Decentralized Exchange

Bisq DEX

Coinpedia brings forth to you a detailed Bisq Exchange review. You will gather knowledge about Bisq exchange, how use Bisq exchange, its benefits, security deposit and other trade-related information.

Bisq DEX is an application that allows users to buy and sell Bitcoins in exchange for national currencies or alternative cryptocurrencies. Users simply download the app or build it from the source, add national or crypto accounts, create a new offer or take an existing one, and then finalize the trade. It is not a company but a project organized as a Decentralized Autonomous Organization (DAO).

Bisq is built for those who:

  • Want to exchange a national currency such as dollars, euros, or yen for bitcoin.
  • Want to exchange a wide range of alternative crypto currencies for bitcoin.
  • Do not want to trust any exchange for holding their funds.
  • Do not want to forfeit control or privacy to a central authority to trade with other individuals.
  • Regard financial transactions as private speech that should be protected from surveillance by banks, governments, and other institutions.

The open-source platform supports nearly 150 altcoins and more than 20 payment methods for fiat. Additionally, crypto companies can support their own altcoins. Like all DEXs, Bisq does not hold any Bitcoins when users are trading. The Bitcoins are on a multisig address rather than a Bisq-controlled wallet.

Consequently, the exchange does not hold any national currency. But traders directly transferrthe currency among each other.

Features of Bisq

Bisq offers all of the following features:

  • Instant access: No need for you to enroll or check your identity with a central authority.
  • Decentralized: The framework is distributed, and exchanging can’t be controlled. It means that the exchange is non-custodial.
  • Safe: Bisq never holds your assets. It utilizes a decentralized intervention framework and security stores to secure traders.
  • Private: Every single individual data is stored locally. Bisq doesn’t monitor your private data.
  • Secure: Bisq’s correspondences are encoded from end to end and routed over.
  • Open: Every part of Bisq’s code is completely open source.
  • Simple: Bisq pays attention to ease of use, and has structured their UI to be simple for anybody to utilize — regardless of whether you’re new to the universe of cryptocurrency exchange.

Bisq Trading

Before continuing this Bisq exchange review and understand how to use Bisq, let us learn about Trade view

How to Get started with Bisq

With Bisq, you can start trading in less than 10 minutes:

  • 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.

The Bisq app is available for Windows, macOS and Linux. As of now, Bisq does not a mobile app. But it does come with Android and iOS notification app which sends message to your smartphone once trade gets over or any activity is done in your Bisq account.

This is the Trading platform.
bisq trade - Bisq exchange review
The trade view has a great interface. The Buy/Sell option is available on the trade exchange page. This form of exchange is easy for beginners to understand.

How does it work?

How bisq works - security deposit

It uses a Peer-to-Peer network over Tor. It does not store data belonging to users and does not require registration.

For traders, there is no limit to the number of trades although, for most bank-based payment methods like SEPA or Zelle, the trade limit is 0.25 BTC per trade. For Swish, OKPay, PerfectMoney, and AliPay it is 0.5 BTC and for altcoins, it is 1 BTC.

The trade limit is 0.16 BTC for Venmo, Cash App, Revolut, Popmoney and MoneyBeam (N26). During the first month, the trade limit is 25% of the full trade limit.

Fund your Bisq Wallet

Before trading through Bisq exchange, traders have to fund their Bisq wallet. This is to done to cover a security deposit as well as trading and mining fees.

Traders have to add 0.01 BTC, plus a trading fee and mining fees for the Bitcoin transactions involved in each trade to their wallet occasionally as a security deposit.
It sets security deposits to be a percentage of the trade amount—2% by default

Why Bisq Security Deposit is important?

Security Deposits act as insurance for both buyers and sellers. This exchange returns the Bisq security deposit once traders execute order. The platform does this to prevent fraud trades.

Trading and Depositing

During the process of trading, the traders — both the buyer and seller — will create a Bisq security deposit to make sure both follow rules of the protocol with little chances of abandonment. The security deposit is lock into a multisig escrow together with the Bitcoin being trading.

Parties who violate the trading protocols after an arbitration process lose the deposit. Thus, deposit (some or all) is an award to the other party.

However, traders will approve the arbitrator. They also lock a higher amount than the trade in a BSQ Bond and if a resolution they will not provide facilitates at by both parties. Therefore, the two can request to have the BSQ bond confiscation. This helps avoid collusion between arbitrators and traders.

The duration of trading on the platform depends on the region in which you are. However, there is a set period after which the trade goes into arbitration automatically. This includes 6 days for Eurozone for SEPA method, 1 for UK and Sweden.

It takes 4 days for global cash deposits, Western Union, and National bank transfers to automatically go to arbitration stage.

It discourages chargebacks by not supporting methods such as PayPal and credit cards and removing accounts where chargebacks are noted.

See more details on their FAQ page.

Bisq Fees

The exchange exchange deals with 2 types of fees

Trading Fees –

The exchange charges Makers 0.1% of trade amount while takers pay 0.3%. The minimum in both cases is 0.00005 BTC to avoid dust limits.

Mining Fees –

Mining fees is less for Makers compared to Takers. Makers pay only for trade fee transaction. However, Taker pay trade fee transaction, deposit transaction, and payout transaction.

Bisq Security

The next important question arises – Is Bisq safe? Lets understand its security part.

Bisq uses three primary mechanisms to achieve security:

  • All bitcoins traded with Bisq are secured in a 2-of-3 multisignature address.
  • Both traders are required to pay security deposits. These are refunded after trades are completed.
  • Bisq uses an arbitrator system to handle trade disputes.

Latest Updates and Developments

Sep 16, 2019: Bisq App v1.1.6 is released. With this version, mediation is added to the workflow.
Important Notice – Update The old app version should for compatibility reasons before Sep 19, 2019.

Bisq Alternatives

We have listed some alternatives for Bisq – BitPay, Coinbase Commerce, Coinomi, Circle Pay.

Compare the exchanges and let us know what you feel about Bisq exchange

Conclusion

Bisq is the best way to exchange your crypto. No KYC, no company behind it, no central point of failure. Just open source code for people to trade P2P between themselves.
The company boasts that It is the only place where you can exchange your fiat for crypto in a decentralized fashion. We will monitor other exchanges to verify this claim.

This Bisq exchange review is part of a crypto exchange review series. Our last reviews tested BittrexHuobiLiveCoinLocalTrade, and Bitmart. We are publishing reviews for each of the top exchanges, so don’t miss any of these updates

What do you think about this Bisq Exchange review? Share your thoughts on our Twitter and Facebook pages. 

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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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