multi-signature address’?


Bisq uses multisignature address which is nothing but public keys used to create a payment address. The transaction must be signed by two or the three parties ( Buyer, Seller, and an arbitrator) for the funds to be released.

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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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